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In an operating lease, the lessee may deduct the amount of rental actually due under the lease agreement during the year. This is subject to 5% expanded withholding tax (EWT).
2-98, otherwise known as the Withholding Tax Regulations, the obligation to deduct and withhold the tax arises at the time an income is paid or becomes payable, or when it is accrued or recorded as an expense or asset in the payor's books, whichever comes first.
North Dakota relies on the federal Form W-4 (Employee's Withholding Allowance Certificate) to calculate the amount to withhold.
Upon withholding, the withholding agent shall furnish the taxpayer with a BIR Form 2307 (Certificate of Creditable Tax Withheld at Source) or Form 2316 (Certificate of Compensation Payment/ Tax Withheld), to be later attached to the Income Tax Return (ITR), as proof that the taxes have already been withheld.
There are currently seven states which utilize the Federal Withholding elections declared on the Federal Form W-4 for state tax purposes.Colorado.Delaware.Nebraska.New Mexico.North Dakota.South Carolina.Utah.18-Dec-2019