Withholding Tax Management

WHT Business Posting Groups

WHT Business Posting Groups shall be created based on articles of Withholding Tax Declaration. Each WHT Business Posting Group shall have WHT Posting Setup. It is important to indicate WHT Business Posting Group in Vendor card under Invoicing fast tab. Accordingly, WHT Business Posting Group will always appear in purchase documents and GL entries for withholding tax to be generated upon posting.

For Domestic operations, the following fields in WHT Posting Setup shall be set:

• WHT %, which specifies the Withholding tax rate based on legislation. Shall be indicated as a decimal, not including the % sign.
• Vendor type, which specifies the vendor type as Resident.
• VAT over WHT yes/no button, which is YES for domestic WHT Posting Groups.

For Foreign operations, the following fields in WHT Posting Setup shall be set:

• WHT Product Posting Group set for appropriate product group.
• WHT %, which specifies the Withholding tax rate based on legislation. Shall be indicated as a decimal, not including the % sign.
• Government Vendor No, a specially created vendor shall be selected for this field. Under Invoicing fast tab of this Vendor card, the Gen. Business Posting Group, VAT Business Posting Group, Vendor Posting Group fields shall be filled in according to the WHT posting groups.
• Vendor type, which specifies the vendor type as Non-Resident.
• TDEC code which specifies the value of WHT Tax Declaration Line Code.
• Accrued WHT GL account.
• VAT over WHT yes/no button, which is NO for foreign WHT Posting Groups.

GL entries per withholding tax are created upon payment. You can view WHT entries on the WHT entries page by using Search.