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
- 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.