I was very happy to see the new workflow of withholding taxes being improved.
But after testing the system i discovered something i want to raise.
1.Withholding tax function on purchases invoices: When a company making payment receives an invoice, the paying company may work out Withholding tax and pay the receiving company the net amount. The Withholding tax becomes a ‘withholding tax asset’ to the receiving company and a 'withholding tax liability to the paying company which is payable to the tax collecting body of the jurisdiction.So the withholding tax field must not only appear on the Sales Invoices creation page but also on the purchases invoice creation page.
2.Tax on Tax: I also discovered after testing the feature that the withholding tax was calculated on the invoice total which included Sales Tax or VAT. From my understanding this is tax on tax, the withholding tax must be computed on the subtotal.
3.Withholding Tax applicable to line items: I also suggest that just like how sales tax can be applied line by line on items on the invoice creation page, withholding tax must also be applied line by line on items. It will give the user the opportunity to apply withholding tax to items ‘withholding tax deductible’. In my country for example some items on the same invoice may suffer withholding tax while others (exempt goods and services) may not.
Thanks for the amazing accounting app