The Tipalti January 2017 release is now live. Enhancements strengthen tax compliance for payers in non-US countries and improve ease of use for the Tipalti Bills module and ERP integration. Contact us at support@tipalti.com with any questions or feedback. Enjoy the new release!

Taxation Updates

Local ID tax collection and validation

To support non-US and non-European payers, Tipalti now supports collection of local tax IDs for 12 new countries including Argentina, Australia, Brazil, Canada, Colombia, Hong Kong, India, Japan, Mexico, Saudi Arabia, Singapore, and South Korea. The local tax ID is defined according to the payee type and has its own validation rules. For example, payers based in certain countries must meet specific local tax ID collection requirements. Tipalti’s rule engine applies the proper validation rules in those situations.

Payee workflow

Payees will now see the relevant tax ID based on the payer country. If they are not from the payer’s country, they will also see an option to choose between filing the local tax ID or declaring no local tax ID. If there is more than one option for filing local tax ID, then the payee will be able to choose the relevant local tax ID type. For example, in Singapore, there are three different tax ID types depending on the company type.

Dashboard & reports

We will show the relevant local tax ID and type in the payee details and in the FTP files.

Update to withholding rate for W8-ECI tax form

To maintain our KPMG tax certification, we updated withholding percentages for the W-ECI forms. Currently, when the W-8ECI form is submitted, 0% withholding is applied.

Now for income type “Other Income,” we will apply the percentages below:

  • If the payee is an individual – apply 30% withholding
  • If the payee is a company – apply 0% withholding
  • If the payee type is unknown – apply 30% withholding

Certificate of No U.S. Activities now displays company for W-8BEN-E

The Certificate of No U.S. Activities now displays the company name in the W-8BEN-E instead of the payee individual name if the company name is populated.

Payment Updates

Ease of payment submission with pending funds flow

If you don’t have enough funds in your account to submit all payments, you can now continue to submit payment instructions and deposit funds after, instead of deferring the payments. Payments will be assigned a new status of “Pending funds” until the required funds are received. This new payment status will appear in the reconciliation report “Tipalti” tab and the payment details report.

To use this new feature, follow these instructions:

  1. Upload the payment file. If there are insufficient funds in the account, payments will be sent “Upon funds arrival” in the payment instructions.
  2. After submitting the payments, there is a new status “Pending funds.”
  3. To view the amount of funds to deposit, go to the “Upcoming payments” screen and view the required amount.
  4. Once you fund the account, the pending payments will be processed and the status changes to submitted.

Tipalti Bills Updates

Deleted bills will not be shown by default in the Bills list

To improve the Bills list usability, we now hide deleted bills from the default list. To view deleted bills, select the “Deleted” status from the list filter.

ERP Updates

New API for Custom Fields creation and update

You can now create and update custom fields and custom field values directly from Tipalti’s API using the CreateOrUpdateCustomFields.