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Philippines: Multinational company employees subject to regular income tax rates

Philippines: Multinational company employees income tax

The Bureau of Internal Revenue issued a tax advisory (31 January 2018) in connection with amendments to the tax law. The tax advisory states that employees of regional headquarters and regional operating headquarters of multinational companies and who were enjoying preferential tax treatment prior to 2018 are now subject to regular income tax rates.

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Thus, withholding taxes on compensation paid to these employees are to be based on the withholding tax table provided by Revenue Memorandum Circular No. 01-2018 (4 January 2018). 

 

Read a February 2018 report prepared by the KPMG member firm in the Philippines 

Withholding tax guidance

The Bureau of Internal Revenue issued another tax advisory (31 January 2018) in connection with the monthly withholding and payment of creditable and final withholding taxes following the amendments under Republic Act No. 10963.

 

Read a February 2018 report prepared by the KPMG member firm in the Philippines

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