Read and understand the topic below and write your understanding and learnings of the topics. W-i-t-h-h-o-l-d-i-n-g- -T-a-x-e-s A systematic way of collecting taxes at source, an indispensable method of collecting taxes to ensure adequate revenue for the government. The withholding tax agent who is usually an employer or a person from whom the income is derived does this process through withholding the appropriate amount of taxes from taxpayers. It is designed to ensure the collection at source of income taxes. If w-i-t-h-h-o-l-d-i-n-g- -t-a-x is not withheld from income payments, there will be a disallowance of deductible business expenses claimed by the withholding agent in his income tax return or a penalty imposed on the w-i-t-h-h-o-l-d-i-n-g- -t-a-x agent for failure to withhold the tax. F-i-n-a-l- -W-i-t-h-h-o-l-d-i-n-g- -T-a-x Under the f-i-n-a-l- -w-i-t-h-h-o-l-d-i-n-g- -t-a-x- -s-y-s-t-e-m, the amount of income tax withheld by the withholding agent is constituted as a full and final payment of the income tax due from the payee on the said income. The liability for the payment of the tax rests primarily on the payor as a withholding agent. Thus, in case of failure to withhold or in case of under withholding, the deficiency tax shall be collected from the payor/withholding agent. The payee is not required to file an income tax return for the particular income, the final tax on which has been withheld. (Sec. 79B, NIRC.) The finality of the withholding tax is limited only to the payee or the recipient's income tax liability on the particular income. It does not extend to the payee's other tax liability on said income, such as when the said income is further subject to a percentage tax. (Sec. 2.57 (A) Rev. Reg. No. 2-98) C-r-e-d-i-t-a-b-l-e- -W-i-t-h-h-o-l-d-i-n-g- -T-a-x Under the c-r-e-d-i-t-a-b-l-e- -w-i-t-h-h-o-l-d-i-n-g- -t-a-x- -s-y-s-t-e-m, taxes withheld on certain payments are intended to equal or at least approximate the tax due of the payee on said income. The income recipient is still required to file his income tax return as prescribed in the Section 51 of the NIRC, either to report the income and/or pay the difference between the tax withheld and the tax due on the income. A tax withheld on income payments covering the expanded withholding tax from compensation income is creditable in nature. (Sec. 57B, NIRC) The creditable taxes withheld are reported in the following forms: Fringe Benefit Tax (FBT) It is a monetary burden imposed by the sovereignty on any good, service, or other benefit furnished or granted by an employer, in cash or in kind, in addition to basic salaries, to an individual employee other than a rank and file employee. The employer (individual, professional, partnership, or corporation, whether taxable or not), or the government and its instrumentalities are liable to remit the fringe benefit tax to the BIR once fringe benefit is given to a managerial or supervisory employee. The fringe benefit tax is a final tax on the employee's income to be withheld by the employer (Sec. 33(A); Sec. 57(A), NIRC). The withholding and remittance of FBT shall be made on a quarterly basis.

Read and understand the topic below and write your understanding and learnings of the topics. W-i-t-h-h-o-l-d-i-n-g- -T-a-x-e-s A systematic way of collecting taxes at source, an indispensable method of collecting taxes to ensure adequate revenue for the government. The withholding tax agent who is usually an employer or a person from whom the income is derived does this process through withholding the appropriate amount of taxes from taxpayers. It is designed to ensure the collection at source of income taxes. If w-i-t-h-h-o-l-d-i-n-g- -t-a-x is not withheld from income payments, there will be a disallowance of deductible business expenses claimed by the withholding agent in his income tax return or a penalty imposed on the w-i-t-h-h-o-l-d-i-n-g- -t-a-x agent for failure to withhold the tax. F-i-n-a-l- -W-i-t-h-h-o-l-d-i-n-g- -T-a-x Under the f-i-n-a-l- -w-i-t-h-h-o-l-d-i-n-g- -t-a-x- -s-y-s-t-e-m, the amount of income tax withheld by the withholding agent is constituted as a full and final payment of the income tax due from the payee on the said income. The liability for the payment of the tax rests primarily on the payor as a withholding agent. Thus, in case of failure to withhold or in case of under withholding, the deficiency tax shall be collected from the payor/withholding agent. The payee is not required to file an income tax return for the particular income, the final tax on which has been withheld. (Sec. 79B, NIRC.) The finality of the withholding tax is limited only to the payee or the recipient's income tax liability on the particular income. It does not extend to the payee's other tax liability on said income, such as when the said income is further subject to a percentage tax. (Sec. 2.57 (A) Rev. Reg. No. 2-98) C-r-e-d-i-t-a-b-l-e- -W-i-t-h-h-o-l-d-i-n-g- -T-a-x Under the c-r-e-d-i-t-a-b-l-e- -w-i-t-h-h-o-l-d-i-n-g- -t-a-x- -s-y-s-t-e-m, taxes withheld on certain payments are intended to equal or at least approximate the tax due of the payee on said income. The income recipient is still required to file his income tax return as prescribed in the Section 51 of the NIRC, either to report the income and/or pay the difference between the tax withheld and the tax due on the income. A tax withheld on income payments covering the expanded withholding tax from compensation income is creditable in nature. (Sec. 57B, NIRC) The creditable taxes withheld are reported in the following forms: Fringe Benefit Tax (FBT) It is a monetary burden imposed by the sovereignty on any good, service, or other benefit furnished or granted by an employer, in cash or in kind, in addition to basic salaries, to an individual employee other than a rank and file employee. The employer (individual, professional, partnership, or corporation, whether taxable or not), or the government and its instrumentalities are liable to remit the fringe benefit tax to the BIR once fringe benefit is given to a managerial or supervisory employee. The fringe benefit tax is a final tax on the employee's income to be withheld by the employer (Sec. 33(A); Sec. 57(A), NIRC). The withholding and remittance of FBT shall be made on a quarterly basis.

