Saudi Extended Withholding Tax is a powerful, native extension for Microsoft Dynamics 365 Business Central that fully automates the calculation, deduction, and posting of Withholding Tax (WHT) on payments to vendors and receipts from customers — ensuring 100% compliance with ZATCA regulations while keeping your ledger accurate and audit-ready.
No more manual tax journals, Excel calculations, or unbalanced bank reconciliations. Post your journals normally — the extension handles the rest.
Extension Components:
| Component | Purpose |
|---|---|
| Tables | Store business posting groups and WHT posting setups. |
| Table Extensions | Extend Vendor, Customer, and General Journal tables with WHT fields. |
| Pages & Page Extensions | Allow users to configure and view WHT data from standard BC pages. |
| Codeunit 70808780 – DTESWTJournalPostHandler | Handles all posting, validation, and calculation logic for WHT transactions. |
| Permission Sets | Ensure proper security for WHT fields and pages. |
How It Works: Journal Posting & G/L Split
- Checks the business posting group and posting setup.
- Calculates the WHT amount based on the configured rate and mode (Inclusive/Exclusive).
- Creates separate journal lines for WHT in the G/L, ensuring:
- Vendor/Customer accounts reflect the correct net amount.
- WHT accounts reflect the tax withheld.
- Posting descriptions are automatically generated for audit purposes.
Example G/L Split
| Account Type | Account No. | Debit | Credit | Description |
|---|---|---|---|---|
| Vendor | V001 | 0 | 100.00 | Payment net of WHT |
| G/L WHT | 22100 | 10.00 | 0 | WHT Auto Posting GL – Vendor V001 |
(Exact accounts and amounts depend on your setup.)
Setup & Configuration:
- Define groups for WHT processing.
- Assign vendors/customers to the correct group.
- Configure WHT accounts, rates, and calculation modes.
- Set up treaty-reduced rates if applicable.
- Post vendor/customer transactions via standard BC journals.
- WHT lines are automatically generated according to setup.
- Use extended vendor, customer, and journal pages to view and manage WHT data.
Conclusion:
The Saudi Extended Withholding Tax extension provides a fully integrated, audit-ready solution for managing withholding tax in Microsoft Dynamics 365 Business Central. By automating calculations, posting, and compliance with Saudi regulations, it simplifies vendor and customer transactions, reduces errors, and ensures accurate financial reporting. This extension is modular, configurable, and designed to seamlessly enhance standard Business Central workflows, making WHT management faster, more reliable, and fully compliant.
