[New Feature] Global Withholding Tax in MSD365 FO

Dear Dynamics D365 Lovers,

Welcome to my blog on ‘Global withholding tax’, this short article will help you to understand the nice change in the Microsoft Dynamics 365 Finance and Operations product.

Majority of the countries in the glob having their withholding tax legislation, which is on non-inventory items or services, buyer is responsible for paying taxes to government authorities and therefore the buyer is responsible to withhold certain percentage of invoice at the time of payment to supplier/vendor.

Current way

In standard product, as of now since beginning, the only way to configure the Withholding tax was to withholding tax codes and withholding tax groups in all countries, except very few countries like United Kingdom, India.

See the current function available

Disadvantage of the current way

The standard product is working fine but this has manual effort in the settlement and reconciliation due to the not availability of the options , as follows

1. The standard Withholding tax function has no withholding tax item group setup option
2. The standard Withholding tax function has no withholding tax settlement option
3. The standard Withholding tax function has no separate withholding tax authority.

Change

Microsoft has reconsidered this function and thankfully brought up the change in the product in 10.0.17, which is, this function will work exactly like the whole feature available in countries like India, United Kingdom

(Note- in India and UK, there are localized function available such as Components for IND, CIS for UK, these will not be included in the new change).

Enabling the change

Prerequisite -Make sure your product version is 10.0.17

1. In the Feature management workspace, select Global withholding tax, and then select Enable now.

1. Go to Tax > Setup > Parameters > General ledger parameters, and then, on the Withholding tax tab, set the Enable global withholding tax option to Yes.

1. Select Save.
2. Refresh the page in your web browser.

(Note- In case you don’t find this feature, click check for updates on the right side of the screen, it will come and then enable that)

By the above setup the legal entity will be enabled with the whole withholding tax setup

The below change will be visible in the tax module

For more information regarding the configuration of whole Withholding Tax Setup, kindly go through the blog on United Kingdom Withholding Tax Setup, here UK Withholding Tax Setup

That's it for this blog, stay tuned for more articles