Comments to answers

How do you treat the withheld tax in the books? Assuming you are the consultant paid from TZ and 15%has been with held.....do you Dr the tax account with the amount or do you treat it as an allowable expense?

WHT : Let me start with the accounting. WHT unlike VAT you cannot offset WHT deducted on payments and that suffered on receipts from customers. Second, WHT is deducted from supplier payments and payable to KRA by the 20th of the next month. Hence it is a TAX liability. It follows that one entry is a CREDIT to WHT payable. Since amounts due to creditors is reduced by WHT deducted this is recorded in the books by a DEBIT entry to the creditors ledger. If no DTA exists then WHT suffered should be treated as an expense.

As in case with TZ