WITHHOLDING TAX
ON COMMISSION PAYMENTS

 

 

 

With reference to the provisions set in determining the Withholding Tax Changes on Commission Payments and based on the newly released **Revenue Regulations 11-2018 and 14-2018 from the Bureau of Internal Revenue (BIR), following provides the details:

 

For Individual/Self-employed payee:

If gross income for the current year did not exceed ₱3M - Five percent (5%) Expanded Withholding Tax rate (EWT rate);

If gross income is more than ₱3M - Ten percent (10%) EWT rate

 

For Non-individual payee (Corporation):

If gross income for the current year did not exceed ₱720,000-Ten percent (10%) EWT rate;

If gross income exceeds ₱720,000 - Fifteen percent (15%) EWT rate

 

To qualify for the five percent (5%) EWT rate, below conditions must be met:

 

For Individual/Self-employed payee:

1.         Sworn Declaration (Annex B-1 RR 11-2018)

2.         Certificate of Registration (BIR 2303)

 

For Non-individual payee (Corporation):

1.         Sworn Declaration (Annex B-3 RR 11-2018)

2.         Certificate of Registration (BIR 2303)

 

Please submit Sworn Declaration of gross receipts/sales and Certificate of Registration otherwise we will compute the commission at a higher rate of 10% (individuals) or 15% (corporations). If the gross income of the individuals and corporations exceed abovementioned threshold amount, we will subject the commission at the higher rate.  Deadline of submission of documents to Nu Skin will be on April 25, 2018.  You may send the documents or email any inquiries or concerns to nsphfinancecomm@nuskin.com.

 

**The full text of the Revenue Regulations issued by the Bureau of Internal Revenue may be viewed and downloaded below.

 

                • Revenue Regulations No. 11-2018

                • Annex B-1 Revenue Regulations No. 11-2018

                • Annex B-3 Revenue Regulations No. 11-2018

                • Revenue Regulations No. 14-2018