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Withholding Tax (WHT) is not applied in D365 BC localization New Zealand

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Posted on by KC-13111253-0

Hello everyone,

I'm currently working with Dynamics 365 Business Central (v25) and facing an issue with Withholding Tax (WHT) in the New Zealand localization.

I have completed all the necessary setups including:

Withholding Tax Setup (WHT Business Posting Groups, WHT Product Posting Groups, and WHT Posting Setup)

VAT setup

Vendor configuration (with correct WHT Business Posting Group)

G/L accounts and items (with appropriate WHT Product Posting Group)

WHT Posting Group mappings and accounts are all defined

However, when I create a Purchase Invoice, the Withholding Tax is not being applied or calculated.

Interestingly, I followed the same configuration steps in an Australia localization environment, and it works as expected — WHT is applied automatically when posting a Purchase Invoice.

Has anyone else experienced this issue with WHT in the New Zealand localization?

Is there a specific localization-related setting or limitation that I might be missing?

Any guidance or suggestions would be greatly appreciated.

Thanks in advance!

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Dynamics 365 Business Central

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YUN ZHU 89,846 Super User 2025 Season 2 on at

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Withholding Tax (WHT) is not applied in D365 BC localization New Zealand

Hi, For localization issues, I recommend you post them in the following Yammer Group. Microsoft technicians should be able to give you a more accurate response.

Viva Engage : Dynamics 365 Business Central Partner Community (Formerly: Development) : Localization & Legislation : New Conversations

aka.ms/BCYammer: Dynamics 365 Business Central Partner Community (Formerly: Development)
More details: About Business Central partner community on Viva Engage (formerly Yammer)

Thanks.

ZHU

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Khushbu Rajvi. 18,869 Super User 2025 Season 2 on at

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Withholding Tax (WHT) is not applied in D365 BC localization New Zealand

Hope this helps:https://learn.microsoft.com/en-us/dynamics365/business-central/localfunctionality/newzealand/how-to-set-up-withholding-tax

https://learn.microsoft.com/en-us/dynamics365/business-central/localfunctionality/newzealand/withholding-tax

https://community.dynamics.com/forums/thread/details/?threadid=3c7811d3-e4af-47cf-9389-ace7011a7ec8

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Holly Huffman 6,518 Super User 2025 Season 2 on at

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Withholding Tax (WHT) is not applied in D365 BC localization New Zealand

Good morning, afternoon, or evening depending on your location!

It looks like Withholding Tax (WHT) in the New Zealand localization of Dynamics 365 Business Central (v25) may have specific settings or limitations that differ from the Australian localization. Here are a few things to check:

Possible Causes & Solutions

Threshold Amount for WHT Calculation:

In New Zealand, WHT is not calculated if the individual invoice amount is less than or equal to the threshold amount.

Ensure that the WHT Minimum Invoice Amount is correctly set in WHT Posting Setup.

WHT Calculation Rule:

The WHT Calculation Rule determines how WHT applies based on invoice amounts.

Try setting it to "Less than or equal to" to ensure invoices above the threshold are included.

Vendor IRD Number Requirement:

If the vendor has not provided an Inland Revenue Department (IRD) number, WHT may not apply.

Verify that the vendor setup includes a valid IRD number.

Localization-Specific Differences:

The New Zealand localization may have different realized WHT types compared to Australia.

Ensure that the Realized WHT Type is set to "Payment", as other options like "Invoice" may not apply in New Zealand.

G/L Account Mapping:

Double-check that the Payable WHT Account Code is correctly mapped in WHT Posting Setup.

Next Steps

Try adjusting the WHT Calculation Rule and Threshold Amount.

Ensure vendors have a valid IRD number.

Review the Realized WHT Type setting.

Check for any localization-specific limitations in the Microsoft Learn documentation.

Hope this helps some!

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