Taxes on profits can be recorded by creating an expense with Tax Payable as the expense account. To create an expense:
Insight: To get the tax amount, run the Profit & Loss report for the particular period and calculate the tax from the net profit.
An expense recording the tax on profit will be created.
Note: If you have configured your tax settings to track taxes under separate accounts, then you will have to create a Manual Journal with Output Tax as the Debit account and the account from where you want the tax amount to be deducted as the Credit account, to record a tax amount on the profit.
Online accounting software
for small businesses.