Product Updates 420, 419, and 418: Withholding tax functionality improved (Italian legislation)

A new menu path Finance ➔ Reports ➔ Italian functionality ➔ Withholding tax reasons has been made available. The reason codes can be managed via this menu path.

In the Withholding tax reasons overview screen, you will be able to manage the reason codes by creating, editing, or deleting them.

By clicking New, the following screen will be displayed:

In this screen, you will be able to link the reason codes to the withholding tax codes and creditors. Firstly, define the Reason code field with the relevant reason code, and if the tax code information is available, define the Tax code field.

The  icon will then be enabled under the Creditor account section, and you will be able to link a creditor to the withholding tax code and reason code by clicking the icon.

By clicking the icon, the following screen will be displayed:

You can select a single creditor, or multiple creditors, to be linked to the withholding tax code and reason code. You can do so by selecting the creditor(s), and then clicking Link.

A new field Non-taxable tax base % has been added in the VAT code screen (accessible via System ➔ Countries ➔ Tax codes). This field allows you to define the percentage for the non-taxable base in the case where the withholding tax base amount must be divided to the taxable and not taxable bases.

The following changes have been applied to the payable taxes and contributions report (accessible via Finance ➔ Reports ➔ Italian functionality ➔ Payable taxes and contributions): 

• The report can now be searched by its reason code via the new filter range field Causale,
• the tax code grouping for the report will now be in the sequence of reason code, followed by the tax code,
• the reason code and its description will be displayed in the same grouping as the tax code,
• a new column Importo non soggetto has been added to display the tax base amount outside of the withholding tax code, and
• the grand total amount for the “Importo non soggetto”-Tax base amount outside WH tax, “Imponibile”-WH tax base amount and “Imposta”-WH tax amount columns will be displayed on the last page of the report. 

Causale filter range

The Causale field has been added under the Range section. You can search the report by defining the reason code at this field.

By clicking , the Withholding tax reasons selection screen will be displayed:

Report

The following is the latest layout of the report:

The following changes have been applied to the withheld tax summary report (accessible via Finance ➔ Reports ➔ Italian functionality ➔ Withheld tax summary): 

• The grouping for the creditor code, tax code description, payment date, and invoice date for the report will now be in the sequence of the creditor code, reason code, tax code description, payment date, and invoice date, and
• the reason code and its description will be displayed in the grouping in the report. 

Report

The following is the latest layout of the report when the Details check box is not selected:

The following is the latest layout of the report when the Details check box is selected:

The following changes have been applied to the withholding tax certification report (accessible via Finance ➔ Reports ➔ Italian functionality ➔ Withholding tax certification):

Withholding tax certification overview screen

In the Withholding tax certification screen, the following changes have been made:

Range section

Creditor: fiscal code

The Creditor: Fiscal code field has been added. This filter allows you to display the creditors by the fiscal code. The results will display the creditors by the defined fiscal code, followed by the VAT number.

Report type

The Report type drop-down box has been added. The options available for selection are as follows: 

• Withholding tax certification – Select this option to generate the report in the old format.
• Certificazione Unica 2020 – Select this option to generate the report in the new format.
• Certificazione CUR 2020 – Select this option to generate the report in the electronic format. 

Note that the Creditor field under the same section will be disabled when the Certificazione Unica 2020 or Certificazione CUR 2020 option is selected as the report type, and the report output for the Certificazione Unica 2020 option is either PDF or e-mail. Alternatively, the Creditor: Fiscal code field can be defined to include the relevant creditors in the report.

VAT code

The VAT code field has been added. You can select the relevant VAT codes by clicking the Select button at this field. The selection at this field will affect the calculation for the tax amounts. For more information, see the Calculation for tax amounts section.

The VAT codes selected in the selection screen will be applicable to all of the withholding tax reports, including the payable taxes and contribution and withheld tax summary reports.

In the selection screen, only the VAT codes of the VAT tax type will be displayed. Furthermore, the “N” VAT codes will not be displayed in the selection screen, although the non-deductible setting has been enabled.

Note that for the new VAT codes to be applicable to the reports, the new VAT codes must be enabled via Finance ➔ Reports ➔ Italian functionality ➔ Withholding tax certification.

Output

The Certificazione Unica 2020 report can be generated in the printed, PDF, or e-mail format by selecting the options at the Output field. The following options are available for selection: 

• Report – Select this option to generate the crystal reports in the printed format.
• PDF – Select this option to generate the reports in the PDF format. The generated report in the PDF format can be accessed via CRM ➔ Entries ➔ Documents.
• E-mail – Select this option to send the report via e-mail. By selecting this option, a copy of the report in the PDF format will be saved in the local machine temporarily and will be deleted after the report has been successfully sent. 

The reports can be generated for the PDF and e-mail format only when the reports are filtered with the creditor fiscal codes. The Creditor field under the same section will be disabled for both types of format.

Extra data section

The E-signature field will be enabled for the Certificazione Unica 2020 report. You can select the template of the e-signature at this field. For more information, see the E-signature section.

Withholding tax certification report

The changes that have been made in the report are as follows: 

• The report will include only matched purchase invoices against the cash flow transactions,
• the start and end dates for the report must reflect the date of the invoice payment,
• the report will display the paid amount instead of the full total invoice amount, and
• two new columns, Causale and Importo non soggetto, have been added in the report. 

Certificazione Unica 2020 report

The changes that have been made in the report are as follows: 

• The new format for the report will be applicable for page 1 and 6 only,
• Page 1 will display the transactions per fiscal code or VAT number,
• Page 6 will display the transactions per fiscal code or VAT number, followed by the withholding tax reason code, and
• the reports will be grouped by the fiscal code or VAT number if there are multiple creditors with the same fiscal code or VAT number. 

The following are samples of the report with the new layout:

The following is a sample of Page 1:

The following is a sample of Page 6:

Generating Certificazione Unica 2020 report in the PDF format

When the PDF format has been selected as the output for the generation of the report, you can select the folder in which the copy of the report will be saved. To do so, define the directory of the folder at the Export directory field.

By selecting the Create document check box, a copy of the report can be accessed via CRM ➔ Entries ➔ Documents.

Note that the creditors will be grouped by the fiscal code or VAT number in the reports.

Generating Certificazione Unica 2020 report in the e-mail format

Similar to the generation of the report in the PDF format, when the e-mail format has been selected as the output for the generation of the report, you can select the folder in which the copy of the report will be saved.

The subject in the e-mail will display the report name, followed by the creditor name:

Note that the copy of the report will be saved temporarily in the defined folder and will be deleted once the e-mail has been sent successfully.

The following log will be displayed to notify you on the status of the delivery of the e-mail:

You can print the reports displayed in the log by clicking Print.

Certification CUR 2020 report

The changes that have been made in the report are as follows: 

• The electronic form of the withholding tax declaration is represented in the ASCII file of a specific structure.
• The form must support five types of records as listed below:
• Header record: This record contains the information to indicate that the form is the electronic version of the annual withholding tax declaration. This record must be included once in the electronic form.
• Company data (Sostituta d'imposta): This record contains the information of the company that submits the withholding tax declaration.
• External collaborator (Fontespizio): This record contains the information of the creditors.
• Amounts paid and taxes withheld: This record contains the withholding taxes payment information per creditor.
• End record: This record contains the summary of the information for the external collaborators and amounts paid and taxes withheld. 

The following scenarios illustrate how the tax amounts will be displayed in the report:

Scenario 1 

• A purchase journal entry is created as follows:

•  In the VAT codes screen, the tax percentage has been set to “10”, and the non-taxable base percentage has been defined to “80”. 

• The VAT code “020” with the tax percentage of 20% has been selected in the VAT code selection screen: 

• The amounts will then be displayed in the generated report as follows: 

Scenario 2 

• The VAT code has not been selected in the VAT code selection screen: 

• The amounts will then be displayed in the generated report as follows: 

Scenario 3 

• In the VAT codes screen, the tax percentage has been set to “10”, and the non-taxable base percentage has not been defined: 

• The VAT code “020” with the tax percentage of 20% has been selected in the VAT code selection screen: 

• The amounts will then be displayed in the generated report as follows: 

Scenario 4 

• In the VAT codes screen, the tax percentage has been set to “10”, and the non-taxable base percentage has not been defined: 

• The VAT code “020” with the tax percentage of 20% has not been selected in the VAT code selection screen: 

• The amounts will then be displayed in the generated report as follows: 

The e-signature will now be displayed in the Certificazione Unica 2020 report, for the PDF and e-mail output. For the functionality to work for the e-mail output, the e-mail address of the creditor must be defined in the creditor card.

For the e-signature to be displayed in the report, the template must be prepared in advance based on the following specifications: 

• The template must be sized at 450 x 150 pixel with the lock aspect ratio, and
• the template must be saved in the WMF and EMF file formats. 

Once you have selected the template at the E-Signature field by clicking , click Start to generate the report in the desired format. The e-signature will then be displayed as follows:

As the generation of reports is only limited to 75 reports at a time, a message will be displayed when the count of the reports exceeds 75:

The message will display the last fiscal code that has been generated for the reports. You can then continue generating more reports by defining the last fiscal code used at the filter range at the Creditor: Fiscal code field accordingly.