Setup Guide​ for Philippine Withholding Tax Localization

Setup Guide

PHILIPPINE Withholding Tax localization

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Thank you for you for availing the Philippine Tax Localization for Microsoft Dynamics 365 Business Central. 

Once the Philippine Localization Extension is installed in the database, the Withholding Tax assisted setup guide will help you in completing the setup. 

Follow the following steps:

  1. On the Role Center, choose Setup & Extensions > Assisted Setup.

2. Choose Setup Withholding Tax.

3. The Withholding Tax Setup Window appears. Click Next.

4. Fill in the required fields, then click Next.

Fields

Description

Mandatory?

Enable Withholding Tax

Enabled – select this to enable withholding tax

Not Enabled

Yes

Manual Sales Calculation

Manual – select to enable manual calculation of withholding tax

Automated

Yes

5. Click Finish.

WHT Posting Set-up

Once done with the assisted setup, go to the WHT Posting Setup. Combinations of the WHT Business Posting Groups and WHT Product Posting Groups are listed in this view. G/L Accounts where WHT is posted for possible combinations are set-up here; as well as the effective tax rate.

Fields

Description

Mandatory?

Withholding Tax Business Posting Group

Shows the withholding tax business group

Yes

Withholding Tax Product Posting Group

Shows the withholding tax product group

Yes

Withholding Tax %

Defines the tax percentage used to calculate the withholding tax

Yes

Realized WHT Type

Shows the realized WHT type

Yes

Revenue Type

Shows the WHT Revenue Type. This is based on the combination of the WHT Business and Product Posting Groups.

Yes

Prepaid Withholding Tax Account

Defines the G/L Account where the withholding tax account for sales transactions is recorded.

 

Fill out only for Posting Groups related to Customers.

Optional

Bal. Prepaid Account Type

Bank Account

G/L Account

Optional

Bal. Prepaid Account No.

Reference no. of the Bal. Prepaid Account Type

Optional

Payable Withholding Tax Account

Defines the G/L Account where the withholding tax account for purchases transactions is recorded.

 

Fill out only for Posting Groups related to Vendors.

Yes

BIR Form No.

Autopopulated based on the Revenue Type Set-up

Yes