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Read and understand the topic below and write your understanding and learnings of the topics.

W-i-t-h-h-o-l-d-i-n-g- -T-a-x-e-s

A systematic way of collecting taxes at source, an indispensable method of collecting taxes to ensure adequate revenue for the government.
The withholding tax agent who is usually an employer or a person from whom the income is derived does this process through withholding the appropriate amount of taxes from taxpayers. It is designed to ensure the collection at source of income taxes.
If w-i-t-h-h-o-l-d-i-n-g- -t-a-x is not withheld from income payments, there will be a disallowance of deductible business expenses claimed by the withholding agent in his income tax return or a penalty imposed on the w-i-t-h-h-o-l-d-i-n-g- -t-a-x agent for failure to withhold the tax.

F-i-n-a-l- -W-i-t-h-h-o-l-d-i-n-g- -T-a-x

Under the f-i-n-a-l- -w-i-t-h-h-o-l-d-i-n-g- -t-a-x- -s-y-s-t-e-m, the amount of income tax withheld by the withholding agent is constituted as a full and final payment of the income tax due from the payee on the said income.
The liability for the payment of the tax rests primarily on the payor as a withholding agent. Thus, in case of failure to withhold or in case of under withholding, the deficiency tax shall be collected from the payor/withholding agent.
The payee is not required to file an income tax return for the particular income, the final tax on which has been withheld. (Sec. 79B, NIRC.)
The finality of the withholding tax is limited only to the payee or the recipient's income tax liability on the particular income. It does not extend to the payee's other tax liability on said income, such as when the said income is further subject to a percentage tax. (Sec. 2.57 (A) Rev. Reg. No. 2-98)

C-r-e-d-i-t-a-b-l-e- -W-i-t-h-h-o-l-d-i-n-g- -T-a-x

Under the c-r-e-d-i-t-a-b-l-e- -w-i-t-h-h-o-l-d-i-n-g- -t-a-x- -s-y-s-t-e-m, taxes withheld on certain payments are intended to equal or at least approximate the tax due of the payee on said income. The income recipient is still required to file his income tax return as prescribed in the Section 51 of the NIRC, either to report the income and/or pay the difference between the tax withheld and the tax due on the income.
A tax withheld on income payments covering the expanded withholding tax from compensation income is creditable in nature. (Sec. 57B, NIRC)
The creditable taxes withheld are reported in the following forms:

Fringe Benefit Tax (FBT)

It is a monetary burden imposed by the sovereignty on any good, service, or other benefit furnished or granted by an employer, in cash or in kind, in addition to basic salaries, to an individual employee other than a rank and file employee.
The employer (individual, professional, partnership, or corporation, whether taxable or not), or the government and its instrumentalities are liable to remit the fringe benefit tax to the BIR once fringe benefit is given to a managerial or supervisory employee.
The fringe benefit tax is a final tax on the employee's income to be withheld by the employer (Sec. 33(A); Sec. 57(A), NIRC). The withholding and remittance of FBT shall be made on a quarterly basis.

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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