"ANNEX A"
GOVERNMENT MONEY PAYMENTS CHART
EXP.
GOODS
INCOME/EXPENSE PAYMENTS
SERVICES
EWT
BIR FORM
CODE
03
04
05
06
06
07
08
08
11
14
Communication Services (PLDT, Smart,etc.)
Repairs & Maintenance of Government
Facilities
Repairs & Maintenance of Government Vehicles
Transportation Services (Freight: Goods/Mdse.)
domestic - air, sea & land
Internatinal - air & sea (zero-rated)
Transport of Passengers
domestic - air & sea
International - air & sea (zero-rated)
Transport of Cargoes - air, land & sea
Supplies & Materials
Including Equipment
RENT: (see NOTE no. 2)
1. Real Property
2. Cinematographic films
3. Personal Property
Payment for lease or use of
a. property or property rights
to non-resident owners
b. Services rendered to local insurance
companies with respect to reinsurance
premiums payable to non-residents
c. Other services rendered in the Phil.
by non-residents
AWARDS
MANILA WATER CO., INC. (MWCI)
Income Tax Holiday up to July 31, 2006
August 1, 2006
MAYNILAD WATER SERVICE,INC. (MWSI)
Income Tax Holiday up to August, 2007
POWER (MERALCO)
OTHER WATER UTILITIES
GMP
CREDITABLE
VAT
FINAL
VAT
NON-VAT/
Percentage
Tax
1601-E
BIR Form No. 1600
MAINTENANCE AND OPERATING EXPENSES
Service
2%
NONE
5%
3%
Service
2%
NONE
5%
3%
Goods
1%
NONE
5%
3%
Service
2%
NONE
5%
3%
Goods
1%
NONE
5%
3%
Service
5%
2%
NONE
3%
2%
NONE
NONE
3%
Service
2%
NONE
5%
3%
2%
NONE
NONE
3%
Goods
1%
NONE
5%
NONE
FINAL TAX
TOTAL
BIR Form
1601-F
7% or 5%
7% or 5%
6% or 4&
7% or 5%
6% or 4&
7% or 5%
2% or 3%
7% or 5%
2% or 3%
6%
Goods
1%
NONE
5%
3%
6% or 4%
Service
Service
Service
5%
5%
5%
NONE
NONE
NONE
5%
5%
5%
3%
3%
3%
10% or 8%
10% or 8%
10% or 8%
Service
NONE
NONE
10%
NONE
10%
Service
NONE
NONE
10%
NONE
10%
Service
NONE
NONE
10%
NONE
10%
Service
NONE
NONE
NONE
NONE
NONE
5%
NONE
NONE
Service
Service
2%
NONE
NONE
NONE
5%
5%
NONE
NONE
7%
5%
Service
Service
2%
2%
NONE
NONE
5%
5%
NONE
2%
7%
7% or 4%
Service
NONE
NONE
NONE
NONE
2%
NONE
5%
NONE
7%
NONE
1%
2%
1%
1%
NONE
NONE
NONE
NONE
NONE
NONE
5%
5%
5%
5%
NONE
NONE
3%
3%
3%
6%
7% or 5%
6% or 4%
6% or 4%
2%
NONE
5%
3%
7% or 5%
Goods
Service
2%
2%
1%
2%
NONE
NONE
NONE
NONE
5%
NONE
5%
5%
3%
5%
3%
3%
7% or 5%
2% or 7%
6% or 4%
7% or 5%
Service
None
NONE
5%
3%
5% or 3%
5%
3%
15% or 13%
5%
3%
20% or 18%
20%
20%
5%
PAYMENT TO COOPERATIVES:
1. With BIR issued exemption certificate
2. Without BIR issued exemption certificate
17
23
24
27
29
1. With BIR exemption certificate
2. Without BIR exemption certificate
TRAINING & SEMINARS
Purchase of GASOLINE
Other petroleum products
(such as grease, wax, etc.)
SERVICES by gasoline stations
INSURANCE PREMIUMS
Non-Life
Life
LIBRARY BOOKS & MATERIALS
OTHER SERVICES:
Security, Janitorial, Maintenance of aircon,
computers, elevators, etc.
Professional Services rendered by General
Professional Partnership (GPP)
Professional fee paid to juridical person
Services by persons engaged in the practice of
profession
Income Payments to Partners of General Professional
Partnership
Goods
Service
Goods
Goods
Service
Service
Service
10%
(if the,
current year's
gross income
does not
exceed
15% (if the,
current year's
gross income
exceeds
P720,000)
Services rendered by actors, actresses, talents,
singers, emcees, prof. athletes, radio and television
broadcasters and choreographers, musical, radio,
movie, television and stage directors
Page 1of 3
NONE
EXP.
