The Bureau of Internal Revenue (BIR) has classified the maker of Camiguin’s original pastel, as among the top 5,000 individual taxpayers, in line with Revenue Regulations No. 6-2009, otherwise known as the Expanded Withholding Tax (EWT)Regulations of 2009.
In his letter to Eleanor Popera-Jose of VjANDEP Bakeshop, BIR Commissioner Joel L. Tan-Torres said “as such, you are hereby designated as withholding agent for the one percent creditable expanded withholding tax on your purchases of goods and two percent on purchases of service.”
In general, Jose can now withhold such percentages on the above-mention purchases, other than those already covered by other withholding tax rates from local suppliers from who she regularly makes purchases.
Jose is now also exempt from withholding tax on casual purchase of goods, unless the cost at any one time involves 10,000 pesos or more, in which case, she shall then be required to withhold the tax.
“Provided, however, that for purchases involving agricultural products in their original state, the tax required to be withheld shall only apply to purchases in excess of the cumulative amount of 300,000 pesos within the same taxable year,” Torres added.
As far as the BIR is concerned, agricultural products in their original state shall only include corn, coconut, copra, palay, rice, cassava, sugar cane, coffee, fruits, vegetables, marine food products, poultry and livestock.
Being a withholding tax agent, Jose will comply with the requirements of the Electronic Filing and Payment System (EFPS) relative to the e-filing of returns and e-payment of taxes provided under RR No. 9-2001, as amended by RR No. 2-2002, RR No. 9-2002, RR No. 26-2002 and RR No. 5-2004.
She shall also issue the Certificate of Creditable Tax Withheld at Source, or BIR Form No. 2307 to her payees within 20 days following the close of her payee’s taxable quarter or upon demand and/or request of the payee; submit a semestral list of her regular suppliers or goods and/or services to the Revenue District Offices having jurisdiction over her principal place of business in diskette/CD format, or through her e-submission facility not later than July 31 and January 31 of each year.
Jose also operates outlets and/or branches in various parts of the country for original pastel of Camiguin and other ‘pasalubong’ delicacies, including the new VjANDEP One Town One-Product (OTOP) Commissary in Bulua, Cagayan de Oro City.
article by Joe del Puerto Felicilda of Business Week Mindanao