RR No. 7-2017: Amends pertinent provisions of RR No. 2-1998, as amended, in relation to RR No. 6-2012 reducing Bangko Sentral ng Pilipinas’ obligation as withholding agent of the Creditable Withholding Tax from the rate of 5% to 1%

Key points

1. Purchases of minerals. Income payments on purchases of minerals, mineral products and quarry resources, such as silver, gold, marble, granite, sand and boulders, are subject to 5% withholding. The BSP withholds 1% of gross payments and remits it to the government.
2. Metallic minerals. All buyers of metallic minerals act as agents for collecting the 2% Excise Tax and the 5% CWT. The BSP, as constituted agent, collects only the 1% CWT on its purchases and the 2% Excise Tax due.
3. Claiming costs. The seller or possessor must show proof of withholding and remittance of the 5% Withholding Tax (1% for minerals sold to the BSP) to claim the costs of metallic minerals. Otherwise all claimed costs and expenses are disallowed.

Who is affected

• Bangko Sentral ng Pilipinas as withholding agent
• Sellers and possessors of metallic minerals
• Buyers of metallic minerals