RR No. 14-2023 — Further amends the pertinent provisions of RR No. 2-98, as amended, to impose Creditable Withholding Tax on certain income payments by joint ventures/consortiums (Published in Malaya on November 15, 2023)

FAOP INTENSLREVENUE

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE Quezon City 2:30F 10 2023 SION

OCT 0 .2 2023

REVENUE REGULATIONS NO. 14-2023

SUBJECT : Further Amending the Pertinent Provisions of Revenue Regulations No. 2-98, as Amended, to Impose Creditable Withholding Tax on Certain Income Payments by Joint Ventures/Consortiums

TO : All Internal Revenue Officials and Employees and Others Concerned

National Internal Revenue Code of 1997, as amended, these Regulations are hereby SECTION 1. SCOPE. - Pursuant to the provisions of Sections 244 and 245 of the

Revenue Regulations No. 2-98 by adding items (V) and (W) imposing creditable withholding tax on certain income payments by joint ventures/consortiums. promulgated to further implement Section 57 (B) of the said Code and subsequently amend

Regulations No. 2-98, as amended, is hereby further amended to read as follows: SECTION 2. AMENDMENTS. -- The pertinent provisions of Section 2.57.2 of Revenue

and Rates Prescribed Thereon. Except as herein otherwise provided, there shall be withheld a creditable income tax at the rates herein specified for "Sec. 2.57.2. Income Payments Subject to Creditable Withholding Tax

residing in the Philippines: each class of payee from the following items of income payments to persons

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(V) Income payments made by ioint ventures/consortiums.- Income payments made by joint ventures, whether incorporated or not, taxable

shall be subjected to the following withholding tax rates: or non-taxable, to their local/resident supplier of goods and services.

Supplier of goods- One percent (1 %) Supplier of services - Two percent (2%)

(W) Distributive share of co-venturers/members from the net income of the joint venture/consortium not taxable as corporation. -- On the share of each co-venturer/member from the net income of the joint

venture/consortium not taxable as corporation_prior to actual or constructive distribution thereof -- Fifteen percent (15%)

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which are inconsistent with the provisions of these Regulations are hereby amended accordingly. SECTION 3. REPEALING CLAUSE. -- All rules and regulations and parts thereof

after publication in a newspaper of general circulation in the Philippines. SECTION 4. EFFECTIVITY. -- These Regulations shall take effect fifteen (15) days

C 6 C: BENJAMIN E. DIOKNO

Secretary of Finance

Recommending approval: 0 C 3 1 2U23

ROM G LUMAGUI, JR Comn ssioner of Internal Revenue 016007

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