Withholding Tax is an income tax to be paid to the government by the payer of the income rather than
by the receiver of the income. For instance, you purchase an item to your supplier, the total amount
that you'll gonna pay to the supplier for your purchase will be deducted depending to the amount of the
withholding tax rate declared on the selected account.
A list of withholding tax codes along with the rates and nature/desciption of the taxes can be viewed through
the Thumbtax system.
You may also add additional withholding tax codes in the list,
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Head to the Accounting tab and select Withholding Tax Code.
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Click Add New WTax Code.
The rate of withholding taxes depends on the type of the supplier, either individual or corporation.
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Enter the code, rate and nature of income of the WTax. Tax codes can be the same for an individual
supplier and corporation but will be differ on the rate and nature of the withholding tax.
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Click Add WTax Code to save.
To edit a withholding tax code,
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Click the table row of the withholding tax code.
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Click Save Changes upon updating.
To delete,
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Click
icon.
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A pop-up window will appear to confirm your deletion, click OK.