Specify a tax authority that requires customers to withhold amounts to be remitted to the tax authority on behalf of vendors.
Specify the type of transaction for which the withholding tax rates are used:
- Sales. The rates are used to calculate tax amounts that your customers withhold from you.
- Purchases. The rates are used to calculate tax amounts that you withhold from your vendors.
Specify the General Ledger account to which you post tax amounts that are withheld for the tax authority.
Specify whether amounts to withhold are calculated based on the selling price or the tax amount from an invoice.
You specify a withholding tax rate of 10%. You have an invoice of $100.00, which is subject to a regular tax rate of 15%. The amount to withhold depends on the withholding tax base you use:
- Selling price. The withheld amount is $10.00 (10% of the selling price of $100.00).
- Tax amount. The withheld amount is $1.50 (10% of the tax amount of $15.00).
Enter withholding tax rates. You can specify a different rate for each combination of item tax class and customer/vendor tax class.
Overview
You use the Withholding Tax Rates screen to:
- Enter withholding tax rates for sales and purchases for each tax authority in your Sage 300 system.
Sage 300 subledgers use these tax rates to calculate withholding taxes on items you sell and buy.
- Edit tax rates if they change.