Blog Posts on withholding tax - compensation

15% income tax to expats, when applicable? by pinoytaxation.com on Aug 17, 2009Revenue Memorandum Circular No. 41 – 2009 dated July 23, 2009 (RMC 41-2009) was issued to clarify the meaning of “Managerial and Technical Positions” under Section 25(C) of the Tax Code, as amended. Compared to the normal tax rate of 5-32% brac...

Tax-exempt compensation, you like it? by pinoytaxation.com on Aug 13, 2009In general, allowances and other form of compensation income, are taxable, irregardless of how they are called. However, there are noted exceptions on this rule by virtue of a law or a regulations. For sure, they will make employees happier because n...

Withholding tax system, how it works? by pinoytaxation.com on Aug 13, 2009Withholding tax system in the Philippines is quite an interesting topic for those engaged in trade or business, or those in practice of profession. This is a system of advance collection scheme where the approximate income tax of a specific income pa...

How withholding taxes on compensation works? by pinoytaxation.com on Aug 7, 2009As a rule under the regulations, employers are appointed withholding agents who shall withhold corresponding taxes on compensation. This is to ensure that employee’s taxes are being paid so that if an employee is under the employ of a single em...