Withholding Tax

Initial Setup

Withholding Tax Account

Menu : GL | Maintain Account...

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

NOTE: 
GL Account code not compulsory to follow. 

Maintain Withholding Tax

Menu : 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	Withholding Tax Rate	15%
Tax Account (DR)	Expenses account	<<Follow document accounts>> if leave blank
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:
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...]

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.

For example,

	Amount
Purchase Inv	15,640
Withholding Tax	(2,040)
AP Payable	13,600

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 as Outstanding Amount.

Payment of Withholding Tax

[ GL | Cash Book Entry..]

1. Create new PV.

2. Enter Payee name.

3. Select bank account to pay.

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

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

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

See also

• Cash Book Entry
• Print Ledger Report
• Account Inquiry
• Maintain Withholding Tax