Requirements for Top Withholding Agents and Income Payments Subject to Creditable Withholding Tax

In relation with the Republic Act No. 10963, Otherwise Known as the "Tax Reform for Acceleration and Inclusion (TRAIN) Law", was further amended by the bureau through the issuance of Revenue Regulations (RR) No. 7-2019 of the pertinent provisions of Section 2 under RR No. 11-2018 Specifically on the Requirements for Top Withholding Agents.

"SECTION 2.57.2. Income Payments Subject to Creditable Withholding Tax and Rates Prescribed Thereon. Except as herein otherwise provided. xxx. -

xxx

(1) Income payment made by top withholding agents, either private corporations or individuals, to their local/resident supplier of goods and local/resident supplier of services other than those covered by other rates of withholding tax. [formerly under letters (M) and (W) - Income payments made by any top withholding agents, including non-resident aliens engaged in trade or business in the Philippines, shall be subjected to the following withholding tax rates:

Supplier of goods - One percent (1%)

Supplier of services - Two percent (2%)

Top withholding agents shall refer to those taxpayers whose gross sales/receipts or gross purchases or claimed deductible itemized expenses, as the case may be amounted to TWELVE MILLION PESOS  (P12,000,000.00) during the preceding taxable year.

The top withholding agents by concerned LTS/RRs/RDOs shall be published in a newspaper of general circulation. It may also be posted in the BIR website. These shall serve as the "notice" to the top withholding agents. The obligations to withhold under this sub-section shall commence on the first (1st) day of the month following the month of publication. Taxpayers who are classified as top withholding agents prior to the effectivity of these Regulations shall remain as such until failure to satisfy the aforesaid criteria and duly published as delisted from the existing list of top withholding agents. The initial and succeeding publications shall included the additional top withholding agents and those that are delisted.

The term "goods" pertains to tangible personal property. It does not include intangible personal property, as well as agricultural products which are defined under item (N) of this Section.

The term "local resident suppliers of goods/suppliers of services" pertains to a supplier from whom any of the top withholding agents, regularly makes its purchases of goods/services. As a general rule, this term does not include a casual purchase of goods/services that is purchase made from a non-regular supplier and oftentimes involving a single purchase. However, a single purchase which involves Ten thousand pesos (P10,000) or more shall be subject to withholding tax under this subsection. The term "regular suppliers", for purposes of these regulations, refer to suppliers who are engaged in business or exercise of profession/calling with whom the taxpayer-buyer has transacted at least six (6) transactions, regardless of the amount per transaction, either in the previous year or current year."

Please refer https://www.bir.gov.ph/images/bir_files/internal_communications_1/Full%20Text%20RR%202019/RR%20No%207-2019.pdf of the full text of RR No. 7-2019.

Tax Incentives for Establishments Granting Sales Discount and Prescribing the Guidelines for the Availment Thereof of PWD

Revenue Regulations (RR) No. 9-2019 refers to the amendments of Sections 2, 3 and 7 of RR No. 05-2017, Relative to Rules and Regulations Implementing Republic Act No. 10754, entitled "An Act Expanding the Benefits and Privileges of Persons with Disability and Tax Incentives for Establishments Granting Sales Discount, and Prescribing the Guidelines for the Availment Thereof. Amending RR No. 1-2009.

Section 3 of RR No. 5-2017 include a new paragraph to read as follows:

"SECTION 3. SALES DISCOUNTS WHICH MAY BE CLAIMED BY QUALIFIED PERSONS WITH DISABILITY (PWD)

XXX     XXX     XXX

All other goods and services sold by the foregoing establishments not included in the above enumeration expressly provided law shall not be considered for the 20% discount privilege notwithstanding that the same are for the exclusive use and enjoyment of the PWD. However,  every PWD shall enjoy a special discount of five percent (5%) of the regular retail price, without exemption from the value-added tax (VAT), of basic necessities and prime commodities enumerated under Sec. 2 (2.*) and (2.9) hereof. The total amount of said purchase shall not exceed the amount of One Thousand Three Hundred Pesos (Php1,300.00) per calendar week without carry-over of the unused amount. Provided, that said amount shall be spent on basic necessities an prime commodities commensurate to his personal exclusive consumption and or enjoyment within the calendar week. Provided, further that said amount shall be spent on at least four kinds of items listed as basic necessities  and prime commodities.

Section 7.1 of Section 7 of RR No. 5-2017, is hereby amended to be read as follows:

"SECTION 7. EXEMPTION FROM VALUE-ADDED  TAX (VAT) ON SALES OF GOODS OR SERVICES TO QUALIFIED PERSONS WITH DISABILITY.

7.1 Sale of any goods and services under Section 3 of these Regulations to PWD, except sale of basic
necessities and prime commodities enumerated under Sec. 2 (2.8) and (2.9) hereof, shall be exempt from the value-added tax.  xxx     xxx      xxx

Please https://www.bir.gov.ph/images/bir_files/internal_communications_1/Full%20Text%20RR%202019/RR%20No%209-2019.pdf of the full text of RR No. 9-2019.

Rate of Creditable Withholding Tax on Meralco Payments

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.

eBIRForms Package v7.4.2 is Now Available for Download

The bureau just recently announced the new updates of Offline eBIRForms Package from eBIRForms Package v7.4.1 to eBIRForms Package v7.4.2

To download the Offline eBIRForms Package v7.4.2, please click below:

http://ftp.pregi.net/bir/ebirforms_package_v7.4.2.zip

Guidelines in the Filing of Income Tax Returns for TY 2018 and Payment of Income Tax

Revenue Memorandum Circular (RMC) No. 46-2019 prescribe the GUIDELINES in the filing and payment of 2018 Income Tax Returns, due on or before April 15, 2019. 

