Withholding tax

The Withholding Tax option in the Settings tab allows you to enable withholding tax capabilities for your invoices. By activating this feature, you can manage withholding taxes receivable from customers and payable to suppliers directly within Manager.

The form includes the following fields:

Withholding Tax Receivable

Enabling the Withholding Tax Receivable option will create a Withholding Tax Receivable account on your balance sheet. This account allows you to monitor the withholding tax balance for each customer.

When this option is activated:

• A Withholding Tax section will appear when creating new Sales Invoices and Credit Notes, allowing you to input amounts for withholding tax.
• The amounts entered for withholding tax will accumulate in the Withholding Tax Receivable account.
• You can clear balances in the Withholding Tax Receivable account by making entries in the Withholding Tax Receipts tab.

Withholding Tax Payable

Enabling the Withholding Tax Payable option will introduce a Withholding Tax Payable account to your balance sheet. This account helps you monitor the withholding tax balance for each supplier.

When this option is activated:

• A Withholding Tax section will appear when creating new Purchase Invoices, allowing you to specify amounts for withholding tax.