Everyone has heard of the term withholding. According to Article 88 of the Income Tax Law , any salary, interest, rent, labor reimbursement income, or even a company winning a lottery, all fall within the scope of withholding by the Internal Revenue Service. Why withhold? For the IRS, it is always more secure to receive taxes from the treasury first. Therefore, the essence of withholding is to withhold a certain percentage of taxes from the payer when the buyer payer pays the seller payee. To the national treasury to reserve tax sources, because the payer is requir to control the tax sources, so the tax law is call the withholding agent , and the seller and the payee is the one who really makes money, so the tax law is call the incomer .
Withholdings are also divid into
“good withholdings” and “evil withholdings.” Domestic withholdings on wages, rents, bank deposit interest, etc. are classifi as “good withholdings” and are temporary advance tax collections. When the income earner declares income tax in May of the following year, the excess will be refund and the shortfall will be supplement .
“Evil withholding” means that the
amount of tax paid is determin after the tax is withheld. For example, the “income from foreign profit-making enterprises” we are going to talk about. Today is a large tax with an effective tax rate of 20%. When a buyer makes a payment to a foreign manufacturer. If the payment is bc data brazil determin by the Internal Revenue. Service to be domestic income (the practical determination is very complicat. Please refer to Article 8 of the Income Tax Law , the Principles for of the Republic of China), and. The foreign manufacturer has no domestic income within the territory of the Republic of China. For fix business premises or business agents, the buyer must pay 20% of the withholding tax to the treasury within 10 days after bank transfer.
Next we have to ask, who should bear
this heavy withholding tax? In fact, the party that Քննության ժամանակ պետք չէ անհանգստանալ. pays the tax should be the one who makes the money, so the paying buyer only pays the withholding tax and should d uct it from the remittance amount. But as the saying goes, the wool comes from the sheep, and in practice, withholding taxes are often pass on to the buyer, which is commonly known as “tax plus”. The material data Meta advertisement we talk about today falls into this situation. The price paid by ordinary users to Meta The extend withholding tax amount ne s to be paid separately to the IRS by the advertiser!
