Whether the Laundry Service Fees aid are Subject to the Creditable Expanded Withholding Tax under Revenue Regulations No. 6-85

October 10, 1995 BIR RULING NO. 153-95 50 (b) 000-000 153-95 Ms. Teresita S. Opena c/o Crismina Garments Rm. 607 Executive Bldg. Center Gil. Puyat Ave. cor Makati Ave. Makati City M a d a m : This refers to your letter dated August 14, 1995 stating that your client corporation is engaged in the laundry business; and that most of its customers are garment manufacturers. Based on the foregoing representations, you now request clarification on whether the laundry service fees aid by its customers are subject to the creditable expanded withholding tax under Revenue Regulations No. 6-85. In reply, please be informed that under Revenue Regulations No. 6-85, as amended, implementing Section 50(b) on relation to Section 24, both of the Tax Code, as amended only payments to persons enumerated therein are subject to the expanded withholding tax. Considering that payments are laundry services are not among those specified in said Regulations, such payments are not subject to the expanded withholding tax. 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 of the Tax Code, as amended by B.P. Blg. 135 and as implemented by Section 21 of Revenue Regulations No. 1-82 dated March 18, 1982. aisadc Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue