Yung mga may Business po dito or planning to have a business, if rental is below ten thousand monthly you are exempted from withholding the expanded tax. However, if the accumulated gross rental you paid to the same lessor exceeds more than P10, 000 within the year, you are required to withhold the 5% on the monthly rental.
Even if your rent agreement/contract did not specify who will pay for the expanded tax, you are mandated to withhold the 5% from your gross monthly rental and remit same to BIR.
The expanded tax is deducted from your rental. If your rental is 10,000, you deduct the 5% (P500). Your payment to your lessor will only be P9,500. You remit the P500.00 to the BIR.
Ito po kasi yung usual problem ng mga client ko, ang problem po dito hindi ninyo ma dedeclare as expense yung rent ninyo monthly pag d kayo nag withold, kaya wag po kayo papayag as contract na hindi kayo mag withold.