---
id: feature/573304
type: feature
title: Calculate withholding tax automatically in expense reports
summary: "Expense Agent: Calculate withholding tax automatically in expense reports. In preview, GA 2027-04 (Microsoft 365 roadmap). Organizations can automatically calculate employee withholding taxes (WHT) as part of the expense report process. When employees submit expenses that are subject to withholding tax requirements, the system applies the appropriate tax calculations directly within the expense report workflow. Key capabilities include: Automatic withholding tax calculation for employee expense transactions that require tax deductions."
tier: official
language: en
system: copilot
tags:
  - expense agent
review:
  state: derived
  by: null
  at: null
  flags: []
generated:
  at: "2026-10-07T23:41:05.192Z"
  pipeline: 0.2.0
  prompts: {}
  input_hash: b23866c3912f824a1feab51bd345107a960a59360ce3a99c07bb012021aa0970
evidence:
  - kind: roadmap
    url: https://www.microsoft.com/microsoft-365/roadmap?id=573304
    title: Microsoft 365 roadmap 573304
    date: "2026-09-30"
    commit: null
    t: null
    quote: null
  - kind: video
    url: https://www.youtube.com/watch?v=mT_0VKqdEzA&t=6s
    title: "What's new in Expense Agent: Calculate WHT for Expenses (2026 release wave 2): Withholding Tax for Employee Expenses"
    date: null
    commit: null
    t: 6
    quote: null
  - kind: video
    url: https://www.youtube.com/watch?v=mT_0VKqdEzA&t=104s
    title: "What's new in Expense Agent: Calculate WHT for Expenses (2026 release wave 2): Withholding Posting Setup for Employees"
    date: null
    commit: null
    t: 104
    quote: null
  - kind: video
    url: https://www.youtube.com/watch?v=mT_0VKqdEzA&t=164s
    title: "What's new in Expense Agent: Calculate WHT for Expenses (2026 release wave 2): Multiple Withholding Tax Groups per Category"
    date: null
    commit: null
    t: 164
    quote: null
  - kind: video
    url: https://www.youtube.com/watch?v=mT_0VKqdEzA&t=212s
    title: "What's new in Expense Agent: Calculate WHT for Expenses (2026 release wave 2): Gross and Net Withholding Tax Calculation"
    date: null
    commit: null
    t: 212
    quote: null
  - kind: video
    url: https://www.youtube.com/watch?v=mT_0VKqdEzA&t=212s
    title: "What's new in Expense Agent: Calculate WHT for Expenses (2026 release wave 2): Configurable Withholding Tax Thresholds"
    date: null
    commit: null
    t: 212
    quote: null
  - kind: video
    url: https://www.youtube.com/watch?v=mT_0VKqdEzA&t=352s
    title: "What's new in Expense Agent: Calculate WHT for Expenses (2026 release wave 2): Withholding Tax Entries in Preview Posting"
    date: null
    commit: null
    t: 352
    quote: null
  - kind: video
    url: https://www.youtube.com/watch?v=mT_0VKqdEzA&t=442s
    title: "What's new in Expense Agent: Calculate WHT for Expenses (2026 release wave 2): Withholding Tax Calculation Timing (Invoice vs Payment)"
    date: null
    commit: null
    t: 442
    quote: null
  - kind: video
    url: https://www.youtube.com/watch?v=mT_0VKqdEzA&t=611s
    title: "What's new in Expense Agent: Calculate WHT for Expenses (2026 release wave 2): Employee Card Withholding Tax Fields"
    date: null
    commit: null
    t: 611
    quote: null
  - kind: video
    url: https://www.youtube.com/watch?v=mT_0VKqdEzA&t=646s
    title: "What's new in Expense Agent: Calculate WHT for Expenses (2026 release wave 2): Expense Category Withholding Tax Configuration"
    date: null
    commit: null
    t: 646
    quote: null
  - kind: video
    url: https://www.youtube.com/watch?v=tj1vvsmAMVs&t=790s
    title: "What's new in Expense Agent: Overview (2026 release wave 2): Withholding Tax for Employees"
    date: null
    commit: null
    t: 790
    quote: null
  - kind: video
    url: https://www.youtube.com/watch?v=x0XF0lBvgEE&t=457s
    title: "Microsoft Ends Business Central Release Plans: What Changes?: Dynamics 365 Business Central Expense Agent - Withholding Taxes"
    date: null
    commit: null
    t: 457
    quote: null
  - kind: learn
    url: https://learn.microsoft.com/dynamics365/business-central/expense-management/expense-management-categories-rules
    title: Set Up Expense Categories, Rules, and Policies
    date: null
    commit: null
    t: null
    quote: null
  - kind: learn
    url: https://learn.microsoft.com/dynamics365/business-central/finance-set-up-withholding-tax
    title: Set up withholding tax
    date: null
    commit: null
    t: null
    quote: null
links:
  learn:
    - https://learn.microsoft.com/dynamics365/business-central/expense-management/expense-management-categories-rules
    - https://learn.microsoft.com/dynamics365/business-central/finance-set-up-withholding-tax
  objects: []
  features: []
  topics: []
  localizations: []
  videos:
    - video/mT_0VKqdEzA
    - video/tj1vvsmAMVs
    - video/x0XF0lBvgEE
  posts: []
  guidelines: []
roadmap_id: "573304"
wave: 2027 release wave 1
status: preview
roadmap_status: In development
release_phase: General Availability
ga_date: 2027-04
preview_date: 2026-10
area: Expense Agent
whatsnew_url: null
localizations: []
objects_touched: []
---

