Practice question
A payee receives one item stipulated to be properly subject to final income tax and separate ordinary business income. Does final withholding on the first item automatically settle the tax on the separate business income?
- Yes, final means all taxes forever
- Yes, if the same bank receives both payments
- Yes, whenever the payor is a corporation
- Yes, because all withholding has the same effect
- No; finality concerns the particular final-taxed income, and the other income requires its own applicable treatment
Legal references
- NIRC Sections57–58, as amended by RA11976: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/96948
- PSE v. Secretary of Finance, GR213860, July5 2022, main decision: https://lawphil.net/judjuris/juri2022/jul2022/gr_213860_2022.html
- CIR v. COMELEC, GR244155 and247508, May11 2021, main decision: https://lawphil.net/judjuris/juri2021/may2021/gr_244155_2021.html
- CIR v. G&W Architects, GR246026, April21 2026, main decision: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/70567
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