Re-withholding of Tax Due on Money Payments Made by Government Agencies to Contractors (RA No. 1051)

March 20, 1958 BIR RULING NO. 185-58 Messrs. Meer, Meer & Meer Attorneys-at-Law Suite 302-306 Singson Bldg. Plaza Moraga, Manila Gentlemen : Reference is made to your letter dated March 17, 1958 inquiring, under certain circumstances, into the application of Republic Act No. 1051, rewithholding of tax due on money payments made by government agencies to contractors. cdt In reply thereto, I have the honor to inform you as follows: Withstanding is not required in case previous payments of the tax due on any money payment had already been made, pursuant to Section 3 of said Act. Accordingly, if your client, the Atlantic, Gulf and Pacific Co., had already declared any amount collectible by it from Government offices for taxation and paid the tax due thereon, no tax need any longer be deducted and withheld from any such amount when payment is made to it thereof. In the event that, notwithstanding such previous payments, withholding was nevertheless effected, resulting in double payment of the tax, the amount taxed twice may be deducted from the subsequent declaration of the taxpayer. Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue