You have to do this NOW to Decrease Withholding Tax to 5% Deadline on April 6, 2018

The latest rule, RR No. 11-2018 on WithholdingTax (WHT) was published by Bureau of Internal Revenue (BIR) in the mid of March 2018.

 

The change of rule is regarding Withholding Tax (WHT) rates for professional fees, talent fees, commissions paid to individual payee.  This includes  doctor’s fee for services done.

 

 

 

The above rule (RR No. 11-2018) will supersede the 8% WHT rate for individual payees implemented early this year.

 

To be able to avail of the 5% WHT, you have to submit a Notarized Sworn Statement.

 

There are two (2) types of Sworn Statements:

  1. Annex B-1 are for Individual payees with several income payors / sources of income
  2. Annex B-2 are for Individual payees with only one income payor / source of income

 

The Sworn Statement should be notarized before submission.

The Sworn Statement’s deadline would be on April 6, 2018, this coming Friday.  A copy of the Sworn Statement and copy of your Certificate of Registration (COR) should be submitted to your company or income payors on or before the deadline.

The deadline of submission of your payors to their RDO is on April 20, 2018.

Non-submission of the Sworn Statement would mean that your payors will have to withhold from you 10% from your income instead of 5%.

 

For your reference, here are the copies of the Sworn Statements.  You can download it, print in a Long Bond Paper and have it notarized.

 

Annex B-1 

Annex B-2

 

 

I hope you do this before the deadline, this coming Friday.  Do it now.

Did you like this article?   This was discussed intensively in my latest book:

Don’t forget to grab your copy! To order CLICK HERE.  Limited copies available.

 

For your Financial Health,

 

Dr. Pinky Intal

 

 

 

 

 

The following two tabs change content below.
Doc Pinky is a licensed Medical Physician, Internationally Registered Financial Consultant, Certified Investment Solicitor and Associate Wealth Planner and Estate Planner of the Philippines. She loves to educate and spread financial literacy. She is a Lactation Consultant. She loves to travel. She is a devoted wife and mother.

60 thoughts on “You have to do this NOW to Decrease Withholding Tax to 5% Deadline on April 6, 2018

  1. King MD

    Good day dra. Yung nakalagay sworn statement 8% yung tax rate. Automatic na ba yun pag na pag nareceive na ng payor yung requirements, 5% na lang ibabawas nila. How about the remaining 3 %. Do we need to pay for it during tax filing. or pede dirrect 8% na yung iwithhold ng payor para wala na o less na yung tax dues sa tax filing.

    • Dati kasi it’s 8%, wala na sana ng difference. But they change again to 5 and 10% so, the difference will be paid during filing of 1701Q quarterly.

      • Jason Syson

        Good day po, tanong ko lang po about filing ng 1701q for 1st qtr 2018 via ebir forms. Pano po update ebir form to accomodate the TRAIN 8% tax deduction? Ung latest version ng ebir form sa bir website is 7 pero ung computation used is still ung old tax system. Please help. May 15 na po deadline. Kailangan b file manually?

  2. AM

    Good day po.. re dun sa declaration.. pag po dr na may clinic and in patients PF sa different hosp. Yun po bang annex b-1 (several income payor) yung ifi fill up thank you very much

  3. drk

    few questions po, maybe you can help:

    1. do we have to get our sworn statements “stamped” and “received” in our RDO prior to submitting to our affiliated institutions?
    2. if my COR is not yet available, can we submit another document?

    thank you for being so helpful!

    • Yes, but some, you can attach a documentary stamp you can avail in city halls. You ask your institutions if they will allow other forms besides COR. Depends on them.

  4. Rby

    Today plng po nag submit ang bookkeeper ko s RDO ng B1.. today din po b need submit s employer ko un copy ng B1 or pde nmn kht po tom? Sa april 20 p nmn po cla magsa submit s RDO.tama po b? Thnaks po

  5. Lon

    Hi po. Question lng po. With the recent update of 5% for less than 3 million annual and 10% for more than 3 million. Does this mean wla na po yung option for graduated tax table ng train law? Its either 5% or 10% na lng? Thanks

    • you are confusing withholding tax with income tax. they are different. The option of graduated tax is still available as well as the 8% flat rate.

  6. Lance

    Good afternoon, doc!

    How would this affect moonlighters po? Will we also have to submit this sworn statement and COR every time we do Reliever duties po?

  7. Valerie

    hi po. no extension on this po? just learned about this yesterday

  8. Valerie

    thank you very! will look at it now 🙂

  9. Anna

    Is this per branch/per clinic?

  10. Noemi

    Hi, is it better to just have 10%wholding tax rather than 5%, even if im non vat, so i dont have to pay much more when filing itr? Para at least na withhold na payment so di na malaki babayaran ko na quarterly and annual. Thanks po.

  11. Kristine

    Hi. Ask ko lang po. Job order po from a government office, un annual income ko po is less than 250,000.. Pinapapasa po kme lahat ng JO ng Sworn form and magbayad ng 500 pesos. Tama po ba un? Akala ko po kasi pag less than 250,000 un annual income, wla na po kme bbyaran na tax.. Thank you.

  12. jake

    Clarify ko lang po..”Copy” lang ng Sworn notarized Form lang ang isusubmit ko po no?..hindi original?..i have 2 employers kasi…salamat…

  13. Lucia

    Hi if i wasnt able to submit cor and sworn dec today can i still ask for it sa rdo even beyond deadline? Or next filing next yr po thanks in advance!

