REVENUE REGULATIONS NO.

6-2001 issued August 1, 2001 amends pertinent

provisions of RR Nos. 1-98, 2-98 and 7-95 and RMC No. 1-98 relative to the inclusion of
additional taxpayers to be subject to the Final Withholding Tax, revision of the Withholding
Tax rates on certain income payments subject to Creditable Withholding Tax, time for the
filing of various tax returns and payment of the taxes due thereon and others.
Additional income payments subject to the Final Withholding Tax are the following:
1) income payments to citizens or to resident alien individuals/non-resident aliens
engaged in trade or business in the Philippines/domestic corporations/resident foreign
corporations derived from contracts by subcontractors from service contractors engaged
in "petroleum operations" in the Philippines - 8%; 2) gross income from all sources within
the Philippines derived by non-resident cinematographic film owners, lessors or
distributors - 25%; and 3) gross income received by Filipinos employed and occupying
the same positions as those aliens employed by multinational companies, Offshore
Banking Units, foreign petroleum service contractors and subcontractors - 15%. However,
Filipinos employed and occupying the same positions as those aliens employed by multi-
national companies shall have the option to be taxed at either 15% of gross income or at
the regular tax rate on their taxable income.
The revised rates of Creditable Withholding Tax on income payments to the
following persons residing in the Philippines are: 1) professional entertainers, such as,
but not limited to actors and actresses, singers and emcees - 20%; 2) professional
athletes, including basketball players, pelotaris and jockeys - 20%; 3) all directors
involved in movies, stage, radio, television and musical production - 20%; 4) other
recipients of talent fees - 20%; 5) directors who are not employees of the company paying
them fees, whose duties are confined to attendance at and participation in the meetings
of the board of directors - 20%; 6) professional fees, talent fees, etc. for services of taxable
juridical persons - 10%; 7) income payments to certain brokers and agents - 10%; and 8)
income payments to certain contractors - 2%.
Income payments made by credit card companies in the Philippines to any
business entity shall be withheld a 1% creditable income tax based on the gross amounts
paid. A 6% Creditable Withholding Tax shall also be imposed on the sale/transfer of real
properties classified as ordinary assets if the seller/transferor is not habitually engaged in
the real estate business.