REVENUE REGULATION No.

9 2013
Amending Certain Provisions of Revenue Regulations No. 30-2002
DIGEST
REVENUE REGULATIONS NO. 9-2013 issued on May 10, 2013 amends certain provisions of Revenue
Regulations No. 30-2002 relative to the payment of the amount offered as compromise settlement
pursuant to Section 204 of the Tax Code, as amended.
Section 6 of Revenue Regulations No. 30-2002 shall now read as follows:
SEC. 6. APPROVAL OF OFFER OF COMPROMISE. - Except for offers of compromise where the
approval is delegated to the REB pursuant to the succeeding paragraph, all compromise settlements
within the jurisdiction of the National Office (NO) shall be approved by a majority of all the members of
the NEB composed of the Commissioner and the four (4) Deputy Commissioners. All decisions of the
NEB, granting the request of the taxpayer or favorable to the taxpayer, shall have the concurrence of
the Commissioner.
xxx xxx xxx
The compromise offer shall be paid by the taxpayer upon filing of the application for compromise
settlement. No application for compromise settlement shall be processed without the full settlement of the
offered amount. In case of disapproval of the application for compromise settlement, the amount paid
upon filing of the aforesaid application shall be deducted from the total outstanding tax liabilities.
xxx xxx xxx
TAX IMPLICATIONS
There are two significant changes introduced by RR 9-2013. First is with respect to the payment
of the Compromise Offer and second is the consequence of the disapproval of the Comprise Offer to the
payment made as a prerequisite of the Compromise Offer.
Payment of Compromise Offer
RR 30-2002 gives the taxpayer the option to pay the compromise offer before or after the offer is
made by the taxpayer but with pursuant to RR 9-2013, payment of the compromise offer should be made
upon filing of the complaint. It further provided that the compromise offer would not be considered unless
it is paid upon filing. Thus, RR 9-2013 took away from the tax payer the option whether or not to pay
upon filing and made payment upon filing mandatory. In effect, it made compromise settlement more
burdensome to the tax payer.
Effect of Disapproval of Compromise Offer
RR 30-2002 states that incase the Compromise Offer disapproved, the payments made shall be
dealt with in according to the prevailing Revenue Memorandum Orders. Applying RM No. 20-2007, the
payments made shall be treated as partial or installment payments of the assessments. In the contrary, RR
9-2013 explicitly provides that the payments shall be deducted from the total tax liabilities. The

amendment makes it more burdensome for the tax payer since the payment cannot be treated as
installment payments but will be automatically deducted from the tax liability. If incase it is treated as
installment payments, the payment already give may relieve the tax payers a few months of installment
payments on the assessment. On the other hand, deducting it from the tax liability will not accord the
same relief as in the prior case.
ANNEX
REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF FINANCE
BUREAU OF INTERNAL REVENUE
Quezon City
May 10, 2013
REVENUE REGULATIONS NO. 9 2013
SUBJECT : Amending Certain Provisions of Revenue Regulations No. 30-2002
TO : All Internal Revenue Officer and Others Concerned
SECTION 1. SCOPE. Pursuant to Sections 7(a) and 244 of the National Internal Code of 1997, as
amended, these regulations are hereby promulgated for the purpose of amending Section 6 of Revenue
Regulations No. 30-2002, particularly on the payment of the amount offered as compromise settlement
pursuant to Section 204 of the Tax Code, as amended.
SECTION 2. AMENDMENT. Section 6 of Revenue Regulations No. 30-2002 shall now read as follows:
SEC. 6. APPROVAL OF OFFER OF COMPROMISE. - Except for offers of compromise where the
approval is delegated to the REB pursuant to the succeeding paragraph, all compromise settlements
within the jurisdiction of the National Office (NO) shall be approved by a majority of all the members of
the NEB composed of the Commissioner and the four (4) Deputy Commissioners. All decisions of the
NEB, granting the request of the taxpayer or favorable to the taxpayer, shall have the concurrence of the
Commissioner. xxx xxx xxx
The compromise offer shall be paid by the taxpayer upon filing of the application for compromise
settlement. No application for compromise settlement shall be processed without the full settlement of the
offered amount. In case of disapproval of the application for compromise settlement, the amount paid
upon filing of the aforesaid application shall be deducted from the total outstanding tax liabilities. xxx
xxx xxx
SECTION 3. REPEALING CLAUSE. All existing rules and regulations or rulings or parts thereof,
which are contrary to or inconsistent with the provisions of these Regulations are hereby amended,
modified or repealed accordingly.

