RR No. 14-2018: Amends the provisions of RR No. 11-2018, particularly Sections 2 and 14 relative to withholding of Income Tax

Key points

1. Professional, promotional and talent fees. For individual payees, the creditable rate is 5% if gross income for the current year did not exceed P3M. It is 10% if gross income is more than P3M or the payee is VAT-registered regardless of amount. For non-individual payees, it is 10% up to P720,000 and 15% above P720,000.
2. Payee sworn declaration. A payee seeking exemption from the prescribed rates submits an Income Payee’s Sworn Declaration of Gross Receipts/Sales with a copy of the Certificate of Registration to the payor on or before April 20, 2018. The payor then submits its own sworn declaration and the list of payees on or before April 30, 2018.
3. Refund of excess withholding. Excess tax withheld is refunded to the payee by the payor. The refund is shown as an adjustment in the first quarter withholding tax return and in the Alphabetical List of Payees, filed on or before April 30, 2018.
4. BIR Form No. 2307. If the certificate was already given, the payee returns it to the payor on receipt of the refund, with a corrected form if still applicable. Otherwise, the certificate given by the twentieth (20th) day after the close of the first quarter shows the corrected amount, and the form may not be used twice for the same payment, payor and period.

Who is affected

• Income payors and withholding agents
• Income payees receiving professional, promotional or talent fees

Deadlines and effectivity

• Payee sworn declaration: on or before April 20, 2018
• Payor sworn declaration and first quarter return: on or before April 30, 2018