RR No. 14-2018 — Amends the provisions of RR No. 11-2018, particularly Sections 2 and 14 relative to withholding of Income Tax (Published in Manila Bulletin on April 7, 2018) Digest | Full Text

REI)L]BLIC OF'fIII' PI.IILIPPIN L,S FL;iBieEOr\URS0FS'iit!i DEPARTM I]-N I- OF FINANC E Arfi 0 5 ?Aft rt BTIREATJ OF INTtrRNAL ITE\/IiNLiE, RECE IWff Quezon City March 28, 2018 REVENUE REGULATToNS No. H - g 0 I 8 SUBJECT Amending the Provisions of Revenue Regulations No. l1-18, Particularly Sections 2 and 14 TO All Internal Revenue Officers and Others Concerned SECTION 1. SCOPE - Pursuant to the provisions of Section 244 tnrelation to Section 245 of the National Intemal Revenue Code of 1997 (Tax Code of 1997) as amended, these Regulations are hereby promulgated to amend certain provisions of Revenue Regulations (RR) No. 11-2018. SECTION 2. AMENDATORY PROVISIONS - The provisions of Sections 2 and,14 of RR 11- 2018, are hereby amended as follows: "SECTION 2. Certatn items of Section 2.57.2 of RR No. 2-98 is herebv renumbered and further amended to read as follows: SECTION 2.57.2, Income Payments Subject to Creditable l{ithholding Tax and Rates Prescribed Thereon. - Except as herein otherwise provided, there shall be withheld a creditable income tax at the rates herein specified for each class of payee from the following items of income payments to persons residing in the Philippines: (A) Professional fees, talent fees, etc. for services renclered - on the gross professional, promotional, and talent fees or any other lorm of remnneration for the services rendered by the follou,ing: Individual pa)ree: P3M If gross incorne for the current )rear did not exceed - Five percent (5%)l If sross income is more than P3M or VAT Registered reqardless of amount - Ten percenl (10%o) Non-individual payeej s income for the current vear did not exceed P720.000-Ten percent 0ool If gross income exceeds P720.000 " Fifteen percent (15%) XXX XXX XXx ,fi' SECTION* 1 4. TRANSITORY PR.OUSIONS. lncome recipient I pav ee sr-rbj ect to withholding tax under Section 2 (Section 2.57.2) hereof and availing to be exempt from the prescribed withholding tax rates, shall submit on or before April 20, 20L8 a duly acoomplished "Income Payee's Swom Declaration of Gross Receipts/Sales", together with a copy of the Certificate of Registration (COR) to his'her income n3\ or * ithhLrldint: sgenr.

The income payor/withholding agent who/which received the "lncome Payee's Swom Declaration of Gross Receipts/Sales" and the copy of the payee's COR sha1l submit on or before April 30, 2018, a duly accomplished "Income Payor/Withholding Agent's Sworn Declaration", together with the List of Payees who have submitted "Income Payee's Swom Declaration of Gross Receipts/Sales" and copies of CORs. Any income tax withheld by the income payor/withholding agent in excess of what is prescribed in these regulations shall be refunded to the payee by the said income payor/withholding agent. The income payor/withholding agent shall reflect the amount refunded as adjustment to the remittable withholding tax due for the first quarter withholding tax retum. The adjusted amount of tax withheld shall also be reflected in the Alphabetical List of Payees to be attached in the said first (1't) quarter retum. The said list of payees, who are subject to refund either due to the change ofrates of withholding or due to the quaiification to avail of exemption from withholding tax (e.g. income recipient/payee submitted "Income Payee's Sworn Declaration of Gross Receipts/Sa1es" and copy of COR), shall likewise be attached in the said retum which shall be filed on or before April30, 2018. In case the Certificate of Tax Withheld at Source (BIR Form No, 2307) has already been given to the payee, the same shall be returned by the payee to the payor upon receipt of the amount refunded by the income payor/withholding agent, together with the corrected BIR Fonn No. 2307, if still applicable. Otherwise, the said certificate to be given to the payee on or before the twentieth (201h) day after the close of the first (1't) quarter must reflect the conected amount of tax withheld. In no case shal1 income payee use BIR Form No. 2307 twice for the same amount of income payment from the same income payor/withholding agent and for the same period." SECTION 3. REPEALING CLAUSE. A11 existing rules and regulations or parts thereof which are inconsistent with the provisions of these regulations are hereby revoked. SECTION 4. EFFECTIVITY. These regulations shall take effect immediately. Recommending Approval : CARLOS G. DOi\fIN lP,-<^^tn - CAESAR R.. DE-I-AY Secretary of Financ6 HrDi Orr nt-r1(,'/)0L!1:i1u Commissioner of internal Revenue E EI 0153 20