BIR circular to address 1% tax

March 11, 2015
Daily Star by Carla Gomez | http://goo.gl/FdaPb5

The Bureau of Internal Revenue is issuing a memorandum circular that will clarify some provisions of Revenue Regulation 11-2014 that imposes a one percent creditable withholding tax on raw sugar and molasses upon withdrawal from the mills, Ric Cabrera, BIR Region 12 chief legal counsel, said yesterday.


 

A lot of clarifications will be made. “Definitely, it would temper the opposition,” he said.

Small farmers, including agrarian reform beneficiaries, earlier staged a protest against the RR 11-2014 saying they do not earn enough to be covered by tax and the documentary requirements required by the BIR are difficult for them to comply with.

At a BIR dialog with industry stakeholders Enrique Tabino, legal counsel of the Sugar Alliance of the Philippines, asked for a 120-day suspension of RA 11-2014 to give small farmers time to comply with its requirements.

The BIR Region 12 OIC Regional Director Myrna Leonida asked him to put the request in writing, along with the concerns raised so they could be submitted to the BIR commissioner.