Puerto Rican withholding tax laws exempt the first $500 paid to a vendor in the calendar year from the withholding basis amount (ex. first invoice of the year was for $20k, my taxable basis would be $19500). Current D365 functionality does not allow this threshold to be configured ahead of time, meaning users will need to manually type in the exempt amount at time of settlement for each vendor.

Similar functionality already exists for TDS, a similar feature localized to Indian companies. See the tax module > indirect tax > withholding tax > withholding tax codes > threshold designer