Commercial and Taxation Laws › Taxation Law › National Taxation (National Internal Revenue Code of 1997, as amended mainly by RA 10963, 11534, 11976, 12066, and 12214) › Income Tax

e. Withholding Taxes

Withholding Taxes

Rev. Regs. 02-981, as amended by Rev. Regs. 11-20182 and 14-20183)

Concept of Withholding Taxes

Withholding tax is a method of collecting income tax in advance from the taxable income of the recipient of income.

In the operation of the withholding tax system, the payee is the taxpayer (the person on whom the tax is imposed), while the payor, a separate entity, acts no more than an agent of the government for the collection of the tax in order to ensure its payment. (Bank of America NT & SA v. Court of Appeals, G.R. No. 103092, 21 July 1994)4

Authorities

  • Bank of America NT & SA v. Court of Appeals, G.R. No. 103092, 21 July 1994
  • Rev. Regs. 02-98
  • Rev. Regs. 11-2018
  • Rev. Regs. 14-2018