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Taxes as a Consultatn


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#1 rcko21

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Posted 13 August 2014 - 06:28 PM

I was currently offered a job offer from a telco company here in the philippines through an agency. Given that I my gross salary is above 720k per year, I was told that I had to pay 15% witholding tax. There were no benefits included i.e. SSS, Pagibig, Philhealth

I would like to know if there other taxes I have to pay other than the witholding tax of 15% tax and how do I compute it? I'm single and no children. Is it possible for me to have my sister who is still studying qualify as a dependent? If so, how do I add this to the formula?

Thanks in advance

#2 tugateyshus

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Posted 14 August 2014 - 01:32 PM

Paano nila gawin yang 15% withholding tax? :D Interesting yan ah. I work as a consultant, too.

Is it possible for me to have my sister who is still studying qualify as a dependent? -> I think sa parents mo lang ito if they're not working. Not sure how, better ask an accountant.

Edited by tugateyshus, 14 August 2014 - 01:33 PM.


#3 rcko21

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Posted 15 August 2014 - 05:28 AM

I see... but the agent mentioned that I have to provide receipts as a consultant. Does that mean that if I issue receipts then I'm subject to more tax?

#4 CardingTigas

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Posted 15 August 2014 - 09:57 AM

I was currently offered a job offer from a telco company here in the philippines through an agency. Given that I my gross salary is above 720k per year, I was told that I had to pay 15% witholding tax. There were no benefits included i.e. SSS, Pagibig, Philhealth

I would like to know if there other taxes I have to pay other than the witholding tax of 15% tax and how do I compute it? I'm single and no children. Is it possible for me to have my sister who is still studying qualify as a dependent? If so, how do I add this to the formula?

Thanks in advance


Wait lang, hindi ikaw ang dapat mag bayad ng withholding tax, ang may primary responsible dun sa Withholding Tax is un Withholding Agent which happens to be your counter party, they are responsible for it's remittance to the BIR, and in return, when you compute your annual tax due, pwede mo gamitin tax credit ung amount na na withheld from you. Basta ang Importante, everytime na makaka receive ka ng payment from your counter party, secure the BIR Form 2307 un kasi nu certificate of withholding tax na binawas nila sa professional fee mo.

For the purpose of illustration, let just say your Professional fee per Month is PHP100,000.00 as a result, your are subject to 15% Withholding tax, under the assumption that you are earning PH1,200,000.00 annually (PHP100,000.00*12Months) Every time na makaka receive ka ng professional fee mo, ang net na ma rreceive mo is PHP85,000.00 [PHP100,000.00 Less(PHP100,000.00*15%)]

Ngayon upon receipt of your paycheck, dapat meron ka din ma rereceive na copy mo ng Certificate of Withholding Tax (BIR Form 2307) kasi at the end of the taxable year, I ccompute mo un total income tax mo, and pag na compute mo un income tax mo, pwede mo ibawas un lahat ng na withheld sayo ng counterparty mo, basta dapat din na I secure mo un copy mo ng BIR Form 2307. so ultimately liliit pa un "TAX STILL DUE"





Edited by cardingtigas, 15 August 2014 - 10:05 AM.


#5 CardingTigas

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Posted 15 August 2014 - 10:09 AM

I see... but the agent mentioned that I have to provide receipts as a consultant. Does that mean that if I issue receipts then I'm subject to more tax?


Iba ang Income Tax sa Withholding Tax. Ikaw ang liable sa income tax ikaw dapat mag bayad nun at the end of the taxable year. tapos un withholding tax naman, ang nag babayad is un counter party mo, binabawas nila un outright sa professional fees mo. and pwede mo magamit as tax credit un Certificate of Withholding Tax (BIR Form 2307).

#6 CardingTigas

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Posted 15 August 2014 - 10:17 AM

It's straight up.. multiply the 720k with 15%

You cannot claim your sister as your dependent not unless you adopt her legally.


sorry but I have to disagree with the concept of you adopting your sister legally. hindi po mag qualify as dependent un sister. as much as I want to discuss it with you guys un concept ng qualified dependents as a allowable tax deduction, might as well mag start nalang ako ng Thread for Tax Consultation hehehehe. basta hindi pwede un sister. the basic premise of a Dependent per Tax Purposes is that "Benefits should be down stream and not lateral wise" un nasa baba mo ang magbebenefit from you and not those who are in your equal footing. medyo technical sya kaya nakakahilo ang Philippine Taxation






#7 CardingTigas

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Posted 15 August 2014 - 10:19 AM

Paano nila gawin yang 15% withholding tax? :D Interesting yan ah. I work as a consultant, too.

Is it possible for me to have my sister who is still studying qualify as a dependent? -> I think sa parents mo lang ito if they're not working. Not sure how, better ask an accountant.



sorry but I have to disagree with the concept of you adopting your sister legally. hindi po mag qualify as dependent un sister. as much as I want to discuss it with you guys un concept ng qualified dependents as a allowable tax deduction, might as well mag start nalang ako ng Thread for Tax Consultation hehehehe. basta hindi pwede un sister. the basic premise of a Dependent per Tax Purposes is that "Benefits should be down stream and not lateral wise" un nasa baba mo ang magbebenefit from you and not those who are in your equal footing. medyo technical sya kaya nakakahilo ang Philippine Taxation










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