GOODS
INCOME/EXPENSE PAYMENTS
SERVICES
EWT
BIR FORM
CODE
GMP
CREDITABLE
VAT
1601-E
Services rendered by DOCTORS of MEDICINE
duly registered with the Professional Regulation
Commission (PRC) and LAWYERS duly registered
with the Integrated Bar of the Philippines (IBP) and
other government agencies
NONE
5%
3%
15% or 13%
20% or 18%
Services rendered by General Professional
Partnership (GPP) of Doctors of Medicine duly
registered with the Professional Regulation
Commission (PRC) and Lawyers duly registered with
the Integrated Bar of the Philippines (IBP) and other
government agencies
Service
NONE
NONE
5%
3%
5% or 3%
Purchase of Other Goods
Goods
1%
NONE
5%
3%
6% or 4%
Goods
1%
NONE
Service
10%
NONE
PURCHASE OF LAND
34
Land Improvements Outlay
39
BIR Form
Service
34
38
TOTAL
10%
(if the, current
year's gross
income does
not exceed
P720,000)
15%
(if the, current
year's gross
income
exceeds
P720,000)
Services rendered by customs, real estate, stock,
immigration & commercial brokers
36
FINAL TAX
1601-F
BIR Form No. 1600
Purchase of Agricultural Products
(see NOTE no.3)
35
FINAL
VAT
NON-VAT/
Percentage
Tax
Buildings and Improvements Outlay
Straight Contract (Labor & Materials)
Separate Invoice/Billing for Materials
Separate Invoice/Billing for Labor
Furniture, Fixtures, Equipment and Books
Outlay
Information Technology (IT) Equipment
Outlay
Lump-Sum for Capital Outlay
CAPITAL OUTLAY
1.5%,3%,5%
NONE
or 6%
NONE
( in their
original
state)
5%
3%
1% or 3%
3%
15% or 13%
5%
3%
6.5%,8%,10%,11% or
4.5%,6%,8%,9%
Goods
1%
NONE
5%
3%
6% or 4%
Service
2%
NONE
5%
3%
7% or 5%
Service
Goods
Service
2%
1%
2%
NONE
NONE
NONE
5%
5%
5%
3%
3%
3%
7% or 5%
6% or 4%
7% or 5%
Goods
1%
NONE
5%
3%
6% or 4%
Goods
Service
1%
2%
2%
NONE
NONE
NONE
5%
5%
5%
3%
3%
3%
6% or 4%
7% or 5%
7% or 5%
Page 2 of 3
EXP.
GOODS
INCOME/EXPENSE PAYMENTS
SERVICES
EWT
BIR FORM
CODE
GMP
CREDITABLE
VAT
1601-E
Franchise Tax on radio & TV broadcasting companies
whose annual gross recipts do not exceed P10M &
who are not VAT-registered taxpayer
Tax on Overseas Dispatch, Message or Conversation
from the Philippines
Business Tax on Agents of foreign insurance co. insurance agents
Business Tax on Agents of foreign insurance co. owner of the property
Tax on Cockpits
Tax on Cabaret, night & day clubs
Tax on Boxing exhibitions
Tax on Professional basbetball games
Tax on Jai-Alai and race tracks
Tax on sale, barter or exchange of stocks listed and
traded through Local Stock Exchange
Tax on shares of stock sold or exchanged through
initial and secondary public offering
- Not over 25%
- Over 25% but not exceeding 33/1/3%
- Over 33 1/3%
Tax on interest, commissions and discounts from
lending activities as well as income from financial
leasing, on the basis of remaining maturities of
instruments from which such receipts are derived:
- Maturity period is five years or less
- Maturity period is more than five years
Tax on dividends and equity shares and net income of
subsidiaries
Tax on royalties, rentals of property, real or personal,
profits, from exchange and all other items treated as
gross income under Section 32 of the Tax Code.
Tax on the net trading gains within the taxable year
on foreign currency, debt securities, derivatives, and
other similar financial instruments
(see NOTE no.4)
Tax on interest, commissions and discounts from
lending activities as well as income from financial
leasing, on the basis of remaining maturities of
instruments from which such receipts are derived:
- Maturity period is five years or less
- Maturity period is more than five years
On all other items treated as gross income under the
code
FINAL
VAT
NON-VAT/
Percentage
Tax
FINAL TAX
TOTAL
BIR Form
1601-F
BIR Form No. 1600
Service
2%
NONE
NONE
3%
2% or 5%
Service
2%
NONE
NONE
10%
2% or 12%
Service
2%
NONE
NONE
10%
2% or 12%
Service
2%
NONE
NONE
5%
2% or 7%
Service
Service
Service
Service
Service
2%
2%
2%
2%
2%
NONE
NONE
NONE
NONE
NONE
NONE
NONE
NONE
NONE
NONE
18%
18%
10%
15%
30%
2% or 20%
2% or 20%
2% or 12%
2% or 17%
2% or 32%
Service
2%
NONE
NONE
1/2 of 1%
2% or 2 1/2 of 1%
Service
Service
Service
2%
2%
2%
NONE
NONE
NONE
NONE
NONE
NONE
4%
2%
1%
2% or 6%
2% or 4%
2% or 3%
Service
Service
2%
2%
NONE
NONE
NONE
NONE
5%
1%
2% or 7%
2% or 3%
NONE
NONE
NONE
0%
0%
2%
NONE
NONE
7%
2% or 9%
NONE
NONE
NONE
7%
7%
2%
2%
NONE
NONE
NONE
NONE
5%
1%
7%
3%
NONE
NONE
5%
5%
Service
Service
Service
NOTE:
1. For EWT, only income payments enumerated in Sec. 2.57.2 of RR 2-98, RR 6-2001, RR-12-2001, RR 14-2002, RR-17-2003, RR-30-2003
and all services other than those covered by separate rates of withholding tax shall be subjected to EWT.
You may refer to RR-1-2003, RR-3-2003, RR-11-2003, RR-12-2003, RR-7-2004, RR-9-2004 and RR 16-2005 for further information.
Casual or single purchase of GOODS and SERVICES worth P10,000.00 and below under Section 3 (N) of RR-17-2003not subject to EWT.
2. For rental of personal properties in excess of P10,000.00 annually except those under financial lease arrangement with leasing and finance
companies under R.A. No. 8556 (Financing Company Act of 1998) under Section 3(C)(2) of RR 17-2003 - 5% EWT.
3. Suspended Indefinitely per RR 3-2004 effective March 1, 2004. The 1% EWT shall apply upon issuance of a Regulation lifting its suspension.
4. Please refer to Section 121 of RA 8424 as amended by RA 9337.
5. For purchase of goods and services subject to FINAL VAT please refer to Section 4.114-2 of RR 16-2005.
Date Revised: November 2, 2005
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