Practice question
A professional reports fees subject to creditable withholding. The client withheld the legally required amount but it is less than the professional's correctly computed annual tax. The professional insists that the withholding certificate proves that no additional income tax can be due because collection occurred at source. Which answer is correct?
- Source collection makes all withholding final
- A creditable certificate removes the need to compute any liability
- The withholding is a credit; any balance remains subject to applicable payment requirements
- The client must automatically pay every remaining personal tax of the professional
- Creditable withholding can never reduce tax
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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