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  • Withholding Tax 2 Reviewer

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    This document discusses the nature and concept of withholding tax in the Philippines. It explains that withholding tax collects income tax in advance from the income recipient or seller by the income payer or employer acting as an agent of the government. There are two types of creditable withholding tax - expanded withholding tax and withholding tax on compensation, fringe benefits, and government money payments - as well as final withholding taxes including capital gains tax on the sale of real property and fringe benefit tax. The document also lists those required to withhold taxes such as government offices, corporations, and individuals making certain payments.

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    Withholding tax 2 reviewer

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    This document discusses the nature and concept of withholding tax in the Philippines. It explains that withholding tax collects income tax in advance from the income recipient or seller by the income payer or employer acting as an agent of the government. There are two types of creditable withholding tax - expanded withholding tax and withholding tax on compensation, fringe benefits, and government money payments - as well as final withholding taxes including capital gains tax on the sale of real property and fringe benefit tax. The document also lists those required to withhold taxes such as government offices, corporations, and individuals making certain payments.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    11 views1 page

    Withholding Tax 2 Reviewer

    Uploaded by

    Academic Stuff
    This document discusses the nature and concept of withholding tax in the Philippines. It explains that withholding tax collects income tax in advance from the income recipient or seller by the income payer or employer acting as an agent of the government. There are two types of creditable withholding tax - expanded withholding tax and withholding tax on compensation, fringe benefits, and government money payments - as well as final withholding taxes including capital gains tax on the sale of real property and fringe benefit tax. The document also lists those required to withhold taxes such as government offices, corporations, and individuals making certain payments.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    WITHHOLDING TAX

    NATUREAND CONCEPT OF WH TAX


    Section 57 of Tax Code
    Revenue regulation No. 12 988

    _ income recipient/seller or employee


    _income payer employer/consumer
    _government/BlR

    Collecting income tax in advance.


    Amount withheld is creditable or final
    income.
    Buyer, employers or income payers are
    constituted as agents of government to
    collect taxes.

    CREDITABLE FINAL WITHHOLDING


    WITHHOLDING TAX TAX
    Expanded Final withholding tax
    withholdin tax
    W/h tax and Fringe benefits Tax
    com ensation
    w/h tax on gov't Capital gains tax on
    money payments sale of real property
    identified as capital
    asset

    CWT —tax deduction from payees income


    liability
    Payee must be local resident of the PH
    Required to file income tax

    FWT —the rate of life is equal


    Payee may be domestic ot not
    Nonresident individuals or corporations
    Interest income, royalties and dividends

    REQUIRED TO WITHHOLD
    -any juridical person
    -government offices
    -exempt corporations and associations
    -agents, employees, & other persons purchasing
    goods/services
    -Any individul with respect to payments related
    to his/her trade
    -any individual-buyer of real property

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