Title II — TAX ON INCOME
previously abated, credited, returned or otherwise repaid in respect
of such tax.
SEC. 57. Withholding of Tax at Source. —
(A)
Withholding of Final Tax on Certain Incomes. — Subject to rules
and regulations the Secretary of Finance may promulgate, upon the
recommendation of the Commissioner, requiring the filing of income
tax return by certain income payees, the tax imposed or prescribed by
Sections 24(B)(1), 24(B)(2), 24(C), 24(D)(1); 25(A)(2), 25(A)(3),
25(B), 25(C), 25(D), 25(E); 27(D)(1), 27(D)(2), 27(D)(3), 27(D)(5);
28(A)(4), 28(A)(5), 28(A)(7)(a), 28(A)(7)(b), 28(A)(7)(c), 28(B)(1),
28(B)(2), 28(B)(3), 28(B)(4), 28(B)(5)(a), 28(B)(5)(b), 28(B)(5)(c);
33; and 282 of this Code on specified items of income shall be withheld
by payor-corporation and/or person and paid in the same manner and
subject to the same conditions as provided in Section 58 of this Code.
(B)
Withholding of Creditable Tax at Source. — The Secretary of Finance
may, upon the recommendation of the Commissioner, require the
withholding of a tax on the items of income payable to natural or juridical
persons, residing in the Philippines, by payor-corporation/persons as
provided for by law, at the rate of not less than one percent (1%) but
not more than thirty-two percent (32%) thereof, which shall be credited
against the income tax liability of the taxpayer for the taxable year:
Provided, That, beginning January 1, 2019, the rate of withholding shall
not be less than one percent (1%) but not more than fifteen percent
(15%) of the income payment.32
(C)
Tax-free Covenant Bonds. — In any case where bonds, mortgages,
deeds of trust or other similar obligations of domestic or resident foreign
corporations, contain a contract or provision by which the obligor agrees
to pay any portion of the tax imposed in this Title upon the obligee or
to reimburse the obligee for any portion of the tax or to pay the interest
without deduction for any tax which the obligor may be required or
permitted to pay thereon or to retain therefrom under any law of the
Philippines, or any state or country, the obligor shall deduct and withhold
a tax equal to thirty percent (30%) of the interest or other payments upon
those bonds, mortgages, deeds of trust or other obligations, whether the
interest or other payments are payable annually or at shorter or longer
periods, and whether the bonds, securities or obligations had been or
will be issued or marketed, and the interest or other payment thereon
32
Introduced by Section 17 of the TRAIN Law.
National Internal Revenue Code of 1997 (as amended by the TRAIN Law, RAs 11256, 11346 and 11467)
83
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