SECTION 4. EFFECTIVITY.- The provisions of these Regulations shall take effect fifteen (15) days after
publication in any newspaper of general circulation.
(Original Signed)
CESAR V. PURISIMA
Secretary of Finance
Recommending Approval:
(Original Signed)
KIM S. JACINTO-HENARES
Commissioner of Internal Revenue

REVENUE REGULATION 10 2013

Amending Further Pertinent Provisions of Revenue Regulations (RR) No. 2-98, as Last Amended by
Revenue Regulations No. 30-2003, Providing for the Inclusion of Real Estate Service Practitioners (i. e.
Real Estate consultant, Appraiser and Broker) Who Passed the Licensure Examination given by the Real
Estate Service under the Professional Regulations Commission as defined in Republic Act No. 9646,
The Real Estate Service Act of the Philippines as Among Those Professionals Falling Under Section
2.57.2(A)(1) of RR 2-98, as Amended, and RR 14-2002 as Regards Income Payments to Certain Brokers
and Agents
DIGEST
REVENUE REGULATIONS NO. 10-2013 issued on June 6, 2013 amends further pertinent provisions of
Revenue Regulations (RR) No. 2-98, as last amended by RR No. 30-2003, which provides for the
inclusion of real estate service practitioners (i. e. real estate consultant, appraiser and broker) who passed
the licensure examination given by the Real Estate Service under the Professional Regulations
Commission (as defined in Republic Act No. 9646, The Real Estate Service Act of the Philippines) as
among those professionals falling under Section 2.57.2(A)(1) of RR No. 2-98, as amended, and RR No.
14-2002 as regards income payments to certain brokers and agents.

Section 2.57.2(A)(1) of RR No. 2-98, as last amended by RR No. 30 2003, is hereby further
amended to read as follows:
Section 2.57.2. Income payments subject to creditable withholding tax and rates
prescribed thereon. - xxx xxx
(A)Professional fees, talent fees, etc., for services rendered by individuals. On
the gross professional, promotional and talent fees or any other form of remuneration for
the services of the following individuals Fifteen percent (15%), if the gross income for
the current year exceeds P 720,000; and Ten percent (10%), if otherwise:

(1) Those individually engaged in the practice of profession or callings: xxx

designers, real estate service practitioners (RESPs), (i. e. real estate consultants, real
estate appraisers and real estate brokers) requiring government licensure examination
given by the Real Estate Service pursuant to Republic Act No. 9646 and all other
profession requiring government licensure examination regulated by the Professional
Regulations Commission, Supreme Court, etc. xxx
Section 2.57.2(G) of RR No. 2-98, as last amended by RR No. 14-2002, is hereby further
amended to read as follows:
Section 2.57.2. Income payments subject to creditable withholding tax and
rates prescribed thereon. - xxx xxx
xxx xxx xxx
(G) Income payments to certain brokers and agents. - On gross commissions of
customs, insurance, stock, immigration and commercial brokers, fees of agents of
professional entertainers and real estate service practitioners (RESPs), (i. e. real estate
consultants, real estate appraisers and real estate brokers) who failed or did not take up
the licensure examination given by and not registered with the Real Estate Service under
the Professional Regulations Commission. Ten percent (10%).
xxx xxx xxx
The Regulations shall take effect June 1, 2013 and shall cover income payments to be paid or payable
starting June 1, 2013, which are required to be remitted within the month of July, 2013.
TAX IMPLICATIONS
RR 10 2013 introduces two major changes in Withholding Tax Rates. First, the inclusion of
Real Estate Service Practitioners (RESP) among those whose fees are subject either to 15% or 10%
creditable withholding tax under 2.57.2(A)(1) of RR No. 2-98. Second is the inclusion of those who did
not pass or did not take the licensure examination given by the Real Estate Service among those whose
fees are subject to 10% creditable withholding tax under Section 2.57.2(G) of RR No. 2-98.
Creditable Withholding Tax Rates on RESPs who passed the Licensure Exams
Due to the amendments, the fees of licensed RESPs will be subject to creditable withholding tax
of 15% if the gross income for the specific year exceeds 720,000 pesos and 10% if otherwise. The
taxpayer will no longer be able to receive his full fee but a portion thereof will be withheld by the service
receiver for payment of the taxes due thereon. The taxpayer will still be required to file a return and shall
pay the difference between the tax withheld and tax due on the income.
Creditable Withholding Tax Rates on RESPs who did not pass or did not take the Licensure Exams
Pursuant to the amendment, the fees of RESPs who did not pass or opted not to take the licensure
exams will be subject to creditable withholding tax of 10%. The 10% of the fees will in the same manner
be withheld by the service receiver. The taxpayer will likewise file a return and pay the tax less the

