How to Enable a Withholding Tax Codes

How to Enable a Withholding Tax Codes

Overview:

In the system, it has a list of Withholding Tax Codes in line with the BIR Alphanumeric Tax Codes (ATC) and their corresponding Rates but not all of these are active to be used in the Transactions.

Procedure:

1. In Navigation Pane, go to Tax > W/ Tax Codes

2. In W/Tax Code List View, select a Code. For Example: WC 020

3. Fill in the necessary fields:

• Is Active: ticked to be tagged as Active
• Payable Account: The W/Tax Payable Account in COA
• Creditable Account: The W/Tax Creditable Account in COA

4. Once done, click Save or Save and Close.

Notes:

• It is not necessary to have a Payable Account and Creditable Account, especially if the W/Tax Code will only be used for Sales or Purchases. Therefore, in the above sample, WC 020 will only be used in purchases.
• Besides that, WTax needs to be assigned an account before being used in a transaction so that the system can determine to which account it will be posted.

Application:

W/Tax is now available to use in Transaction.

For further concerns regarding this matter, please contact support to assist you or create ticket thru this                  link https://support.qne.com.ph