Question 1

XYZ Company is a top withholding agent and has an obligation for their rent expense amounting to P13,000.00 for the month of March 2023. As per the payor's obligation to deduct and withhold the tax, when should the company withhold the said expense given the following dates:

Duedate of payment: March 15, 2023

Payment Date: February 15, 2023

Recorded in books: February 28, 2023

Duedate of payment: March 15, 2023

Payment Date: February 15, 2023

Recorded in books: February 28, 2023

Accepted Answer

February 15, 2023

Answer

February 28, 2023

Answer

March 31, 2023

Answer

March 15, 2023

Question 2

During the audit conducted by the BIR official, it was found that the rental income claimed by the corporation was not subjected to expanded withholding tax. Accordingly, the claimed rental expense:

Accepted Answer

Is not deductible from gross income of the corporation due to non-withholding of tax

Answer

Is deductible from the gross income of the corporation, despite non-withholding of income tax by the corporation

Answer

Is deductible from the gross income of the corporation, provided that the 5% expanded withholding tax is paid by the corporation during the audit

Answer

Is deductible, if it can be shown that the lessor has correctly reportedthe rental income in his tax return.

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