Non-Requirement of Deductibility and Withholding of the 10% Value-Added Tax on Government Agencies Money Payments
BIR Ruling No. 194-88 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • May 5, 1988
Full text
May 5, 1988 BIR RULING NO. 194-88 102 (a) 000-00 194-88 Gentlemen : In reply to your letter dated February 24, 1988, please be informed that the value-added tax, the amount of which cannot be fixed, determined, computed or ascertained at the time of such payment by the government office, instrumentalities and agencies is not subject to the withholding and remittance provisions of R.A. No. 1051 and its implementing regulations. (Paragraph 1, Revenue Memorandum Circular No. 18-88). Accordingly, government agencies like NEA, NPC, NIA, MWSS, LWUA, etc. are not required to deduct and withhold the 10% value-added tax on their money payments to you as contractor. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner
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