BPI Bizlink

• Disbursement


  A payment made by an individual or entity to its various expenses, liabilities, and investments
• Disbursement


  • Encompasses all forms of payments such as cash, check, electronic transfer, and any other means by which funds are distributed
  • Implies a payment has been finalized and properly recorded as a debit on the payer's side and a credit on the payee's side
• Range of Disbursement Transactions

  • Payment to suppliers
  • Purchase of Assets
  • Salaries and wages to employees
  • Loan repayment
  • Dividends to shareholders
• Manager's Check


  A check issued by a bank, guaranteed by the bank's funds
• Corporate's Check


  A check issued by a corporation, drawn on its account
• Differences between Manager's Check and Corporate's Check

  • Issuing Party: Bank vs Corporation
  • Payment Guarantee: Guaranteed by the bank vs Not guaranteed; depends on corporation's account funds
  • Payment Source: Bank's funds vs Corporation's bank account
  • Processing Time: Typically faster vs May take longer
  • Usage: Large transactions requiring guaranteed funds vs Routine business expenses
• Withholding Tax


  An amount deducted or withheld from certain types of payments and remitted directly to the government on behalf of employees/suppliers/ etc., before it is paid to the recipient
• The person or entity making the payment is responsible for deducting the appropriate amount of tax and remitting it to the government on behalf of the recipient
• Classification of Withholding Taxes

  • Creditable Withholding Tax
  • Final Withholding Tax
• Creditable Withholding Tax (CWT)


  CWT is applied to certain income payments where the withholding agent (payor) is required to deduct and withhold a certain percentage of the income at the time of payment. The payee receives a Certificate of Creditable Tax Withheld (BIR Form 2307) as proof of the taxes withheld. CWT is treated as an advance payment of income tax on behalf of the recipient (payee).
• Types of Creditable Withholding Tax

  • Withholding Tax on Compensation
  • Expanded Withholding Tax
• Expanded Withholding Tax (EWT) Income Payments

  • Professional Fees
  • Rentals
  • Commissions
  • Payments to Contractors and Subcontractors
  • Interest
  • Technical and Management Fees
  • Interests
  • Dividends
  • Royalties
  • Prizes and Winnings
• Final Withholding Tax (FWT)


  Under the FWT system, the amount of income tax withheld by the withholding agent is considered the full and final payment of income tax due on the income. This is not creditable against the income tax due of the payee.
• Key Differences between Creditable Withholding Tax and Final Withholding Tax

  • CWT is applied to certain income payments where the withholding agent (payer) is required to deduct and withhold a certain percentage of the income at the time of payment or accrual. FWT is applied to certain income payments where the entire tax liability is borne by the withholding agent (payer), and the payee is not required to declare the income for income tax purposes.
  • CWT is treated as an advance payment of income tax on behalf of the recipient (payee). FWT is considered as final and conclusive as to the tax due on the income payment.
  • The withholding agent (employer, payer, etc.) is responsible for deducting and remitting CWT to the BIR. The withholding agent deducts the FWT and remits it to the BIR without requiring the payee to further declare the income or pay additional income tax on it.
• Transfer Tax


  A tax imposed on the sale, donation, or transfer of property ownership
• Documentary Stamp Tax


  A tax imposed on documents that indicate the acceptance, assignment, sale, or transfer of an obligation, right, or property
• Loan Take Out


  A long-term loan that replaces a short-term loan or short-term interim financing, typically a mortgage secured by the property as collateral
• AP Vouchers (Accounts Payable Vouchers)


  Documents used by companies to manage and track payments to their suppliers or vendors
• BPI Bizlink


  A banking portal that helps SMEs to manage account balances and transactions in one place, allowing them to create and approve business transactions, pay bills, transfer funds, and remit or pay government dues in one click