Regulations amending Revenue Regulations No. 6-85, otherwise known as the Revised and Consolidated Expanded Withholding Tax Regulations

January 1, 1989 REVENUE REGULATIONS NO. 01-89 SUBJECT : R egulations Amending Revenue Regulations No. 6-8 5, Otherwise Known as the Revised and Consolidated Expanded Withholding Tax Regulations TO : All Internal Revenue Officers, Withholding Agents and Others Concerned Pursuant to the provisions of Section 245 of the National Internal Revenue Code, in relation to Section 22 (a), (b) and Section 50 (b) of the National Internal Revenue Code, as amended, the regulations are hereby promulgated to amend Revenue Regulations No. 6-85, otherwise known as the Revised and Consolidated Expanded Withholding Tax Regulations. SECTION 1 . Section 1 of Revenue Regulations No. 6-85 is hereby amended by adding paragraphs (h) and (i), to read as follows: "Sec. 1. Income Payments subject to creditable withholding tax and rates prescribed thereon . Except as herein otherwise provided, there shall be withheld a creditable income tax at the rates herein specified for each class of payee from the following items of income payments to persons residing in the Philippines: (h) Amount paid to partners of general professional partnerships . Any amount paid or payable periodically or at the end of the taxable year by a general professional partnership to the partners, such as drawings, advances, sharings, allowances, stipends, etc. - fifteen per centum (15%), except the amount paid to a partner who is a non- resident alien whether or not engaged in trade or business in the Philippines which shall be subject to a final withholding tax of thirty per centum (30%); and cd (i) Professional fees paid to medical practitioners . Any amount collected for and paid to medical practitioners by hospitals and clinics or paid by patients to the medical practitioners through the hospital or clinic ten per centum (10%)." SECTION 2 . Effectivity . These Regulations shall take effect January 1, 1989. (SGD.) VICENTE R. JAYME Secretary of Finance Recommending Approval: (SGD.) JOSE U. ONG Commissioner of Internal Revenue