Skip to main content

Notifications

Microsoft Dynamics SL (Archived)

How to configure Withholding Tax in Dynamics SL

(0) ShareShare
ReportReport
Posted on by 20

TREATMENT OF WITHHOLDING TAX IN SL

BACKGROUND

  • Withholding tax is a form of income tax deducted at source by one person upon effecting a payment to another. 

  • The withholding agent (person effecting the payment) is supposed to make the payment of tax. 

  • The payer must remit to the Tax Authority the tax withheld on or before the 15th day of the month following the month in which the payment subject to withholding tax is made.

  • The withholding agent is required to keep the records of payment and withholdings for 5 years.

  • The tax rates are usually a percentage on the gross amount (one million shillings and above) depending on the Source

EXAMPLE

  • A vendor (XXXX) offers services or supplies goods to an entity worth Shs.1,500,000

  • The rate charged on WHT is at 6%

  • The entity pays less 6% to the vendor (XXXX) (Shs.1,410,000)

  • The 6% is then remitted to the tax authority a vendor also (YYYY) (Shs. 90,000)

REQUIREMENT

  • How can we configure this functionality in Dynamics SL?

*This post is locked for comments

  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: How to configure Withholding Tax in Dynamics SL

    Hello STEPHEN K, you could use a negative tax rate, in your case -6.00. When you register the bill for the whole amount 1,500,00, the system will create a voucher for 1,410,00 which you'll pay to the vendor and will debit the expense account 1,500,000 and debit the tax account -90,000.

    That how we do it in Mexico.

  • DanWats Profile Picture
    DanWats 40 on at
    RE: How to configure Withholding Tax in Dynamics SL

    Stephen,

    There's no standard functional feature for handling withholding tax in Dynamics SL. You either have to customize the functionality or make use of work arounds like entering debit memos to offset the WHT amount at the point of payment.

    If you're not using the discount field in your transactions, I have a customization that has been developed to handle WHT but it makes use of the discount field. Let me know if you're interested.

    Dan.

Under review

Thank you for your reply! To ensure a great experience for everyone, your content is awaiting approval by our Community Managers. Please check back later.

Helpful resources

News and Announcements

Announcing Category Subscriptions!

Quick Links

December Spotlight Star - Muhammad Affan

Congratulations to a top community star!

Top 10 leaders for November!

Congratulations to our November super stars!

Tips for Writing Effective Verified Answers

Best practices for providing successful forum answers ✍️

Leaderboard

#1
André Arnaud de Calavon Profile Picture

André Arnaud de Cal... 291,359 Super User 2024 Season 2

#2
Martin Dráb Profile Picture

Martin Dráb 230,370 Most Valuable Professional

#3
nmaenpaa Profile Picture

nmaenpaa 101,156

Leaderboard

Featured topics

Product updates

Dynamics 365 release plans