RR 12-2013: Emphasis of Withholding Tax Deductibility

What is RR 12-2013?

It is an amendment on section 2.58.5 of RR 2-98

Section 2.58.5 states:

Any income tax payment which is otherwise deductible under the code shall be allowed as deduction from the payer’s gross income only if it is shown that the income tax required to be withheld has been paid to bureau in accordance with sec. 57 and 58.

No Deduction will also be allowed notwithstanding payment of withholding tax at the time of audit investigation or re-investigation/reconsideration in cases where no withholding of tax was made in accordance with sec. 57 and 58.

Interpretation:

It is merely an emphasis that upon using the withholding tax as deduction to the employer’s income, it must be made sure that the said tax must be paid to BIR in accordance with section 57 and 58. Moreover, it is not allowed to deduct withholding tax even if you pay withholding tax during audit/investigation/reconsideration unless withholding of tax was made in accordance with sec. 57 and 58.

This extract is an interpretation and has not been approved by the BIR