Final withholding tax

Final withholding tax — tax deducted automatically before income reaches you, which fully settles the tax obligation: nothing to file, nothing to reclaim. In the Philippines, bank interest, time deposits, and bond coupons lose 20%; dividends from domestic companies and REITs lose only 10%. MP2 and PERA are exempt entirely — the core of the PH tax-advantaged stack.

First used in: 1.1 · The two hurdles: benchmarking math I