Taxes - WHT Configuration

Welcome to AccuBooks Configurations of Taxes - WHT. This module tracks all your transactions subject to Withholding Tax (WHT). You can add, edit, and manage all your taxable payments and deductions in one place. Plus, you can upload them all at once. You can also customize it to fit your business needs. This module ensures that your tax-related transactions are well-organized, making it easier to handle deductions, allows efficient operation, ensures compliance with regulations, and keeps your financial records accurate.

Purpose

The Withholding Tax (WHT) Configuration module allows businesses to set up, manage, and maintain the various withholding tax codes mandated by the Bureau of Internal Revenue (BIR) in the Philippines.

Configuring these codes ensures that the system accurately calculates and tracks Expanded Withholding Tax (EWT) or Withholding Tax on Compensation during purchase, payment, or payroll transactions. It serves as the master data reference for automating your tax compliance and generating accurate BIR forms.

How to Add a New Withholding Tax Code

Follow these steps to create a new withholding tax entry in your system:

1. Navigate to the WHT Module Go to the left sidebar menu and click on SETUP, expand the CONFIGURATIONS dropdown, look under the Taxes sub-section, and select WHT.
2. Open the Creation Form Click the blue + Add button located at the top-right corner of the Withholding Tax management page.
3. Fill Out the Required Details
   • Code: Enter the official BIR alphanumeric tax code (e.g., WI160, WC158).
   • Name: Provide a clear, recognizable name for the tax type.
   • Rate: Input the applicable tax percentage rate (e.g., 1.00%, 2.00%, 5.00%).
   • Tax Account: Link this code to the appropriate General Ledger account from your Chart of Accounts (typically a liability account like Withholding Tax - Expanded).
   • Description: Add a detailed explanation of the transaction type this tax applies to (e.g., Income payments made to local suppliers of services).
4. Set Status Ensure the Active? toggle or dropdown is set to Yes so it can be utilized in transactions.
5. Save the Entry Click the Save or Submit button at the bottom of the form to add the new code to your system master data.

How to Edit an Existing Withholding Tax Code

If tax rates change or you need to update account mapping, follow these steps:

1. Locate the Tax Code Use the Search... bar at the top-right of the list or browse through the pagination at the bottom to find the specific tax code you wish to modify.
2. Open the Edit Form Go to the specific tax row and click the blue Action/Edit icon located on the far right under the Actions column.
3. Modify the Fields Update the necessary details such as the Name, Rate, Description, or the mapped Tax Account.
4. Toggle Status (Optional) If a tax code is no longer applicable under current regulations, change its Active? status from Yes to No to prevent users from selecting it in future transactions.
5. Update and Save Click the Update or Save Changes button to apply the modifications immediately across the system.