3% Withholding Tax - Income Payments Collected After November 1, 1978

June 21, 1979 BIR RULING NO. 038-79 3% Withholding tax Income payments collected after November 1, 1978 This refers to your letter dated December 1, 1978 requesting clarification on the provisions of Revenue Regulation No. 13-78 implementing Presidential Decree No. 1351. It is represented that the Luzon Stevedoring Corporation during the month of November 1978 deducted 3% from the billings of your client, a security agency, covering an outstanding account prior to November 1978 and the said amount was already recorded as income on the date it became due although it is not yet collected. In reply thereto, I have the honor to inform you that Revenue Regulations No. 13-78 applies to income payment made beginning November 1, 1978. Accordingly, income payments covering account prior to November 1, 1978 but collected after said date are already subject to the withholding tax provided in said regulations. In other words, Luzon Stevedoring Corporation was correct in deducting 3% from the billings over a period prior to said date. With respect to money payments to photo studios engaged in commercial photography, please be advised that said payments are not subject to withholding tax under Revenue Regulations No. 13-78 inasmuch as they are not among, those specified in the said Regulations.