Under the new TRAIN LAW, individuals and companies are required to withhold taxes from payees of income from rentals, businesses and contract services. Employers are also mandated to withhold taxes from the employees' compensations.
Withholding taxes on compensation are deducted from the employees' wages every month and should be remitted to the BIR the following month within 10 to 15 days. The employee is exempted from withholding tax if he is receiving an annual salary of 250,000 and below or 20,833 a month.
Below is the table for the graduated tax rate for the withholding tax on compensation;
Withholding tax table for the daily, weekly, semi-monthly and monthly wage earners;
For the expanded withholding tax, withholding agents are required to withhold taxes from income payees as shown on the table below;
To view the complete listing for the expanded withholding tax rates, you may visit the BIR website.
Both taxes withheld from compensation and expanded are to be remitted on the following month to the BIR through online payments or with the authorized agent banks (AAAs)
For the expanded withholding taxes, the withholding agent agent is required to submit a quarterly Alphalist of Payees in the form of DAT file attached to email and send to esubmission@bir.gov.ph
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