The Bureau of Internal Revenue is reminding all those listed as Top Withholding Agents (TWA) to correctly withhold and remit the expanded withholding taxes for the government.
For income tax payments made by the top TWAs, including non-resident aliens engaged in trade or business in the Philippines, to their local/resident suppliers of goods, the rate is one percent (1%) while it is two percent (2%) for income payments to their local/resident suppliers of services. This is in addition to those covered by other rates of withholding tax.
According to OIC-Revenue District Officer Richard R. Oquendo of RD No. 78 in Binalbagan, Negros Occidental, taxpayers whose names are included in the list of TWA of RDO No. 78 published in a newspaper of general circulation on such date with the same posted in the official website of the BIR (www.bir.gov.ph) on same date, have the obligation to withhold 1% and 2% Expanded Withholding Tax (EWT) and to commence on the first day of the month following the month of publication in accordance with the aforesaid Revenue Regulations.
Oquendo further reminds additional requirements for deductibility of certain payments that those TWAs to strictly comply with their obligation since failure to withhold and remit tax on their local/resident suppliers of goods and services shall result to a deficiency withholding tax assessment and non-deductibility of the said amount paid on payable pursuant to Section 34 (K) of the National Internal Revenue Code of 1997, as amended. The rule is “No withholding, No deduction” he stressed.
TWAs shall refer to those taxpayers whose gross sales/receipts or gross purchases amounted to Five Million Pesos (Php5,000,000.00) during the preceding taxable year, large taxpayers, the top 20,000 private corporations, the top 5,000 individual taxpayers, medium taxpayers, and taxpayers under the Taxpayer Account Management Program (TAMP).
He also said that those taxpayers who wish to request for an additional documentary proof for being identified as Top Withholding Agents (TWAs), despite the publication in the newspaper of general circulation being deemed sufficient, may file their request with the Revenue District Office where duly registered. Taxpayers may feel free to call (034) 388-8733 for any query related to this matter, Oquendo reminds the concerned taxpayers.
