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Ceiling of EWT rates The TRAIN Law provides that starting Jan. 1, 2019, the EWT rates will range from one percent to 15 percent. Prior to this, the top rate was at 32 percent. Normally, an RR is amended by the issuance of another RR. To reiterate, the advice on the reduction of the above EWT rates are done through an RMC. Hence, some may raise the risk that reliance on the RMC may result in the assessment of deficiency EWT, surcharge, interest and penalties.
Filing deadline for FWT and EWT returns The TRAIN Law has changed the filing frequency of FWT and EWT returns from monthly to quarterly basis. The deadline is now on the last day of the month following the close of the quarter during which the withholding was made. The above change appears to ease the compliance burden of taxpayers because it would reduce the number of FWT and EWT returns to be filed from 12 monthly returns to four quarterly returns. Whether or not the BIR will issue new quarterly FWT and EWT returns, b.
Whether or not alphalists of payees will still be required, c. Given the above, it is really important that the IRR is issued in time so that taxpayers are guided on how to go about with the changes. We understand that the BIR has already scheduled public consultations on Jan. 11 and 12 on the draft IRR. We all have a stake in this!
Participate in the discussions, get heard and get on the TRAIN! Robediso is a partner from the Tax Group of KPMG R. Philippine member firm of KPMG International. Tier 1 tax practice, Tier 1 transfer pricing practice, Tier 1 leading tax transactional firm and the 2016 National Transfer Pricing Firm of the Year in the Philippines by the International Tax Review. This article is for general information purposes only and should not be considered as professional advice to a specific issue or entity. Looking for latest car price list in the Philippines? Those who criticize San Miguel’s proposal to build a world class airport in Bulacan because it is too close to Clark probably haven’t been to the Bay Area.
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