Withholding Tax Payable

Code: 2158
👁 Views: 171

Account Information

Financial Statement Statement of Financial Position
Normal Balance Credit

Definition

Tax withheld from company payments to third parties and remitted to tax authorities

Common Journal Entries

Withhold tax from supplier payment

Dr. Accounts Payable
Cr. Withholding Tax
Cr. Bank Account

Remit withholding tax to authority

Dr. Withholding Tax
Cr. Bank Account

Withhold tax from contractor fees

Dr. Subcontractor Invoices
Cr. Withholding Tax

Adjust withholding tax after review

Dr. Tax Expense
Cr. Withholding Tax

Withhold tax from supplier payment

Dr. Accounts Payable
Cr. Withholding Tax
Cr. Bank Account

Remit withholding tax to authority

Dr. Withholding Tax
Cr. Bank Account

Withhold tax from contractor fees

Dr. Subcontractor Invoices
Cr. Withholding Tax

Adjust withholding tax after review

Dr. Tax Expense
Cr. Withholding Tax

📐 IFRS vs US GAAP Accounting Treatment

IFRS IFRS 9 Financial Instruments
US GAAP ASC 405 Liabilities

❓ Frequently Asked Questions

Q: What is withholding tax?

A: Tax withheld by the company from its payments to other parties (e.g., contractors, suppliers) and remitted to the tax authority.