Tax

Rent Payment with Withholding Tax (Jordan)

Recording a rent payment to an individual landlord where 5% tax is deducted at source.

Account NameTypeDebit ($)Credit ($)
Rent ExpenseExpense (+)1,000.00-
Withholding Tax Payable (ISTD)Liability (+)-50.00
Cash / BankAsset (-)-950.00

💡 Accountant's Note

In Jordan, when a company rents from an individual, it must withhold 5% of the rent and pay it to the Income & Sales Tax Department (ISTD) on behalf of the landlord.

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