Persons Required To Deduct & Withhold Tax

Not all persons are exempt from withholding tax. There're also persons required by law to deduct and withhold tax.

The persons required to deduct & withhold tax are as follows:

a. In general, any juridical person, whether or not engaged in trade or business;

b. An individual, with respect to payments made in connection with his trade or business.

c. All government offices including government owned or controlled corporation, as well as provincial, city, municipal governments and barangays.

If you have read the National Internal Revenue Code (NIRC), regulations and circulars, it is stated that there're requirements for deductibility of income payments to income 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.