RR No. 7-2015 — Amends further the provision of Section 2.57.2 of Revenue Regulations (RR) No. 2-98, as amended, particularly Subsection (AA) as introduced by RR No 11-2014, relative to the income payments on locally-produced raw sugar and other matters (Published in Manila Bulletin on April 1, 2015) Digest | Full Text | Annex A | Annex B | Annex C | Annex D | Annex E

I{EI'UL]I-IC ()}I'fI IE PI I I1-] PI)INES DEPARTVIENT OF FINANCE BI, I{TiA T] OTi IN]-ERNz\L REVE,I* U E Date: March 31, 2015 SUBJECT : - g REVENUE REGULATIONS NO. 7 YP I Amending Further the Provision of Section 2.57.2 of Revenue Regulations No. 2-98, as amended, particularly Subsection (AA) as introduced by Revenue Regulations No. 11-2014, Relative to the lncome Payments on Locally Produced Raw Sugar and Other Matters TO : AII lnternal Revenue Officials, Employees and Others Concerned SECTION 1. SCOPE, - Pursuant to the provisions of Section 244, in relatron to Section as amended, these 57(B) of the National lnternal Revenue Code (NIRC) of 1997, R.egulations are hereby promulgated to further amend the provisions of Section 2.57.2 of Revenue Regulations (RR) No. 2-98, as amended, particularly Subsections (AA) on inconre payments on locally produced raw sugar. SEC. 2. AMENDMENTS. - Section 2.57.2 (AA) of RR No. 2-98 as amended, is hereby further amended to read as foliows: "(AA) lncome paynl-ents pn !!rgar. - On gross payments on purchases of sugar - One percent (1%) 1. Proprietors or operators of sugar mills/refineries on their mrll share, and buyers of Quedans or Molasses Storaqe Certrflcates from ihe sugar planters on locallv produced raw cane suqar raw sugar and molasses shall withhold the creditable income iax and remit ihe same to the BIR based on the followinq, subiect, however, to adjustment, when deemed necessary by the Commissioner, dependinq on the prevailinq market price of raw cane suqar raw sugar and molasses. 1.1 For locallv produced raw cane suqar and raw suqar'- base price of ONE THOUSAND PESOS (P1.000.00) per FIFTY (50) kilogram (ko ) bag or actual sellinq price, whichever is higher. 1.2 For Molasses- base price of FOUR THOUSAND PESOS LP4 000.00) per metric ton or actual sellinq price, whichever is higher 2. Buyers of refined sugar, whether locallv produced or imported, shall withhold the creditable income tax based on the actual sellinq price thereof. For purposes of this subsection, the following terms shall have the following meaning. XXX XXX XXX (lx) sugar-refers to raw cane suqar, raw suqar and refined suqar. The Regional Director/Revenue District Officer, which has jurisdiction over the physical location of the sugar mills/refineries, shall issue the Authoritv to Release Locallv Produced Raw Suoar/Raur Cane Sugar/Molasses (Annexes "A" or "8", or "C" as applicable) or Authoritv to Release Locallv Refined Suqar (Annexes "D" or "E" as aBplicable) to the proprietors or operators, for purposes of allowing the ttI\,tv l'rl'r(l\

transfer/withdrawal of their nriil slrare, or to the buyers of Quedans or Molasses Storage Certificates on the localiY produced suqar; Provided' however' Thai' copies of pro-ofs of payment ot tne creOitaOle wiihholding tax due thereon (i.e , duly validted Monthly Remitiance Return of Creditable lncome Taxes Withheld (Expanded) t?!R Form No. 1601-El and Bank PaymenUDeposit Slip/Revenue Official Receipt IBlR Form No 2524)) ihall hru" been submitted and attached to the written request for said authorization. XXXXXXXXX,, 3. SEC. REGISTRATION AND BOOKKEEPING RULES FOR SUGAR OWNERS WHO - ARE SMALL SUGAR PLANTERS. Any sugar owners lvho plants their own sugar whose gross receipts for a year does not exceed Threi Hundred Thousand Pesos (PHP 300'000 00) itratt Oe required to comply with the following simplifled rules of registration and bookkeeping: a. Exemption from the payment of registration fee as prescribed under Section the NIRC upon registration with the BIR after submission of the 236(8) of following minimal basic documentary requirements: i. Sworn Statement of lncome for the year, and ii. NSC Certified Birth Certificate b. Exemption from compliance with the issuance of registered_ receipts or sales/commercial invoices prescribed under section23T ol the NIRC; c. Exemption from the requirement of maintenance of bcoks of accounts; d. Exemption from attaching Financial Statements of Account lnformation Form to the flled Income Tax Return; e. Exemption from filing of monthly percentage tax, the advance Percentage Tax coliected from the sale of their sugar shall be considered substantial compliance for the filing of the monthly percentage tax required under the NIRC, prcvided, however, the said sugar owner are requi:'ed to file their lncome Tax Return on the date required under the NIRC. sEc. 4. REPEALING CLAUSE. - All existing rules and regulations or parts thereof which are inconsistent with the provisions of these Regulations are hereby modifieci, amended' revoked or repealed accordinglY. SEC. 5. EFFECTIVITY. - These Regulations shall take effect immediately upon publication in any newspaper of general circulation. Recommending Approval : Secretary of Finance KIM S. JACINTO-HENARES 025633 3i Commissioner of lnternal RsvQn{e BL?IAU OF' I}TTERN}T RE\TPUE 0 73Z 2:{t R.ECORDS MGT. DTVISION P. t", #&tli?015 r+ X,'fvl-t qr' H.ECEiVTiB