BUISENESS MANAGEMENT
TAXES
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
15%
|
|
|
20%
|
|
|
25%
|
|
|
30%
|
Detailed explanation-1: -If you deal with them, take note that for such income, you are responsible for withholding taxes thereon. An NRFC is generally taxable at 25% final withholding tax (FWT) and at 12% final withholding value-added tax (FWVAT).
Detailed explanation-2: -Prizes of more than P10, 000 received by citizens, residents and non-resident aliens engaged in trade or business are subject to 20% final withholding tax.
Detailed explanation-3: -In such a case, the tax payable by the foreign company shall be 18.5%.
Detailed explanation-4: -Dividends paid by a REIT are subject to a 30% rate. An election can be made to treat this interest income as if it were industrial and commercial profits taxable under article 8 of this treaty.