  14. lou

    income payor means withholding agent? thank u..

  15. Kaye Dizon

    Hi po, ok lang po bang sworn statement ang naipasa ko, kasi moonlighter ako, tapos wala naman along clinic, and nag mumoonlight lang ako sa iisang hospital. Am I still entitled sa 5% even without submitting any COR?

  16. Marlon k latongan

    Hi Doc. Insurance agent din ako ng Manulife. Dahil di ko nai submit on or before the deadline my COR and Sworn statement, 10% na witholding tax ko ngayon. Tanong ko lang po, required pa rin ba na mag file ako quarterly percentage tax of 3% po ba yun? If required, saan magbase? Sa total quarterly gross income pa rin ba computation or sa net income after 10% tax deductions? Thanks, more power…

  17. ObGyn Doctor

    Hi! Do i have to file 2551Q? Nagfile po ako ng 1701Q last quarter. Someone told me na pati dapat 2551Q finafile. Is this true?

    • Depende po yun if you got the optional 8% or the percentage tax.

      • ObGyn Doctor

        Hi thanks for replying! I got the 8% tax.

        • If that’s the optional 8% then no need to file the 2551q

          • ObGyn Doctor

            Oh ok po!!! Thank you! God bless dra pinky!

  18. RCA MD

    Hello po Dra Pinky, good evening ask ko lang po, na-HIRE po kasi ako sa isang clinic ng June 2018, i submitted my credentials kasama po ang COR na may annotation ng 8% tax and nagbigay din po ako ng sworn declaration. Ang question ko po is, sakop na po ba ako ng 5% withheld tax or 10% percent po? I just want to clarify lang po thank you.

  19. GHIA DOYAOEN

    Hi Dra, ask ko lang po since mag2019 na we need to submit another sworn statement po. Does that mean for every hospital that I’m affiliated I need to submit the original copy with doc stamps? So if 4 hospitals, 4 original copies with doc stamps po tama po b? This 2018 kc I passed the sworn statement notarized but without doc stamps kc ang sabi ng BIR sa kakilala ko n doctor dapat daw yung hospital ang magpass sa kanila nun bago lagyan ng doc stamp. Tama po b yun? However, yung mga hospitals 5% ung kinuha nla sakin n witholding tax pero ung mga HMOs dun sa mga hospitals na yun 10% prin yung tinanggal nla kahit nagpasa rin ako sa kanila ng notarized sworn affidavit. Would it be possible na magpurchase nlang ako ng doc stamps sa city hall and have it notarized before I pass it sa mga hospitals and HMOs na accredited ako? Sorry mahaba but I was really confused kc. Thank you and God Bless po.

  20. Carmi

    Hello po.. is this for professionals only? Does this apply to self employed with rental business. 1 lang ang umuupa. And 8% ang tax rate ko po.

  21. ailee

    Hi.. whats the difference between lone payor and several income payor…

  22. Marlon K. Latongan

    Hi Doc. Manulife insurance agent here. I submitted my sworn statement together with my COR last january sa CSO. Tanong ko lang, bakit kaya gang ngaun(latest esoa) 10% pa rin witholding tax ko… Expect ko sana 5% na dapat tax witheld ko. Thanks

  23. Lau

    hi po. may i ask what’s the reason why the BIR let people submit on an annual basis?
    I failed to submit my sworn declaration because it took time for my registration to be transferred to my RDO. I was hoping I can still submit to my employer so I can reduce my tax to 5%.

    Is the discretion with the BIR or with my employer?

    • Hi, there is the deadline. You can’t anymore pass to your employer because they should have passed it to BIR already.

      • Lau

        Thanks for response. My employer passed a list to the BIR around the 3rd week of February so i figured if they can submit late, they can do it again in consideration for other late submission of sworn declarations.

        (Sorry if i might have 2 replies, not sure if the first comment was posted)

  24. Reme

    hi sir, tanong lng po. ung sworn declaration of gross sales/receipts. d ko nakapagsubmit sa office nung jan 15 2019, pede pa po kaya magsubmit sa BIR? or sa office? late submission of sworn declaration?

    THank you

  25. CLIC

    as a withholding agent ask ko lang paano po walang nagsubmit sa akin ng sworn declaration na less than 3M yung gross. dapat ba 10% parin yung i.withheld ko sa kanila tama po ba and dapat ba ang gamitin kung atc code is sa 10%?

  26. Irene

    Hi Doc,
    How is the registration in BIR of individual with multiple professions like you? Does insurance companies accept your COR and sworn declaration as registered doctor, CPA, or lawyer and will be withheld 5% from the commission/other income received ? Thank you.

    • You should registered separately for different professions if you are practicing all of that. Yes, they accept the sword Dec. 🙂

  27. Air

    Hello po, I am VAT registered but I my income will not exceed 3 million. Am I allowed to avail of the sworn declaration? Thank you

    • you can try to amend your registration to make it non-vat. if you are VAT you are not qualified for the sworn declaration. it’s only for those earning 3M and below.

  28. bea

    Hi po. Pede po ba magpasa sa withholdin agent ng notarized sworn declaration lang and COR without having it receiveed or stamp by BIR fist or not documentary stamp? Thank you!

  29. bea

    Hi,

    Ask ko lang po if pede ba magsubmit ng notarized sworn declaration to the withholding agent even without docs stamp and not yet received by BIR? Thank you.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>