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Emma Sleep SG sells mattresses in PH online. Xendit helps collect the payments from buyers in PH and remits the collections to Emma Sleep SG. As a foreign merchant, the gross remittances to them is subject to withholding tax.

• True
• False

For withholding tax on gross remittance, the person responsible for issuing the tax certificate (BIR 2307) is the merchant.

• True
• False

If merchant is registered with other e-marketplace platforms or DFSPs aside from Xendit PH, only the gross remittance from Xendit PH is considered in determining the PhP500,000 threshold.

• True
• False

If the gross remittances of merchants have exceeded the PhP500,000 threshold, Xendit PH will start withholding tax on the excess from the P500,000.

• True
• False

If merchant is only registered with Xendit PH and the gross remittances from last year has exceeded the P500,000 threshold, merchant is no longer required to submit the Sworn Declaration.

• True
• False

If the merchant has exceeded the gross remittances of P500,000 but has a Certificate of Tax Exemption/Entitlement, the gross remittance to the merchant is not subject to withholding tax.

• True
• False

A Master Merchant is using Xenplatfrom for his sub-merchants. Consequently, under the SA, all collections made by Xendit on behalf of the sub-merchants of the Master Merchants will be remitted to the Master Merchant. The Master Merchant will subsequently disburse the collections to its sub-merchants. In this scenario, the one responsible for withholding tax on the gross remittance is Xendit.

• True
• False

Last payment facility' refers to the last facility in control of the payment before finally remitting it to the end-merchant.

• True
• False

The merchant's gross remittances did not exceed P500,000 but has failed to provide Xendit PH with a Sworn Declaration or a Certificate of Tax Exemption/Entitlement, the gross remittance to the merchant is stil not subject to withholding tax.

• True
• False

What is the rate and basis of the withholding tax on gross remittance?

• 1% of 50% of the gross remittances
• 0.5% of the total gross remittances
• 1% of half of the gross remittances
• 0.5% of half of the gross remittances