Tax
Creditable withholding tax
Tax a client takes from your fee and pays to the BIR for you. You subtract it from the tax you owe later.
Most useful for: Career shifter, Government
- In real life
- On a ₱30,000 professional fee, a client withholds 5%, ₱1,500, if your gross for the year stays at ₱3 million or less. Above that, 10%.
- Why it matters to you
- It is money already paid toward your tax, so keep each client's certificate.
An explanation to help you read your pay, not a ruling on your case. Your employer, the agency or DOLE has the final word.