BY CHRYSEE G. SAMILLANO
In a press release, the Bureau of Internal Revenue reminded all those listed as Top Withholding Agents (TWAs) to correctly withhold and remit the expanded withholding taxes to the government.
Income tax payments made by the TWAs, including non-resident aliens engaged in trade or business in the Philippines, their local/resident suppliers of goods, the rate to be applied is one percent and 2 percent for income tax payments to their local/resident suppliers of service. This is in addition to those covered by other rates of withholding tax, it said.
Acting Revenue District Officer Richard Oquendo of RD No. 78 Binalbagan, said all taxpayers whose names are included in the list of TWA of RD No. 78, posted in a newspaper of general circulation and the BIR website (www.bir.gov.ph), have the obligation to withhold the 1 percent and 2 percent Expanded Withholding Tax (EWT), which should commence on the first day of the month following the month of publication in accordance with the aforesaid Revenue regulations.
Oquendo further reminded TWAs to strictly comply with their obligation on the additional requirements for deductibility of certain payments made. Failure to withhold and remit tax on local/resident suppliers of goods and services will result to deficiency in withholding tax assessment and non-deductibility of the said amount paid on payable pursuant to Section 24 (k) of the National Internal Revenue Code of 1997, as amended, which is “No Withholding, No Deduction.”
TWA refers to taxpayers, whose gross sales/gross purchase receipts amounted to 5 million during the preceding taxable year, large taxpayers, the top 5,000 individual taxpayers, medium taxpayers, and taxpayers under the Taxpayer Account Management Program (TAMP).
Oquendo also said that taxpayers who wish to request for additional documentary proof that they are TWAs, despite the publication in a newspaper of general circulation, may file their request with the Revenue District Office where they are duly registered. Taxpayers may call (034) 388-8733 for inquiries.*
