38. SCHEDULE OF EXPANDED WITHHOLDING TAX (EWT) Income Payment EWT Income Payment EWT Professional/Management/Consultancy fees (Individual) Gross receipts 3M or below with sworn declaration - 5% Gross receipts over 3M or VAT-reg or without sworn declaration – 10% Purchase of goods or properties by Top Withholding Agents (TWA) - 1% - goods 2% - service Professional/Management/Consultancy fees (Non-Individual) Gross receipts 720,000 or below - 10% Gross receipts over 720,000 – 15% Partners in general professional partnerships (drawings, advances, sharings, allowances, etc.) 720,000 or less -10% Above 720,000 – 15% Contractors/subcontractors (security, janitorial, etc.) 2% Commission (if not employee) 10% Director’s fees (if not employee) 10% or 15% (720,000 threshold) Income distributed to beneficiaries of estates/trusts 15% Rental 5% Below are the data provided to you by Nicanor, a top withholding agent for the month of May 2021: Purchases of goods from XYZ Corporation, a regular supplier. 800,000 Purchases of services from GHI Corporation, a regular supplier. 200,000 Purchase of services from Jabiiee corporation (meals for employees of the company; 4 times transactions) 25,000 Purchases of goods from NBS corporation (purchase of office supplies; 8 times transaction) 8,000 Rent expense 50,000 Professional fees (w/sworn declaration) 30,000 Professional fees (w/o sworn declaration) 40,000 Security fees (20% of which is the agency fee) 100,000 Janitorial services fees 10,000 Based on the foregoing data, how much is the expanded withholding tax on the rent expense?
38. SCHEDULE OF EXPANDED WITHHOLDING TAX (EWT)
Income Payment |
EWT |
Income Payment |
EWT |
Professional/Management/Consultancy fees (Individual) |
Gross receipts 3M or below with sworn declaration - 5% Gross receipts over 3M or VAT-reg or without sworn declaration – 10% |
Purchase of goods or properties by Top Withholding Agents (TWA) - |
1% - goods 2% - service |
Professional/Management/Consultancy fees (Non-Individual) |
Gross receipts 720,000 or below - 10% Gross receipts over 720,000 – 15% |
Partners in general professional partnerships (drawings, advances, sharings, allowances, etc.) |
720,000 or less -10% Above 720,000 – 15% |
Contractors/subcontractors (security, janitorial, etc.) |
2% |
Commission (if not employee) |
10% |
Director’s fees (if not employee) |
10% or 15% (720,000 threshold) |
Income distributed to beneficiaries of estates/trusts |
15% |
Rental |
5% |
|
|
Below are the data provided to you by Nicanor, a top withholding agent for the month of May 2021:
Purchases of goods from XYZ Corporation, a regular supplier. |
800,000 |
Purchases of services from GHI Corporation, a regular supplier. |
200,000 |
Purchase of services from Jabiiee corporation (meals for employees of the company; 4 times transactions) |
25,000 |
Purchases of goods from NBS corporation (purchase of office supplies; 8 times transaction) |
8,000 |
Rent expense |
50,000 |
Professional fees (w/sworn declaration) |
30,000 |
Professional fees (w/o sworn declaration) |
40,000 |
Security fees (20% of which is the agency fee) |
100,000 |
Janitorial services fees |
10,000 |
Based on the foregoing data, how much is the expanded withholding tax on the rent expense?
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