RR No. 5-2026 — Further Amending Revenue Regulations No. 2-98, as Amended, to Impose Withholding Tax on Gross Remittances Made by the Independendt Electricity Market Operator of the Philippines for the Sale of Electricity Digest | Full Text | Annex A

Bringing In Revenues for Nation-Building REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Y BACOI,IG prtr_rFi{F{ fl.1; 2 0 JUL 2020 R.EVENUE REGULATIONS NO. () O 5 2026 SUBJECT Further Amending Revenue Regulations No. 2-98. as Amended. 10 lmpose Withholding Tax on Gross Remittances Made by the Independent Electricity Market Operator ofthe Philippines for the Sale of Electricity TO All Intemal Revenue Officials. Employees and Others Concemed SECTION l. SCOPE. - Pursuant to the provisions of Sections 244 and 245 ofthe National Internal Revenue Code of 1997, as amended, these Regulations are hereby. promulgated to further amend Section 2.57.2 of Revenue Regulations (RR) No. 2-98, to impose a withholding tax on gross remittances made by the lndependent Electricity Market Operator of the Philippines to generarion companies and other market participants for the sale of electricity through the Wholesale Electricir-r' Spot Market. SECTION 2. AMENDATORY PROVISIONS. The pertinent provisions of Section 2.57.2 of RR No. 2-98. as amended, are hereby further amended to read as fbllorvs: "SECTION 2.57.2. Income Payments Subject to Creditable lYithholding TtLr and Rales Prescribed Thereon. - Except as herein otherwise provided. xxx. - \\x 00000780 (\) Reryil!flnces otf lbe lLdepefidenl Electricity Mo*et Operutor of the ('-'_; INTFRNAL REVENUE rr,1L.r M I NT DlvlSrON Philiooines (IEMOP) to generulion companies and olher morkel parlr'c'rzarls. - On the qross remiftances b) IEMOP to generation companies and other market panicipants tbr electricity sold throuqh the Wholesale Electricity Spot Market (WESM). - Two percent (27o) 2020 ,..', ,. r, D For purposes of these Regulations. the follou,ing tenns shall have the following mea!irrg. BY _L, ' 4:D0I L Independent Electricitv Market Operator of the Philipnines the entity responsible for fhcilitating electricity trade in 1le Philinoine electric oorver indLr as the indeoendent market operator of the WESM IEMOP is desisnated solelv as a withholdin a l1 di not nsidered to have income arisin from such remittances. 2. Wholesale f,lectricitv Spo t Market the market platlbrm u'herc electriciw transactions are conducted . including b ut not limited to the sale and l) urchase of electr cl t\ aIt otl lr ocn cratlon coln o an rcs distribution utilities, and other market Darticipants i. Generation Com nanies and Market Particinants cntities that sell electricity throuch the WESM and receive gross remittances Iiom IEMOI' in settlcrnent lbr such transactions BIR National Ofiice Bldg., Senator Miriam Defensor-Santiago Avenue, Diliman, Quezon City W ebsile: www. bi r. gov. p h Trunkline: 8981-7000 ; 8929-7676

IEMOP is herebr desienated as a u ithho ldins asent for oumoses of these Resulations. ln its caoacitv as suc h. IEMOP shall be resoonsible for thc lbllorlins: (a) deductins and withholdins the aoolicable withholdins tax on all qross remittances. which refer to the total amount oavable Io the generation companies and othe r market DarticiDants for the sale of electrici befbre an deductions (b) reminins the taxes *ithheld by filinc the required u,ithholdinc tax sth B EI ronic Filin n') nt (eFPS). tosether with the Alphabetical List of Pavees submitted via esubmission. in compliance with existing BIR regulations and rescribed deadline (c) issuins a Certificate of Tax Withheld at Source (BlR Form No. 2307) to each electricilv seller subject to withholding. on or betbre the fwentieth (20r1) day after the close ofthe taxable quarter or upon request ofthe payee: and (d) fumishing the LT Document Processing & Quality Assurance Division of Large Taxpayers Service. on or before the last da), of the month follo*inq the close of each laxable quarter. with a duly certified list ofelectricity buyers under Annex "A" hereof. SECTION 3. REPEALING CLAUSE. - All other issuances and rules and regulalions or parts thereofwhich are inconsistent with the provisions ofthese Regulations are hereby repealed, amended. or modified accordingly. SECTION 4. EFFECTMTY. - These Regulations shall take effect fifteen ( 15) days following its publication in the Ot]'icial Gazefte or the BIR official website, whichever comes first. TREDEBICK D. Go Secrctary ,-{) Recommending Approval: sEP 1 i 2026 CHARLITO MARTIN R. ME E Commissioner of Intemal Reve e J-j 00000780 ril BI.IREAU OF INTERNAL REVENUE i!tNENT DIVISiON tlcT 01 2020 R TD ADMiN tJNl BY r"3_te$ 2