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Setup step on the Withholding tax codes page · Tax

Set up Withholding tax codes

Used to set the rate that is withheld from vendor payments and the liability account the withheld amount posts to.

Used by
Accounts payable manager, Auditor, Accounts receivable manager and 6 more roles
Business process
Manage withholding taxes in Dynamics 365 Finance
Menu item
TaxWithholdTable
Main table
TaxWithholdTable
Data entity
TaxWithholdingTaxCodeEntity
Setup steps
1 on this page
Show what matters for

Everyone

1What it is and why

What it isA setup page where you create codes for withholding tax, a tax on vendors that doesn't create sales tax transactions.
What you do hereUsed to set the rate that is withheld from vendor payments and the liability account the withheld amount posts to.
ExampleFor example, when a vendor invoice is paid, the vendor receives the invoice amount minus the withholding tax, and the withheld amount posts to the withholding tax account.
Withholding tax codes page in Dynamics 365
The page in a working Dynamics 365 system. page title tab to open what to set or check

Functional consultant · Solution architect

2Where it fits

Business processDefine accounting policies › Develop tax strategy › Manage withholding taxes in Dynamics 365 Finance
Menu pathTax › Indirect taxes › Withholding tax › Withholding tax codes
Set up first—
Used next byWithholding tax groups Microsoft Learn ↗
Related pages—
In this processSet up Withholding tax groups →

End user · Functional consultant

3How to do it

Setup steps on this page

Set up Withholding tax codesNo screenshots yet

Used to set the rate that is withheld from vendor payments and the liability account the withheld amount posts to.

    Microsoft's steps

    1. Go to Tax > Indirect taxes > Withholding tax > Withholding tax codes.
    2. Select New.
    3. In the Withholding tax code field, enter a code, and in the Withholding tax name field, enter its name.
    4. In the Main account field, select the account for the withholding tax liability.
    5. Select Save.
    6. Select Values, and in the Value field, enter the withholding percentage.
    7. Save and close the pages.

    Source: Microsoft Learn ↗

    Field guide

    FieldWhat it meansWorked exampleTable column
    Main accountThe account for the withholding tax liability; only balance sheet or liability accounts are valid.Microsoft Learn ↗——
    ValueThe percentage used to calculate the withholding tax.Microsoft Learn ↗——

    Functional consultant

    4Setup decisions

    Setup stepRecommended value and whyDecision · common mistake · test
    Set up Withholding tax codes——

    Solution architect

    5Design impact

    Shared or per companyPer company: each legal entity has its own records. Microsoft data model ↗
    Can it be undone—
    Feature or country—
    If you change it later—

    Technical architect

    6Technical

    Menu itemTaxWithholdTable Checked in Dynamics 365
    FormTaxWithholdTable Checked in Dynamics 365
    TableTaxWithholdTableShown as “Withholding tax codes” in Record infoKey field: TaxWithholdCodeChecked in Dynamics 365
    Data entitiesTaxWithholdingTaxCodeEntityWithholding tax codes Microsoft data model ↗
    Who can open itPrivilegesMaintain withholding tax codes TaxWithholdTableMaintainView withholding tax codes TaxWithholdTableViewDutiesRental Inquire into sales tax process reference data RentalTaxSalesTaxProcessReferenceDataInquireEnable sales taxes process TaxSalesTaxesProcessEnableInquire into sales tax policies TaxSalesTaxPoliciesInquireInquire into sales tax process reference data TaxSalesTaxProcessReferenceDataInquire
    9 security rolesAuditor AuditPolicyManagerAccounts receivable manager CustInvoiceAccountsReceivableManagerAccountant LedgerAccountantAccounting manager LedgerAccountingManagerAccounting supervisor LedgerAccountingSupervisorFinancial controller LedgerFinancialControllerRental manager RentalManagerRental purchasing manager RentalPurchasingManagerAccounts payable manager VendInvoiceAccountsPayableManager
    Checked in Dynamics 365
    Actions on the pageOptions: Personalize, Page options, ShareChecked in Dynamics 365

    Developer

    7Developer

    Open it directlyhttps://<your-environment>/?mi=TaxWithholdTable
    Integrate withTaxWithholdingTaxCodeEntity data entity Microsoft data model ↗
    Table definitionTaxWithholdTable columns and relations Microsoft data model ↗

    Everyone

    8Sources and checks

    TAX-INDIRECT-080 — Set up Withholding tax codes. Beyond ERP Atlas Hub, snapshot 2026-10-16, partly verified. https://www.beyonderp.cloud/atlas/step/TAX-INDIRECT-080