Rate of Expanded Withholding Tax on Income from Brokerage, Trucking, Forwarding and Other Related Service

March 28, 1985 BIR RULING NO. 047-85 53 (f) 202-81 047-85 Gentlemen : This refers to your letter dated January 19, 1985 requesting for a ruling on the applicable rate of expanded withholding tax on your income from brokerage, trucking, forwarding and other related service. In reply thereto, please be informed that gross payments to you as broker are subject to the 5% expanded withholding tax imposed under paragraph (i) Section 1 of Revenue Regulations No. 13-78, as amended by Revenue Regulations No. 6-79. If your trucking business is connected with your brokerage activities, income from the former is also subject to the 5% expanded withholding tax. If your trucking activity is an independent business, your income derived therefrom is not subject to the expanded withholding tax. Gross payments to you for forwarding services are subject to 3% expanded withholding tax on 15% of said payments, pursuant to Section 1(e)(2)(d) of the said Regulations, implementing Section 53(f) of the Tax Code, as amended. cdti Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner