Withholding Tax 101 (or, ‘Why Is My Pay Less Than What My Client Said It Would Be?’)
How withholding tax feels like, sometimes: someone taking a bite out of your favorite doughnut before you can eat it. (Then again, lessening calories can be good for you.)
If you’re a freelancer with local clients, you must be familiar with withholding tax.
Simply put, it’s the amount of money that your client deducts from the amount you’re supposed to receive. So if you’re expecting, say, Php 3,000, you might end up getting Php 2,700 instead.
Where did that missing Php 300 go?
It went to your withholding tax.