Hi po govt agency po kami, pero hinahanapan po kami ng PLDT ng advice from BIR na required kami mag-withhold ng 2% sa kanila? Di ba po pag government withholding agent, automatic na na magwitthhold ng creditable withholding tax?
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who are required to withheld expanded to PLDT ?
According to the Bureau of Internal Revenue (BIR), as provided for in the National Internal Revenue Code, the following are required to withhold withholding tax:
PERSONS REQUIRED TO WITHHOLD WITHHOLDING TAXES
– Individuals engaged in business or practiced of profession;
– Non-individuals (corporations, associations, partnertship, cooperatives) whether engaged in business or not; and
– Government agencies and its instrumentalities (National Government Agentcies (NGAs), Government-owned or Controlled Corporations (GOCCs), Local Government Units including Barangays.
A WITHHOLDING AGENT – is any person or entity who is in control of the payment subject to withholding tax and therefore is required to deduct and remit taxes withheld to the government.
The withholding tax applicable to PLDT are the following:
* Withholding Tax on Government Money Payment – Value Added Taxes (GVAT) – is the tax withheld by National Government Agencies (NGAs) and instrumentalities, including government-owned and controlled corporations (GOCCs) and local government units (LGUs), before making any payments to VAT registered taxpayers/suppliers/payees on account of their purchases of goods and services; and
* 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. Income Tax withheld constitutes the full and final payment of the Income Tax due from the payee on the particular income subjected to final withholding tax.
In our opinion, there’s no need for a separate authority to withhold taxes as the same has already been provided in the National Internal Revenue Code, as amended.