• Skip to content
  • Skip to navigation

P&A Grant Thornton uses cookies to monitor the performance of this website and improve user experience

To find out more about cookies, what they are and how we use them, please see our privacy notice, which also provides information on how to delete cookies from your hard drive.

Global site
  • Global site
  • Algeria
  • Botswana
  • Cameroon
  • Egypt
  • Ethiopia
  • Gabon
  • Guinea
  • Kenya
  • Libya
  • Malawi
  • Mauritius
  • Morocco
  • Nigeria
  • Namibia
  • Senegal
  • South Africa
  • Togo
  • Tunisia
  • Uganda
  • Zambia
  • Zimbabwe
  • Anguilla
  • Antigua
  • Argentina
  • Aruba, Bonaire, Curacao and St. Maarten
  • Barbados
  • Bolivia
  • Brazil
  • British Virgin Islands
  • Canada LLP
  • Canada RCGT
  • Cayman Islands
  • Chile
  • Colombia
  • Costa Rica
  • Ecuador
  • El Salvador
  • Grenada
  • Guatemala
  • Honduras
  • Mexico
  • Montserrat
  • Nicaragua
  • Panama
  • Paraguay
  • Peru
  • Puerto Rico
  • St Kitts
  • St Lucia
  • St Vincent and the Grenadines
  • Trinidad & Tobago
  • United States
  • Uruguay
  • Venezuela
  • Turks & Caicos
  • Afghanistan
  • Australia
  • Bangladesh
  • Cambodia
  • China
  • Hong Kong
  • India
  • Indonesia
  • Japan
  • Korea
  • Malaysia
  • Mongolia
  • Myanmar
  • New Zealand
  • Pakistan
  • Philippines
  • Singapore
  • Taiwan
  • Thailand
  • Vietnam
  • Albania
  • Armenia
  • Austria
  • Azerbaijan
  • Belarus
  • Belgium
  • Bosnia and Herzegovina
  • Bulgaria
  • Channel Islands
  • Croatia
  • Cyprus
  • Czech Republic
  • Denmark
  • Estonia
  • Finland
  • France
  • Georgia
  • Germany
  • Gibraltar
  • Greece
  • Hungary
  • Iceland
  • Ireland
  • Isle of Man
  • Israel
  • Italy - Bernoni
  • Italy - Ria
  • Kazakhstan
  • Kosovo
  • Kyrgyzstan
  • Latvia
  • Liechtenstein
  • Lithuania
  • Luxembourg
  • Macedonia
  • Malta
  • Moldova
  • Monaco
  • Netherlands
  • Northern Ireland
  • Norway
  • Poland
  • Portugal
  • Romania
  • Russia
  • Serbia
  • Slovak Republic
  • Slovenia
  • Spain
  • Sweden
  • Switzerland
  • Tajikistan
  • Turkey
  • Ukraine
  • UK
  • Uzbekistan
  • Bahrain
  • Egypt
  • Jordan
  • Kuwait
  • Oman
  • Qatar
  • Saudi Arabia
  • United Arab Emirates
  • Yemen
  • Lebanon
Grant Thorton Logo

Grant Thornton Logo Grant Thornton Logo

Contact us
  • Insights
  • Services
  • Industries
  • Meet our people
  • Careers
  • Alerts and Publications
  • Events
  • Locations
  • P&A Foundation, Inc.
  • Audit and Assurance
  • Tax Advisory and Compliance
  • Advisory Services
  • Outsourcing and Managed Services
  • Japan Desk
Audit and Assurance Home
  • Audit approach overview
  • Annual and short period audit
  • Review engagement
  • Other Related Services
Tax Advisory and Compliance Home
  • Tax advisory
  • Tax compliance
  • Corporate services
  • Tax education and advocacy
Advisory Services Home
  • Business risk services
  • Business consulting services
  • Transaction services
  • Forensic advisory
  • Cyber advisory
Outsourcing and Managed Services Home
  • Accounting services
  • Staff augmentation services
  • Payroll Processing
  • Education
  • Consumer products
  • Energy and natural resources
  • Financial services
  • Not for profit
  • Outsourcing
  • Public sector
  • Real estate and construction
  • Technology, media and communications
  • Travel, tourism and leisure
  • Retail industry
  • About
  • P&AUSE
  • P&AUSE Officers
  • Board of Trustees
  • Contact Us
  1. Grant Thornton Philippines
  2. Alerts and Publications
  3. Technical Alerts
  4. Tax Alerts
  5. 2018
  6. New rule on deductibility of expenses not subjected to withholding tax

Tax Alert

25 Jan 2018
  • Tax Alerts
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012

New rule on deductibility of expenses not subjected to withholding tax

(Revenue Regulations No. 6-2018)

This Tax Alert is issued to inform all concerned taxpayers that RR 12-2013 has been revoked and that the rule on deductibility of expenses upon payment of deficiency withholding tax has been reinstated.

RR 12-2013 promulgated that no deduction will be allowed notwithstanding that the deficiency withholding tax is paid at the time of the audit. This rule is now revoked. RR 2-2018 reinstated the provisions of Section 2.58.5 of RR No. 14-2002, as amended by RR No. 17-2003 which allows the deduction provided the deficiency withholding tax is paid even at the time of audit or reinvestigation.

Pursuant to RR No. 06-2018, deduction from gross income will also be allowed in the following cases where no withholding of tax or incorrect withholding of tax was made:

a. Payee reports the income, pays the tax due, and the withholding agent pays the tax including the interest and surcharges, if applicable, incidental to the failure to withhold the tax.

b. Payee/recipient failed to report income on the due date, but the withholding agent/taxpayer pays the tax, including interest and surcharges, if applicable, incidental to the failure to withhold the tax.

c. Withholding agent erroneously withheld the tax but pays the difference between the correct withholding tax and the amount of tax withheld including interest and surcharges, if applicable, incidental to the error in withholding.

.

RR No. 6-2018
Download PDF [102 kb]
rich text with download pdf
Download PDF [102 kb]
Download PDF [102 kb]
  • Follow us on YouTube
  • Follow us on Facebook
  • Follow us on Twitter
  • Follow us on Instagram
CONNECTclose
  • Meet Our People
  • Contact us
  • Our heritage
ABOUTclose
  • About us
  • Careers
  • News Centre
LEGALclose
  • Privacy
  • Cookie policy
  • Disclaimer
  • Site map

© 2021 Punongbayan & Araullo - All rights reserved. “Grant Thornton” refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Punongbayan & Araullo (P&A) is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions.

    • EN
    • Contact us