Rental Income Derived from the Leasing of Heavy Equipment Not Subject to Expanded Withholding Tax

February 27, 1985 BIR RULING NO. 030-85 53-f 094-84 030-85 S i r : In reply to your letter dated January 17, 1985, I have the honor to inform you that under Revenue Regulations No. 4-82 amending Section 1(c) of Revenue Regulations No. 15-78 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 are exempt from the 5% expanded withholding tax. Such being the case, rental income derived by you from the leasing of various heavy equipment are not subject to the expanded withholding tax. However, since the rental payments are not subject to withholding tax, 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