Income Payments are Not Subject to Withholding Tax
BIR Ruling No. 056-80 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • May 13, 1980
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May 13, 1980 BIR RULING NO. 056-80 Transport Contractors, Inc. Lubiran Street, Bacood, Sta. Mesa M a n i l a Gentlemen : This refers to your letter dated December 14, 1979 inquiring whether income payments to you with respect to your business of trucking, hauling, carriage and transportation of goods, are subject to withholding tax under Revenue Regulations No. 13-78, as amended by Revenue Regulations No. 6-79, known as the Expanded Withholding Tax Regulations. In reply, I have the honor to inform you that under the aforesaid Regulations, income payments only to persons enumerated therein are subject to withholding tax. Money payments to you in connection with the abovementioned business in which you are engaged, are not among those specified in the Regulations. Accordingly, said income payments are not subject to withholding tax. However, said income payments are subject to income tax and to the 2% common carrier's tax. (BIR Ruling No. 078-79 dated August 27, 1979). Very truly yours, EFREN I. PLANA Acting Commissioner
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