International Withholding Tax

Question

MYOB Accountright Sales Invoices&nbsp;When I invoice an overseas customer, for e.g., $100 income knowing they will only remit $90 due to a $10 international withholding tax deduction at their end, how should I correctly prepare the invoice in MYOB?&nbsp;I assumed the invoice would be prepared as follows:&nbsp;Description (e.g.)1st line: Income $100, Income account, Tax code: EXP2nd line: Less withholding tax -$10, Asset account, Tax code: N-T Not Reportable&nbsp;However, when I prepare the BAS and review the GST Detail report, the $10 withholding tax coded as N-T appears as a negative value -$10.&nbsp;Is this the correct treatment?

genreve_s · Answer

Hi Kace4321,&nbsp;
&nbsp;
Totally get why that negative N‑T line on the GST report looks dodgy at first glance.
&nbsp;
But you’ve actually set it up fine:

$100 income with EXP (export / GST‑free), and
 -$10 to a withholding tax asset account with tax code N‑T.

That -$10 just shows as a negative N‑T line on the GST Detail, and because N‑T is 0% / not reportable, it doesn’t affect your BAS figures at all; the N‑T amount is never added to the BAS.
&nbsp;
Regards,Genreve

kace4321 · Answer

Dear Genreve,&nbsp;Thank you so much for your reply, I really appreciate it.&nbsp;Kind regards,Kace.

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International Withholding Tax

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