With the newly prescribed criteria in identifying the Top Withholding Agents (TWA) of each Revenue District Office (RDO) under Revenue Regulations (RR) No. 31-2020, Circular 88-2021 is issued to circularize the recently published lists of withholding agents to be included and excluded from existing list of TWAs. TWAs are required to deduct and remit creditable withholding taxes (CWT) of either 1% for purchase of goods or 2% for purchase of services. Any taxpayer not found in the list of TWAs will not be required to deduct and remit the 1% or 2% CWT.
The obligation to withhold the 1% or 2% CWT shall commence or cease effective August 1, 2021. Any taxpayer not found in the published list of TWAs is deemed excluded and therefore not required to deduct and remit the 1% or 2% CWT pursuant to the abovementioned RR.
Reference: RMC No. 88-2021.pdf (bir.gov.ph)