UNDERSTANDING WITHHOLDING TAX (WHT)

Withholding Tax (WHT) is a tax deducted by clients from payments to suppliers. Here’s how to manage it effectively:
1. Verify Deductions: Check that WHT deductions align with applicable rates (5-10%).
2. Communicate: Address discrepancies and seek clarification with clients.
3. Obtain Documentation: Get WHT certificates or relevant proof from clients.
4. Adjust Records: Update your financial statements to reflect the net income.
5. Report Accurately: Include all WHT deductions and documentation in your tax returns.
6. Seek Advice: Consult tax professionals for complex issues.
Stay compliant and safeguard your business’s financial health!
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