SaaS
Withholding Tax on Overseas Revenue
Recording withholding tax deducted by a foreign corporate customer before remitting payment.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash in Bank (Net Received) | Asset (+) | 9,500.00 | - |
| Withholding Tax Receivable / Expense | Asset (+) | 500.00 | - |
| Subscription Revenue | Revenue (+) | - | 10,000.00 |
💡 Accountant's Note
Some countries require corporate buyers to withhold a percentage (5-15%) of software subscription payments before remitting. The withheld amount is either recoverable under a tax treaty or expensed as a cost of doing business.
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