Withholding Tax - No ABN:
If suppliers do not quote an ABN on their tax invoice or other documentation you must withhold 47% of the payment and issue them with a Payment Summary. There are some exceptions to this and should contact you accountant to verify that you should deduct withholding tax before doing so.
Records You Need To Keep:
Agrimaster generates a Withholding tax report which keeps all records of gross payments and tax withheld. You will also need to keep copies of any Payment Summaries issued and Statements by a Supplier.
Configuring Tax Withholding:
The tax withholding setup is used to facilitate the collection of tax withheld from payments to suppliers who do not quote an ABN. This tax is then forwarded to the ATO with the next Business Activity Statement. The data will only be collected by the tax reporting section correctly if the transactions are entered in the manner described on the pages following.
Setup Tax Withholding:
- Start at the Home Page
- Click on Setup & Tools
- Click on Cashbook Setup
- Click on Tax
- Click on Setup Tax Withholding
- Enter the Start Month, it will default to 1 July 2000 or the first month of your file
- Enter the Tax Withholding Return Period from the drop-down list. You will need to verify with your Accountant what your period will be.
- Enter Withholding Tax Rate (Check with your accountant for the current Withholding Tax Rate).
- Select the Withholding Allocation and Payment Codes as shown below, using the drop down lists.
- Click on the Activate box with your mouse to commence the Tax Withholding Deducted calculations.
- Click to save.