BIR Ruling [DA-018-05]

January 19, 2005 BIR RULING [DA-018-05] 121-92 dtd 4/8/92 Regal Travel Service, Inc. Don Antonio Bldg., 1344 Taft Ave. Manila Attention: Mr. Tirso B. Reyes, Jr. Vice-President/Comptroller Gentlemen : This refers to your letter dated June 18, 2003, requesting information whether or not BIR Ruling 121-92 dated April 18, 1992 is still valid and effective. It is clarified in the said ruling that payment by travel agencies by way of commissions to its sales representatives, provided that they are not employees of the firm, is not subject to expanded withholding tax. In reply, please be informed that in the light of the provisions of Revenue Regulations No. 17-2003 dated March 31, 2003, amending Revenue Regulations No. 2-98, as amended, the subject BIR Ruling No. 121-2003 is still valid and effective. Accordingly, your payment as travel agency by way of commission to your sales agents, which are not under your employ, is not subject to expanded withholding tax. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal and Inspection Group