Withholding Tax

Initial Setup

Withholding Tax Account

Menu : GL | Maintain Account...

GL Account	Description	Remark
460-XXX	WITHHOLDING TAX PAYABLE	Under Current Liabilities
990-XXX	WITHHOLDING TAX EXPENSE	Under Expenses

NOTE: 
GL Account not compulsory to follow. 

Available in: Menu : [Purchase | Purchase Invoice...] or [Supplier | Supplier Invoice...] Menu : [Purchase | Cash Purchase...] or [Supplier | Supplier Invoice...] Menu : [Purchase | Purchase Debit Note...] or [Supplier | Supplier Debit Note...] Menu : [Purchase | Purchase Returned ...] or [Supplier | Supplier Credit Note...]

Withholding Tax Entry

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
Withholding Tax Expense	XXX
Withholding Tax Payable		XXX

NOTE:
Withholding tax amount will not add into the purchase amount.

Payment of Withholding Tax

[ GL | Cash Book Entry..]

1. Create new PV.

2. Enter Payee name.

3. Select Payment By: Bank Account

4. At detail grid, select GL Code: WTH-TAX

5. Enter the withholding tax amount to paid.

6. You can check the ledger report for Withholding Tax balance.

See also

• Cash Book Entry
• Print Ledger Report
• Account Inquiry