Question & AnswerQ&A (REVENUE REGULATIONS NO. 14-2018)
Revenue Regulations No. 14-2018 is promulgated pursuant to the provisions of Section 244 in relation to Section 245 of the National Internal Revenue Code of 1997, as amended.
The regulation amends certain provisions of Revenue Regulations No. 11-2018, particularly Sections 2 and 14, relating to withholding tax on income payments.
Persons residing in the Philippines receiving professional fees, talent fees, or other remuneration for services rendered are subject to creditable withholding tax.
The withholding tax rate is five percent (5%) on the gross professional, promotional, and talent fees for individual payees with gross income not exceeding P3 million for the current year.
The withholding tax rate is ten percent (10%) regardless of the amount for VAT registered individual payees or those whose gross income exceeds P3 million for the current year.
For non-individual payees, the withholding tax rate is ten percent (10%) if gross income for the current year did not exceed P720,000, and fifteen percent (15%) if gross income exceeds P720,000.
Income payees must submit on or before April 20, 2018, a duly accomplished Income Payee's Sworn Declaration of Gross Receipts/Sales, together with a copy of their Certificate of Registration (COR) to their withholding agent/income payor.
The income payor/withholding agent must submit on or before April 30, 2018, a duly accomplished Income Payor/Withholding Agent's Sworn Declaration along with the list of payees who submitted their sworn declarations and copies of their CORs.
Any income tax withheld in excess of what is prescribed must be refunded to the payee, and the amount refunded should be reflected as an adjustment to the remittable withholding tax due in the first quarter withholding tax return.
The regulations take effect immediately upon publication.