1 / 14

Tax Regulations on Personnel: Income and Business Tax Withholding Guidelines

Learn about withholding guidelines for income and business taxes on personnel under job orders and service contracts as per Revenue Regulations. Understand the responsibilities and tax treatment when engaging individuals under such arrangements.

thollowell
Download Presentation

Tax Regulations on Personnel: Income and Business Tax Withholding Guidelines

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Tax on Personnel under Job Order and Contract of Services

  2. Revenue Regulation No. 2-98 Government Agencies are required to withhold the following:  1. Income taxes to income payments • 2% or 1% of local supplier of services/goods • 10% of local professional with gross income not exceeding P 720,000.00 • 15% of local professional with gross income if exceeding P 720,000.00

  3. Revenue Regulation No. 2-98 2. Business taxes to income payment • 3% other percentage tax if the annual gross income would not exceed P1,919,500.00 • 12% other percentage tax if the annual gross income exceeds P1,919,500.00 • 5% final withholding vat

  4. Revenue Memorandum Circular No. 130-2016 Clarification on the Tax Treatment and Appropriate Withholding Taxes on Income Payments by Departments and Agencies of the Government, Including Government-Owned and/or Controlled Corporations and Government Financial Institutions to Individuals Engaged under a Job Order or Contract of Service Arrangement

  5. Revenue Memorandum Circular No. 130-2016 Note: With PRC License but different job description (RN performs as Public Health Assistant considered as Non- professional)

  6. Responsibilities of Personnel (Job Order/Contract of Service) 1. Registration with the BIR 2. File and Pay of Income and Business Taxes • Monthly • Quarterly • Annual

  7. Responsibilities of Personnel (Job Order/Contract of Service)

  8. Responsibilities of Personnel (Job Order/Contract of Service)

  9. Where to get Form 2307? • Every 10th day of the month in the below offices: • HRDU Office – Deployment • Personnel Office – Job Orders

More Related