Entering Withholding Tax Rates

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Withholding Tax Rates Screen

About Withholding Taxes

Adding Tax Authorities

Adding Tax Classes

Entering Tax Rates

Adding Tax Groups

You can enter withholding tax rates for each set of sales or purchases tax classes.

Note: When you enter a new withholding tax rate or change an existing withholding tax rate, the new rate will apply only to invoices entered after you save your changes.

  • Add tax authorities, tax classes, and regular tax rates.
  • In General Ledger, set up an account or accounts to which you will post tax amounts that have been withheld for the tax authority (amounts you have withheld from your vendors, and amounts your customers have withheld from you). For more information, see the General Ledger help.

To enter withholding tax rates:

  1. Open Tax Services > Tax Setup > Withholding Tax Rates.
  2. Select a Tax Authority code, and then specify the Transaction Type (Sales or Purchases), a Withholding Tax Base, and a Withholding Tax Account.

    Also, if you are entering withholding tax rates for purchases, optionally specify a 1099/CPRS Code.

  3. For each combination of item tax class and customer/vendor tax class, enter the applicable tax rate as a percentage. (For example, to enter a tax rate of 6%, enter 6.00.)
  4. When you are finished, click Add or Save.