{"id":3270,"date":"2018-10-18T18:49:21","date_gmt":"2018-10-18T10:49:21","guid":{"rendered":"https:\/\/pnl-law.com\/blog\/?p=3270"},"modified":"2020-05-23T23:24:47","modified_gmt":"2020-05-23T15:24:47","slug":"rules-on-withholding-of-income-by-top-withholding-agents-under-revenue-regulations-no-11-2018","status":"publish","type":"post","link":"https:\/\/pnl-law.com\/blog\/rules-on-withholding-of-income-by-top-withholding-agents-under-revenue-regulations-no-11-2018\/","title":{"rendered":"Rules on Withholding of Income by Top Withholding Agents under Revenue Regulations No. 11-2018"},"content":{"rendered":"

The Bureau of Internal Revenue (BIR) issued, on 31 January 2018, Revenue Regulations No. 11-2018<\/strong>, concerning withholding income tax<\/strong>, to implement the changes under Republic Act No. 10963, also known as the \u201cTax Reform for Acceleration and Inclusion (TRAIN)\u201d Law. RR 11-2018 amends certain provisions of Revenue Regulations No. 2-98, as amended. The regulations cover, among others, taxpayers categorized as top withholding agents<\/strong>.<\/p>\n

Who are considered Top Withholding Agents?<\/h2>\n

Top withholding agents shall include the following:<\/p>\n

A. Classified and duly notified by the Commissioner as either any of the following unless previously de-classified as such or had already ceased business operations:<\/p>\n

(1) A large taxpayer under Revenue Regulations No. 1-98, as amended,<\/p>\n

(2) Top twenty thousand (20,000) private corporations under RR No. 6-2009, or<\/p>\n

(3) Top five thousand (5,000) individuals under RR No. 6-2009.<\/p>\n

B. Taxpayers identified and included as Medium Taxpayers, and those under the Taxpayer Account Management Program (TAMP).<\/p>\n

In a Notice to the Public, the Commissioner of Internal Revenue indicated that it has identified the withholding agents required to deduct either the one percent (1%) or two percent (2%) creditable withholding tax from their suppliers of goods and services.\u00a0This list will also be posted in the BIR\u2019s website (www.bir.gov.ph).<\/p>\n

The obligation to withhold under the new rules shall commence on the first (1st) day of the month following the month of publication.<\/p>\n

What are the applicable withholding tax rates?<\/h2>\n

Income payments made by any of the top withholding agents, as determined by the Commissioner, to their local\/resident supplier of goods\/services, including non-resident aliens engaged in trade or business in the Philippines, shall be subjected to the following withholding tax rates:<\/p>\n

Supplier of goods \u2013 One percent (1%)<\/p>\n

Supplier of services \u2013 Two percent (2%)<\/p>\n

What are considered “goods”?<\/h2>\n

The term \u201cgoods\u201d pertains to tangible personal property. It does not include intangible personal property, as well as agricultural products, as defined under the RR.<\/p>\n

Who are \u201clocal resident suppliers of goods\/suppliers of services\u201d?<\/h2>\n

The term \u201clocal resident suppliers of goods\/suppliers of services\u201d pertains to a supplier from whom any of the top withholding agents, regularly makes its purchases of goods\/services. As a general rule, this term does not include a casual purchase of goods\/services, that is, purchase made from a non-regular supplier and oftentimes involving a single purchase.<\/p>\n

However, a single purchase which involves Ten thousand pesos (?10,000) or more shall be subject to withholding tax under this subsection.<\/p>\n

Who are considered \u201cregular suppliers\u201d?<\/h2>\n

The term \u201cregular suppliers\u201d, for purposes of these regulations, refers to suppliers who are engaged in business or exercise of profession\/calling with whom the taxpayer-buyer has transacted at least six (6) transactions, regardless or amount per transaction, either in the previous year or current year.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Bureau of Internal Revenue (BIR) issued, on 31 January 2018, Revenue Regulations No. 11-2018, concerning withholding income tax, to implement the changes under Republic Act No. 10963, also known as the \u201cTax Reform for Acceleration and Inclusion (TRAIN)\u201d Law. RR 11-2018 amends certain provisions of Revenue Regulations No. 2-98, as amended. The regulations cover, […]<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[737,733,734,503,736,735,738],"class_list":["post-3270","post","type-post","status-publish","format-standard","hentry","category-tax-law","tag-large-taxpayer","tag-revenue-regulations-no-11-2018","tag-revenue-regulations-no-2-98","tag-taxation","tag-top-withholding-agents","tag-withholding-agents","tag-withholding-tax"],"_links":{"self":[{"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/posts\/3270","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/comments?post=3270"}],"version-history":[{"count":5,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/posts\/3270\/revisions"}],"predecessor-version":[{"id":3275,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/posts\/3270\/revisions\/3275"}],"wp:attachment":[{"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/media?parent=3270"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/categories?post=3270"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/tags?post=3270"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}