Posted by: IS | August 2, 2009

Witholding Tax Currency Limitation

The witholding Tax functionality originally designed for Australian Pay as you Go Tax collection is applicable to Irish companies operating Witholding Tax in Ireland. However, it will not operate with non functional currency transactions. This became apparent to me lately whereby a customer who sells the majority of its products in the US, has US subsidiaries, and files in the US, for ease of consolidation made their Irish concern a US Dollar denominated company. When it came to witholding tax on Irish (Euro originating currency) transactions we had a problem. The oiginal functionality works as designed, and it would be unlikely that organisations would be witholding tax on foreign transactions, however it is an issue for this customer. Add it to your list of things to check when deciding on the selection of functional currency of companies you create.

Ian Stewart
Supporting US Corporations with a European presence.
Local knowledge, local timelines, local GP talent.
Genesys Financial Systems (Ireland)
Microsoft Gold Certified Partner

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