The Bureau of Internal Revenue (BIR) issued Revenue Regulation (RR) No. 14-2023 on the imposition of creditable withholding taxes on certain income payments by joint ventures or consortiums, amending RR No. 2-98.

The following are the creditable withholding tax rates:

I. Income payments made by joint ventures, whether incorporated or not taxable or non-taxable, to their local/resident supplier of goods and services:

i. Supplier of goods – one percent (1%)

ii. Supplier of services – two percent (2%)

II. The share of each co-venturer or member from the net income of the joint venture or consortium that is not taxable as a corporation, prior to actual or constructive distribution, shall be subject to a 15% withholding tax rate.

The addition of withholding taxes on payments by joint ventures or consortiums enables the BIR to collect taxes ahead of the annual tax filing deadline and to capture information on suppliers’ income through data matching of alphalists submitted by the withholding agent and the supplier.

RR No. 14-2023 took effect on November 30, 2023, or fifteen (15) days after publication in a newspaper of general circulation in the Philippines.

Please be guided accordingly.



P&A Grant Thornton

Certified Public Accountants

P&A Grant Thornton is the Philippine member firm of Grant Thornton International Ltd.


As published in SunStar Cebu, dated 24 December 2023