Tax Rates

How to configure your tax rates

Tax rates list shows the tax rates you've set up for your organization so that you can charge or record specific tax amounts on invoices and transactions.

• Go to Main Menu>>  Accounting >> Settings  >> Tax Rats

• Click on New Tax Rate button to add a tax rate, click on a tax rate listed to edit it.

• Input Tax Rate details

• Name identifies the tax rate when you use it in the Chart of Accounts or on transactions you're entering to NetForce.
• Type  : config type Purchase for use tax rate on Purchase Invoice and Payment page, Sale for use tax rate on Sale Invoice and Receipt page.
• A tax rate can have one or more components. To create a new component click on Add a new line button.

• Input Tax Components details

• Name  : Components name
• Rate  : Ex: 7% of Vat, 3%,1%,5% 2% of WHT.
• Account  : Select account code
• Tax type  : Select Tax Type of  Rate (Vat, Vat Exempt , Deferred Vat , Withholding Tax)
• Transaction Type : Purchase for input vat and Sale for output vat.
• Contact Type : Company for PND.53 and Individual for PND.3
• Expense Type : Type of income for Withholding Tax Certificate.
• Account: account name indicates in which account tax amount of the component will be recorded
• Tax types:

• Tax Invoice - tax will be applied to the invoice
• Tax Payment - tax will be applied to the payment
• Withholding Tax - also called also retention tax, payer of an item deducts tax from the payment, and pay that tax to the government

• To create/update tax rate click on the Save button.

Example configure tax rates

Type : Purchase

• Service 3% PND53 (Type Purchase)

• Service 3% PND3 (Type Purchase)

• Advertising 2% PND53 (Type Purchase)

• Rental 5% PND53 (Purchase Type)

• Insurance 1% PND53 (Type Purchase)

• Transportation 1% PND53 (Type Purchase)

Type : Sale

• Output Vat 7%  (Type  Sale)

• Output Vat 0% (Vat Exempt)  (Type  Sale)

• Income Service 3% (Type  Sale)

• Interest Income 1% (Type  Sale)