The account for withholding tax is required for TAP. When you make a payment for withholding tax through TAP, you will need to provide the account for TAP to know where this payment will be recorded for withholding tax on Xero. You can create more than one account for WHT.
To create the new account for WHT on Xero or follow the following steps.
- Login to Xero
- Select Settings -> Chart of Accounts
- Select Add Account
- Enter your account information
- Select Account Types as Current Liability and tick “Enable payments to this account”
Here is an example of a WHT account.