RR No. 06-2001: Amends pertinent provisions of certain revenue issuances relative to the inclusion of additional taxpayers to be subject to Final Withholding Tax, revision of the Withholding Tax rates on certain income payments subject to Creditable Withholding Tax, time for the filing of various tax returns and payment of the taxes due thereon and others

Summary

RR No. 6-2001 amends RR Nos. 1-98, 2-98 and 7-95 and RMC No. 1-98 on additional Final Withholding Tax payments, revised Creditable Withholding Tax rates and the time for filing various returns and paying taxes.

Key points

1. Added Final Withholding Tax items. Subcontractors of service contractors in petroleum operations in the Philippines are taxed at 8%. Non-resident cinematographic film owners, lessors or distributors are taxed at 25% on gross income from Philippine sources.
2. Filipinos in the same positions as aliens. Filipinos employed in the same positions as aliens in multinational companies, Offshore Banking Units, and foreign petroleum service contractors and subcontractors are taxed at 15% of gross income. Those in multinational companies may instead choose the regular tax rate on taxable income.
3. Revised Creditable Withholding Tax at 20%. The 20% rate applies to professional entertainers, professional athletes, directors in movie, stage, radio, television and musical production, and other recipients of talent fees. It also applies to directors who are not employees whose duties are confined to board meeting attendance and participation.
4. Other creditable rates. Professional fees and talent fees for services of taxable juridical persons are 10%, income payments to certain brokers and agents are 10%, and income payments to certain contractors are 2%.
5. Credit card companies and real property sales. Credit card companies withhold a 1% creditable income tax on gross amounts paid to any business entity. A 6% Creditable Withholding Tax applies to the sale or transfer of real properties classified as ordinary assets if the seller is not habitually engaged in the real estate business.

Who is affected

• Subcontractors of petroleum service contractors
• Non-resident cinematographic film owners, lessors and distributors
• Filipinos in the same positions as aliens in multinational companies and related entities
• Professional entertainers, athletes, directors and talent fee recipients
• Credit card companies

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