RR No. 8-2005: Amends further pertinent provisions of Revenue Regulations Nos. 2-98 and 3-2004 which provides for the inclusion to income payments subject to Creditable Withholding Tax the Manila Electric Company refund to customers

Key points

1. Withholding rates. Creditable withholding tax is withheld on the gross amount of the MERALCO refund for each class of customer. The rate is twenty five percent (25%) for customers with active contracts and thirty two percent (32%) for customers with terminated contracts.
2. Monthly Alphalist of Payees. MERALCO submits a Monthly Alphalist of Payees (MAP) for each calendar quarter, electronically attached to the monthly remittance return of that quarter. It lists the customers from whom tax was withheld and remitted under BIR Form No. 1601-E, showing total income and taxes withheld and remitted.

Who is affected

• MERALCO
• MERALCO customers receiving the refund, with active or terminated contracts

Deadlines and effectivity

• MAP: each calendar quarter, attached to the monthly remittance return