SAP Financial Accounting (FI) Taxes (FI-AP/AR) Recipient Type

Definition

A system object that you use to classify payment recipients as legal persons or natural persons, for the purposes of withholding tax reporting.

Use

Customizing

Define the recipient types in Customizing for Financial Accounting (FI), by choosing Financial Accounting Global Settings ® Withholding Tax ® Withholding Tax ® Basic Settings ® Maintain Types of Recipient.

Create two entries as follows:

Recipient type	Text
CO	Companies
OT	Others

Master Data

When you enter the withholding tax types and codes in the vendor master, enter CO or OT in the Recipient Type field, depending on whether the vendor is a legal person or a natural person.

Reporting

The annual returns separate the information about taxes withheld on legal persons and on natural persons.