Tasks to be completed when documenting an operation (from creation to publication)

 1. Enter the Title of the operation / page

2. Add the following Labels : 

    • Scope of applicability: ww, country_accounting 

    • Country or group of countries (if applicable): belux, china, france, italy, lam, nam, uk_ie, bulgaria, dach, netherlands, iberia, poland, latvia, australia, india, japan, south_korea, thailand, singapore

    • Unit and Domain according to the List of labels to be used in the Finance Service Line space

      • E.g. 1: WW Operation in Financial Accounting under domain "Central Finance Processes & Compliance":
        • Labels to be used: ww, financial_accounting, central_fin_proc_compliance

      • E.g. 2: France Operation in Financial Accounting:
        • Labels to be used: country_accounting, france, financial_accounting
          (for country operations, the Domain is always country_accounting)


3. Fill in all fields as described above

 4. Once the description of the operation is completed, ensure it is approved and published by launching the SBS-Finance approval workflow 




Domain: Country Accounting



Responsibility area: N/A


Table of contents 

By default the table of contents displays Heading 1 & Heading 2 (other levels can be added)



Scope

3. Remove the icon when not applicable


ERP

4. Remove the icon(s) when not applicable

To be filled!

Frequency

5. Remove the icon(s) when not applicable

 

 

 To be confirmed!

References

6. Add the link to SAP transaction(s) (when it exists)


Forms

7. Insert the links accordingly and change the link text with the OP name

IT Withholding tax on third parties payment - Ritenuta dAccounto

(to be confirmed!)

IT Withholding tax on third parties payment - Ritenuta -8090 


Attachments

8. Add the link to attachments or external links



To be filled << >> To be filled!



1. Objective and Scope

1.1 Objective of this Operation

Simply said, withholding tax means, that Solvay assumes the responsibility from the supplier to pay due taxes to the fiscal authorities. The purpose of this document is to prepare the data to deliver these obligations until the 16 of each month.. 
Based on this procedure, we will prepare the information of the withholding tax on third parties to be paid on monthly basis and must be summarized in a specific model (called 770) in the beginning of the year. This annual return is completed by HR with the WHT concerning the personnel.

1.2 Scope

This operating procedure (OP) applies to company Italian companies:
0270 : SOLVAY CHIMICA (IT)
0279 : SOLVAY (IT)
5835 : SOLVAY SPOL IT
6277 : SOLVAY ENERGY SERVICES IT
6306 : COGEN SPINETTA
6328: COGEN ROSIGNANO
8090 : SOLVAY SOLUTIONS IT


2. Definitions

See Finance Glossary:


3. Tasks description

3.1. Periodicity

To be done on a monthly basis at D6 the latest.

3.2. Withholding tax to be paid

It is known in Italy as RITENUTA D' ACCONTO and corresponds to the amount of withholding tax to be paid to the tax authorities on invoices effectively paid on behalf of third parties by the 16th of the month following the date of the payment of the invoice.

3.2.1. How to prepare the information

3.2.1.1. Transaction FIWTIT_CU - Italy withholding tax reporting

Run transaction FIWTIT_CU - Italy withholding tax reporting

1. Select Variant IT RITENUTA


2. Several parameters are already filled you just need to confirm:

    1. Company code
    2. Period (should always be the previous month)

 

3. Execute.

The result will be similar to:


4. Then change the layout to  /RITENUTA


5. Last step is to extract the data to excel and copy it to the template indicated.

Go to "Print preview of entire hierarchy"

 


A new screen will appear and go to system and extract to excel as shown:

 


With this extraction we will have an overview of all movements in the accounts and provide detailed information about the vendors we are paying the withholding tax for. 

