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  • Bir Form 2304

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DLN: Republika ng Pilipinas Kagawaran ng Pananalapi Kawanihan ng Rentas Internas (Excluding Compensation Income) 1 For the Year ( YYYY ) BIR Form No. Certificate of Income Payment Not Subject to Withholding.

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Final Withholding Tax is a kind of withholding tax which is prescribed on certain income payments and is not creditable against the income tax due of the payee on other income subject to regular rates of tax for the taxable year.

The BIR Form 2307, known as the Certificate of Creditable Tax Withheld at Source, is a certificate that is accomplished and issued to recipients of income subject to expanded withholding tax. It's one of the most common BIR forms used by businesses of all sizes from multinational corporations to freelancers.

Withholding Agent Liability As a withholding agent, you are personally liable for any tax required to be withheld. This liability is independent of the tax liability of the foreign person to whom the payment is made.

Who needs to pay Expanded Withholding Tax? As the name implies, withholding agents remit the expanded withholding tax return (containing all income tax deductions) to the BIR for all their employees. This applies to any of the following individuals or professions: Licensed professionals.

A resident alien, non-resident citizen, or non-resident alien involved in business or practice of profession within the country, or. A trustee of a trust engaged in trade or business. A guardian of a minor engaged in trade or business.

The Professional Fee Withholding Tax is calculated at a rate of 5%-15% of the gross payment, depending on the type of professional services rendered. The tax is withheld by the payer when the payment is made, and it is remitted to the Bureau of Internal Revenue (BIR) along with the payer's other tax obligations.

An individual earning less than P250,000 a year is exempted from withholding tax, where the income is coming only from a single payor (i.e. a tax withholding agent).

This means that it is the employer who is required to deduct the withholding tax from an employee's salary and it is the employer who is required to remit the withheld tax to the BIR. In short, the burden of compliance in the Philippines, from the perspective of Withholding Tax on Compensation, falls on the employer.

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© Copyright 1997-2025
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232