Revenue Regulations No. 31-2020
Revenue Regulations No. 31-2020
Revenue Regulations No. 31-2020
31-2020
November 4, 2020
SUBJECT: Further Amending the Pertinent Provisions of Revenue Regulations (RR) No. 11-
2018, as Previously Amended by RR No. 7-2019, Specifically on the Criteria for
Identifying the Top Withholding Agents
SECTION 1. SCOPE. — Pursuant to the provisions of Sections 244 and 245 of the National
Internal Revenue Code (NIRC) of 1997, as amended, these Regulations are hereby promulgated to
further amend the provisions of Revenue Regulations (RR) No. 7-2019 which amends Section 2 of
Revenue Regulations (RR) No. 11-2018, re: Amending Certain Provisions of Revenue Regulations
No. 2-98, as Amended, to Implement Further Amendments Introduced by Republic Act No. 10963,
Otherwise Known as the “Tax Reform for Acceleration and Inclusion (TRAIN) Law”.
“SECTION 2.57.2. Income Payments Subject to Creditable Withholding Tax and Rates
Prescribed Thereon. Except as herein otherwise provided, xxx.
XXX
(I) Income payment made by top withholding agents, either private corporations or
individuals, to their local/resident supplier of goods and local/resident supplier of services
other than those covered by other rates of withholding tax. [formerly under letters (M) and
(W)] — Income payments made by any of the top withholding agents, including non-resident
aliens engaged in trade or business in the Philippines, shall be subjected to the following
withholding tax rates:
Top withholding agents shall refer to those taxpayers whose gross sales/receipts or gross
purchases during the preceding taxable year shall fall under the minimum thresholds determined
according to the existing group classification off the Revenue District Offices (RDOs) where
they are duly registered, as follows:
Gross Sales/Receipts or
RDO Group
Gross Purchases of At
Classification*
Least
Twelve Million Pesos
Groups A and B (P12,000,000.00)
The term “goods” pertains to tangible personal property. It does not include intangible
personal property, as well as agricultural products which are defined under item (N) of this
Section.
SEC. 3. REPEALING CLAUSE. — All revenue issuances inconsistent with the provisions
of these Regulations are hereby amended, modified or repealed accordingly.
SEC. 4. EFFECTIVITY. — The provisions of these Regulations shall take effect after
fifteen (15) days immediately following the date of publication thereof in any newspaper of
general circulation.
Recommending Approval:
CESAR R DULAY
CARLOS G. DOMINGUEZ
Secretary of Finance