Flat rate on tax code

1

hello everyone, im trying to to customize a tax code, and i want to assign a flat rate, how can i assign it, i cant find it in the option of tax codes in the setting. using version 22.3.47 (desktop)

thanks!

2

What sort of tax are you talking about?

A Flat rate tax has a special meaning in Manager

3

let say im renting for 5000 and inclusive of withholding tax of 5%, i want it to be 4750 rent payable, 250 withholding tax, rent expense 5000.

4

as i customize it, it computes it like 5000/1.05

5

Are you receiving or paying this?

6

im paying, before there is an option like this in tax codes, but now i cant find it, i only see reverse charge

7

What country are you in?

The localisations are currently being worked on

I would create a liability account called Tax witheld and then màke a payment with two lines -

Rent paid 5000
Tax withheld -250
Total payment 4750

Then when you pay the tax to the tax authorities, make a payment of 250 and post it to the liability account

Witholding tax is meant for tax withheld on Vat, etc
This is more like an advance payment of income tax on behalf of the landlord

8

i see, before as i create a journal entry for rent payable, its automatic as i assign a flat rate for this, for now, since localization is a work in progress, maybe i will just have to manual enter it. maybe it will be included in the tax codes option soon.

thanks so much joe.

9

Why are creating a journal entry for rent payable?

Journal entries are hardly ever used in Manager

10

i journal entry my rent payable (or should i use purchase invoice), as my landlord bills me,

dr rent expense xxx
cr rent payable xx
cr withholding tax payable xx

11

You should use a purchase invoice

12

have not tried that yet, but i will try to explore that one. ever since i start, i use journal entry for the rent, and i use purchase invoice with my purchase of inventories.

13

@roger3820, you seem to have garbled together withholding tax (tax payable at the source) and flat rate tax schemes. Your understanding of both seems incorrect based on my interpretation of what you have written.

Read about withholding tax here:
https://www.manager.io/guides/12346
https://www.manager.io/guides/36135

Read about flat rate tax schemes near the end of this Guide:
https://www.manager.io/guides/8901

Flat rate does not refer to a constant rate, but to a specific taxation regimen under which VAT on purchases is not applied. Instead, a lower rate is remitted on sales.