Withholding tax system is not an additional tax that you pay.
What do you pay on income taxation- you pay excise tax, exercise of the occupation,
May withholding.
Withholding tax system is not another form of tax but it ensures of the payment
of tax as provided by the other provision
There are different percentage and concepts of WHT
It represents an Advance payment to government.
They exceed minimum 250,000- their employer is required to withhold a portion of the
income tax. Advance payment by the taxpayer to the government.
Withhold- nahawakan.
Monthly yung withholding the presumption is tuloy tuloy yung pagiging empleyado mo.
January nagging employee, 15k sweldo, walang withholding, napromote, 30k, x6
Para ma sure ni BIR na tax na babayad na naimposed sayo. I withhold ka dapat
There’s no rationale, If there’s no WHTS
Why is not convenient?
1. Installment, why convenient? Monthly babayadan may ibang weekly.
Contributions unang binabawas, kapag Malaki binabawas nadin WHTS.
Convenient kasi para hindi Malaki bawasan sa end ng year. Winiwithhold yung
portion ng income nila. Purely employee, employer ang magcocompute. Baka
mamali pa ng compute, na adjust pati. Paano pag may sobra? Marerefund yung
mga sobra. POINT OF VIEW NI TAXPAYER
2. POINT OF VIEW NI GOVERNMENT. Every month nakaka receive si
government.
3. General appropriation act. Simula ng taon Gagawa ng budget, walang
nangyayaring biglaan ng cashflow sa government. Lahat ng gastos ng gov
kailangan naka allocate budget sa general appropriation act. Naka allocate na
bawal na.
KINDS
FINAL- special income ng different taxpayers. Non-resident yung nasa page 245
CREDITABLE- may certificate na nirerelease. Ex. Rent, nag papaupa si sir may ari ng
building, laperal building, coffee bean rumerenta. Laperal ang may rent income. Sino
magbabayad? Si coffee bean (source ng income) 100k, 95k binigay kay laperal binawas
na kaagad. Ilan ang rent income ni laperal 100 kahit nareceive yung 95. Still 100. Yung
5k creditable. Convenient para kay laperal. Naka collect na kaagad si gov. what if di
magbayad. CREDITABLE normally expenses ng mga corporation. Magbabayad ng rent
kailangan I withhold na. ano yung proof na nagbayad si CB ng 5k upon remittance
maghihingi ng certificate. CWT para patunay na nagbayad ng 5k.
Hahanapin ang forms
Any persons required to deduct and withhold the tax. Pwedeng tao pwedeng corpo. Si
withholding agent ang magbabayad. May mga exceptions.
Agent fails to commit or remit the tax. Section 251 ng NIRC
COMPENSION INCOME- EMPLOYER-EMPLOYEE RELATIONSHIP. Withholding
tax agent. Yearly ang ITR, WHT monthly, every month nireremit, hindi fixed kasi
nakadepende sa sweldo. Supplementary bonus, kapag nagexceed. Based sa TAX
TABLE.
YUNG OUTPUT VAT NG CORPO INPUT VAT MO.
KAILANGA MAY CERTIFICATE!!!
ONE OF THE BASIC RULES- hindi pwedeng gawing deductible ang isang expense
kapag hindi winithold kaagad. Hindi napatanuyan nagbayad hindi pwedeng rent
expense.
If you are corporation company business, magbabayad ng 95k kay laperal pwedeng
matukso, ang safeguard ng BIR kapag hindi na withhold hindi tatanggaping expense.
Hindi kasi deneclare na income.