Withholding in both directions

3 quick questions. Pick an answer to see why.

1. Shopee withheld ₱2.14 from one of Kuting Kitchen's orders. What is that ₱2.14 to Kuting Kitchen?

A fee it can't get back Income tax paid in advance, which it can credit VAT it can claim on the 2550Q

Marketplace withholding is creditable income tax. Shopee pays it to BIR in Kuting Kitchen's name and gives a 2307, and Kuting Kitchen subtracts it from its income tax.

2. Kuting Kitchen withholds ₱1,500 from the ₱30,000 rent. What must it do with the ₱1,500?

Pay it to BIR and give the landlord a 2307 Keep it as a discount on the rent Give it to the landlord at year-end

Withheld by you is owed to BIR. Kuting Kitchen pays it over on schedule and certifies it to the landlord on a 2307.

3. Which certificate does an employee get for the tax withheld from salary?

Form 2307 Form 2303 Form 2316

Salaries are compensation: the employer gives each employee a 2316. The 2307 is for payments like rent and marketplace payouts; the 2303 is the registration certificate.

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