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 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.
Thanks for being FirstBit customer! #WHT Accounting #Saudi