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FIAPAR_QST_T059PCURR - Define Exchange Rate Type for Withholding Tax Type

Define the exchange rate type for individual withholding tax types to be used for calculating withholding tax.

The exchange rate of the payment is usually used when calculating withholding tax for payments in cases when the withholding tax amount has to be translated from a foreign currency into the local currency.

Some countries/regions have legal requirements that specify which exchange rate is to be used. In Japan, for example, the bank selling rate (and not the average rate, for example) must be used for translating withholding tax.

You must verify whether there are any legal requirements in your country/region that require you to use an alternative exchange rate type to calculate withholding tax. Please note that an alternative exchange rate type affects the posted exchange rate differences in the payment document.

For more information about withholding tax in SAP S/4HANA Cloud, see SAP Help Portal under Withholding Tax.