Special InTax: Let's Get on the TRAIN (Tax Alert 14)
Special InTax: Let's Get on the TRAIN (Tax Alert 14)
InTAX is an official publication of Tax Group of R.G. Manabat & Co.
Let's Get on the TRAIN
BUREAU OF INTERNAL REVENUE
The Bureau of Internal Revenue (BIR) issued the following:
Revenue Regulation (RR) No. 14-2018, 28 March 2018, provides for the amendment of the Sections 2 and 14 of RR No. 11-2018 as follows:
- Section 2: The creditable withholding tax rates on income payments to the below classes of payees (residing in the Philippines) for gross professional, promotional, and talent fees, or any other form or remuneration for the services rendered, shall be as below:
| Individual Payee | If gross income for the current year did not exceed P3M |
5% |
| If gross income exceeds P3M OR VAT registered taxpayer, regardless of amount | 10% |
|
| Non-Individual Payee | If gross income for the current year did not exceed P720,000.00 |
10% |
| If gross income exceeds P720,00.00 | 15% |
- Section 14: The income recipient/payee availing to be exempt from the above withholding rates shall submit on or before 20 April 2018 (from 06 April 2018) a duly accomplished “Income Payee’s Sworn Declaration of Gross Receipts/Sales” and a copy of the Certificate of Registration (COR) to his/her income payor/withholding agent.
The income payor who receives the above documents shall submit on or before 30 April 2018 (from 20 April 2018) a duly accomplished “Income Payor/Withholding Agent’s Sworn Declaration,” and List of Payees who have submitted said sworn declarations and 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 income payor/withholding agent. The income payor/withholding agent shall reflect the refunded amount as adjustment to the remittable withholding tax (WHT) due for the 1st quarter WHT return. The adjusted amount shall also be reflected in the alphalist of payees, which shall also be attached to the 1st quarter return. The said list of payees, who are subject to refund either due to the change of WHT rates or qualification to avail of exemption from WHT (e.g. income payee/recipient submitted abovementioned sworn declaration and COR) , shall likewise be attached to the said 1st quarter return, which shall be filed on or before 30 April 2018.
RR No. 15-2018, 28 March 2018, provides for the amendment of RR No. 8-2018, particularly on the due date for the updating of registration from VAT to non-VAT. Pertinently, said regulation provides that all existing VAT registered taxpayers whose gross sales/receipts and other non-operating income in the preceding year did not exceed the VAT threshold of PhP3million shall have the option to update their registration to non-VAT until 30 April 2018 (from 31 March 2018).
Revenue Memorandum Order (RMO) No. 16-2018, 6 March 2018, modifies the Alphanumeric Tax Code (ATC) on Sweetened Beverages to facilitate the proper identification and monitoring of tax collection from excise tax pursuant to Republic Act (RA) No. 10963.
In connection with the above, the following ATCs are modified:
| EXISTING (per ATC Handbook) | MODIFIED/NEW | BIR FORM | |||
| ATC | Description | Tax Rate | Legal Basis | Description | |
|---|---|---|---|---|---|
Tax on Sweetened Beverages 1. Using purely caloric and non-caloric sweetener |
Per Liter | RA No. 10963 | Tax on Sweetened Beverages: 1. Using purely caloric sweeteners and purely non-caloric sweeteners, a mix of caloric and non-caloric sweeteners but shall not apply to those using high fructose com syrup |
2200-S/0605 | |
| XB010 | a. Sweetened Juice Drinks | P6.00 | a. Sweetened Juice Drinks | ||
| XB020 | b. Sweetened Tea | P6.00 | b. Sweetened Tea | ||
| XB030 | c. Carbonated Beverages | P6.00 | c. Carbonated Beverages | ||
| XB040 | d. Flavored Water | P6.00 | d. Flavored Water | ||
| XB050 | e. Energy and Sports Drinks | P6.00 | e. Energy and Sports Drinks | ||
| XB060 | f. Powdered Drinks not classified as Milk, Juice, Tea and Coffee | P6.00 | f. Powdered Drinks not classified as Milk, Juice, Tea and Coffee | ||
| XB070 | g. Cereal and Grain Beverages | P6.00 | g. Cereal and Grain | ||
| XB080 | h. Other Non-alcoholic Beverages that contain added Sugar | P6.00 | h. Other Non-alcoholic Beverages that contain added Sugar | ||
| XB090 | 2. Using purely high fructose com syrup | P12.00 | 2. Using purely high fructose com syrup or in combination with any caloric or non-caloric sweeteners | ||
| XB0100 | 3. Using purely coconut sap sugar and purely Steviol Glycosides | Exempt | 3. Using purely coconut sap sugar and purely Steviol Glycosides | ||
Attached are the copies of the issuances for your reference:
Revenue Regulations No. 14-2018
DISCLAIMER: The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although R.G. Manabat & Co. endeavors to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
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