Exemption from the Payment of the Expanded Withholding Tax as a Contractor of Textile Finishers

April 7, 1989 BIR RULING NO. 064-89 50 (b) 506-88 064-89 Gentlemen : This refers to your letter dated December 12, 1988 requesting exemption from the payment of the expanded withholding tax as a contractor of textile finishers. It is represented that your company is engaged as contractor of textile finishers, such as washing, drying, bleaching and finishing of textiles. In reply, please be informed that payments only to persons enumerated in Revenue Regulations No. 6-85, as amended, implementing Section 50(b) of the Tax Code, as amended, are subject to the expanded withholding tax. Considering that payments to contractors of textile finishers, such as washing, drying, bleaching and finishing of textiles are not among those specified in said Regulations, payments made to you as such contractor are not, therefore, subject to the expanded withholding tax. However, since payments made to you as such contractor are not subject to withholding tax, the payor shall render an information return on its 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. 1-62 dated March 18, 1982. cd Very truly yours, (SGD.) JOSE U. ONG Commissioner