Revenue Regulations Amending Revenue Regulations No. 13-78, as amended by Revenue Regulations No. 6-79, otherwise known as the Expanded Withholding Tax Regulations

April 3, 1982 REVENUE REGULATIONS NO. 03-82 SUBJECT : Revenue Regulations Amending Revenue Regulations No. 13-78, a s Amended by Revenue Regulations No. 6-7 9, Otherwise Known as the Expanded Withholding Tax Regulations TO : All Internal Revenue Officers and Others Concerned P ursuant to the provisions of Presidential Decree No. 1351 and in accordance with the provisions of Section 326 in relation to Section 4, both of the National Internal Revenue Code of 1977, the following Regulations amending Revenue Regulations No. 13-78, as amended by Revenue Regulations No. 6-79 are hereby promulgated and shall be known as Revenue Regulations No. 3-82. cd i SECTION 1 . Section 1(h) of Revenue Regulations No. 13-78, as amended is hereby further amended to read as follows: "(h) Interest Payments on Bonds or Similar Indebtedness . On interest payments on bonds or similar evidences of indebtedness, except interest or other payments on tax-free covenant bonds which are subject to withholding under Section 53(a) of the Tax Code, issued by any corporation and by all government agencies including government-owned or controlled corporations - twenty per centum (20%); Provided, however , that for purposes of this subsection and pursuant to Finance Department Order No. 31-66 dated April 22, 1966, the amount of discount at which Treasury Bills are originally sold by the Republic of the Philippines is considered interest." SECTION 2 . Section 3 of the Revenue Regulations No. 13-78, as amended, is hereby further amended to read as follows; "Sec. 3. Time of Withholding . The obligations of the payor to deduct and withhold under these regulations arises at the time an income which is subject to withholding under Section 1 hereof is payable or paid, except that in the case of Treasury Bills maturing for less than one year, the tax on the amount earned as discount, shall be withheld on the date of issuance of the debt instrument." cdt SECTION 3 . Effectivity . These regulations shall apply to bonds or similar evidence of indebtedness issued beginning May 1, 1992 provided, however, that for Treasury Bills maturing for less than one year and issued prior to the date of effectivity of these regulations, the tax shall be withheld on interest when payable or paid. CESAR VIRATA Minister of Finance Recommending Approval: RUBEN B. ANCHETA Acting Commissioner