Income Tax Withholding Types
Income Tax Withholding Types are a catalog of codes that identify, for your country's tax authority, what kind of income-tax withholding you applied on a purchase transaction. Unlike Tax Retentions, there's no percentage here: just a code and a name used to classify and report, not to calculate or post any amount.
This catalog feeds the optional "Income Tax Withholding Type" field found on your purchase documents (Vendor Bill, Reception, Expense, Vendor Credit and Debit Notes, Bank Charges and Deposits), and the equivalent field on your Customer and Vendor records, where you can pre-assign a default type. It's used, for example, on the DGII purchases 606 fiscal report (Dominican Republic), which requires reporting the income-tax withholding type applied per vendor.
What it is and what it's for
Many tax authorities require that, in addition to withholding part of a payment from a vendor as income tax, the company identify with a code what type of withholding was applied, so it can be reported correctly. This catalog manages those codes — for example, the codes required by the DGII on its Dominican 606 purchases report — though you can create whatever codes your operation needs.
It's important not to confuse this catalog with the other two tax-withholding screens:
- Tax Retentions: defines withholdings with a fixed percentage (income tax or VAT/sales tax) and their ledger accounts; it does calculate and post amounts.
- Tax Retention Groups: combines several Tax Retentions to apply them together in a single selection when paying a vendor.
- Income Tax Withholding Types (this catalog): doesn't calculate or post anything; it's just the informational classification code required by a fiscal report or that you want to track per vendor.
Screens in this area
| Screen | What it does |
|---|---|
| List | Shows every registered type with its code and name. From here you add a new one or open an existing one to view or edit it. |
| New type / Edit type | A simple form to capture the code and name of the withholding type. The code can only be set when you create the record; once you edit an existing type, the code stays fixed and only the name can change. |
| Details | A read-only view with the type's code and name, with shortcuts to edit or delete it. |
How to create an income tax withholding type
- Open the Income Tax Withholding Types module and click Add.
- Enter the type's Code (for example, the code your tax authority requires). It's required, allows up to 10 characters, and must be unique — it can't repeat an already registered type. Once saved, the code can no longer be changed.
- Enter a descriptive Name for the type (for example "Professional services" or "Rentals"). It's required and must be unique against the other registered types.
- Click Save. Double-check the code before saving — you won't be able to change it afterward.
Key capabilities
- A simple code-and-name catalog: no percentages or ledger accounts — it exists only to classify and identify the withholding type for the tax authority.
- Optional selection on purchase documents: available as the "Income Tax Withholding Type" field on Vendor Bills, Receptions, Expenses, Vendor Credit and Debit Notes, Bank Charges and Deposits.
- Default value on Customers and Vendors: you can pre-assign a type on a relation's record (Financial tab) so it's suggested on their new transactions.
- Used on fiscal reports: feeds columns on reports such as the DGII's 606 purchases format (Dominican Republic), which requires reporting the income-tax withholding type applied per vendor.
- Used when importing electronic documents: when importing vendors' electronic invoices (Document Import), you can set the income-tax withholding type on each imported line.
Key fields
| Field | What it's for |
|---|---|
| Code | A short identifier for the type (up to 10 characters), usually the code your tax authority requires. Required, unique, and cannot be changed once the record is created. |
| Name | A description of the withholding type (for example, the concept the code refers to). Required and unique against the other registered types. |
Validations when saving
- The code is required and must be unique against the other income-tax withholding types already registered.
- The name is required and must be unique against the other registered types.
- The code cannot be changed when editing an existing type; the edit form only lets you change the name. If you need a different code, create a new type.
- A type cannot be deleted if it appears on any already-registered purchase transaction (Vendor Bill, Reception, Expense, Vendor Credit or Debit Note, Bank Charge or Deposit), or if it's assigned as the default on a Customer or Vendor; remove it from those places first.
Availability and permissions
- Access to this module is controlled by the "Configuration" permission (SA_CONFIG) in your user group, with separate levels for view, add, edit and delete. This is a different permission from "Taxes" (SA_TAXES), which controls the Taxes and Tax Retentions catalogs.
- This field and catalog are especially relevant for companies in countries whose tax authority requires reporting the income-tax withholding type per vendor, such as the DGII's 606 format in the Dominican Republic, but the catalog is available to any company that needs it.
Tips and common issues
Need the withholding to calculate an amount and post it to the ledger? This catalog doesn't do that — it's just an informational code. To calculate and post a withheld percentage, use the Tax Retentions module (and, if you apply several at once, Tax Retention Groups).
AdmCloud won't let you change the code of an existing type? That's intentional — the code stays fixed so it doesn't disturb the history of transactions and relations that already use it. Create a new type with the correct code and use that one going forward.
Can't delete a type? AdmCloud blocks it if the type still appears on an already-registered purchase transaction, or if it's assigned as the default on a Customer or Vendor. Remove it from those places before trying to delete it.
Looking to set a withholding's percentage or group several together? That's done in the Tax Retentions and Tax Retention Groups modules, not here. This catalog only manages the income-tax withholding type classification codes.