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77-69
TO
SUBJECT : Revenue Regulations No. 16-77 covering the manner of withholding taxes on
payments made by government entities to private parties as provided for in
Republic Act No. 1051.
1.
For the guidance of all concerned, Revenue Regulations No.16- 77 is hereunder
reproduced:
Republic of the Philippines
DEPARTMENT OF FINANCE
Bureau of Internal Revenue Quezon City
October 11, 1977
REVENUE REGULATIONS NO. 16-77
SUBJECT : Revised regulations governing the manner of withholding taxes
on payments made by government entities to private parties as
provided for in Republic Act No. 1051.
TO
municipalities are required to deduct and withhold the taxes due before making
any payment to any private individual, corporation, partnership and/or
associations and joint ventures as contemplated in Presidential Decree No.929.
SEC. 3. Persons whose transactions are liable to withholding tax. Private individuals, corporations, partnerships, associations and/or joint ventures
contemplated in Presidential Decree No. 929 who have transactions with the
Philippine government, or any of its branches or agencies either as contractors of
services, producers or manufacturers who have sold originally produced or
manufactured materials, wares or goods.
SEC. 4. Internal revenue taxes that should be withheld.- The following
internal revenue taxes that can fixed, determined, computed or ascertained at the
time of payment shall be deducted and withheld from said money payments.
a.
Business Tax:
Franchise Tax:
upon when such franchises are conferred, whichever is higher, unless the
provisions thereof preclude the imposition of a higher tax as provided under
Section 267 of the Tax Code.
c.
These charges are due on all forest products which should be paid by the
forest concessionaires. They vary according to the group or class the forest
products belong. In the case of timber cut from public forest, the charges due
thereon as prescribed in Section 272 of the Tax Code are as follows:
1.
2.
5.00
"
3.
4.00
"
4.
3.50
"
5.
2.00
"
6.
1.25
"
0.60
"
7.
P6.00/cu.m.
2.
3.
4.
5.
6.
c.
This annual report shall be certified correct and signed by
the head of office concerned or by any duly authorized responsible official.
SEC. 8.
thereof. -
All monthly withholding tax returns (BIR Form No. 7.50, shall be
transmitted by the Revenue Collection Agent concerned to the Regional Director
within ten (10) days from receipt hereof. The annual report prescribed under
Section 7 hereof shall be submitted by the government agency concerned direct
to the Regional Director of the region where the former is stationed, within 30
days after the end of the calendar year. The original of the annual report,
together with the original of all monthly withholding tax returns shall be
transmitted by the Regional Director on or before the 15th day of February of the
year following the period covered by the report, to the Withholding Tax Division
for processing after which the same shall be forwarded to the Data Processing
Center for collating of the information on all money payments made to a
particular taxpayer, thereafter to be referred to the corresponding Regional
Offices or National Investigating Divisions for cross-checking of the collated data
against the return filed by the taxpayer. The duplicate copies of the herein
mentioned reports shall be kept in file in the Assessment Branch of the Regional
Office for reference purposes.
SEC. 9. Exemption.
Only the transactions/contracts enumerated in Section 4 hereof are
subject to the withholding provisions of Republic Act No. 1051. Those not
mentioned therein are deemed exempted; Provided, however, that in cases of
transactions/contracts not mentioned in the aforesaid Section 4 in which there is
doubt as to whether or not a tax should be withheld, the withholding officer shall
require the payee to secure a "Certificate of Tax Exemption" from the nearest
Revenue District Officer or Revenue Regional Director.
SEC. 10. Acts Constituting Violations.
a.
Unlawful acts may be committed by the public officer or employee,
or an official or employee of a government-owned or controlled corporation when
he:
1.
2.
Fails to file the withholding tax return within the time prescribed by
law; and
3.
b.
1.
2.
SEC. 12. Repealing Clause. - All existing rules and regulations or parts
thereof which are inconsistent with the provisions of the regulations are hereby
revoked.
SEC. 13.
approval hereof.
Effectivity.