RMO No. 04-2004: Defines the guidelines relating to registration of agricultural suppliers as marginal income earners and their exemption from the 1% Creditable Withholding Tax on payments made by hotels, restaurants, resorts, caterers, food processors, canneries, supermarkets, livestock, poultry, fish and marine product dealers, hardwares, factories, furniture shops and all other establishment

Key points

1. Unregistered suppliers. Agricultural suppliers who are marginal income earners but not yet registered with the BIR register with the Revenue District Officer (RDO) having jurisdiction over where they reside or carry on their income producing activities.
2. Previously registered suppliers. Suppliers already registered as marginal income earners update their registration with the RDO having jurisdiction over their residence or place of income producing activities.
3. Change of RDO. If the previous RDO differs from the current RDO, the supplier surrenders the Certificate of Registration to the current RDO. The current RDO notifies the previous RDO and sends it the copy of the old Certificate of Registration for cancellation.
4. No withholding by buyers. Buyers of agricultural products do not withhold the 1% Creditable Withholding Tax from suppliers registered as marginal income earners. The supplier must present a copy of the Certificate of Registration showing registration as a marginal income earner.

Who is affected

• Agricultural suppliers who are marginal income earners
• Buyers of agricultural products from registered marginal income earners