Withholding Tax Updates on your Maya Business Account

The new BIR rule means that Maya, as a digital financial services provider, will deduct 0.5% withholding tax from the total sales we send to you as our merchant. This applies unless your sales are exempt from this rule.

This is the total amount you get for selling goods and services to your customers, minus sales returns; discounts; delivery fees; and VAT that Maya handles, plus service fees you pay Maya for using our payment solutions. 

Yes, every digital financial services provider, just like Maya, is required to apply this 0.5% withholding tax on gross remittances.

Starting July 14, 2024, per BIR RR No. 55-2024, we’ll begin applying the 0.5% withholding tax on gross transaction sales. This applies to all transactions from this date forward, regardless of when they’re settled. Please remember, this rule doesn’t affect any transactions made before July 14,2024.

Yes, it covers transactions from all sources, be it BancNet, Maya Wallet, QR Ph, and more.

Your business is exempt from withholding tax if: 

• Your annual gross remittance through digital financial service providers do not exceed PHP500,000 and
• You have a Sworn Declaration, stamped and verified by your BIR RDO or
• You are part of any legal exemptions or agreements such as having a Barangay Micro Business Enteprise (BMBE) certification.
  
• You are a merchant exempt from income tax (e.g., government, non-stock non-profit, entities with special registration) with necessary document serving as proof of entitlement to exemption.

If your gross remittance exceeds PHP500,000 even after you’ve submitted a valid SD, we will start applying the 0.5% withholding tax on your transactions.

It’s a document, officially recognized by the BIR, stating that:  

• Your gross remittance from digital financial service providers like Maya do not exceed PHP500,000.
• Should your sales exceed beyond the threshold during the fiscal year, providers like us will automatically withhold 0.5% tax from your payments. 

Please make sure this form is completed, signed, and stamped by your BIR RDO before handing it over to us at Maya Philippines.  

You may download the SD form here and email the BIR verified and stamped copy to your relationship manager or upload it via Maya Business Manager.

*You don’t need to submit the physical copy of the Sworn declaration.

Please submit a copy on or before July 8, 2024.

No withholding tax will be collected on your transactions.

Should you miss submitting the required form, a 0.5% withholding tax will be automatically applied to each transaction from July 14, 2024, onwards, no matter your total earnings.

This rule stays in place until you get your SD verified by your BIR RDO and handed over to us at Maya Philippines.

Maya Philippines will issue an automated BIR Form 2307 (Certificate of Creditable Tax Withheld At Source) every 5th day of the succeeding month (for the current month’s transactions). This shall be sent to the email address associated with the Merchant’s records in our system. This may be presented to BIR for handling the collected WHT.

A 0.5% withholding tax will be imposed on the gross sales per transaction.
See sample illustration below:

 

No withholding tax will be charged for your transactions until July 14, 2024.

Regardless of total income or gross remittance, the withholding tax of 0.5% shall automatically be deducted per transaction effective July 14,2024, unless the required SD was submitted on the deadline.

The BIR Form No. 2303, also called Certificate of Registration (COR), is an official document that gives the holder the legal right to operate a business in the Philippines. It serves as proof that a business is registered as a taxpayer with the Bureau of Internal Revenue (BIR),

It's essential for all businesses to provide a copy of their BIR 2303 (Certificate of Registration) to us, Maya Philippines Inc. This step is crucial not just for compliance with tax regulations but as part of your business responsibilities after registering with the SEC/DTI. It confirms your business's tax registration and is needed throughout your business’s operational life. 

You may email a copy of your BIR 2303 to your assigned relationship manager or upload this via your Maya Business Manager at pbm.paymaya.com

Keep your payments flowing without a hitch by updating your records by April 15, 2024. Delay might mean a pause in receiving payments through Maya Business. If you are ready to get back on track, send over your BIR 2303 to your relationship manager or upload a copy via Maya Business Manager.

Here's a breakdown of specific requirements for obtaining a BIR 2303 (Certificate of Registration)

• For Corporations and Partnerships:
  • Accomplished BIR Form 1903
  • Photocopy of Mayor's Permit
  • Photocopy of SEC Certificate of Incorporation
  • Location Sketch or Vicinity Map: Include a sketch or map of the business address.
  • Tax Identification Number (TIN) of Owners/Officers
  • BIR Form No. 1906 – Application for Authority to Print Receipts and sample of Principal Receipts/Invoices.
  • Payment of Registration Fee (₱500.00)
  • Note: Additional documents may be required, depending on the nature of your business.
• For Sole Proprietorships:
  • Accomplished BIR Form 1901
  • Any Valid ID issued by government.
  • Photocopy of Mayor's Permit
  • Photocopy of DTI Certificate of Registration
  • Location Sketch or Vicinity Map: Include a sketch or map of the business address.
  • Tax Identification Number (TIN) of Owners/Officers
  • BIR Form No. 1906 – Application for Authority to Print Receipts and sample of Principal Receipts/Invoices.
  • Payment of Registration Fee (₱500.00)

Note: Additional documents may be required, depending on the nature of your business.

Here are general steps for obtaining a BIR 2303 for both corporate entities and sole proprietors.

• Collect the necessary documents.
• Pay the registration fee (₱500.00) applicable to your type of business.
• Visit the local BIR office where your business is located and submit the completed forms and required documents for processing.
• Allow the BIR to assess your documents and verify the information provided.
• Once assessed, pay the annual registration fee as determined by the BIR.
• Upon completion of the assessment and payment, you will be issued the BIR 2303 certificate.

Note: Be aware of any additional requirements specific to your local BIR office. If needed, consult with a tax professional for guidance throughout the process.