Withholding tax type defines the different withholding tax categories that exist in a country. Tax type controls all the options for withholding taxes such as Base amount (Net, Gross etc), Rounding rules etc., accumulation type (monthly, quarterly etc) while Tax code controls the percentage.
Also, multiple tax codes cannot be assigned to same tax type in a business transactions (such as in vendor master), multiple tax types must be created for such scenarios.
