👉The amount of income tax withheld by the withholding agent is constituted as a full and final payment of income tax due from the payee of the said income.
👉The liability for payment of tax rests primarily on the payor as a withholding agent. Failure to withhold the tax or in case of under withholding, the deficiency tax shall be collected from payor/withholding agent.
👉The payee is not required to file an income tax return for the particular income.
| SN | Tax Type | Description | Tax Rates | ATC: Ind | ATC: Non-Ind |
|---|---|---|---|---|---|
| 1 | WF | Interest on Foreign loans payable to Non-Resident Foreign Corporation (NRFCs) | 20% | WC180 | |
| 2 | WF | Interest and other income payments on foreign currency transactions/loans payable of Offshore Banking Units (OBUs) | 10% | WC190 |
|
| 3 | WF | Interest and other income payments on foreign currency transactions/loans payable of Foreign Currency Deposits Units (FCDUs) | 10% | WC190 |
|
| 4 | WF | Cash dividend payment by domestic corporation to citizens and residents aliens/NRFCs | 10% | W1202 | |
| 5 | 30% | WC212 | |||
| 6 | WF | Property dividend payment by domestic corporation to citizens and resident aliens/NRFCs | 10% | WI203 | |
| 7 | 30% | WC213 | |||
| 8 | WF | Cash dividend payment by domestic corporation to NFRCs whose countries allowed tax deemed paid credit (subject to tax sparing rule) | 15% | WC222 | |
| 9 | WF | Property dividend payment by domestic corporation to NFRCs whose countries allowed tax deemed paid credit (subject to tax sparing rule) | 15% | WC223 | |
| 10 | WF | Cash dividend payment by domestic corporation to non-resident alien engaged in Trade or Business within the Philippines (NRAETB) | 20% | WI224 | |
| 11 | WF | Property dividend payment by domestic corporation to NRAETB | 20% | WI225 | |
| 12 | WF | Share of NRAETB in the distributable net income after tax of a partnership (except GPPs) of which he is a partner, or share in the net income after tax of an association, joint account or a joint venture taxable as a corporation of which he is a member or a co-venturer | 20% | WI226 | |
| 13 | WF | On other payments to NRFCs | 30% | WC230 | |
| 14 | WF | Distributive share of individual partners in a taxable partnership, association, joint account or joint venture or consortium | 10% | WI240 | |
| 15 | WF | All kinds of royalty payments to citizens, resident aliens and NRAETB (other than WI380 and WI341), domestic and resident foreign corporations | 20% | WI250 | WC250 |
| 16 | WF | On prizes exceeding P10,000 and other winnings paid to individuals | 20% | WI260 | |
| 17 | WF | Branch profit remittance by all corporations except PEZA/SBMA/CDA registered | 15% | WC280 | |
| 18 | WF | On the gross rentals, lease and charter fees derived by non-resident owner or lessor of foreign vessels | 4.5% | WC290 | |
| 19 | WF | On gross rentals, charter and other fees derived by non-resident lessor or aircraft, machineries and equipment | 7.5% | WC300 | |
| 20 | WF | On payments to oil exploration service contractors/sub-contractors | 8% | WI310 | WC310 |
| 21 | WF | Payments to non-resident alien not engage in trade or business within the Philippines (NRANETB) except on sale of shares in domestic corporation and real property | 25% | WI330 | |
| 22 | WF | On payments to non-residnet individual/foreign corporate cinematographic film owners, lessors or distributors | 25% | WI340 | WC340 |
| 23 | WF | Royalties paid to NRAETB on cinematographic films and similar works | 25% | WI341 | |
| 24 | WF | Final tax on interest or other payments upon tax-free covenant bonds, mortgages, deeds of trust or other obligations under Sec. 57C of the NIRC of 1997, as amended | 30% | WI350 | |
| 25 | WF | Royalties paid to citizens, resident aliens and nraetb on books, other literary works and musical compositions | 10% | WI380 | |
| 26 | WF | Informers cash reward to individuals/juridical persons | 10% | WI410 | WC410 |
| 27 | WF | Cash on property dividend paid by a Real Estate Investment Trust | 10% | WI700 | WC700 |