Practice question
Under Section58(E), a recipient has income subjected to creditable withholding. How is that income generally treated in the recipient’s return?
- It is included in the return, with the withheld amount treated under the credit and settlement rules
- It is excluded merely because collection occurred at source
- Only the withheld amount is income
- The payor reports it as its own business income
- It is always treated as income subject to final tax
Legal references
- RA11976 Ease of Paying Taxes Act: https://lawphil.net/statutes/repacts/ra2024/ra_11976_2024.html Section9, NIRC58(E).
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