Amendments to Expanded Withholding Tax Rules

Individuals paying in connection with their trade or business must withhold tax.
Individual buyers not engaged in trade/business must withhold on taxable sale of real property but are not required to register as withholding agents.
All juridical persons, regardless of trade/business engagement, must withhold.
Government offices, including government-owned or controlled corporations, and local governments are withholding agents.

Payments to the national government and its instrumentalities, including local governments and government-owned corporations, are exempt.
Persons exempt from income tax under laws such as corporations engaged in socialized housing with selling price caps, Omnibus Investment Code beneficiaries.
Exempt corporations under NIRC except for income derived from real/personal property or profit activities.
Payees with net operating losses in previous two years may be exempt.
Exemption generally requires a Certificate of Exemption issued by the Commissioner of Internal Revenue, except in specific exempt categories.

Payors must provide withholding tax statements to payees quarterly using prescribed BIR forms.
Statements must be given within 30 days after quarter-end or on request simultaneously with payment.

Claims only valid if income payment is declared in gross income and evidence of withholding is provided.
Excess withholding taxes can be automatically credited to the succeeding taxable period, with proof of prior excess credits.
Taxpayers may request cash refunds or tax credit certificates by written request.
Refunds or credits issued within 60 days after the request, subject to audit and verification of accounting records.

Application of withholding tax provision on payments to exporters by banks is deferred indefinitely.

These amended regulations take effect 15 days after publication in the Official Gazette or a general circulation newspaper, whichever is earlier.
They supersede provisions of Revenue Regulations No. 8-94 upon effectivity.