Exemption from Expanded Withholding Tax

March 30, 1989 BIR RULING NO. 049-89 50 (b) 367-87 049-89 Gentlemen : This refers to your letter dated February 8, 1989 requesting in behalf of your client, Health Maintenance, Inc., a ruling as to whether or not commissions paid to sales agent (who are not employees of the company and reports only if and when they have sales) soliciting health care on pre-paid health maintenance program are subject to the expanded withholding tax. In reply, please be informed that under Revenue Regulations No. 6-85 otherwise known as the Revised and Consolidated Expanded Withholding Tax Regulations implementing Section 50(b) of the Tax Code, only income payments to persons enumerated therein are subject to the expanded withholding tax. Accordingly, since individual sales agent soliciting health care on pre-paid health maintenance program are not among those enumerated in said regulations, gross payments consisting of commissions made by your client, Health Maintenance, Inc., to its individual sales agent are not subject to the expanded withholding tax. cdtech Very truly yours, (SGD.) JOSE U. ONG Commissioner