Non-Profit
Withholding Tax on Foreign Grant Receipts
Recording withholding tax deducted by a foreign donor before disbursing a grant.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash in Bank (Net Received) | Asset (+) | 95,000.00 | - |
| Withholding Tax Expense / Receivable | Expense (+) | 5,000.00 | - |
| Grant Revenue (Gross) | Revenue (+) | - | 100,000.00 |
💡 Accountant's Note
Some bilateral donors are required to withhold a percentage before disbursing. The NGO recognizes the gross grant as revenue. The withholding is a tax expense unless recoverable under a tax treaty.
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