KB91810 – How to Enable a Withholding Tax Code

HOW TO ENABLE WITHHOLDING TAX CODES

In the system, it has a list of Withholding Tax Codes available already but not all of these are active to be used in the Transactions.

How to Enable a Withholding Tax Code

In Navigation Pane, Withholding Tax Module > WTax Codes

Select the W/Tax Code to be Enabled

For Example, this WTAX Code ‘WC 120’ will be used, then fill necessary fields;

  • Is Active: ticked to be tagged as Active
  • Payable Account: The W/Tax Payable Account in COA
  • Creditable Account: The W/Tax Creditable Account in COA

NOTE:

  • Both Payable Account and Creditable Account is not required, especially if the W/Tax Code will be just use either in Purchases or Sales. Thus, in the sample above, WC 120 will be just used in Purchases only.
  • Also, the WTax should have an assigned account before using it in the transaction for the system can classify which account will it be posted.

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