Withholding Tax is a tax that applies on services payments, if the services purchased are of non resident- example, Saudi get the labors from UAE, when making payment, 5% of it will be paid to government as withholding tax.
Fortunately, the withholding tax in Saudi Arabia defines its interest rates without complexity. Indeed, they are 5% for every payment regarding interest rates. In Saudi, this tax applies if you are a non-resident receiving interest payments from a local source.
Enable the settings-Go to Administration > Taxes > WHT Accounting
Go to Accounting module > Entity > open the required entity > Go to Tax accounting tab > Enable WHT Accounting.
add Add the services and their rates where the withholding taxes should be applied
add the services and their rates where the withholding taxes should be applied
. By default, there are some services already available in the base with rates.
When creating a Bank payment, make sure to enable the option Apply WHT, this will add the accounting per line of inventory, with rate and its Amount in contract currency.
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