Expanded Withholding Tax Rate Applicable to the Lease/Rental of Radio Equipment

April 5, 1989 BIR RULING NO. 056-89 50 (b) 491-88 056-89 Gentlemen : This refers to your letter dated December 13, 1988 requesting in effect a ruling as to the expanded withholding tax rate applicable to the lease/rental of your radio equipment. cdtech It is represented that your company is in the business of leasing radio equipment; and that you are not sure whether to classify said equipment as real property or personal property. In reply, please be informed that payments only to persons enumerated in Revenue Regulations No. 6-85, implementing Section 50(b) of the Tax Code, as amended, are subject to the expanded withholding tax. Considering that payments for lease of personal property such as radio equipment under a contract of lease are not among those specified in said Regulations, such payments are not, therefore, subject to the expanded withholding tax. However, since the aforesaid payments are not subject to withholding tax, the payor shall render an information return on such payments pursuant to Section 61 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.) JOSE U. ONG Commissioner