How To Fix ICC_CL056 - Enter a withholding tax code for foreign payments

SAP Error Message - Details

• Message type: E = Error

• Message class: ICC_CL - Messages (Chile)

• Message number: 056

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

What causes this issue?

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

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 code.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message ICC_CL056 - Enter a withholding tax code for foreign payments ?

  The SAP error message ICC_CL056, which states "Enter a withholding tax code for foreign payments," typically occurs when a user attempts to process a payment to a foreign vendor or entity without specifying a withholding tax code. This is particularly relevant in scenarios where tax regulations require withholding tax to be applied to payments made to foreign entities.
  Cause:
  
  Missing Withholding Tax Code: The primary cause of this error is that the withholding tax code has not been entered in the relevant transaction or master data for the vendor.
  Vendor Master Data: The vendor master data may not have the necessary withholding tax information configured.
  Payment Type: The payment type may require a withholding tax code, especially for foreign payments, and it has not been provided.
  
  Solution:
  To resolve this error, you can take the following steps:
  
  
  Check Vendor Master Data:
  
  Go to the vendor master record (transaction code XK03 for general view).
  Ensure that the withholding tax information is correctly maintained for the vendor. This includes checking the withholding tax type and code.
  
  
  
  Enter Withholding Tax Code:
  
  When processing the payment, ensure that you enter the appropriate withholding tax code in the payment transaction. This can usually be done in the payment document or invoice entry screen.
  
  
  
  Configure Withholding Tax Codes:
  
  If the necessary withholding tax codes are not available, you may need to configure them in the system. This can be done through the following path:
  
  SPRO ? Financial Accounting ? Accounts Payable ? Withholding Tax ? Define Withholding Tax Types
  
  
  Ensure that the withholding tax codes are set up correctly for foreign payments.
  
  
  
  Review Payment Document:
  
  If you are using a specific payment document type, ensure that it is configured to allow for withholding tax codes. You may need to check the configuration settings for the payment method.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or consult with your SAP support team for specific guidelines related to withholding tax for foreign payments, as regulations may vary by country.
  
  
  
  Related Information:
  
  Withholding Tax Types: Different countries have different withholding tax regulations, and SAP allows for the configuration of various withholding tax types based on local laws.
  Transaction Codes: Familiarize yourself with relevant transaction codes such as FB60 (Invoice), F110 (Automatic Payment), and XK03 (Vendor Master Display) for managing vendor payments and configurations.
  SAP Notes: Check for any SAP Notes related to withholding tax issues, as there may be updates or patches that address specific scenarios or bugs.
  
  By following these steps, you should be able to resolve the ICC_CL056 error and successfully process foreign payments with the appropriate withholding tax code.