The Bureau of Internal Revenue (BIR) issued Revenue Regulations (RR) No. 01-2019 to further supplement RR No. 11-2018 on the changes to the withholding tax rates of the following transactions:
- Payments to Manila Electric Company (Meralco) and other electric distribution utilities; and
- Interest income on debt instruments not classified as deposit substitutes.
Pursuant to the Tax Reform for Acceleration and Inclusion (TRAIN) Law, the withholding tax rate shall not be less than 1%, but not more than 15%. Hence, effective January 1, 2019, the withholding tax rates of the following income payments were updated:
Please be guided accordingly.