Withholding Tax Codes
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      2. Setup Files
      3. Withholding Tax Codes

      Withholding tax code thresholds

      Calculate Withholding Taxes using thresholds.

      Accountability offers 2 types of threshold methods to calculate Withholding Tax.

      • Invoice - the system uses the invoice amount to determine if the threshold is met.
      • Annual Amount - the system reviews all past invoices for the year and determines if the threshold is met.

      Threshold Method - Invoice

      Select Invoice from the Threshold Method field and additional fields will appear.

      Screen Shot 2022-12-05 at 1.04.32 PM

       

      Field Description
      Threshold Currency Select the currency from the drop-down list.
      Threshold Amount Enter the threshold amount.
      Below Threshold WHT % Enter the percentage for the system to calculate withholding tax if the amount is equal to or falls below the Threshold Amount.
      Above Threshold WHT % Enter the percentage for the system to calculate the withholding tax on the invoice amount above the threshold.

       

      Threshold Method - Annual Amount

      Select Annual Amount from the Threshold Method field and additional fields will appear.

      Screen Shot 2022-12-05 at 1.08.38 PM

       

      Field Description
      Threshold Month Ending Select a month from the drop-down list to define the end of the threshold period. <review spec>
      Threshold Currency Select the currency from the drop-down list.
      Threshold Amount Enter the threshold amount.
      Below Threshold WTH % Enter the percentage for the system to calculate withholding tax if the annual amount is equal to or falls below the Threshold Amount.
      Above Threshold WTH % Enter the percentage for the system to calculate the withholding tax on the annual amount above the threshold, within the threshold period.