Fees Paid to Management and Technical Consultants are Subject to 10% Withholding Tax

December 8, 1981 BIR RULING NO. 252-81 53-f 000-00 252-81 Institute of Labor and Manpower Studies 5th Floor, MOLE Bldg. Intramuros, Manila Attention: Mr . Felipe V . Aguirre COA Auditor I Gentlemen : This refers to your letter dated April 1, 1981, requesting a ruling on whether or not the consultant's fee due Mr. Leoncio Marcelo is subject to withholding tax pursuant to Revenue Regulations No. 13-78, as amended by Revenue Regulations No. 6-79, implementing Presidential Decree No. 1351, now Section 53(f) of the Tax Code. It is represented that a consultant's fee of P500.00 was paid to the abovenamed person for his services. In reply, please be informed that fees paid to management and technical consultants are subject to 10% withholding tax. (Section 1(a)(5), Revenue Regulations No. 13-78, as amended by Revenue Regulations No. 6-79). Accordingly, the consultant's fee paid to Mr. Leoncio Marcelo is subject to the 10% withholding tax. aisadc Very truly yours, RUBEN B. ANCHETA Acting Commissioner