Contracts and billing
Collect certificate payments and follow withholding tax
Record what the client pays against each certificate, including the tax they withhold, and follow what every contract still owes and the tax withheld in a quarter.
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In this article
Clients often pay a certificate net of withholding tax: they keep part of it and pay it to the tax authority on your behalf. Both the cash and the tax withheld settle the certificate. The tax withheld is a credit against your own tax, so it is tracked until you offset it.
Record a payment
Open the issued certificate and select Record payment. What is still owed is shown.
Enter the date, the Amount received and the Tax withheld shown on the client's deduction certificate.
Choose the cash or bank account the money went into, and add a Reference.
Select Save.
The cash and the withholding tax receivable are debited and the client's account is credited with both. The certificate shows as partly paid or paid. A payment cannot be more than is still owed.
See what clients owe
Projects › Project Receivables shows, for each contract, what was billed, received and withheld, what is still owed, the retention held and the advance still to recover, with totals at the top. Keep Only contracts with something owed, held or to recover on to see the open ones.
Tax withheld in a period
Open the Tax withheld by clients tab, choose the period (the current quarter is proposed), and the list shows every payment with tax withheld: the date, the client and their tax number, the certificate, the amount received and the tax. Use it to collect the deduction certificates and to offset the tax in your return.
Common questions
The client paid less without withholding tax. Record the amount received only. The rest stays owed on the certificate.
Where do I set the withholding rate? On the contract, as information for the e-invoice. The amount actually withheld is what you record with each payment.