What is 'foreign withholding tax' in SAP CYT - Capital Yield Tax?

foreign withholding tax - Overview

• Component: CYT

• Component Name: Capital Yield Tax

• Description: Tax that is withheld by the local bank and transferred to the local tax authority when money is deposited abroad. According to German tax law, the tax payer can offset this amount against the amount of tax due in Germany if it is not possible to get a refund from the foreign tax authority.

foreign withholding tax - Details

• 
  Key Concepts: 
  Foreign withholding tax is a tax imposed by a foreign government on income earned by non-residents. In the case of SAP's CYT Capital Yield Tax component, it is a tax imposed on capital gains earned by non-residents from investments in the country. 
  
  How to use it: 
  The CYT Capital Yield Tax component of SAP allows users to calculate and manage foreign withholding taxes on capital gains earned by non-residents. It also provides users with the ability to manage the withholding tax rate and other related information. 
  
  Tips & Tricks: 
  When using the CYT Capital Yield Tax component, it is important to ensure that all relevant information is accurately entered into the system. This includes the withholding tax rate, the amount of capital gains earned, and any other relevant information. 
  
  Related Information: 
  For more information on foreign withholding taxes, please refer to the official website of the country in which you are investing. Additionally, you can consult with a tax professional for more detailed advice.