What is withholding TAX on compensation?
As per BIR, Withholding tax on compensation is the tax withheld from income payments to individuals arising from an employer - employee relationship.
Who are required to File?
Every registered withholding agent on compensation, which includes, but not limited to to the following:
1.) Individuals engaged in business or practice of profession with employees subject to income tax.
2.) All Juridical persons (e.g Corporations, general partnerships, associations, etc.), whether or not engaged in business.
3.) Government Agencies and Instrumentalities (e.g, NGAs, GOCCs, etc.), including local government units (LGUs).
Anyways, here's a link on how to determine your withholding taxes.
This BIR Withhholding TAX Calculator is free to use. This was develop in order to aid employees for their BIR Withholding tax computation needs. And also para makita din natin kung tama ang kaltas ng mga employers natin! :D
http://birtaxcalculator.com/calculators/bir_withholding_tax_computation_2009
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