Professional Services
Withholding Tax Deducted by Client (Jordan)
Recording the WHT deducted by the client before remitting payment for professional services.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash / Bank (Net Payment Received) | Asset (+) | 9,500.00 | - |
| WHT Receivable / Prepaid Tax (ISTD) | Asset (+) | 500.00 | - |
| Accounts Receivable (Invoice Cleared) | Asset (−) | - | 10,000.00 |
💡 Accountant's Note
In Jordan, companies paying professional fees to individuals or certain entities must withhold 5% income tax and remit it to the ISTD. The firm records the full revenue, receives the net cash, and holds the WHT as a prepaid tax asset creditable against its annual income tax.
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