Question
SCHEDULE OF EXPANDED WITHHOLDING TAX (EWT) Income Payment EWT Income Payment EWT Professional/Management/Consultancy fees (Individual) Gross receipts 3M or below with sworn declaration - 5%
SCHEDULE OF EXPANDED WITHHOLDING TAX (EWT)
Income Payment | EWT | Income Payment | EWT |
Professional/Management/Consultancy fees (Individual) | Gross receipts 3M or below with sworn declaration - 5% Gross receipts over 3M or VAT-reg or without sworn declaration 10% | Purchase of goods or properties by Top Withholding Agents (TWA) - | 1% - goods 2% - service |
Professional/Management/Consultancy fees (Non-Individual) | Gross receipts 720,000 or below - 10% Gross receipts over 720,000 15% | Partners in general professional partnerships (drawings, advances, sharings, allowances, etc.) | 720,000 or less -10% Above 720,000 15% |
Contractors/subcontractors (security, janitorial, etc.) | 2% | Commission (if not employee) | 10% |
Directors fees (if not employee) | 10% or 15% (720,000 threshold) | Income distributed to beneficiaries of estates/trusts | 15% |
Rental | 5% |
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Below are the data provided to you by Nicanor, a top withholding agent for the month of May 2021:
Purchases of goods from XYZ Corporation, a regular supplier. | 800,000 |
Purchases of services from GHI Corporation, a regular supplier. | 200,000 |
Purchase of services from Jabiiee corporation (meals for employees of the company; 4 times transactions) | 25,000 |
Purchases of goods from NBS corporation (purchase of office supplies; 8 times transaction) | 8,000 |
Rent expense | 50,000 |
Professional fees (w/sworn declaration) | 30,000 |
Professional fees (w/o sworn declaration) | 40,000 |
Security fees (20% of which is the agency fee) | 100,000 |
Janitorial services fees | 10,000 |
Based on the foregoing data, how much is the expanded withholding tax on the purchases of goods?
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