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

How to create Withholding Tax Codes

This guide explains how to create and configure withholding tax codes.

Step by Step Guide:

Click Next to move through the walkthrough. Use Zoom to adjust the view. Select the expand icon to view all instructions on one page.

Field Description
Code Enter 1-8 characters to define a code for the withholding tax. This field is required.
Description Enter a description for the withholding tax code. This field is required.
Office Select an office from the drop-down to limit the use of this withholding tax code to only the office specified. No other offices will be able to use this withholding tax code.
Restrict to Country Select a country from the drop-down to limit the use of this withholding tax code to only the country specified. All offices in this country are able to use this withholding tax code. 
WHT % Specify a percentage for the system to calculate the withholding tax amount when this withholding tax code is used. For example, entering 5 here will indicate a 5% withholding tax.
Output WHT GL Account Enter a GL account to have the system post for output withholding taxes. This field is required. 
Input WHT GL Account Enter a GL account to have the system post for input withholding taxes. This field is required. 
Use for Input (checkbox) Check this box if this withholding tax code is used for input tax (purchases).
Use for Output (checkbox) Check this box if this withholding tax code is used for output tax (sales).
Active (checkbox) Check this box if this withholding tax code is active. Uncheck the box if the withholding tax code is no longer to be used.
Calculate WHT On Tax (checkbox) Check this box if the WHT calculation is based on invoice amount plus tax.
Round Down (checkbox) Check this box if the withholding tax is to be rounded down.
Threshold Method* Optional - If applicable, select from the drop-down the type of threshold method to be used. To learn more about the Threshold Method click here.