Egypt taxes - source tax deduction (negative tax)

As this is my first topic, I really want thank you guys for the awesome software, it’s perfect for my small business.

Here in Egypt we have source tax deduction, which is a tax of -2% (yup, that’s negative) to make double checking between companies for the tax authorities. Anyway, after I add it as a custom tax code, it doesn’t show in the invoice although it’s selected on the invoice editing view. I tried it as a positive number and it works.

I’m using the server edition btw.

I’m not sure negative tax rate is way to go to accommodate for tax deduction at source.

If you are giving someone your sales invoice, I don’t think it’s up to you to determine 2% should be withheld. I assume you should give them an invoice for full price without using any -2% tax code and the customer will just pay you 2% less.

Or is it actually common to see in Egypt something like -2% tax rates on invoices?

It is actually common here to see it. Though the scinario you mentioned is legal, but clients prefer to see it mentioned in the invoice, and they explecitly request it.

Hi Lubos, In Indonesia when we need to pay our vendor, we need to deduct the tax straight away to be paid to the government, is it possible to have tax as an invoice deduction ?

For Example :
My Client Charged me 600,000 for services and there’s an 2.5% tax incurred from the transaction where I need to reduce the payment to may vendor by 15,000 (2.5% * 600,000) = 585,000 and give the 15,000 to the government by the 10th of the next month, and after I pay the tax to the government I’ll give the proof of transaction to my vendor and it will be for their tax credit at the end of the financial year.

Is it possible to make this kind of transaction in Manager ?

Thank You.

Make Tax Deduction by adding -10% in Custom Tax Code. And un check Tax inclusive on invoice. See the Image for details. But after that where does this effect my account ?

Negative tax codes do not work. If you have a tax deducted at the source, that is explained here: Manager Cloud.