The 10-day Period Within Which to Remit the Withholding Tax on Wages may be Done Within 10 Days from Receipt of the Remittance from the Saudi Principal

October 22, 1987 BIR RULING NO. 325-87 82 215-86 325-87 Gentlemen : This refers to your letter dated August 5, 1986, requesting that you be allowed to remit the withholding tax on wages of your contract workers in Saudi Arabia within ten (10) days from your receipt of the remittance from Saudi Arabia without penalty for such late remittance. It is represented that your company has about 320 contract workers in Saudi Arabia; that the salaries of your workers usually take 2 to 3 months before your Saudi principal could pay them; and that such remittance of taxes could be effected only after your contract workers have received their salaries such that the remittance of the withholding tax on wages is delayed. In reply thereto, I have the honor to inform you that every employer or person having the control, receipt, custody, disposal or payment of compensation paid to and received by citizens of the Philippines for services performed outside of the country irrespective of the number of days of such service during the calendar year shall deduct and withhold the tax due thereon. (Sec. 7, II, Revenue Regulations No. 6-82). cdta Pursuant to Section 2 of Revenue Regulations No. 5-85 taxes deducted and withheld on compensation income shall be remitted within ten (10) days after the end of each calendar month. However, since no withholding of the tax can be undertaken unless the withholding agent receives the income subject to withholding, this Office believes and so holds, that the ten-day period within which to remit the withholding tax on wages may be done within ten (10) days from receipt of the remittance from your Saudi principal without penalty for late remittance. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner