QuestionsQuestions (BIR REVENUE REGULATIONS NO. 1-2004)
It amends Sec. 2.57.2(S) of Revenue Regulations No. 2-98 (as amended by RR No. 30-2003) to exempt “marginal income earners” from creditable withholding tax (CWT) on certain payments made by enumerated establishments.
Section 2.57.2(S) of Revenue Regulations No. 2-98, as last amended by Revenue Regulations No. 30-2003.
It applies to income payments made to agricultural suppliers by the listed establishments, except that marginal income earners are exempt from CWT on those payments.
It is issued pursuant to Section 244 in relation to Sections 57(A) and (B) of the Tax Code of 1997.
Hotels, restaurants, resorts, caterers, food processors, canneries, supermarkets, livestock, poultry, fish and marine product dealers, hardwares, factories, furniture shops, and all other establishments.
It provides a one percent (1%) creditable withholding tax rate on income payments to agricultural suppliers.
Individuals not otherwise deriving compensation as an employee under an employee-employer relationship, but who are self-employed and deriving gross sales/receipts not exceeding ₱100,000.00 during any 12-month period.
No. The text provides an exemption from creditable withholding tax on income payments made by the enumerated establishments under Sec. 2.57.2(S), specifically for agricultural suppliers’ payments covered by that provision.
Gross sales/receipts must not exceed ₱100,000.00 during any 12-month period.
Suppliers/sellers of agricultural, forest and marine food and non-food products, livestock and poultry of a kind generally used as, or yielding/producing foods for human consumption; and breeding stock and genetic materials therefore.
It includes cows, bulls and calves, pigs, sheep, goats, and other animals similar thereto.
It includes fowls, ducks, geese, turkey, and others similar thereto.
It includes fish and crustaceans (e.g., eels, trout, lobsters, shrimps, prawns, oysters, mussels, and clams) as well as shells and other aquatic products.
It states that the regulations retroact to January 1, 2004; thus the exemption applies to covered CWT computations for payments from that date onward.
No. The amendment confirms the one percent (1%) CWT rate for income payments to agricultural suppliers, but it removes CWT when the payee is a marginal income earner as defined.
It contains a repealing clause: all existing revenue regulations and other issuances (or portions thereof) inconsistent with it are revoked, repealed, or amended accordingly.
Because marginal income earners are defined as individuals who are not otherwise deriving compensation as employees under an employee-employer relationship; instead, they must be self-employed.
Yes, if the individual qualifies as a marginal income earner under the definition (self-employed, not an employee for compensation, and gross receipts not exceeding ₱100,000 in any 12-month period).