In 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 no withholding tax on compensation will be deducted from their salaries.

Withholding 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 payment is being deducted and remitted to the BIR. By this, BIR is more assured that income will be declared and reported, thus, this is in the form of a check and balance.

In a corporate world, dividends is not a new topic. As a matter of fact, it is one of the major consideration for an investor to purchase shares of stock of a company. It represents the share in the net learning’s distribution in a corporation and could be in the form of cash, property, shares of stocks or and liquidating dividends upon liquidation. How are they taxed, then?

The BIR, seeing the potential collections from withholding taxes, has now expanded the coverage of the mandatory withholding under the previously selected Top Ten Thousand Corporations to the now Top Twenty Thousand Corporations (TTC). Under the regulations, the following corporate taxpayers who shall be determined and notified by the BIR shall be classified as belonging [...]

As 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 employer with no other taxable income subject to regular income tax rates, there is no [...]

This post covers tax implications of renting residential dwellings such as an apartment, condominium unit, and a house and lot in both sides-the lessor or owner and the lessee or tenant. Tax implication would depend on the monthly rental of such units. For every lease contract, a documentary stamp tax (DST) at the rate of [...]