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This page features the full text of
Republic Act No. 7649
AN
ACT REQUIRING THE GOVERNMENT OR ANY OF ITS POLITICAL SUBDIVISIONS,
INSTRUMENTALITIES
OR AGENCIES INCLUDING GOVERNMENT-OWNED OR CONTROLLED CORPORATIONS
(GOCCs)
TO DEDUCT AND WITHHOLD THE VALUE-ADDED TAX DUE AT THE RATE OF THREE
PERCENT
(3%) ON GROSS PAYMENT FOR THE PURCHASE OF GOODS AND SIX PERCENT (6%) ON
GROSS RECEIPTS FOR SERVICES RENDERED BY CONTRACTORS.
REPUBLIC
ACT NO. 7649AN
ACT REQUIRING THE GOVERNMENT OR ANY OF ITS POLITICAL SUBDIVISIONS,
INSTRUMENTALITIES
OR AGENCIES INCLUDING GOVERNMENT-OWNED OR CONTROLLED CORPORATIONS
(GOCCs)
TO DEDUCT AND WITHHOLD THE VALUE-ADDED TAX DUE AT THE RATE OF THREE
PERCENT
(3%) ON GROSS PAYMENT FOR THE PURCHASE OF GOODS AND SIX PERCENT (6%) ON
GROSS RECEIPTS FOR SERVICES RENDERED BY CONTRACTORS.
Section
1. Section 110 of the National
Internal Revenue Code, as amended by Republic Act No. 7643, is hereby
further
amended by adding a new paragraph (c) thereunder to read as
follows: chanrobles virtuallaw libraryred
"(c) Withholding
of Creditable Value-Added Tax. — The Government or any of its political
subdivisions, instrumentalities or agencies, including government-owned
or controlled corporations (GOCCs) shall, before making payment on
account
of its purchase of goods from sellers and services rendered by
contractors
which are subject to the value-added tax imposed in Sections 100 and
102
of this Code, deduct and withhold the value-added tax due at the rate
of
three percent (3%) of the gross payment for the purchase of goods and
six
percent (6%) on gross receipts for services rendered by contractors on
every release or installment payment which shall be creditable against
the value-added tax liability of the seller or contractor.
chanrobles virtuallaw libraryred"The
value-added tax withheld under this section shall be remitted within
ten
(10) days following the end of the month the withholding was
made." chanrobles virtuallaw libraryred
Sec.
2. The Secretary of Finance shall,
upon the recommendation of the Commissioner of Internal Revenue,
promulgate
the necessary rules and regulations for the effective implementation of
the provisions of this Act.
chanrobles virtuallaw libraryred
Sec.
3. All laws, decrees, orders,
rules and regulations, and other issuances inconsistent with this Act
are
hereby repealed or amended accordingly.chanrobles virtual law library
Sec.
4. This Act shall take effect
fifteen (15) days after its complete publication in the Official
Gazette
or in at least two (2) national newspapers of general circulation,
whichever
comes earlier.chanrobles virtuallaw libraryred
Approved:
April
6, 1993
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