RMC No. 08-2014: Requires the presentation of Tax Exemption Certificate or Ruling by Exempt Individuals and Entities

Summary

RMC No. 08-2014 requires exempt individuals and entities to present a Tax Exemption Certificate or Ruling to withholding agents.

Key points

1. Document required. Withholding agents must require anyone claiming exemption to give a copy of a valid, current and subsisting tax exemption certificate or ruling before paying the related income.
2. Content of the certificate or ruling. It must explicitly recognize the grant of tax exemption and the matching exemption from Withholding Tax.
3. Taxpayer’s failure to present it. A taxpayer who does not present the certificate or ruling is subject to the appropriate Withholding Taxes on the transaction.
4. Withholding agent’s failure to withhold. A withholding agent who does not withhold despite the missing certificate or ruling is subject to penalties under Section 251 and other pertinent Sections of the Tax Code.

Who is affected

• Withholding agents
• Individuals and entities claiming tax exemption

Deadlines and effectivity

• Issued February 6, 2014

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