RR 12-2013 on Mandatory Withholding in Philippines

Bureau of Internal Revenue (BIR) issued Revenue Regulations No. 12-2013 dated July 12, 2013 (RR No. 12-2013) amending Section 2.85.5 of Revenue Regulations No. 2-98 (RR No.2-98), as amended, relative to the requirements for deductibility of certain income payments. Under RR No. 12-2013, no deduction shall be allowed on income payments if it is shown that the applicable withholding taxes required by  the rules had not been withheld. No deduction will also be allowed even if during tax assessment on deficiency withholding taxes for alleged failure to withhold, the taxpayer paid the withholding taxes. In effect RR No. 12-2013 makes it mandatory...

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RR No. 9-2013 on Tax Compromise Fee in Philippines

The Bureau of Internal Revenue (BIR) issued Revenue Regulations No. 9-2013 dated May 10, 2013 (RR No. 9-2013) amending Revenue Regulations No. 30-2002 (RR No. 30-2002) relative to the amount of compromise payment of deficiency internal revenue taxes. In the past under RR No. 30-2002, the rule was to apply for compromise of deficiency taxes under any of the following and upon approval, the compromise amount shall then be paid: Minimum amount of 40% of basic tax due based on doubtful validity; or Minimum amount of 10% of basic tax due based on financial incapacity. Under RR No. 9-2013, the compromise offer shall be paid by the taxpayer upon...

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