Real Estate
Withholding Tax on Rental Income (Tenant Deducts)
Recording rental income net of 5% withholding tax deducted by the corporate tenant.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash / Bank (Net Received) | Asset (+) | 4,750.00 | - |
| Withholding Tax Receivable | Asset (+) | 250.00 | - |
| Rental Income | Revenue (+) | - | 5,000.00 |
💡 Accountant's Note
When a company pays rent to an individual or entity, it withholds 5% and remits it to the ISTD. The landlord records the full rental income and the withholding as a tax prepayment asset.
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