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Withholding Taxes of Top 20,000 Corporations in Seminar

Philippines
By: Tax and Accounting Center Philippines
Schedules
August 2018
Withholding tax of top 20,000 corporations in the Philippines noti ed by the Bureau of
Internal Revenue (BIR or Tax Authorities) is the most misunderstood tax rule in the August 2-3, 2018 Thursday -Friday – Basic
Philippines. As such, let us drop some lines and share our understanding of the Accounting & BIR VAT Compliance
withholding tax rules in the Philippines for top 20,000 taxpayers (TTC). (http://taxacctgcenter.org/programs/basic-
business-accounting-bir-compliance-vat-
Withholding tax on regular items corp/)

The tax rules and regulations has provided withholding tax rules in the Philippines August 4, 2018 Saturday – Value Added Tax
applicable to all taxpayers engaged in business or practice of profession with respect to In and Out Seminar
certain income payments that they claim as deductible expense for income tax purposes. (http://taxacctgcenter.org/programs/value-
These rules apply also to top 20,000 corporations and the same rates are required to be added-tax-in-and-out/)
withheld upon payment or accrual of top 20,000 corporations. Hereunder are some of
August 9, 2018 Thursday – PEZA Registered
them enumerated in Revenue Regulations No. 2-98, as amended:
Entities: Tax Compliance Seminar
Rental or lease payments – 5% (http://taxacctgcenter.org/programs/peza-
Professional fees – 10%/15%; registered-philippines-tax-compliance-
Payments to contractors – 2% seminar/)
Payments to advertising agencies – 2%
August 10, 2018 Friday – How to Analyze
Payments to specialty contractors – 2%
Financial Statement for Manager’s and
Special rates for top 20,000 taxpay ers Entrepreneurs
(http://taxacctgcenter.org/programs/how-to-
For top 20,000 taxpayers, the tax rules in the Philippines provided an additional analyze- nancial-statements-accounting-for-
withholding tax obligation. For expenses or income payments to others that are not listed management/)
in the speci c income payments subject to withholding taxes under Revenue Regulations
August 11, 2018 Saturday – Compensation:
No. 2-98, as amended, they are required to withhold as follows:
Computation and Must Know Exemption
Purchase of goods – 1% Seminar
Purchase of services – 2% (http://taxacctgcenter.org/programs/compensations-
computation-and-must-know-exemptions/)
The above rates apply to purchases from their regular supplier of goods or services or
from those whom they had at least six (6) transactions during the taxable year. It likewise August 16-17, 2018 Thursday – Friday –
applies to casual purchases or single transaction from non-regular supplies worth at least Basic Business Accounting & BIR Non-VAT
P10,000.00. Please note that the supplier or sellers to top 20,000.00 need not be a top- Compliance 
20,000.00 in themselves. What is being referred to in here as subject to withholding taxes (http://taxacctgcenter.org/programs/basic-
are the payments of top 20,000.00 taxpayers to be subject to withholding tax.  Payments business-accounting-bir-compliance-vat/)
to top-20,000 taxpayer from a non-top 20,000 or from another top 20,000 is another
thing so please do not be confused. August 23, 2018 Thursday – Input VAT
Refund
 Withholding tax exemptions of top 20,000 taxpayers
August 24, 2018 Friday – ITR Preparation for
Sole Proprietors
Exemptions from withholding tax in the Philippines could apply in two (2) ways –
(http://taxacctgcenter.org/programs/basic-
payments BY top 20,000 taxpayer, or payments TO top twenty thousand corporations. In
income-taxation-for-sole-proprietors-under-
general, the following payments by top twenty thousand corporations are exempt from
new-itr/)
withholding tax in the Philippines:
August 25, 2018 – Comprehensive TRAIN
Payments that does not constitute income on the part of the payee (e.g. reimbursable
Law
expenses)
Payments to government agencies;
Payments to income tax exempt entities Blog & Updates
We hope the above simply laid rules will help you in your compliance with the withholding Withholding Tax on Professional Fees
tax for top 20,000 corporations. under TRAIN RA 10963 Philippines
(http://taxacctgcenter.org/expanded-
 Disclaimer: This article is for general conceptual guidance only and is not a substitute for an
withholding-tax-professional-fees-train-
expert opinion. Please consult your preferred tax and/or legal consultant for the speci c details
ra-10963-philippines/)
applicable to your circumstances. For comments, you may please send mail 21 Items Subject to Expanded
at info@taxacctgcenter.org. Withholding Tax under TRAIN RA 10963
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See how we can help you with our professional services… expanded-withholding-tax-train-ra-
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Tax Exempt De Minimis Bene ts under
See our quality seminars, workshops, and trainings… TRAIN RA 10963 Philippines
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See our in-house tax and accounting seminars… (http://taxacctgcenter.org/services- philippines/)
test/seminars/in-house-tax-or-accounting-seminars-and-training-philippines/) Income Tax Exemption of Religious
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