Banking
Withholding Tax on Customer Deposit Interest
Deducting withholding tax from interest paid to individual depositors and remitting to the ISTD.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accrued Interest Payable (Deposits) | Liability (-) | 5,000.00 | - |
| Withholding Tax Payable (ISTD) | Liability (+) | - | 500.00 |
| Customer Account (Net Interest) | Liability (+) | - | 4,500.00 |
💡 Accountant's Note
In Jordan, banks withhold income tax on interest paid to individual depositors. The withheld amount is remitted to the ISTD monthly. The effective tax rate depends on the depositor's income tax bracket.
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