Revenue Regulations (RR) No. 1-2019 was issued by the bureau to further amend certain provisions of RR 2-98 as amended by RR No. 11-2018, which implemented the Provisions of Republic Act 10963, Otherwise Known as Tax Reform for Acceleration and Inclusions (TRAIN) Law, Relative to some changes in the Rate of Creditable Withholding Tax on Certain Income Payments as follows:
SECTION l. AMENDMENT. Section 2 of RR 11-2018 on the amendments to Section 2.57.2
of RR 2-98, as amended, is hereby further amended to read as follows:
"SECTION 2.57.2. Income
Payments Subject to Creditable Payments Subject to Creditable Withholding Tax and Rate Prescribed Thereon. - Except as herein otherwise provided, there shall be withheld a creditable income tax at the rates herein specified for each class of
of income payee from the following items of income payments to persons residing in the Philippines:
(A) XXX
XXX XXX XXX
(P) MERALCO Payments on the following:
(1) MERALCO Refund arising from supreme court Case G.R. No. 141314 of
April 9, 2003 to customers under phase IV as approved by Energy
Regulatory Board (ERC)- on gross amount of refund given by MERALCO
to customers - Fifteen percent (15%)
(2) interest income on the refund of meter deposits determined, computed
and paid in accordance with the "Rules to Govern Refund of Meter
Deposits to Residential and Non-Residential Customers", as approved by
the ERC under Resolution No, 8, Series of 2008, dated June 04, 2008
implementing Article 8 of the Magna Carta for Residential Electricity
Customers and ERC resolution No, 2005-10 RM (Otherwise known as
DSOAR) dated January 18, 2006, exempting all electricity consumers
from the payment of meter deposit.
On gross amount of interest paid directly to the customers or applied against
the customer's billings:
(i) Residential and General Service customers whose monthly
electricity exceeds 200 kwh as classified by MERALCO - Ten percent
(10%)
(ii) Non-Residential Customers - Fifteen percent (15%)
(Q) Interest income on the refund paid through direct payment or application
against customer's billings by other electric Distribution Utilities (DUs) in
accordance with the rules embodied in ERC Resolution No. 8, Series of 2008,
dated June 04, 2008, governing the refund of meter deposits which was
approved and adopted by ERC in compliance with the mandate of Article 8 of
the Magna Carta for Residential Electricity Customers and Article 3.4.2 of
DSOAR, exempting all electricity consumers, whether residential or nonresidential, from the payment of meter deposit.
On gross amount of interest paid directly to the customers or applied against
the customer's billings:
{i) Residential and General Service customers whose monthly
electricity consumption exceeds 200 kwh as classified by the
concerned DU -Ten percent (10%)
(ii) Non-Residential Customers - Fifteen percent (15%)
(R) XXX XXX XXX
(S) Interest income derived from any other debt instruments not within the
coverage of 'deposit substitutes'and Revenue Regulations No. 14-2012, unless
otherwise provided by law or regulations - Fifteen percent (15%)
All existing rules and regulations or parts thereof which are inconsistent with the provisions of these regulations are hereby revoked and are effective beginning January 01, 2019.
Please refer: https://www.bir.gov.ph/images/bir_files/internal_communications_1/RR%20No%201-2019.pdf of the full text of RR No. 1 - 2019.
