How To Properly Pay Taxes For Your Commissions?

Why Do I Need To Pay 10%  Tax From My Commissions

Every commission we paid out to our affiliates, we declare it to BIR as a company expense in the form of commissions.

BIR requires us to deduct 10% tax for this type of company expense and we need to pay it directly BIR every month.

This tax is called Expanded Witholding Tax

What income payments are subject to Expanded Withholding Tax?

o) Commission, rebates, discounts and other similar considerations paid/granted to independent and exclusive distributors, medical/technical and sales representatives and marketing agents and sub-agents of multi level marketing companies.

Source: https://www.bir.gov.ph/index.php/tax-information/withholding-tax.html

Please take note that aside from the 10% witholding tax, you need to manually file your income tax to BIR. Your income tax rate will depend on your income bracket. Please see diagram below.

How To Pay Your Income Tax

STEP 1: You need to request a form 1601-E/2307 from Unity Network. This is a proof the Unity Network already paid for your 10% witholding tax. To request for your form 2307 Please Fill Up This 2307 Request Form. Request can take 7-14 days to be processed.

STEP 2: You need to register and go to BIR to manually file for your own income tax.

 

 

 

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