Is my referral fee subject to taxes?

Is my referral fee subject to taxes?

Yes, the referral fee will be subject to 10% withholding taxes based on the gross amount.

Sample:
Gross Referral Fee            Php 500
10% Withholding Taxes             50
Net Pay-out                              450
 
Note: For an affiliate to be subject to a lower withholding tax rate of 5%, submission of a notarized Sworn Declaration of your gross receipts (do not exceed Php 3M in a taxable year) is required.