Specifying Withholding Tax Settings for Journal Entries

The Ease of Paying Taxes (EOPT) law adopts the accrual basis for recognizing sales of goods and services. To ensure EOPT compliance, the Withholding Tax SuiteApp includes journal entries that reflect accrued revenues or accrued expenses in the following reports:

Certificate of Creditable Tax Withheld at Source (2307)
Monthly Remittance Form of Creditable Income Taxes Withheld (Expanded) (0619-E)
Quarterly Remittance Return of Creditable Income Taxes Withheld (Expanded) (1601-EQ)
Summary Alphalist of Withholding Tax Agents/Payors of Income Payments subjected to Creditable Withholding Tax at Source (SAWT)
Annual Alphalist of Payees (1604E)
Quarterly Alphalist of Payees (QAP) or Monthly Alphalist of Payees (MAP)

PH WHTax Form is a custom journal form that provides the necessary fields for including journal entries in withholding tax reports.

To specify withholding tax settings for journal entries:

Enter a journal entry transaction.

Note:
For related instructions, see Entering General Journal Transactions.
From the Custom Form list, select PH WHTax Form.
On the Lines subtab, review or specify values in the following manual input fields:
- Apply WH Tax? – Check this box for each journal line that you want to include withholding tax.
- WH Tax Code – From the list, select the tax code that is based on the nexus setting. When the tax code is selected, NetSuite populates the following fields with corresponding values:
  - WH Tax Rate – Displays the corresponding rate for the selected WH Tax Code.
  - WH Tax Base Amount – Displays the transaction-level Withholding Tax Base value.
    - If the Withholding Tax Base is set to Net Amount, the value is equal to the item's Amount column.
    - If the Withholding Tax Base is set to Gross Amount, the value is equal to the item's Gross Amount column.
    - If the Withholding Tax Base is set to Tax Amount, the value is equal to the item's Tax Amt column.
      
      Note:
      You can configure Withholding Tax Base values when creating new tax types on the Setup > Withholding Tax > Tax Types page.
  - WH Tax Amount – Displays the calculated product of WH Tax Rate and WH Tax Base Amount.
Click Add.
On the Tax Reporting subtab, select one of the following as the Apply As value:
- Purchase – Specifies accrued expenses (from purchases) through journal entries.
- Sales – Specifies accrued revenues (from sales) through journal entries.
The Apply As field is blank by default in new journal entries.

On the Lines subtab, if you selected a vendor or customer entity and checked its Apply WH Tax? box, the Apply As field is automatically populated with the default value from the entity's record.

Note:
The Apply As field is also blank by default in new vendor and customer entity records. You set its value for each vendor or customer record in the Tax Information section of the Financial subtab (Lists > Relationships > Vendors or Customers).

If you selected an employee or other name entity, you must manually set the Apply As field to either Purchase or Sales. You can override the Apply As value as needed.

Important:
Ensure that you select a value for the Apply As field before saving. If the field is left blank, the journal entry is excluded from any supported withholding tax reports.
Click Save.

You can now generate withholding tax reports that support journal entries. For more information about generating reports, see Withholding Tax Reports -Philippines.

To specify withholding tax settings for journal entries:

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