Beruflich Dokumente
Kultur Dokumente
Deducted at source
No need to file income tax return
Inherently territorial
Rationale of final income taxation
Non-resident persons NETB in the
Philippines
Have high risk of non-compliance
No fixed placed of business in the
Philippines
Passive Income Subject to Final
Withholding Tax
(1.) Interest Income from local bank
deposits
Banks Deposits - Bank deposits
consist of money placed into banking
institutions for safekeeping.
Example: Current Accounts, Saving
Accounts, Term Deposits at iba pa.
Term Deposits - is a deposit held at a
financial institution that has a fixed term.
time deposit accounts tend to offer a
higher rate of return than traditional
savings accounts,
but the money must stay in the
account for a set period of time.
Short Term less than 5 years
20% FWT to Ind. and Corp.
Long Term more than 5 years
Exempt Ind., 20% FWT to Corp.
Tax on pre-termination of long term
deposits of individuals.
Withdrawal before the maturity date
a penalty fee is applied to the
depositor, usually equal to up to 75%
off of the accrued interest rate from
the date of the account creation up
to the date of the pre-termination.
Savings or time deposits with cooperative
are not subject to FWT.
Other Applications of the FWT on interest
(a)
Deposit Substitutes
(b)
Government Securities
(c)
Money Market Placements
(d)
Trust Funds
(e)
Other investments evidenced by
certificates prescribed by the BSP
Foreign Currency Deposit with Foreign
Currency Depository Banks