Skip to content
English
  • There are no suggestions because the search field is empty.

Withholding Tax Code Thresholds

Calculate Withholding Taxes using thresholds.

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

1. Invoice - the system uses the invoice amount to determine if the threshold is met. 2. Annual Amount - the system reviews all past invoices for the year and determines if the threshold is met.

Threshold Method - Invoice

1. Navigate to SET UP FILES > Withholding Tax Codes

2. Click New Withholding Tax Code

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

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

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

Field Description

  • Annual Threshold Month Ending - Select a month from the drop-down list to define the end of the threshold period.
  • Threshold Currency - Select the currency from the drop-down list.
  • Annual 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.