Description
This report creates certificates that show how much withholding tax hasbeen retained for the vendors within a given company code.
It covers revenues from a range of sources, for example:

• Business income


• Interest


• Dividends

The report lists the withholding tax that these revenues are based onas income tax and inhabitant tax.
Korea's tax laws require different certificates for different types ofrevenue. Both the vendor and your business are issued one or morecopies of the certificate, which serve as a receipt for the withholdingtax paid or retained. Copies of both parties' certificates are thensubmitted to the authorities.
The report creates approved certificates for:

• Business income


• Other income, such as interest and dividends

Businesses are required to submit these documents to the tax office ona monthly basis, along with the withholding tax return.

Precondition
The selection criteria are as follows:


• Company code


• Payment document

For increased efficiency, you can also enter a selection date -assuming that you set at least one interval.

• Posting date

Partial payments and down payments do not have clearing (payment)dates. If you specify a clearing (payment) date only, these documentsmight not be covered by the report, so you must enter the posting date.

• Vendor number


• Fiscal year


• Type of withheld income tax


• Type of withheld inhabitant tax


• Other entries (if you choose the "Other withholding tax" certificate)

However, where foreign vendors are involved, please note the following:
As soon as you post an invoice from a foreign vendor you must enterthe withholding tax manually, using the withholding tax code selectedpreviously.
Only then is this report able to handle this type of transactionproperly.
You will soon also be able to control this type of transaction viaCustomizing, so there will no longer be any need for the manual postingrequest.
The "other withholding tax" certificate is controlled by the entries inthe "Other withholding tax - add. requirements" group box.
The fields within the vendor master are as follows:
Name,,LFA1-NAME1,,Vendor name
Street,,LFA1-STRAS,,Vendor address 3
City,,LFA1-ORT01,,Vendor address 1
District,,LFA1-ORT02,,Vendor address 2
Tax number 1,,J_1BBRANCH-STCD1,,Social insurance no.
Tax number 2,,J_1BBRANCH-STCD2,,VAT registration no.
Representative,,J_1BBRANCH-KR_REPRES,,Representative's name
Withh. tax code,,LFB1-QSSKZ,,Withholding tax code
Withh. tax country,,LFB1-QLAND,,Withholding tax country
Vendor rec. type,,LFB1-QSREC,,Vendor group

Output
The certificates are first displayed on screen. Copies are not sent tothe customer or the tax office.
To do so, use the print manager, specifying the number of copies.
In the certificate, a separate line is created for every paymentdocument. If there are more than one vendor line items, a separate lineis created for each one.