RR No. 2-2009: Amends further Sections 2.57.2 and 2.58 of Revenue Regulations No. 2-98, as amended, subjecting to creditable withholding tax the interest portion of the refund of meter deposits by MERALCO and other distribution utilities to residential and non-residential electricity consumers/customers

Key points

1. MERALCO refund under the Supreme Court case. The MERALCO refund arising from G.R. No. 14814 of April 9, 2003 to customers under Phase IV, as approved by the ERC, is taxed on the gross amount. The rate is 25% for customers with active contracts and 32% for customers with terminated contracts.
2. Interest on meter deposit refunds. Interest on meter deposit refunds paid by MERALCO and other distribution utilities is taxed on the gross amount, whether paid directly or applied against billing. The rate is 10% for residential and general service customers with monthly consumption above 200 kwh, and 20% for non-residential customers.
3. Basis of the refund rules. The refunds follow ERC Resolution No. 8, Series of 2008, dated June 4, 2008, which implements Article 8 of the Magna Carta for Residential Electricity Consumers.
4. Monthly Alphalist of Payees. MERALCO and other distribution utilities that withhold under these rules submit a Monthly Alphalist of Payees (MAP) for each calendar quarter. It is electronically attached to the monthly remittance return, such as BIR Form 1601-E, and lists the customers with taxes withheld and remitted.

Who is affected

• MERALCO and other distribution utilities
• Residential and non-residential electricity customers receiving meter deposit refunds