Payor Required to Render an Information Return on Rental Payments

January 17, 1984 BIR RULING NO. 004-84 53-f-096-83-004-84 Gentlemen : This refers to your letter dated January 24, 1982 requesting a ruling as to whether the term "equipment" under Revenue Regulations No. 4-82 amending Section 1(c) of Revenue Regulations No. 13-78 includes vehicles such as, buses, trucks, maritime vessels and similar facilities. In reply, please be informed that under Revenue Regulations No. 4-82 amending Section 1(c) of Revenue Regulations No. 13-78 as amended by Revenue Regulations No. 6-79 implementing Section 53(f) of the Tax Code, otherwise known as Expanded Withholding Tax Regulations, income payments on lease of equipment whether under operating or finance lease agreement beginning April 1, 1982 is exempt from the 5% expanded withholding tax. The term "equipment" mentioned in Section 1 of Revenue Regulations No. 4-82 includes vehicles such as, buses, trucks and maritime vessels. Such being the case, rental income derived from leasing of said vehicles are not subject to the expanded withholding tax. However, since the rental payments are not subject to withholding, the payor shall render an information return on such payments pursuant to Section 77 of the Tax Code as amended by Batas Pambansa Blg. 135 and as implemented by Section 21 of Revenue Regulations No. 1-82 dated March 18, 1982. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner