Withholding Tax: Difference between revisions

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Line 8: Line 8:
|-
|-
| 460-XXX || WITHHOLDING TAX PAYABLE || Under Current Liabilities
| 460-XXX || WITHHOLDING TAX PAYABLE || Under Current Liabilities
|-
| 990-XXX || WITHHOLDING TAX EXPENSE || Under Expenses
|}
|}


  '''NOTE:'''  
  '''NOTE:'''  
  GL Account not compulsory to follow.  
  GL Account code not compulsory to follow.  
 
<br />


===Maintain Withholding Tax===
''Menu : Tools | Maintain Withholding Tax...''
<br />
<br />


Available in:  
:1. Click '''New'''.
''Menu : [Purchase | Purchase Invoice...]'' or [Supplier | Supplier Invoice...]
:2. Input the following data:
''Menu : [Purchase | Cash Purchase...]'' or [Supplier | Supplier Invoice...]
::{| class="wikitable"
''Menu : [Purchase | Purchase Debit Note...]'' or [Supplier | Supplier Debit Note...]
|-
''Menu : [Purchase | Purchase Returned ...]'' or [Supplier | Supplier Credit Note...]
! 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
|}
::[[File: WTH-Tax_03b.jpg| 400PX]]
'''NOTE:'''  
Tax Account (DR) leave blank
<br />
:3. Click on '''Save'''.
<br />
<br />


==Withholding Tax Purchase Entry==
==Withholding Tax Purchase Entry==
Available in: <br />
''Menu : [Purchase | Purchase Invoice...]'' or [Supplier | Supplier Invoice...]<br />
''Menu : [Purchase | Cash Purchase...]'' or [Supplier | Supplier Invoice...]<br />
''Menu : [Purchase | Purchase Debit Note...]'' or [Supplier | Supplier Debit Note...]<br />
''Menu : [Purchase | Purchase Returned ...]'' or [Supplier | Supplier Credit Note...]<br />
<br />
:1. In '''Purchase Invoice''', insert the following columns:
:1. In '''Purchase Invoice''', insert the following columns:
::* WH Local Tax Amt
::* WH Local Tax Amt
Line 32: Line 57:


:2. Select the Withholding Tax Code in '''WH Tax''' column.
:2. Select the Withholding Tax Code in '''WH Tax''' column.
::[[File: WTH-Tax_10b.jpg| 500PX]]<br />
::{| class="wikitable"
|+ For example,
|-
!  !! Amount
|-
| Original Supplier Invoice|| 15,640
|-
| Withholding Tax || (2,040)
|-
| '''Supplier Account Payable''' || '''13,600'''
|}
::[[File: WTH-Tax_11b.jpg| 200PX]]<br />


:3. System will auto post the withholding tax double entry. Press '''CTRL + O''' to check the double entry.  
:3. System will auto post the withholding tax double entry. Press '''CTRL + O''' to check the double entry.  
Line 39: Line 75:
! GL Description !! Local DR || Local CR
! GL Description !! Local DR || Local CR
|-
|-
| Withholding Tax Expense || XXX  ||  
| Expenses Account (follow the document detail GL Account) || XXX  ||  
|-
|-
| Withholding Tax Payable ||  || XXX
| Withholding Tax Payable ||  || XXX
|}
|}
::[[File: WTH-Tax_10c.jpg| 500PX]]
::[[File: WTH-Tax_11c.jpg| 200PX]]
<br />
<br />


  '''NOTE:'''
  '''NOTE:'''
  Withholding tax amount will not add into the purchase invoice amount.
  Withholding tax amount will not add into the purchase invoice as Outstanding Amount.
 
:4. Supplier payment knock-off purchase invoice with RM13,600 (outstanding = 0).


==Payment of Withholding Tax==
==Payment of Withholding Tax==
Line 55: Line 93:
:1. Create new PV.  
:1. Create new PV.  
:2. Enter Payee name.
:2. Enter Payee name.
:3. Select Payment By: '''Bank Account'''
:3. Select bank account to pay.
:4. At detail grid, select GL Account (Withholding Tax Payable).
:4. In detail grid, select the GL Account '''(Withholding Tax Payable)'''.
:5. Enter the withholding tax amount to be paid.
:5. Enter the withholding tax amount to be paid. Save it.
:[[File: WTH-Tax 10d.jpg| 500PX]]
:[[File: WTH-Tax 10d.jpg| 500PX]]
<br />
<br />
:6. You can check the ledger report for Withholding Tax Payable balance.
:6. You can check the ledger report for '''Withholding Tax Payable outstanding balance'''.
<br />
<br />



Latest revision as of 09:10, 25 September 2023

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
400PX
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
300PX
2. Select the Withholding Tax Code in WH Tax column.
For example,
Amount
Original Supplier Invoice 15,640
Withholding Tax (2,040)
Supplier Account Payable 13,600
200PX
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
200PX


NOTE:
Withholding tax amount will not add into the purchase invoice as Outstanding Amount.
4. Supplier payment knock-off purchase invoice with RM13,600 (outstanding = 0).

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.
500PX


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


See also