Section 15: Payment of Taxes

A. Income Tax. A Wellness Advocate accepts sole responsibility for all self-employment and income taxes due to income earned as a doTERRA Wellness Advocate. A Wellness Advocate must comply with the tax laws in the Philippines and is responsible for paying taxes, local and national, due on income generated as an independent contractor. doTERRA may, whenever applicable, withhold the appropriate amount of withholding tax, in accordance with prevailing tax rules and regulations, and shall deduct the same from your bonuses and commissions. doTERRA shall remit such withholding tax to the relevant tax authorities in a timely manner. If requested by doTERRA, Wellness Advocates must execute and timely submit to doTERRA the documentary requirements required by Philippine tax laws and regulations, including but not limited to, sworn declarations, sworn statements, and certifications. At the end of each calendar year, doTERRA will provide a statement of earnings in the BIR Form 2306 (Certificate of Final Income Tax Withheld) for tax purposes to each Wellness Advocate with an annual income at or over the minimum required to be reported to the Philippine Bureau of Internal Revenue (BIR). Note: Any contest, incentive or prize items may be included in the BIR Form 2307 (Certificate of Tax Withheld at Source). To the extent required by law, the Company will send notification of the Wellness Advocate’s product purchases and Bonus payments to relevant tax authorities.

B. Value-added Tax. doTERRA will remit value-added tax (VAT) to the Philippine Bureau of Internal Revenue based on the gross selling price of the products, according to applicable tax laws and regulations. The amount of VAT which shall be shouldered by the Wellness Advocate is the retail price of a product multiplied by the applicable VAT rate in the Philippines. Wellness Advocates who are VAT-registered may utilize the input VAT on the retail process regardless of how the order was placed. Note: Wellness Advocates are not exempt from taxes when products are sold to tax exempt customers. VAT will be charged on the wholesale value of LRP autoship orders, as Wellness Advocates certify and represent to doTERRA that their LRP purchases are for personal use, or for use in their business as samples, gifts, or testing, and that they are not to be resold. Any Wellness Advocate purchasing products at wholesale pricing and selling them at a higher price will be responsible for reporting and remitting to the tax authorities any applicable VAT / percentage tax due.

C. The Wellness Advocate agrees to indemnify and hold the Company harmless regarding any liability that it is charged as a result of his/her/its failure to collect or remit VAT / percentage tax.