"ANNEX A"

GOVERNMENT MONEY PAYMENTS CHART

EXP. GOODS EWT GMP FINAL TAX TOTAL

NON-VAT/
CREDITABLE FINAL
INCOME/EXPENSE PAYMENTS SERVICES BIR FORM Percentage BIR Form %
VAT VAT
CODE Tax
1601-E BIR Form No. 1600 1601-F
MAINTENANCE AND OPERATING EXPENSES
03 Communication Services (PLDT, Smart,etc.) Service 2% NONE 5% 3% 7% or 5%
04 Repairs & Maintenance of Government Service 2% NONE 5% 3% 7% or 5%
Facilities Goods 1% NONE 5% 3% 6% or 4&
05 Repairs & Maintenance of Government Vehicles Service 2% NONE 5% 3% 7% or 5%
Goods 1% NONE 5% 3% 6% or 4&
06 Transportation Services (Freight: Goods/Mdse.) Service
domestic - air, sea & land 2% NONE 5% 3% 7% or 5%
Internatinal - air & sea (zero-rated) 2% NONE NONE 3% 2% or 3%
06 Transport of Passengers Service
domestic - air & sea 2% NONE 5% 3% 7% or 5%
International - air & sea (zero-rated) 2% NONE NONE 3% 2% or 3%
Transport of Cargoes - air, land & sea Goods 1% NONE 5% NONE 6%
Supplies & Materials
07 Goods 1% NONE 5% 3% 6% or 4%
Including Equipment
08 RENT: (see NOTE no. 2)
1. Real Property Service 5% NONE 5% 3% 10% or 8%
2. Cinematographic films Service 5% NONE 5% 3% 10% or 8%
3. Personal Property Service 5% NONE 5% 3% 10% or 8%
08 Payment for lease or use of
a. property or property rights Service NONE NONE 10% NONE 10%
to non-resident owners
b. Services rendered to local insurance Service NONE NONE 10% NONE 10%
companies with respect to reinsurance
premiums payable to non-residents
c. Other services rendered in the Phil. Service NONE NONE 10% NONE 10%
by non-residents
11 AWARDS NONE NONE NONE NONE 20% 20%
14 MANILA WATER CO., INC. (MWCI) Service NONE NONE 5% NONE 5%
Income Tax Holiday up to July 31, 2006
August 1, 2006 Service 2% NONE 5% NONE 7%
MAYNILAD WATER SERVICE,INC. (MWSI) Service NONE NONE 5% NONE 5%
Income Tax Holiday up to August, 2007
POWER (MERALCO) Service 2% NONE 5% NONE 7%
OTHER WATER UTILITIES Service 2% NONE 5% 2% 7% or 4%

PAYMENT TO COOPERATIVES:
1. With BIR issued exemption certificate Service NONE NONE NONE NONE
2. Without BIR issued exemption certificate 2% NONE 5% NONE 7%

1. With BIR exemption certificate Goods NONE NONE NONE NONE

2. Without BIR exemption certificate 1% NONE 5% NONE 6%
17 TRAINING & SEMINARS Service 2% NONE 5% 3% 7% or 5%
23 Purchase of GASOLINE Goods 1% NONE 5% 3% 6% or 4%
Other petroleum products Goods 1% NONE 5% 3% 6% or 4%
(such as grease, wax, etc.)
SERVICES by gasoline stations Service 2% NONE 5% 3% 7% or 5%
24 INSURANCE PREMIUMS Service
Non-Life 2% NONE 5% 3% 7% or 5%
Life 2% NONE NONE 5% 2% or 7%
27 LIBRARY BOOKS & MATERIALS Goods 1% NONE 5% 3% 6% or 4%
29 OTHER SERVICES: Service 2% NONE 5% 3% 7% or 5%
Security, Janitorial, Maintenance of aircon,
computers, elevators, etc.
Professional Services rendered by General Service None NONE 5% 3% 5% or 3%
Professional Partnership (GPP)
Professional fee paid to juridical person Service 10% 5% 3% 15% or 13%
Services by persons engaged in the practice of (if the,
profession current year's
gross income
does not
exceed
Income Payments to Partners of General Professional 15% (if the,
Partnership current year's
gross income NONE 5% 3% 20% or 18%
exceeds
P720,000)
Services rendered by actors, actresses, talents,
singers, emcees, prof. athletes, radio and television
broadcasters and choreographers, musical, radio,
movie, television and stage directors

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EXP. GOODS EWT GMP FINAL TAX TOTAL
NON-VAT/
CREDITABLE FINAL
INCOME/EXPENSE PAYMENTS SERVICES BIR FORM Percentage BIR Form %
VAT VAT
CODE Tax
1601-E BIR Form No. 1600 1601-F
Services rendered by DOCTORS of MEDICINE
duly registered with the Professional Regulation 10%
Commission (PRC) and LAWYERS duly registered (if the, current
with the Integrated Bar of the Philippines (IBP) and year's gross
other government agencies income does
not exceed
P720,000) 15% or 13%
Service NONE 5% 3%
15% 20% or 18%
(if the, current
year's gross
income
exceeds
P720,000)

Services rendered by General Professional

Partnership (GPP) of Doctors of Medicine duly
registered with the Professional Regulation
Commission (PRC) and Lawyers duly registered with Service NONE NONE 5% 3% 5% or 3%
the Integrated Bar of the Philippines (IBP) and other
government agencies

