EMEIT Withholding Localization App

Withholding tax (WHT) is the tax withheld by a company when it makes a payment to a vendor, in which the full amount owed to the vendor is reduced by the tax withheld.

The withheld tax is then remitted to the Egyptian Taxation Authority (ETA) when the next reporting cycle is submitted.

If a supplier without an exemption provides an invoice, a withholding tax amount must be withheld if the total amount of the invoice is more than the threshold amount.

To use withholding tax, you must set up additional fields in the Vendors and Company Information so that the correct information is printed in the Tax form 41.

 

Note

As a prerequisite, you need to set up at least one account for Withholding Tax Payable.

The following procedure describes how to set up Payables Account for WHT.

 

To set up a Payables Account for withholding tax

  1. Choose the  icon, enter Chart of Accounts, and then choose the related link.
  2. Create a new Account or edit an existing one. Fill in the fields as described in the following table.
Field Description
Name Write WHT then space at the beginning of the name.

 

3. Choose the OK button.

To set up a Dimensions Code for withholding tax

  1. Choose the  icon, enter Dimensions, and then choose the related link.
  2. Fill in the fields as necessary.
  3. Choose the OK button.
  4. Link the created Dimension Code with the related account as Mandatory.You can set up WHT dimensions on the Dimensions page:
  5. Example of Dimension Setup
  • WHT
Code Name Code Caption Filter Caption
WHT Withholding Withholding Withholding

 

For WHT, you add the following dimension values:

Code Name Dimension Value Type
1 Supplies Standard
3 Services Standard
5 Consultation Standard

To set up Company Information for withholding tax

  1. Choose the  icon, enter Company Information, and then choose the related link.
  1. Fill in the fields in WHT Details section as described in the following table.
Field Description
Company Tax ID Specifies your tax ID registration number.
Company Arabic Naming Specifies your company legal name in Arabic language.
Company Arabic Address Specifies your company address in Arabic Language.

 

  1. Choose the OK

To set WHT information of individual vendors.

The following sections describe how to set WHT information of vendors

  1. Choose the  icon, enter Vendor, and then choose the related link.
  2. On the Vendor card, expand the General FastTab.
  3. Fill in the fields in WHT Details section as described in the following table.
Field Description
Vendor Arabic Name Specifies this vendor legal name in Arabic language.
Vendor Arabic Address Specifies this vendor address in Arabic Language.
Tax Registration Number Specifies this vendor registration number.
Tax Registration File Number Specifies this vendor registration file number
Tax Authority Name Specify the tax authority that this vendor belongs to

 

4. Choose the OK button.

To make payments in the payment journal

 

  1. Choose the icon, enter Payment Journals, and then choose the related link.
  2. Open the journal batch that is dedicated to withholding tax recording.
  1. Fill in the fields as described in the following table.
Field Description
Posting Date Fill in the date on which the withholding tax will be posted to GL.
Document Type Choose Credit Memo.
Document Number Fill in the document number
Account Type Choose Vendor.
Account Number Fill in or choose the vendor number
Description Vendor name is defaulted automatically on filling the vendor number
Payment Method Choose Account
Amount Fill in the withholding tax amount
Amount (LCY) Tax amount in local currency
Bal. Account Type Choose G/L Account
Bal. Account Number Fill in or choose the Withholding tax payable account
Applied (Yes/No) Filled automatically after Appling tax.
Applies-to Doc. Type Choose Invoice.
Applies-to Doc. Number Fill in or select the relevant invoice which this tax is applied to
  1. When all payment journal lines are completed, choose the Post

To print withholding tax report Form41

 

  1. Choose the  icon, enter WHT 41 Report, and then choose the related link.
  2. On the Saved Settings FastTab, fill in the fields as described in the following table.
Field Description
From Vendor Select or fill in the number of the first vendor in the range.
To Vendor Select or fill in the number of the last vendor in the range.
Quarter The quarter for which the tax is being reported.
Year The year for which the tax is being reported.
  1. Choose the Print button to print the report or choose the Preview button to view it on the screen.