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WHT

Withholding TAX

A business must handle withholding tax obligations based on its jurisdiction and the types of payments it makes. Within the system, a default withholding tax code can be applied to accounts payable to calculate the amount to be withheld from payments. The specific tax rates that apply are determined not by the goods you sell, but by the nature of the payment (e.g., professional services, rent, royalties) and the status of the recipient.

Here’s how:

  1. Active Withholding Tax
  2. Config Withholding Tax

Active Withholding Tax

  1. Click on the Settings icon
  2. Click on the “Preference”
  3. Click on the “Vender”
  4. Tick on the “Active Withholding Tax”

Config Withholding Tax

1 . After active Withholding Tax , click on “%Tax”

2 . Click on the “WTH”

3 . Tick on Withholding Tax you want to use

4 . Click on Not Yet Configured

5 . Withholding Tax type config :

. Payable Account (Required): From the dropdown menu, select the liability account from your Chart of Accounts that will be used to track VAT collected on sales (Output VAT).

. Expense Account: Affective only for select “Net”

6 . Click on the (Save & close)

7 . And Click on Save

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