QuestionsQuestions (BIR REVENUE REGULATIONS NO. 2-2009)
To require creditable withholding tax on the interest portion of refunds of meter deposits paid by MERALCO and other distribution utilities to electricity consumers, ensuring taxes on such interest are secured at the time the interest is paid.
It is issued pursuant to Section 244 in relation to Section 57(B) of the NIRC of 1997, as amended.
It amends further (1) Sections 2.57.2 and (2) 2.58 of Revenue Regulations No. 2-98, as amended.
The interest portion of the refund of meter deposits.
The interest income on the refund of meter deposits must be determined, computed, and paid in accordance with ERC’s “Rules Governing the Refund of Meter Deposits to Residential and Non-Residential Consumers” (ERC Resolution No. 8, series of 2008), implementing Article 8 of the Magna Carta for Residential Electricity Consumers and ERC Resolution No. 2005-10 RM (DSOAR).
To ensure the government receives the fair amount of taxes due from the interest income at the time interest is paid, and to discourage non-declaration of such interest income for tax purposes.
Twenty-five percent (25%) on the gross amount of refund given to customers under Phase IV as classified by MERALCO (active contracts).
Thirty-two percent (32%) on the gross amount of refund given to customers with terminated contracts.
Ten percent (10%) on the gross amount of interest.
Twenty percent (20%) on the gross amount of interest.
Yes. RR No. 2-2009 states withholding applies on the gross amount of interest whether paid directly to customers or applied against their billings.
Article 8 of the Magna Carta for Residential Electricity Consumers and Article 3.4.2 of DSOAR (ERC Resolution No. 2005-10 RM) exempt all consumers from meter deposit payments, with rules on who bears replacement cost if the meter is lost/damaged due to customer fault.
The refund of meter deposits and its applicable interest must be completed by distribution utilities not longer than sixty-six (66) months from the effectivity of ERC Resolution No. 8, series of 2008’s rules.
They must submit, for each calendar quarter, a Monthly Alphalist of Payees (MAP) electronically attached to the monthly remittance return for that quarter (e.g., BIR Form 1601-E), listing customers from whom taxes were withheld and showing total income and taxes withheld/remitted.
It is described in relation to the monthly remittance return of the calendar quarter (e.g., MAP for Jan/Feb/Mar attached to the remittance for the quarter ending March). The regulation specifies the manner of attachment with quarterly MAP but follows the existing monthly return schedule for remittance of withheld taxes.
It takes effect fifteen (15) days following publication in a newspaper of general circulation.
It includes a repealing clause stating that provisions of any revenue regulations, revenue memorandum orders, circulars, or other issuances inconsistent with it are repealed, amended, or modified accordingly.