Witholding Tax

Withholding Tax Account

Go to GL > Maintain Account

GL Account	Description	Remark
460-XXX	Witholding Tax Payable	Under Current Liabilities

note

GL Account not compulsory to be the same.

Maintain Withholding Tax

Go to Tools > Maintain Withholding Tax

1. Click New.

2. Input the following data:

   Field Name	Explanation	Remark
   Code	Set a code	WTH-TAX15
   Description	Describe the meaning/usage of this code	Withholding Tax 15%
   Tax Rate	Witholding Tax Rate	15%
   Tax Account(DR)	Expenses Account	<<Follow document accounts>> if leave blank here
   Tax Account(CR)	Set to Withholding Tax Payable account	At GL\Maintain Account, create the Withholding Tax Payable account under Current Liabilities

   

   note

   Tax Account (DR) leave blank

3. Click on Save.

Withholding Tax Purchase Entry

Available in multiple menus:

Purchase	Supplier
Purchase Invoice	Supplier Invoice
Cash Purchase	Supplier Invoice
Purchase Debit Note	Supplier Debit Note
Purchase Returned	Supplier Credit Note

1. In Purchase Invoice, insert the following columns:

   • WH Local Tax Amt
   • WH Tax
   • WH Tax Rate

   

2. Select the Withholding Tax Code in WH Tax column.

   

3. System will auto post the withholding tax double entry. Press CTRL + O to check the double entry.

   GL Description	Local DR	Local CR
   Expenses Account (follow the document detail GL Account)	XXX
   Withholding Tax Payable		XXX

   

note

Withholding tax amount will not add into the purchase invoice amount.

Payment of Withholding Tax

1. Go to GL > Cash Book Entry..

2. Create new PV.

3. Enter Payee name.

4. Select bank account to pay.

5. In detail grid, select the GL Account (Withholding Tax Payable).

6. Enter the withholding tax amount to be paid. Save it.

   

7. You can check the ledger report for Withholding Tax Payable outstanding balance