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.
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.