Purchase of Other Goods Goods 1% NONE 5% 3% 6% or 4%

Purchase of Agricultural Products
(see NOTE no.3) NONE
Goods 1% NONE ( in their 3% 1% or 3%
original
state)
Services rendered by customs, real estate, stock,
Service 10% NONE 5% 3% 15% or 13%
immigration & commercial brokers

CAPITAL OUTLAY
1.5%,3%,5% 6.5%,8%,10%,11% or
34 PURCHASE OF LAND or 6% NONE 5% 3% 4.5%,6%,8%,9%

34 Land Improvements Outlay Goods 1% NONE 5% 3% 6% or 4%

Service 2% NONE 5% 3% 7% or 5%
35 Buildings and Improvements Outlay
Straight Contract (Labor & Materials) Service 2% NONE 5% 3% 7% or 5%
Separate Invoice/Billing for Materials Goods 1% NONE 5% 3% 6% or 4%
Separate Invoice/Billing for Labor Service 2% NONE 5% 3% 7% or 5%

36 Furniture, Fixtures, Equipment and Books Goods 1% NONE 5% 3% 6% or 4%

Outlay
38 Information Technology (IT) Equipment Goods 1% NONE 5% 3% 6% or 4%
Outlay Service 2% NONE 5% 3% 7% or 5%
39 Lump-Sum for Capital Outlay 2% NONE 5% 3% 7% or 5%

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EXP. GOODS EWT GMP FINAL TAX TOTAL
NON-VAT/
CREDITABLE FINAL
INCOME/EXPENSE PAYMENTS SERVICES BIR FORM Percentage BIR Form %
VAT VAT
CODE Tax
1601-E BIR Form No. 1600 1601-F

Franchise Tax on radio & TV broadcasting companies

whose annual gross recipts do not exceed P10M & Service 2% NONE NONE 3% 2% or 5%
who are not VAT-registered taxpayer

Tax on Overseas Dispatch, Message or Conversation

Service 2% NONE NONE 10% 2% or 12%
from the Philippines
Business Tax on Agents of foreign insurance co. -
Service 2% NONE NONE 10% 2% or 12%
insurance agents
Business Tax on Agents of foreign insurance co. -
Service 2% NONE NONE 5% 2% or 7%
owner of the property
Tax on Cockpits Service 2% NONE NONE 18% 2% or 20%
Tax on Cabaret, night & day clubs Service 2% NONE NONE 18% 2% or 20%
Tax on Boxing exhibitions Service 2% NONE NONE 10% 2% or 12%
Tax on Professional basbetball games Service 2% NONE NONE 15% 2% or 17%
Tax on Jai-Alai and race tracks Service 2% NONE NONE 30% 2% or 32%
Tax on sale, barter or exchange of stocks listed and
Service 2% NONE NONE 1/2 of 1% 2% or 2 1/2 of 1%
traded through Local Stock Exchange
Tax on shares of stock sold or exchanged through
initial and secondary public offering
- Not over 25% Service 2% NONE NONE 4% 2% or 6%
- Over 25% but not exceeding 33/1/3% Service 2% NONE NONE 2% 2% or 4%
- Over 33 1/3% Service 2% NONE NONE 1% 2% or 3%
Tax on interest, commissions and discounts from
lending activities as well as income from financial
leasing, on the basis of remaining maturities of
instruments from which such receipts are derived:
- Maturity period is five years or less Service 2% NONE NONE 5% 2% or 7%
- Maturity period is more than five years Service 2% NONE NONE 1% 2% or 3%
Tax on dividends and equity shares and net income of
NONE NONE NONE 0% 0%
subsidiaries

Tax on royalties, rentals of property, real or personal,

profits, from exchange and all other items treated as Service 2% NONE NONE 7% 2% or 9%
gross income under Section 32 of the Tax Code.
Tax on the net trading gains within the taxable year
on foreign currency, debt securities, derivatives, and NONE NONE NONE 7% 7%
other similar financial instruments
(see NOTE no.4)
Tax on interest, commissions and discounts from
lending activities as well as income from financial
leasing, on the basis of remaining maturities of
instruments from which such receipts are derived:
- Maturity period is five years or less Service 2% NONE NONE 5% 7%
- Maturity period is more than five years Service 2% NONE NONE 1% 3%
On all other items treated as gross income under the
code NONE NONE 5% 5%

NOTE:
1. For EWT, only income payments enumerated in Sec. 2.57.2 of RR 2-98, RR 6-2001, RR-12-2001, RR 14-2002, RR-17-2003, RR-30-2003
and all services other than those covered by separate rates of withholding tax shall be subjected to EWT.
You may refer to RR-1-2003, RR-3-2003, RR-11-2003, RR-12-2003, RR-7-2004, RR-9-2004 and RR 16-2005 for further information.
Casual or single purchase of GOODS and SERVICES worth P10,000.00 and below under Section 3 (N) of RR-17-2003-
not subject to EWT.
2. For rental of personal properties in excess of P10,000.00 annually except those under financial lease arrangement with leasing and finance
companies under R.A. No. 8556 (Financing Company Act of 1998) under Section 3(C)(2) of RR 17-2003 - 5% EWT.
3. Suspended Indefinitely per RR 3-2004 effective March 1, 2004. The 1% EWT shall apply upon issuance of a Regulation lifting its suspension.
4. Please refer to Section 121 of RA 8424 as amended by RA 9337.
5. For purchase of goods and services subject to FINAL VAT please refer to Section 4.114-2 of RR 16-2005.

Date Revised: November 2, 2005

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