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Submit the duly accomplished BIR Form Nos. 1902 and/or 1905 to the RDO within thirty (30) days from receipt; Withhold the tax due from the employees following the prescribed manner; Remit the amount of tax withheld from the employee within the prescribed due dates; Do the year-end adjustment;
- Income Tax
Annual Income Tax For Individuals, Estates, and Trusts. BIR...
- Tax Information
Capital Gains Tax is a tax imposed on the gains presumed to...
- Income Tax
Feb 28, 2024 · Generally, retirement benefits received by an employee pursuant to Republic Act (RA) No. 7641 and RA No. 4917 are tax-exempt, subject to certain conditions.
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Jun 27, 2018 · However, if said conditions for the income-tax exemption are not met, the retirement benefit is taxable; and since the employer is constituted by law to be a withholding agent, it is charged to withhold and remit to the BIR the withholding taxes on its employees’ retirement benefits.
As a general rule, retirement benefits received by a retired employee are considered compensation income subject to tax. This rule, however, is not without exceptions. Under Republic Act (RA) 4917, benefits granted to these employees under a tax-qualified plan are exempt from tax if the retiring employees meet the following criteria:
Nov 20, 2020 · If the company has no BIR-registered retirement plan, the retirement benefits provided to its retired employees is subject to income tax even if the retirement and payment thereof occurred during the covered period. Thus, the company shall be liable to withhold and remit the corresponding income tax due thereon.
Dec 9, 2020 · Section 32 (B) (6) (a) of the Tax Code provides that retirement benefits received under the mandatory provisions of the Labor Code, such as reaching 60 years old but not more than 65 years and has served for at least five years, are tax-exempt.
SUPPLEMENTARY* Supplementary Compensation includes payments to an employee in addition to the regular compensation such as commission, overtime pay, taxable retirement pay, taxable bonus and other taxable benefits with or without regard to a payroll period.
