MANILA – The Bureau of Internal Revenue (BIR) announced that they will charge local producers of raw sugar with one percent creditable withholding tax on their income payments following the creation of the agency’s sub-section that looks after sugar firms under the Sugar Regulatory Administration (SRA).
Based on the new rules, operators and owners of sugar mills or refineries including direct buyers of molasses from sugar planters will withhold the income tax and remit the same amount to under the applicable starting price of P1,000 for every 50 kilogram bag and P4,000 per metric tons.
The Revenue District Officer will oversee and authorize the release of locally produced raw sugar and molasses to the owners and operators. From then, they may process the material into refined sugar for consumption.
However, authorization may only be granted once there will be copies of proofs of payment of the withholding tax.
Aside from this, a one percent creditable withholding tax will also be required from agricultural suppliers including payments from hotels, resorts, caterers, food processors, canaries, and supermarkets in excess of P300,000 within the same taxable year.