Common Transactions Subject to Expanded Withholding Tax (EWT) for Non-TAMP Companies

Last updated on March 13, 2026

If you’re running a business in the Philippines and aren’t classified under the Taxpayer Account Management Program (TAMP), you still need to comply with certain tax regulations—one of which is Expanded Withholding Tax (EWT) under Revenue Regulations No. 11-2018.

This article simplifies the common transactions subject to EWT for Non-TAMP companies, helping you stay compliant without the headaches.

What is Expanded Withholding Tax (EWT)?

EWT is a tax deducted by businesses when making payments to suppliers, contractors, or service providers. Instead of the payee shouldering the full tax liability later, the payer withholds a percentage upfront and remits it to the Bureau of Internal Revenue (BIR).

Common Transactions Subject to EWT

A. Payment for Services Rendered

Payment for services rendered such as professional fees, talent fees and promotional fees.

• Individual payee:
  • 5% if annual gross income P3M or less
  • 10% if annual gross income exceeds P3M or VAT registered

• Non-individual payee:
  • 10% if annual gross income is P720,000 or below
  • 15% if annual gross income exceeds P720,000

Services rendered by various professions, including:

• Lawyers
• Architects & Engineers
• CPAs
• Medical Practitioners
• Professional Entertainers & Athletes
• Directors & Producers
• Insurance Agents & Adjusters
• Management & Technical Consultants
• Bookkeepers
• Corporate Directors
• Selected Brokers & Agents
• Company Sales Representatives & Marketing Agents

Commission / payment to agents, brokers, and sales representatives are subject to EWT same as above.

• Commission to Real Estate Agents and Brokers 
• Commission to Insurance Agents and Sales Representatives 
• Commission for Independent Sales Representatives 

Important:

For Individual Payees (earning ₱3M or below): 
Submit a Sworn Declaration (Annex B-1) and Certificate of Registration (COR) to qualify for the 5% rate. Without these, the 10% rate applies.

For Non-Individual Payees (earning ₱720,000 or below):
Submit a Notarized Sworn Statement (Annex B-3) and Certificate of Registration (COR) to qualify for the 10% rate. Without these, the 15% rate applies.

B. Rentals and Lease Payments

Rent payments for business spaces and equipment are subject to 5% withholding tax:

• Lease of Real Property (e.g. Commercial Spaces, Offices, Warehouses, billboards etc.)
• Equipment and Asset Rentals  (e.g. Machinery, Vehicles, Office Equipment etc)

C. Payments to Contractors and Subcontractors

Contractors and subcontractors perform essential services for businesses, such as construction, repairs, maintenance, and other specialized work. Payments made to them are subject to 2% withholding tax.

• General engineering and building contractors
• Subcontractors hired for specific projects
• Specialty contractors (e.g., electrical, plumbing, HVAC, and carpentry services)
• Janitorial and security services
• Maintenance services (e.g., elevator repairs, landscaping, pest control)
• Transportation and Freight Services (e.g. freight and trucking, courier, logistics etc)
• Advertising agencies, exclusive of gross payments to media (e.g. online and digital advertisements, marketing and promotional services etc)
• Printers, bookbinders lithographers and publishers (except those principally engaged in the publication or printing of any newspaper, magazine, review or bulletin which appears at regular intervals, with fixed prices for subscription and sale)
• Labor recruiting agencies and/or “labor-only” contractors

Compliance and Documentation

Non-TAMP Companies must ensure proper withholding and remittance of EWT, including:

• Filing of BIR Form 0619E (Monthly Remittance Return of Creditable Income Taxes Withheld – EWT) on or before the 10th day of the following month for non-eFPS filers and based on the assigned eFPS filing deadline for eFPS filers.
• Filing of BIR Form 1601-EQ (Quarterly Remittance Return of Creditable Income Taxes Withheld – EWT) before the last day of the month following the quarter.
• Issuance of BIR Form 2307 (Certificate of Creditable Tax Withheld at Source) to suppliers and service providers.
• Keep proper records of all transactions subject to withholding tax.
• Timely remittance to avoid penalties and interest.

Final Thoughts

Even if your business isn’t part of TAMP, you still have withholding tax obligations under RR-11-2018, and those obligations can change as new laws come in.

Understanding which transactions require EWT and ensuring proper documentation will save you from compliance headaches in the long run. And if you want to learn more about other types of withholding taxes and what’s applicable to your business, check out our comprehensive Philippine Withholding Tax Guide.

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