QuestionsQuestions (BATAS PAMBANSA BLG. 195)
It is promulgated pursuant to Section 245 in relation to Section 50(b) of the National Internal Revenue Code.
It amended Sections 1, 2, 4, 6, and 10 of Revenue Regulations No. 6-85, as amended.
There shall be withheld a creditable income tax at the specified rates for each class of payee from enumerated income payments to persons residing in the Philippines, unless specifically provided otherwise.
A three percent (3%) creditable withholding tax.
A five percent (5%) creditable withholding tax.
A seven and one-half percent (7.5%) creditable withholding tax.
The seller is automatically considered habitually engaged upon submission of a certificate of accreditation issued by CREBA, NREA, or SHDA; otherwise, the seller must submit evidence that he is in fact habitually engaged.
One percent (1%) on the gross amount paid by a credit card company in the Philippines to any business entity, representing sales of goods/services to cardholders.
One percent (1%) on income payments made by any of the top five thousand (5,000) corporations (as determined by the Commissioner) to their local suppliers of goods.
It shall withhold in its capacity as a government-owned or controlled corporation rather than as one of the top 5,000 corporations; thus, only one percent (1%) of the amount paid for purchase of goods from local suppliers shall be withheld, under the government category.
One percent (1%) on the income payments made by government offices, including GOCCs, on their purchase of goods from local suppliers.
An individual with respect to payments in connection with his trade or business; juridical persons in general; and all government offices, including GOCCs, and provincial/city/municipal governments.
Yes. Individual buyers not engaged in trade or business are also constituted as withholding agents for Section 1(j) real property transactions, but they need not register as such.
Withholding shall not apply to enumerated income payments, including (a) income payments to the national government and instrumentalities, including LGUs and GOCCs; (b) income payments to persons enjoying income tax exemptions under laws; among others.
A copy of a Certificate of Exemption from withholding tax issued by the Commissioner of Internal Revenue, except where the exemption falls under specific cases stated in Section 4(a) and (b)(1) of the same section.
Within thirty (30) days following the close of the taxable quarter employed by the payee in filing the quarterly income tax return.
The payor must furnish the withholding tax statement simultaneously with the income payment upon request by the payee.
The income payment received must be shown in the return as part of gross income, and withholding must be established by a copy of the Withholding Tax Statement duly issued by the payor to the payee showing the amount paid and tax withheld.
Excess expanded withholding tax credits are automatically allowed as a credit for the immediately succeeding taxable quarter/taxable year, provided the taxpayer submits with the return a copy of the previous return showing the excess credits. For cash refund or a tax credit certificate, the taxpayer must make a written request; the claim is examined and the refund/credit is made within sixty (60) days from the request, subject to submission of pertinent accounting records proving the veracity of the claim.
Implementation of Section 1 of RR No. 6-94 insofar as it pertains to expanded withholding tax on certain income payments to exporters—specifically, the amount paid by any bank in the Philippines to an exporter representing the Philippine peso value of the foreign letter of credit of payment of the exporter's export sales—was deferred indefinitely.