Description

Withholding Tax on Compensation is the tax withheld from income payments to

individuals arising from an employer-employee relationship.
Expanded Withholding Tax is a kind of withholding tax which is prescribed on certain
income payments and is creditable against the income tax due of the payee for the
taxable quarter/year in which the particular income was earned.
Final Withholding Tax is a kind of withholding tax which is prescribed on certain
income payments and is not creditable against the income tax due of the payee on other
income subject to regular rates of tax for the taxable year. Income Tax withheld
constitutes the full and final payment of the Income Tax due from the payee on the
particular income subjected to final withholding tax.
Withholding Tax on Government Money Payments (GMP) - Percentage Taxes - is
the tax withheld by National Government Agencies (NGAs) and instrumentalities,
including

government-owned

and

controlled

corporations

(GOCCs)

and

local

government units (LGUs), before making any payments to non-VAT registered

taxpayers/suppliers/payees
Withholding Tax on GMP - Value Added Taxes (GVAT) - is the tax withheld by
National Government Agencies (NGAs) and instrumentalities, including governmentowned and controlled corporations (GOCCs) and local government units (LGUs), before
making any payments to VAT registered taxpayers/suppliers/payees on account of their
purchases of goods and services.