Applicability of Withholding Tax Provisions

December 12, 1979 BIR RULING NO. 121-79 Applicability of withholding tax provisions In reply to your letter dated January 9, 1979, I have the honor to inform you that the withholding tax provisions of Revenue Regulations No. 13-78 and Revenue Regulations No. 6-79 both implementing Presidential Decree No. 1351, particularly Sections 1(a)(1) and (b) thereof apply only to professionals who are individually engaged in the practice of professions and to taxable juridical persons. Since the retainer fees are being paid by your clients not to accountants who are individually engaged in the practice of their profession but to an accounting office which is a duly registered professional partnership and considering further that said partnership is a non-taxable juridical entity, the retainer fees paid to such partnership are not subject to the withholding tax prescribed by said regulations. (See BIR Ruling No. 055-79 dated July 5, 1979) cd