Withholding Tax

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Revision as of 07:13, 25 March 2020 by Csloo (talk | contribs) (Payment of Withholding Tax)
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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

2. Next, Go to Tools | Maintain Payment Method...
4. Set the PV number Set to WITHHOLDING TAX. Click Save.

Withholding Tax Entries

Withholding Tax Payable (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 (eg. the withholding tax amount 10% of supplier invoice value).
5. Knock-off the supplier invoice.

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