Summary
RMC No. 60-2004 clarifies the withholding of creditable Value-Added Tax (VAT) by government offices on purchases of goods and services amounting to P1,000.00 and below.
Key points
- Rates under RR No. 2-98. Government payments for purchases from VAT-registered suppliers are subject to withholding tax: 3% on goods, 6% on services, 8.5% on payments to government public works contractors, and 10% on lease or use of property or property rights to non-resident owners.
- No minimum amount. All payments by government offices, regardless of amount, are subject to the appropriate rate of withholding tax on VAT.
Who is affected
- Government offices, political subdivisions, instrumentalities, agencies and GOCCs making purchases
- VAT-registered suppliers to the government
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
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