Withholding Tax

Initial Setup

Create Withholding Tax Account

[GL | Maintain Account...]

Create the following GL Account under Current Liability.

GL Account	Description	Special Type
WTH-Tax	Withholding Tax	Bank Account

Withholding Document Number Set

[Tools | Maintain Document Number...]

1. Create the following document number set for Withholding Tax.

Descripion	Document Type	Format
WITHHOLDING TAX	Payment Voucher	WTHPV-%.5d
WITHHOLDING TAX	Official Receipt	WTHOR-%.5d

2. Next, Go to Tools | Maintain Payment Method...

3. Edit the WITHHOLDING TAX.

4. Set OR and PV number Set to WITHHOLDING TAX. Click Save.

Withholding Tax Entries

Withholding Tax (AP)

[Supplier | Supplier Payment...]

1. Create new Supplier Payment.

2. Select the Supplier Code.

3. Select the Payment by: WITHHOLDING TAX.

4. Enter the Paid Amount: 110,000.00 (Withholding tax amount 10% of supplier invoice value).

5. Knock-off the supplier invoice.

Withholding Tax (AR)

[Customer | Customer Payment...]

1. Create new Customer Payment.

2. Select the Customer Code.

3. Select the Received In: WITHHOLDING TAX.

4. Enter the Paid Amount: 2,560.00 (Withholding tax amount 10% of customer invoice value).

5. Knock-off the customer invoice.

Withholding Balance Report

[ GL | Print Ledger Report...]
[ Inquiry | Account Inquiry...]

1. Select Date Range.

2. Select Account: WTH-TAX

3. Click Apply.

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

• Print SST Listing
• SST-Account for Pending Service Tax over 12 months