Withholding Tax On Other Payments

Hi All,
I need a quick help here. Please how do I create Withholding Tax for payments other than Purchase of Inventory (like expenditures) using the Payment Button?

Read the Guide: Account for withholding tax on purchase invoices | Manager

If that does not cover your situation, you need to furnish more information about exactly what you are doing.

Thanks you but I think that covers purchases from suppliers using the purchase invoice.

What if you want to pay directly using the Payment Button? For instance, you are paying rent directly using the payment button at the left navigation menu and you need to withheld part of that rent from the landlord for onward forwarding to the tax authorities. Is it possible to apply withholding tax there without using the purchase invoice?

Yes, it’s possible. But for a recurring expense like rent, especially when you know you need to withhold tax at the source, entering a purchase invoice is probably advisable.

If you are determined to use a payment only, set up a liability account for withholding and enter a negative line item posted to that account on the payment. For the other line on the payment, enter the full amount of rent due. The net will be what actually goes to the landlord.

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That’s helpful.

Thank you very much.