BIR to release new list of top withholding agents
Published Jun 21, 2019 19:11 pm
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Updated Jun 21, 2019 19:11 pm
By Jun Ramirez
The Bureau of Internal Revenue (BIR) is coming out with a new list of top withholding agents to monitor closely payment of taxes from this source.
Bureau of Internal Revenue (MANILA BULLETIN)
The list will be posted shortly in the BIR website.
In the meantime, the existing list of top withholding agents of the large taxpayers' service, the regional and district offices will continue to do the chore unless delisted.
The withholding tax rate is one percent for goods and two percent for services.
Newly issued Revenue Regulations No. 7-2019 defined top withholding agents as taxpayers whose gross sales, gross purchases or claimed itemized deduction amounted to P12 million and more during the preceding taxable year.
It said the top withholding agents are either private corporations or individuals disbursing payments to their local resident suppliers of goods and services, other than those covered by other rates of withholding tax.
It added that the term “local resident suppliers of goods/services” pertains to a supplier from whom any of the top withholding agents regularly makes its purchases.
As a general rule, this term does not include a casual purchase of goods or services from a non-regular client, oftentimes involving a single purchase.
But a single purchase which involves P10,000 or more shall be subjected to withholding tax under these regulations.
Bureau of Internal Revenue (MANILA BULLETIN)
The list will be posted shortly in the BIR website.
In the meantime, the existing list of top withholding agents of the large taxpayers' service, the regional and district offices will continue to do the chore unless delisted.
The withholding tax rate is one percent for goods and two percent for services.
Newly issued Revenue Regulations No. 7-2019 defined top withholding agents as taxpayers whose gross sales, gross purchases or claimed itemized deduction amounted to P12 million and more during the preceding taxable year.
It said the top withholding agents are either private corporations or individuals disbursing payments to their local resident suppliers of goods and services, other than those covered by other rates of withholding tax.
It added that the term “local resident suppliers of goods/services” pertains to a supplier from whom any of the top withholding agents regularly makes its purchases.
As a general rule, this term does not include a casual purchase of goods or services from a non-regular client, oftentimes involving a single purchase.
But a single purchase which involves P10,000 or more shall be subjected to withholding tax under these regulations.