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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

Revenue Regulations No. 15-2018

Revenue Memorandum Order No. 16-2018

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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