Exemption from Expanded Withholding Tax

July 12, 1989 BIR RULING NO. 147-89 50 (b) 568-88 147-89 Gentlemen : This refers to your letter dated May 2, 1989 requesting, in effect a ruling as to whether or not BIR Ruling No. 104-79 dated December 11, 1979 stating that payments made for installing buildings with house cables are not subject to the expanded withholding tax, is still applicable. aisadc It is represented that one of your clients, the University of Sto. Tomas, is subjecting you to the withholding tax, and that you furnished them with a copy of the said ruling but the same was rejected and it insisted that there is a new ruling subjecting the said payments to the expanded withholding tax. 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 for installing buildings with house cables are not among those specified in said Regulations, such payments are not, therefore, subject to the expanded withholding tax. In other words, BIR Ruling No. 104-79 dated December 11, 1979 is still applicable. acd However, since the aforesaid payments are not subject to the withholding tax, the payor shall render an 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. Very truly yours, (SGD.) JOSE U. ONG Commissioner