Showing posts with label member. Show all posts
Showing posts with label member. Show all posts

Sunday, November 26, 2023

Imposing Creditable Withholding Tax on Certain Income Payments by Joint Ventures/Consortiums

The bureau has issued Revenue Regulations (RR) No. 14-2023 to further implement Section 57 (B) of the provisions of Sections 244 and 245 of the National Internal Revenue Code of 1997, as amended, and subsequently amend RR No. 2-98 by adding items (V) and (W) imposing creditable withholding tax on certain income payments by joint ventures/consortiums.

The amendments stated in RR No. 14-2023 are as follows:

SECTION 2. AMENDMENTS. - The pertinent provisions of Section 2.57.2 of RR No. 2-98, as amended, is hereby further amended to read as follows:

"Sec. 2.57.2. Income Payments Subject to Creditable Withholding 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:

xxx    xxx    xxx

(V) Income payment made by joint ventures/consortiums. - Income payments made by joint ventures, whether incorporated or not, taxable or non-taxable, to their local/resident supplier of goods and services, shall be subjected to the following withholding tax rates:

Supplier of goods - One percent (1%)

Supplier of services - Two percent (2%)

(W) Distributive share of co-ventures/members from the net income of the joint venture/consortium not taxable as corporation. - On the share of each co-venturer/member from the net income of the joint venture/consortium not taxable as corporation prior to actual or constructive distribution thereof - Fifteen percent (15%)

xxx     xxx     xxx"

 Please refer RR No. 14-2023 dated October 2, 2023 of the full text of the said regulations.