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  1. #1
    ronlazaro
    Guest

    How to compute expanded withholding taxes on VATABLE and Non-VATABLE sales/services?

    hi everyone: please help me on the tax concerns:


    Scenario 1: Income payments made to lessor:

    Monthly Rent-Net 10,000.00
    12% VAT 1,200.00

    Required: Compute for EWT:

    EWT= ?

    Scenario 2: Income payments made to lessor:

    Monthly Rent-Net 10,000.00
    12% VAT 1,200.00
    Admin fee (not subject to VAT) 800.00

    Required: Compute for EWT:

    EWT= ?



    Scenario 3: Income payments made to Telco provider:

    Monthly Recurring Fees/Usages 11, 520.65
    12% VAT 1, 250.25
    Overseas Comm tax 80.19
    Total Due 12, 851.09

    Required: Compute for EWT:

    EWT= ?



    Scenario 4: Payments made to PEZA Company:

    Purchased Merchandize 100,000.00
    12% VAT 0.00
    Delivery Charges (reimburse to supplier) 3,600.00
    Total Due 103,600.00

    Required: Compute for EWT:

    EWT= ?



    Scenario 5: Payments made to local supplier of goods/agri products/fresh produces/commodities/and business assistance services:

    purchase1- prime commodities/fresh produce 120,000.00
    purchase2- House equipments/furniture/appliances 875,050.00
    purchase3- zero-rated goods 525,000.00
    services1 - consultations and store set-up (vat incl) 36,000.00
    services2 - business services (non-vat) 50,000.00



    Required1: Compute for VAT & EWT and arrived at Net due to the provider/supplier (assumed that only one entity provides the goods and services and is a registered corporation under Philippine jurisdiction):

    VAT= ?
    EWT=?
    Net payment=?


    Required2: Compute for VAT & EWT and arrived at Net due to the provider/supplier (assumed that only one entity provides the goods and services and is a registered partnership by professional individuals/business people):

    VAT= ?
    EWT=?
    Net payment=?

  2. #2
    Regular Member
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    Pasay-Makati City, Metro Manila
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    Quote Originally Posted by ronlazaro View Post
    hi everyone: please help me on the tax concerns:


    Scenario 1: Income payments made to lessor:

    Monthly Rent-Net 10,000.00
    12% VAT 1,200.00

    Required: Compute for EWT:

    EWT= 10,000 x 5% or P500

    Scenario 2: Income payments made to lessor:

    Monthly Rent-Net 10,000.00
    12% VAT 1,200.00
    Admin fee (not subject to VAT) 800.00

    Required: Compute for EWT:

    EWT= (10,000 + 800) x 5% = 540. Not being subject to VAT is based on the nature of payment and is doubted so safe approach is to subject to EWT.



    Scenario 3: Income payments made to Telco provider:

    Monthly Recurring Fees/Usages 11, 520.65
    12% VAT 1, 250.25
    Overseas Comm tax 80.19
    Total Due 12, 851.09

    Required: Compute for EWT:

    EWT= Use 2% based on P11,520.65 if a top-twenty thousand coporation, otherwise, not subject to EWT.



    Scenario 4: Payments made to PEZA Company:

    Purchased Merchandize 100,000.00
    12% VAT 0.00
    Delivery Charges (reimburse to supplier) 3,600.00
    Total Due 103,600.00

    Required: Compute for EWT:

    EWT= Use 1% of P100,000 and 2% of 3,600 if a top-twenty thousand corporation, otherwise, not subject.



    Scenario 5: Payments made to local supplier of goods/agri products/fresh produces/commodities/and business assistance services:

    purchase1- prime commodities/fresh produce 120,000.00 - VAT-exempt & 1% if TTC
    purchase2- House equipments/furniture/appliances 875,050.00 - 12% VAT and 5% EWT
    purchase3- zero-rated goods 525,000.00 - 0% VAT & 1% EWT, if TTC
    services1 - consultations and store set-up (vat incl) 36,000.00 - 12% VAT = 36k divided by 112% times 12%, 10%/15% if professional, if not, 2% EWT,if TTC, otherwise no EWT.
    services2 - business services (non-vat) 50,000.00 - No VAT, 2% if TTC, otherwise no EWT.



    Required1: Compute for VAT & EWT and arrived at Net due to the provider/supplier (assumed that only one entity provides the goods and services and is a registered corporation under Philippine jurisdiction):

    VAT= ?
    EWT= ?
    Net payment=?


    Required2: Compute for VAT & EWT and arrived at Net due to the provider/supplier (assumed that only one entity provides the goods and services and is a registered partnership by professional individuals/business people): SAME answer as above.

    VAT= ?
    EWT=?
    Net payment=?
    Please refer to my views above. I do not know if that was an exam or whatever. Anyway, those are my views. Thanks.
    Taxes affects lives, care for taxes and save lives. For quality tax and accounting seminar, tutorials, trainings, and workshops, please visit us at [url]www.taxacctgcenter.org[/url].

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