RR No. 24-2003: Amends RR No. 16-2003 relative to the taxation of Privilege Stores.

Summary

RR No. 24-2003 amends pertinent provisions of RR No. 16-2003 on the taxation of privilege stores.

Key points

1. Organizer or exhibitor duties. They post their BIR Certificate of Registration (COR) in a conspicuous place in the privilege-store area, and an unregistered one registers at least 15 days before activity starts. The COR is valid within the calendar year. Before opening, they give the RDO a list with names, residence addresses, stall numbers, location, individual TINs, and dates and duration of operation.
2. Checks on operators. The organizer or exhibitor demands the operator’s TIN and proof of payment of actual withholding tax due or of advance percentage tax. Participating sellers-retailers with registered permanent places of business also give the exhibitor a copy of their COR.
3. Withholding on rentals. The operator withholds tax at 5% of the gross amount on sub-leased rentals when accrued or paid. It is remitted on or before the 10th day of the following month using BIR Form No. 1601 E, except December, which is due on or before January 15 of the following year. An operator without a TIN applies at the RDO with jurisdiction.
4. Advance Percentage Tax. Operators pay advance Percentage Tax monthly through the AAB, or the RCO if there is no AAB, using BIR Form No. 0605. Payment is due on or before the first day of operation and each first day of the month after. If operation is under one month, the payment covers only that period.
5. Fixed monthly amounts. The fixed amounts are P 150.00 per day or P 4,500.00 per month (air-conditioned, City or First Class Municipality), P 100.00 per day or P 3,000.00 per month (non-air-conditioned, City or First Class Municipality), P 75.00 per day or P 2,500.00 per month (air-conditioned, other Municipality), and P 50.00 per day or P 1,500.00 per month (non-air-conditioned, other Municipality).
6. End of privilege-store status. Once the operator registers with the BIR and complies with bookkeeping requirements, it ceases to be a privilege store and is governed by existing revenue laws and regulations. Advance payment is evidenced by a validated BIR Form No. 0605 and the Official Receipt/Deposit Slip from the AAB or RCO.

Who is affected

• Privilege-store organizers and exhibitors
• Privilege-store operators

Deadlines and effectivity

• Registration at least 15 days before privilege store activity starts
• COR valid within the calendar year
• Withholding tax remitted on or before the 10th day of the following month, December by January 15
• Advance payment on or before the first day of operation and every first day of the month after

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