Tuesday, May 30, 2017

Persons Exempt From Withholding Tax: Seminar On Comprehensive Discussion Of Withholding Tax At PICPA

Does you company exempt from withholding tax? In general, taxpayers demand to be exempted from withholding tax but the government determines the persons (juridical or non-juridical) exempt from withholding related to business activities.

Persons Exempt From Withholding Tax As Follows:

1. National government and its instrumentalities, including provincial, city or municipal governments and barangays, except government-owned controlled operations. 

2. Persons enjoying exemption from payment of income taxes pursuant to the provisions of any law, general or special. Such as but not limited to the following:

a) Sales of real property by a corporation which is registered with and certified by HLURB or HUDCC as engaged in socialized housing project where the selling price of the house and lot or only the lot does not exceed P180,000.00 in Metro Manila and other highly urbanized areas  and P150,000.00 in other areas.

b) Corporations registered with the BOI, PEZA, and SBMA, enjoying exemption from income tax under E. O. 226, R. A. 7916, and R. A. 7227;

c) Corporations, which are exempt from income tax under Section 30 of the Tax Code, such as Government Service Insurance System (GSIS), Social Security System (SSS), and Philippine Health Insurance Corporation (PHIC);

d) General professional partnerships; and

e) Joint ventures or consortium formed for the purpose of undertaking construction projects or engaging in petroleum, coal, geothermal and other energy operations pursuant to an operating or consortium agreement under a service contract with the government.

The lawmakers and policy makers may issue regulations and circulars to update the requirements for the exemption of withholding tax.

The topic was discussed by Dr. Ruperto P. Somera, Ph. D. DBA, DBE, CPA, a resource speaker of Philippine Institute of Certified Public Accountants (CPAs) of a Seminar on Issues, Problems and Solutions in Tax Audit and Investigation; Comprehensive Discussion of Withholding Tax last May 25, 2017.

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