Tax Alerts
Clarification on deductibility of depreciation on vehicles
Under RR 12-2012, the Bureau of Internal Revenue (BIR) imposed a limit on the deductibility of depreciation allowance, maintenance expenses and input VAT on motor vehicles, as follows:
Further clarification on the coverage of 20% CWT on interest income
You would recall that under RR 14-2012, a 20% creditable withholding tax (CWT) was imposed on interest income from all other debt instruments which do not fall within the coverage of “deposit substitutes”. In RMC 77-2012, the BIR clarified that the 20% CWT covers all interest income payment made beginning November 23, 2012 irrespective of when the instruments or securities were issued.