Question & AnswerQ&A (BIR REVENUE REGULATIONS NO. 6 - 2009)
The regulation provides additional criteria for determining the Top 20,000 Private Corporations and Top 5,000 Individual Taxpayers, including thresholds for purchases of agricultural products, and additional transactions subject to creditable withholding tax on income payments.
They include corporate taxpayers determined by the BIR Commissioner based on criteria such as VAT payment/payable of at least P100,000, annual income tax due of at least P200,000, gross sales of P10,000,000 and above, and others as detailed in Section 2.
Suppliers of goods are subject to 1% withholding tax, while suppliers of services are subject to 2% withholding tax.
Withholding tax applies only to purchases in excess of P300,000 cumulative within the same taxable year for agricultural products in their original state.
They include corn, coconut, copra, palay, rice, cassava, sugar cane, coffee, fruits, vegetables, marine food products, poultry, and livestock.
They are individual taxpayers engaged in trade, business, or profession who meet criteria such as VAT payment of at least P100,000, annual income tax due of at least P200,000, gross sales of P10,000,000 and above, among others.
The rates are 1% for suppliers of goods and 2% for suppliers of services.
Withholding tax only applies on purchases exceeding P300,000 cumulative within the taxable year.
Regular suppliers are those with at least six (6) transactions within the current or previous year, while non-regular suppliers involve casual or single purchases.
They must submit the list by July 31 and January 31 for the first and second semesters respectively, or within fifteen (15) days from receipt of notice as a Top 5,000 Individual Taxpayer.
No, the individual must be determined and notified in writing by the BIR Commissioner as a withholding agent.
They will be issued a notice of deletion and will cease to be a withholding agent under these regulations.
Yes, Top 5,000 Individual Taxpayers must file returns and remit taxes withheld through the Electronic Filing and Payment System (EFPS).
Tangible personal property used in business or profession is subject to withholding tax, excluding intangible personal property and real property.