It is also stated that Taxpayers who are mandated to use eBIRForms/eFPS under existing issuances, and those who opted to file manually, shall file and pay strictly in accordance with the guidelines hereto attached as “Annex A”. 

eBIRForms Package v7.4.1 is Now Available for Download

The bureau just recently announced the new updates of Offline eBIRForms Package from eBIRForms Package v7.3 to eBIRForms Package v7.4.1 

The new update includes BIR Form No. 1701v (Annual Income Tax Return for individuals (including MIXED Income Earner), Estates and Trust) January 2018 (NEW). 

To download the Offline eBIRForms Package v7.4.1, please click below:

http://ftp.pregi.net/bir/ebirforms_package_v7.4.1.zip

New:  https://philippinetaxtalk.blogspot.com/2019/04/ebirforms-package-v742-is-now-available.html

Performance vs. Safety Parts for Your Honda TRX90X

Why are you searching for the right parts for your Honda TRX90X? it is possible that you just want to make the motorcycle look better but aside from the great design, you want to have a motorcycle that will perform well especially when you have to use it often.

A lot of experts say that if you want to improve the performance of your motorcycle, you need to search for honda motorcycle oem parts. These parts are close to the original parts so you know that each part that you purchase will definitely fit. The only problem with this is you have to spend a lot of money in order to get the parts that you want. It will be worth it though especially if you would see how much it has changed the performance of your Honda TRX909.

Should You Upgrade for Performance or Safety?

This will depend on your priorities. You may want to increase the performance of your motorcycle by getting motorcycle OEM parts so that you can start using your motorcycle for longer distances. You may also realize that the performance of your motorcycle will make it easier for you to get from one place to another.

If you are already satisfied with the performance of your motorcycle or your motorcycle is still new, you may opt to get some parts that will increase your motorcycle’s safety. This is ideal for you especially if you are a new rider and you do not consider yourself to be an expert in motorcycle riding just yet.

There are some parts that you can purchase as accessories. This means that the motorcycle will still work even if these parts are placed or not. There are also some parts that will be considered as important such as motorcycle tires. Can you imagine how your motorcycle will move without wheels?

Take a look at the current wheels of your motorcycle and decide if the tires are still in their best condition. If not, you can always get motorcycle tires online to be sure that you will get something that will work well for your motorcycle.

South Bay Summer Activity Guide 2019

There are a lot of people who are looking forward to the summer season. They know that this is the right time for them to do the activities that they were not able to do during winter. You may want to do some activities in order to keep yourself busy but it is also likely that you want to become more active.

When you go to the beach, you can take beach cruiser bikes with you. You and the rest of your family and friends can bike around the beach before taking a dip. You do not have to worry about bringing a vehicle because you know that you will only get your seats wet.

Aside from the beach, what else can you do during the summer? There are so many that are available. You just need to think about your hobbies so that you can properly choose. You may want to consider getting the best bikes for women now so that you can start biking around the area. Cycling will help you stay in shape in order to fit well with the summer clothes that you are planning to purchase.

Camping

There are a lot of people who have waited for summer before they can start camping again. There are different types of camping spots all over the area that will allow you to bond with other people. If you are camping alone, this will be your chance to bond with nature. Just make sure that you will bring all of the required items with you to be sure.

Go Swimming

Summer will not be complete without swimming. There are different water activities that you can do as well. There are some spots wherein you can do kayaking and other water sports. Take the opportunity to do these things because you will not be disappointed with the fun that you will get because of the activities that you are doing.

Do Yoga and Other Exercises

Have you ever wondered why there are a lot of people who practice yoga? They do this because they usually feel calmer and more at ease after doing some yoga poses. If you want to try something new, this may be something that you can consider doing.

Can you still think of other summer activities that you can do at South Bay?

eBIRForms Package v7.4 is Now Available for Download

The bureau just recently announced the new updates of Offline eBIRForms Package from eBIRForms Package v7.3 to eBIRForms Package v7.4.0 

The new update includes BIR Form No. 1701 (Annual Income Tax Return for individuals (including MIXED Income Earner), Estates and Trust) January 2018 (ENCS). 

To download the Offline eBIRForms Package v7.4.0, please click below:

https://www.bir.gov.ph/images/bir_files/ebirforms/ebirforms_package_v7.4.0.zip 

New Update: http://ftp.pregi.net/bir/ebirforms_package_v7.4.1.zip

Alphalist Data Entry and Validation Module Version 6.1 (New) is now available for Download

The bureau has issued a TAX ADVISORY of the revised Alphalist Data Entry and Validation Module Version 6.1 related to the applicable provisions of the Tax Reform for Accelaration and Inclusion (TRAIN) Law. This module is use for the submission of annual Alphabetical List of Employees/Payees from Taxes Were Withheld (alphalist) as part of the filing of the Annual Information Return which is due every January 31 of the succeeding year.

The annual alphalist shall be submitted either through the eSubmission facility (esubmission@bir.gov.ph) of the Bureau or through the dedicated email account of the Revenue District Office (RDO) having jurisdiciton over the withholding agent's registered address. For the guidance, please see Annex "A" of Revemue Memorandum Circular No. 5-2015 for the list of dedicated email accounts of the RDOs.

To download the Alphalist Data Entry & Validation Module Version 6.1 (New) just click on the following: ZIP: ALPHALIST V6.1 SETUP.ZIP / JOB AID: DATA ENTRY / VALIDATION MODULE