When dividend tax should be remitted to the BIR - facebook.com/EmelinoTMaestro

Reckoning Point to Remit Dividend Tax
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Many unholy minded revenue officers insisted that a payment to a stockholder is a subject matter of DIVIDEND TAX (10%). Thus, the payor - the Corporation must remit it to the BIR not later than the 10th day of following month from its payment.

To stop this non-sense harassment, the Court of Tax Appeals, in the case of CIR vs. United Distribution Management, Inc., CTA EB No. 974, October 30, 2013, says that the following requisites must be present: (a.) The concerned corporation must have earnings or profits; (b.) Such corporate earnings or profits must be set aside, declared, and ordered by the directors to be paid to the stockholders, on demand or at a fixed time; and (c.) The distribution or payment of said corporate earnings or profits is in money or other property. Therefore, any money received by a stockholder, even if he is a stockholder of the corporation, does not automatically make the payment in the nature of dividends, if the said requisites are not present.

Please email Katax at 09228010922@MaestroTaxation.org for your inquiries and suggestions.