# Calculate withholding tax automatically in expense reports

> Expense Agent: Calculate withholding tax automatically in expense reports. In preview, GA 2027-04 (Microsoft 365 roadmap). Organizations can automatically calculate employee withholding taxes (WHT) as part of the expense report process. When employees submit expenses that are subject to withholding tax requirements, the system applies the appropriate tax calculations directly within the expense report workflow. Key capabilities include: Automatic withholding tax calculation for employee expense transactions that require tax deductions.

[Microsoft 365 roadmap 573304](https://www.microsoft.com/microsoft-365/roadmap?id=573304) · Expense Agent · in preview · roadmap status "In development", phase General Availability

## What Microsoft says

Organizations can automatically calculate employee withholding taxes (WHT) as part of the expense report process. When employees submit expenses that are subject to withholding tax requirements, the system applies the appropriate tax calculations directly within the expense report workflow. Key capabilities include: Automatic withholding tax calculation for employee expense transactions that require tax deductions. Calculate single or multiple withholding taxes for each category, based on you setup. Calculations can also be simple or compound. Calculate thresholds based on different periods for records, documents, categories (period accumulation), and total (period accumulation). Base calculations on gross or net amounts.

## Dates

- General availability: April CY2027 (2027 release wave 1)
- Public preview: October CY2026
- On the roadmap since 2026-09-30, last changed 2026-09-30

## Covered by

Matched by Haiku among videos and Learn pages in the same galaxy system, checked against the roadmap ids and the evidence text. Every link below was reviewed by Opus.

### Videos

- [What's new in Expense Agent: Calculate WHT for Expenses (2026 release wave 2)](../videos/mT_0VKqdEzA.md): Withholding Tax for Employee Expenses at [0:06](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=6s); Withholding Posting Setup for Employees at [1:44](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=104s); Multiple Withholding Tax Groups per Category at [2:44](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=164s); Gross and Net Withholding Tax Calculation at [3:32](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=212s); Configurable Withholding Tax Thresholds at [3:32](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=212s); Withholding Tax Entries in Preview Posting at [5:52](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=352s); Withholding Tax Calculation Timing (Invoice vs Payment) at [7:22](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=442s); Employee Card Withholding Tax Fields at [10:11](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=611s); Expense Category Withholding Tax Configuration at [10:46](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=646s)
- [What's new in Expense Agent: Overview (2026 release wave 2)](../videos/tj1vvsmAMVs.md): Withholding Tax for Employees at [13:10](https://www.youtube.com/watch?v=tj1vvsmAMVs&t=790s)
- [Microsoft Ends Business Central Release Plans: What Changes?](../videos/x0XF0lBvgEE.md): Dynamics 365 Business Central Expense Agent - Withholding Taxes at [7:37](https://www.youtube.com/watch?v=x0XF0lBvgEE&t=457s)

### Microsoft Learn

- [Set Up Expense Categories, Rules, and Policies](https://learn.microsoft.com/dynamics365/business-central/expense-management/expense-management-categories-rules)
- [Set up withholding tax](https://learn.microsoft.com/dynamics365/business-central/finance-set-up-withholding-tax)

Source: Microsoft 365 roadmap. Status words follow the roadmap.