NOTE: This is a feature which is sold separately and may not be applicable to all installations.

Withholding Tax allows for adjustments to be made to client invoices for the purpose of applying withholding tax. An example of an invoice with withholding tax is shown below.

It can be seen that an adjustment has been added to the invoice, in this case a deduction of 10%.

Alternatively the adjustment can be grossed-up onto the invoice lines as shown below.

In this example the same timesheet is being invoiced but rather than the 10% deduction being shown as a separate line, the net value has been reduced by the deduction of 187.55.

Configuring a Client for Withholding Tax

In the Advance Tab you will see the following

The following options are available

Withhold Tax Rate%. This is the percentage value applied to the net value of the invoice items. It may be positive or negative
Withhold Tax Description. The description which will appear on the invoice. Note that this is not shown if using the gross-up mode.
Withhold Tax Gross Up. Configures whether the withholding tax lines are shown separately or whether the net value of the lines is adjusted.

Configuring Pay Elements for Withholding Tax

Pay Elements are also used to determine if withholding tax is applied. The percentage value and description may be overridden on the pay element. An example is shown below:

On this particular Pay Element, withholding tax applies at a value of +5%. The invoice example below shows a timesheet with two shifts:

One shift is on a pay element that is just marked as applicable for WHT. This shift therefore uses the WHT value defined on the client. In this case the shift has a value ot 4,000.00, the WHT percentage is -10.0% resulting in a deduction of 400.00.
The other shift is on a pay element with a rate override, as in the example above. The value of the shift is 1,456.00 and this pay element has a WHT percentage of 5% resulting in a addition of 72.80.

The resulting invoice is shown below

It can be seen that the 5% WHT adjustment has a description which has come from the pay element.

Essential - Before Using Withholding Tax

Before planning or using this facility it is essential to ensure that your requirements on invoice export have been communicated to RSM. We will assess your requirements and confirm whether these are met by your export configuration. We will provide you an estimate if your requirements are not met.

Questions and Answers

Withholding Tax is not showing on a client invoice

Check that

At least one pay element use on the item being invoiced as marked as being applicable for WHT.
The client must have a WHT percentage even if every pay element has a WHT percentage.

If you have the gross-up option ticked on the client then separate WHT lines are not shown on the invoice. Instead the net invoice line values will have been increased/decreased by the WHT amount.