PERA accounts enjoy the incentives including a five percent income tax credit on the actual PERA contribution that could be used to pay income tax liabilities as well as tax exemption from the 20 percent final withholding tax
from interest on bank deposits, deposit substitutes and trust funds, 10 percent final withholding tax
on dividends, capital gains tax on disposition of shares of stock, and regular income tax on PERA products.
As to the most common query of an expectant recipient of his/her pie, an heir may only withdraw the bank deposit of the decedent upon payment of final withholding tax
of 6 percent of the amount to be withdrawn.
Unlike before, the heirs are allowed to withdraw the bank deposits of the deceased, but subject to six percent final withholding tax
The BIR said the repo rate (the difference between the original price and the repurchase price) as well as other interest income including interest accruing from the cash margin would be slapped a 20-percent final final withholding tax
as well as applicable gross receipts tax under the Tax Code.
So, as the Directive will apply only to non-residents, Austria is expected to retain its final withholding tax
for residents and its present banking legislation for domestic residents.
Thus, the income derived by the NRFC from sources within the Philippines will generally be subject to final withholding tax
of thirty 30 percent on gross income.
The TRAIN law has removed that cap, but the amount withdrawn would be subject to a final withholding tax
of 6 percent.
Monetary benefits from interest income on T-bonds are subject to a 20-percent final withholding tax
to be remitted by the Bureau of Treasury to the BIR.
Revenue officials explained that many business tycoons were in the lower slot of the list not because their accountants were expert in manipulating their income statements, but their incomes from others sources were already subject to final withholding tax
Campos added the government also collects a 12 percent value-added tax (VAT) on stockbroker commissions from the buying and selling of shares, a 10 percent final withholding tax
on cash dividends distributed by listed firms to shareholders as well as documentary stamp taxes.
The January 2017 resolution of the Supreme Court (SC) settled the controversy involving the PEACe (Poverty Eradication and Alleviation Certificates) bonds and resolved the propriety of subjecting the P24.3-billion discount to 20-percent final withholding tax
of around P4.9 billion.