Commissions Made to Individual Collection Agents are Not Subject to 1% Expanded Withholding Tax
BIR Ruling No. 375-87 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Nov 24, 1987
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November 24, 1987 BIR RULING NO. 375-87 225-87 375-87 Gentlemen : This refers to your letter dated September 16, 1987 requesting clarification of BIR Ruling 51(f)-000-00-225-87 relative to the exemption of the individual collection agents of your client, Singer Sewing Machine Company from the 1% expanded withholding tax. iatdc In reply, I have the honor to inform you that under Revenue Regulations No. 6-85 otherwise known as the Revised and Consolidated Expanded Withholding Tax Regulations implementing Section 51(b) of the Tax Code, only income payments to persons enumerated therein are subject to the expanded withholding tax. Accordingly, since individual collection agents are not among those enumerated in said regulations, gross payments consisting of commissions made by your client, Singer Sewing Machine Company to its individual collection agents are not subject to the 1% expanded withholding tax. Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner
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