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20TREATMENT OF WITHHOLDING TAX IN SL
BACKGROUND
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Withholding tax is a form of income tax deducted at source by one person upon effecting a payment to another.
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The withholding agent (person effecting the payment) is supposed to make the payment of tax.
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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.
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The withholding agent is required to keep the records of payment and withholdings for 5 years.
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The tax rates are usually a percentage on the gross amount (one million shillings and above) depending on the Source
EXAMPLE
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A vendor (XXXX) offers services or supplies goods to an entity worth Shs.1,500,000
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The rate charged on WHT is at 6%
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The entity pays less 6% to the vendor (XXXX) (Shs.1,410,000)
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The 6% is then remitted to the tax authority a vendor also (YYYY) (Shs. 90,000)
REQUIREMENT
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How can we configure this functionality in Dynamics SL?
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