Summary
RMC No. 51-2018 amends RMC No. 69-2017 on the registration and compliance requirements of individuals under a Job Order or Service Contract Agreement with government offices.
Key points
- Scope. The Circular’s requirements apply only to individuals under a Job Order or Service Contract Agreement with government departments and agencies, instrumentalities, LGUs, state colleges and universities, GOCCs and GFIs. Otherwise, the policies under Revenue Regulations No. 11-2018 apply.
- Requirements by taxpayer type. A table covers registration fee, COR, bookkeeping, invoicing, and income tax, percentage tax and VAT filings and withholding. The types are professionals and other suppliers of services, with gross receipts at or below or above P250,000 in any 12-month period from a lone payor, or with multiple payors and/or other income.
- 10% withholding. The 10% Creditable Withholding Tax rate is withheld if the payee failed to submit a sworn declaration or is VAT-registered, regardless of the amount of gross receipts or sales.
- 8% option. There is no creditable withholding of Percentage Tax, and no quarterly Percentage Tax return is required, if the taxpayer opted for the 8% Income Tax rate.
Who is affected
- Individuals under a Job Order or Service Contract Agreement with government offices
- Professionals and other suppliers of services
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
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