withheld amount. In both instances, the RESPs will not able to receive in full their fees and will not be
able to fully utilize the same.
ANNEX
REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF FINANCE
BUREAU OF INTERNAL REVENUE
May 2, 2013
REVENUE REGULATIONS No. 10-2013
SUBJECT: Amending Further Pertinent Provisions of Revenue Regulations (RR) No. 2-98, as Last
Amended by Revenue Regulations No. 30-2003, Providing for the Inclusion of Real Estate Service
Practitioners (i. e. Real Estate consultant, Appraiser and Broker) Who Passed the Licensure Examination
given by the Real Estate Service under the Professional Regulations Commission as defined in Republic
Act No. 9646, The Real Estate Service Act of the Philippines as Among Those Professionals Falling
Under Section 2.57.2(A)(1) of RR 2-98, as Amended, and RR 14-2002 as Regards Income Payments to
Certain Brokers and Agents
TO: All Internal Revenue Officers, Employees and Others Concerned.
______________________________________________________________________________
SECTION 1. SCOPE. Pursuant to the provisions of Section 244, in relation to Section 57(B) of the
Tax Code of 1997, these regulations are hereby promulgated to further amend portions of Revenue
Regulations No. 2-98 as last amended by Revenue Regulations No. 30-2003, providing for the inclusion
of Real Estate Service Practitioners who passed the licensure examination given by the Real Estate
Service pursuant to RA 9646, The Real Estate Service Act of the Philippines as among those
professionals falling under Section 2.57.2(A)(1) of Revenue Regulations No. 298, as amended, subject to
the 10% or 15% creditable (expanded) withholding tax and to amend Section 2.57.2(G) of RR 14-2002 to
include real estate practitioners who did not pass or did not take up licensure examinations given by the
Real Estate Service.
SECTION 2. Section 2.57.2(A)(1) of RR 2-98, as last amended by RR 30-2003, is hereby further
amended to read as follows:
Section 2.57.2. Income payments subject to creditable withholding tax and rates prescribed thereon. xxx xxx
(A) Professional fees, talent fees, etc., for services rendered by individuals. On the gross professional,
promotional and talent fees or any other form of remuneration for the services of the following
individuals Fifteen percent (15%), if the gross income for the current year exceeds P720,000; and Ten
percent (10%), if otherwise:

(1) Those individually engaged in the practice of profession or callings: xxx designers, real estate service
practitioners (RESPs), (i. e. real estate consultants, real estate appraisers and real estate brokers) requiring
government licensure examination given by the Real Estate Service pursuant to Republic Act No. 9646
and all other profession
requiring government licensure examination regulated by the Professional Regulations Commission,
Supreme Court, etc. xxx
SECTION 3. Section 2.57.2(G) of RR 2-98, as last amended by RR 14-2002, is hereby further amended
to read as follows:
Section 2.57.2. Income payments subject to creditable withholding tax and rates prescribed thereon. xxx xxx
xxx
xxx xxx (G) Income payments to certain brokers and agents. - On gross commissions of
customs, insurance, stock, immigration and commercial brokers, fees of agents of professional
entertainers and real estate service practitioners (RESPs), (i. e. real estate consultants, real estate
appraisers and real estate brokers) who failed or did not take up the licensure examination given by and
not registered with the Real Estate Service under the Professional Regulations Commission. Ten percent
(10%).
xxx xxx xxx
SECTION 4. REPEALING CLAUSE. All existing revenue regulations and other issuances or portions
thereof which are inconsistent herewith are hereby revoked, repealed or amended accordingly.
SECTION 5. EFFECTIVITY. - These regulations shall take effect June 1, 2013 and shall cover income
payments to be paid or payable starting June 1, 2013 which are required to be remitted within the month
of July, 2013
(Original Signed)
CESAR V. PURISIMA
Secretary of Finance
Recommending Approval:
(Original Signed)
KIM S. JACINTO-HENARES
Commissioner of internal Revenue