Summary
RR No. 12-2001 amends RR Nos. 1-98, 2-98 and 6-2001 on revised withholding tax rates, deferred filing deadlines for selected returns and reporting requirements for recipients of talent fees.
Key points
- Rate depends on income. Creditable Withholding Tax on professional and talent fees of resident professional entertainers, professional athletes, directors in movie, stage, radio, television and musical production, and other talent fee recipients is 20% if current-year gross income exceeds P 720,000, and 10% if not.
- What is included. The amounts subject to withholding include per diems, allowances and other income payments not subject to withholding tax on compensation. They also include amounts paid for use of their names or pictures in media or for public appearances for advertisements or sales promotions.
- Sworn declaration. These individuals submit to the BIR a notarized sworn declaration of current-year gross income, filed on June 30 each year or within 15 days after the month their income reaches P 720,000, whichever is earlier. If income is below P 720,000 as of June 30, a second disclosure is due within 15 days after the month it reaches P 720,000. If the declaration is not submitted, the payor withholds at 20%.
- Talent fees plus salary. Talent fees from a payor that also pays the individual a salary are supplemental compensation subject to withholding tax on compensation.
- When withholding arises. The duty to withhold arises when the income is paid, payable, or accrued or recorded as an expense or asset in the payor’s books, whichever comes first. If it is recorded but not yet paid or payable, the duty arises in the last month of the return period in which it is claimed as an expense or amortized for tax purposes.
Who is affected
- Resident professional entertainers and athletes
- Directors in movie, stage, radio, television and musical production
- Other recipients of talent fees
- Payors and withholding agents
Deadlines and effectivity
- Annual declaration: June 30 each year or within 15 days after income reaches P 720,000, whichever is earlier
- Initial disclosure: on or before September 30, 2001 or within 15 days after effectivity, whichever is later
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.