Income Payments on Lease of Vehicles Beginning April 1, 1982 Exempt from the 5% Expanded Withholding Tax

January 17, 1984 BIR RULING NO. 005-84 53-f-096-83-005-84 Gentlemen : In reply to your letter dated October 12, 1982, please be informed that the term "equipment" 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, includes vehicles like automobiles, buses, trucks, maritime vessels, aircrafts and other similar movables. Accordingly, income payments on lease of said equipment whether under operating or finance lease agreement beginning April 1, 1982 are exempt from the 5% expanded withholding tax pursuant to said Regulations No. 4-82. However, since the aforesaid 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