A Publication Of Sison Corillo Parone & Co. & Aktus Global

WITHHOLDING TAX ON TOP 20,000 PRIVATE CORPORATIONS

Under: Tax Updates
Saturday, Apr. 18 2009
(RR NO. 14-2008) • The BIR increases the coverage of withholding tax agents who are required to withhold 1% from the regular supplier of goods and 2% from the regular supplier of services from top (10,000) to top (20,000) private corporations. • Top twenty thousand (20,000) private corporations shall include a corporate taxpayer who has been determined and duly notified in writing by the Commissioner as having selected as one of the top twenty thousand (20,0000) private corporations. • Any corporation which has been duly classified and notified as large taxpayer by the Commissioner pursuant to RR 1-98, as amended, shall be automatically considered one of the top twenty thousand (20,000) private corporations, provided however that its authority as a withholding agent shall be effective only upon receipt of the written notice that it has been classified as a large taxpayer, as well as one of the top 20,000 for purposes of these regulations. • The withholding agent shall submit on a semestral basis a list of its regular suppliers of goods and /or services to the Large Taxpayers Assistance Division/Large Taxpayers District Office or Revenue District Office (RDO) having jurisdiction over the withholding agent's principal place of business on or before July 31 and January 31 of each year. • All taxpayers previously included in the list of top 5,000 private corporations under RR 12-94 and those who qualified as top ten thousand private corporations under RR 17-2003 shall continue to withhold 1% for supplier of goods and 2% for supplier of services upon the effectivity of these Regulations, unless they have ceased to qualify as taxpayers includible in the list of top twenty thousand (20,000) private corporations. (RR No. 14-2008)