List of Existing and New Top Withholding Agents

(BIR Advisory, October 08, 2018)

                   

This tax alert is issued to inform all concerned taxpayers on the publication of the BIR’s list of top withholding agents.

On October 8, 2018, the BIR published in Malaya Business Insight the list of existing and additional top withholding agents (TWAs), as well as the list of de-listed top withholding agents. As per BIR advisory, any taxpayer not included in the published lists of top withholding agents is deemed excluded in the list, and therefore not required to deduct and remit the 1% or 2% creditable withholding tax on purchases of goods and services.

Under RR No. 11-18, the publication shall serve as the “notice” to the top withholding agents.  

The following are the obligations of published top withholding agents:

  1. To deduct and remit creditable/expanded withholding tax on purchases of goods (1%) and purchases of services (2%) from local “regular suppliers” and casual suppliers for single purchase exceeding P10,000. This is in addition to the general obligation to withhold on professional fees, commissions, payments to contractors, rentals, and purchases of real property.

Regular suppliers of goods and services refer to those suppliers who are engaged in business or exercise of profession/calling with whom the taxpayer-buyer has transacted at least six (6) transactions, regardless or amount per transaction, either in the previous year or current year.

For new/additional top withholding agents, the obligation to withhold shall start on November 1, 2018.

  1. To submit the following alphalist of regular suppliers:

Alphalist of Regular Suppliers

Due Date of Submission

Initial list of regular suppliers*

15 days from publication

1st semester list

July 31

2nd semester list

January 31 of the following year

*applicable to new/additional top withholding agents.