PayMongo does not deduct withholding tax from our merchants' sales. Rather, we refund the equivalent amount, which is 2% of our fees. After being issued an Official Receipt, the amount will be refunded and reflected as an adjustment on your next payout provided that you have submitted to us the corresponding BIR Form 2307.

Example 1:

A ₱1000 local card transaction will be charged an MDR of 3.5% + ₱15 or a total of ₱50 in fees.

2% of the ₱50 fee or ₱1 will be refunded to the merchant.



Example 2:

A ₱1000 foreign card transaction will be charged an MDR of 3.5% + ₱15 and an additional 1% for the foreign fee for a total of ₱60 in fees.

2% of the ₱60 fee or ₱1.2 will be refunded to the merchant.

To learn how to request for an Official Receipt and have your withholding tax refund computed, you could click on the button below:

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