3.2.1.2. Calculation of the monthly F24 Payment

By principle we have to pay the WHT only for those invoices effectively paid. 
Taking in consideration that at the time of the assignment to CICC, the WHT is posted temporary in account 2452090100 (KS document) and only at the due date of the invoice (= real payment date to the vendor) the amount is cleared and transferred to account 2452090000 - Withholding taxes payable-others, it's in account 2452090000 that we find the WHT to be paid. 
Having that as a second step open the template indicated in the end of the procedure. 
Copy the information extracted in 3.1.1.1 to column B:


The extraction is providing us all the invoices posted within the period with withholding tax to be paid. From this list we will need to confirm if there are invoices from previous periods paid in the current month and if invoices posted will be paid in the future. 
For that, open transaction FBL3N with open items at end of each month for account 2452090000 and confirm with the details extracted.
Go to the file, sheet Detail RITENUTA D'ACCONTO and add in collumn A the month of the payment:

  • If invoice paid in the current month add the number correspondent to the month (1 to 12)
  • If invoices posted will be paid in the future leave it blank.


Note that in some cases you may have differences between the vendor extraction and SAP due to manual postings, contracts cancellation, etc. In these cases check line items in the SAP account and add it in the file sheet Detail RITENUTA D'ACCONTO. 
Refresh the pivot table from sheet F24 PAYMENT to calculate the total amount to be paid in the month.

 

In the end the total amount to be paid in the current month reflect the open items balance of account 2452090000 and the invoices we are not considering reflect the amount open in account 2452090100. 
Take as example March 2017 for company 0270: 



 

As soon as you finalise this check send a message to CAM indicating the amount to pay for the month in analysis and the link to the filled template to ensure that the F24 payment is done.

3.2.1.3. Consistency check

By the end of the month after the booking of the bank movement F24 (1040 + 1038) you can complete the procedure by checking and clearing the a account 2452090000. 
Complete the information in the table for future reference and in case of differences add a comment and report to CAM.

3.2.2. How to prepare the information for Solvay Solutions

3.2.2.1. Transaction S_P00_07000134 - Generic Withholding Tax Report

Run transaction S_P00_07000134 - Generic Withholding Tax Report:

1. Select Variant RITENUTA D'ACC


2. Several parameters are already filled you just need to confirm:

    1. Company code
    2. Period (should always be the previous month)

 

3. Execute.

The result will be similar to:


4. Last step is to extract the data to excel and copy it to the template indicated.


and:

 


With this extraction we will have an overview of all movements in the accounts and provide detailed information about the vendors we are paying the withholding tax for. 

3.2.2.2. Calculation of the monthly F24 Payment

By principle we have to pay the WHT only for those invoices effectively paid. 
Having that, as a second step open the template indicated in the end of the procedure. 
The file is cumulative and copy the information extracted in 3.1.2.2 to column B:


The extraction is providing us all the invoices posted within the period with withholding tax to be paid. From this list we will need to confirm if there are invoices from previous periods paid in the current month and if invoices posted will be paid in the future. 
For that, open transaction FBL3N with open items at end of each month for account 44900900 and confirm with the details extracted.
Go to the file, sheet Detail RITENUTA D'ACCONTO and add in column A the month of the payment:

  • If invoice paid in the current month add the number correspondent to the month (1 to 12)
  • If invoices posted will be paid in the future leave it blank.


Refresh the pivot table from sheet F24 PAYMENT to calculate the total amount to be paid in the month.

 

In the end the total amount to be paid in the current month reflect the open items balance of account 44900900. In case of manual payments or corrections (not reflected in the vendor accounts) you will have to add it manually in the sheet Detail RITENUTA D'ACCONT. 
Take as example March 2017 for company 8090: 

 



As soon as you finalize this check send a message to CAM indicating the amount to pay and the link to the filled template to ensure that the F24 payment is done.

3.2.2.2. Consistency check

By the end of the month after the booking of the bank movement F24 (1040 + 1038) you can complete the procedure by checking 44900900. Complete the information in the table for future reference and in case of differences add a comment and report to CAM. 

3.3. Contacts

0279 - Tiziana Macchia and Francesco Piccoli
0270 - Filomena Forlano and Rocco Castagna
5835 - Paola Gagianesi and Tiziana Macchia
6306 6277 - Tiziana Macchia
6328 - Filomena Forlano and Rocco Castagna
8090 - Francesco Piccoli


End of document.