Amendment to RR No. 11-2018 on Withholding Tax

Sections 2 and 14 of RR No. 11-2018 are amended.
Section 2.57.2 of RR No. 2-98, concerning income payments subject to creditable withholding tax and prescribed rates, is renumbered and amended.
Withholding tax applies to income payments to persons residing in the Philippines.
Specific rates for withholding tax on professional, promotional, talent fees, or other remuneration as follows:
- Individual payees:
  - 5% if gross income for the current year does not exceed PHP 3,000,000.
  - 10% if gross income exceeds PHP 3,000,000 or if VAT-registered regardless of amount.
- Non-individual payees:
  - 10% if gross income for the current year does not exceed PHP 720,000.
  - 15% if gross income exceeds PHP 720,000.

Income recipients who are subject to withholding tax but qualify for exemption must submit an "Income Payee's Sworn Declaration of Gross Receipts/Sales" along with a copy of their Certificate of Registration (COR) to the income payor/withholding agent on or before April 20, 2018.
Income payor/withholding agents must submit an "Income Payor/Withholding Agent's Sworn Declaration" along with a list of payees who submitted their sworn declarations and copies of CORs on or before April 30, 2018.
Any excess withholding tax collected must be refunded by the income payor to the payee.
Refunds are to be reflected as adjustments in the withholding tax due in the first quarter withholding tax return.
Adjusted withholding tax amounts must be reported in the Alphabetical List of Payees attached to the first quarter withholding tax return.
Lists of payees subject to refund due to rate changes or exemption qualifications must also be attached to the return.
If BIR Form No. 2307 (Certificate of Tax Withheld at Source) was already issued, it must be returned by the payee to the payor upon refund, with corrected forms issued if applicable.
No double use of BIR Form No. 2307 for the same payment, income payor/withholding agent, and period is allowed.