RMC No. 05-2006: Prescribes the use of the Government Money Payment Chart for the computation of taxes withheld at source on the sale of goods and services to the government or to any of its political subdivisions whether subject to Creditable Withholding Tax, Final VAT and Percentage Tax

Summary

RMC No. 5-2006 prescribes the Government Money Payment Chart for computing taxes withheld at source on sales of goods and services to the government.

Key points

1. Coverage. The chart applies to sales to the government or its political subdivisions, including barangays, instrumentalities, agencies and government-owned or controlled corporations. It covers sales subject to Creditable Withholding Tax, Final VAT (beginning November 1, 2005) and Percentage Tax.
2. Rates used. The revised chart takes into account the new rates in Revenue Regulations Nos. 12-2001, 14-2002, 30-2003 and 16-2005.

Who is affected

• Sellers of goods and services to the government, its political subdivisions, instrumentalities, agencies and GOCCs

Deadlines and effectivity

• Final VAT beginning November 1, 2005

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.