Payments to Contractors Not Subject to EWT

March 1, 1993 BIR RULING NO. 076-93 PAYMENTS TO CONTRACTORS NOT SUBJECT TO EWT 50 (b) 49-92 076-93 MAG Sportswear Co., Inc. 105 Dangay Street Veterans Village Quezon City Attention: Mr . Salvador C . Navarra Accountant This refers to your letter dated January 26, 1993 requesting in effect, a ruling as to whether or not payments made to contractor or subcontractor of garment sewing, your line of business, is subject to 1% expanded withholding tax. cd In reply, please be informed that under Revenue Regulations No. 6-85 as amended, otherwise known as the Revised and Consolidated Expanded Withholding Tax Regulations implementing Section 50(b) of the Tax Code, as amended, only payments to persons enumerated therein are subject to the expanded withholding tax. Considering that payments to contractor or subcontractor of garment sewing is not among those enumerated in the said Regulations, such payment is not, therefore, subject to the expanded withholding tax. However, since the aforesaid payments are not subject to the withholding tax, the payor shall render information return on such payments pursuant to Section 61 (formerly Section 71) 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. cdta JOSE U. ONG Commissioner of Internal Revenue