Income Payments are Not Subject to Withholding Tax
BIR Ruling No. 155-81 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Aug 7, 1981
Full text
August 7, 1981 BIR RULING NO. 155-81 53-f 056-80 155-81 Iron City Transportation Corporation 1235 Solis Street, Metro Manila Attention: Mr . Fidel A . Pangilinan General Manager Gentlemen : This refers to your letter dated September 18, 1980 inquiring whether income payments to you with respect to your business of trucking specially in the handling or delivery of all kinds of merchandise produced or manufactured by your clients who are private individuals or entities, from Manila to different places in Luzon, at an agreed or specific rates, are subject to withholding tax under Revenue Regulations No. 13-78, as amended by Revenue Regulations No. 6-79, known as the Expanded Withholding Tax Regulations. In reply, I have the honor to inform you that under the aforesaid Regulations, income payments only to persons enumerated therein are subject to withholding tax. Money payments to you in connection with the abovementioned business in which you are engaged, are not among those specified in the Regulations. Accordingly, said income payments are not subject to withholding tax. However, said income payments are subject to income tax and to the 2% common carrier's tax. Very truly yours, RUBEN B. ANCHETA Acting Commissioner
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