How To Fix ICC_CL055 - Enter a withholding tax type for foreign payments

SAP Error Message - Details

• Message type: E = Error

• Message class: ICC_CL - Messages (Chile)

• Message number: 055

• Message text: Enter a withholding tax type for foreign payments

What causes this issue?

You have selected the withholding tax report for foreign payments, but
have not entered a withholding tax type.

System Response

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

How to fix this error?

Enter a withholding tax type.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message ICC_CL055 - Enter a withholding tax type for foreign payments ?

  The SAP error message ICC_CL055, which states "Enter a withholding tax type for foreign payments," typically occurs when a withholding tax type is not specified for a foreign payment in the system. This error is often encountered during the processing of invoices or payments that involve foreign vendors or transactions.
  Cause:
  
  Missing Withholding Tax Type: The primary cause of this error is that the system requires a withholding tax type to be defined for the specific transaction, but it has not been provided.
  Configuration Issues: There may be configuration issues in the withholding tax settings in the SAP system, particularly for foreign payments.
  Vendor Master Data: The vendor master data may not have the necessary withholding tax information set up for foreign transactions.
  
  Solution:
  To resolve the ICC_CL055 error, you can follow these steps:
  
  
  Check Vendor Master Data:
  
  Go to the vendor master record (transaction code XK03 or FK03).
  Ensure that the withholding tax type is correctly maintained for the vendor in question, especially for foreign payments.
  
  
  
  Maintain Withholding Tax Type:
  
  If the withholding tax type is missing, you can add it by editing the vendor master data.
  Navigate to the relevant section for withholding tax in the vendor master and enter the appropriate withholding tax type.
  
  
  
  Review Payment Document:
  
  When processing the payment or invoice, ensure that the withholding tax type is specified in the payment document.
  You can do this in the transaction where you are processing the payment (e.g., FB60 for vendor invoices).
  
  
  
  Configuration Settings:
  
  Check the configuration settings for withholding tax in the SAP system (transaction code OBW1).
  Ensure that the withholding tax types are properly defined and linked to the relevant country and payment types.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or help resources for specific details on withholding tax configuration and requirements for foreign payments.
  
  
  
  Testing:
  
  After making the necessary changes, test the transaction again to ensure that the error is resolved.
  
  
  
  Related Information:
  
  Withholding Tax Types: These are specific codes that define the type of withholding tax applicable to a transaction. Different countries may have different withholding tax types based on local regulations.
  Foreign Payments: When dealing with foreign vendors, it is essential to ensure compliance with both local and international tax regulations, which may require specific withholding tax types.
  SAP Notes: Check for any relevant SAP Notes that may address this error or provide additional guidance on withholding tax configuration.
  
  If the issue persists after following these steps, it may be beneficial to consult with your SAP support team or a functional consultant who specializes in financial accounting and tax configurations.