New withholding tax rates on Meralco payments and interest on loans

The Bureau of Internal Revenue (BIR) issued Revenue Regulations (RR) 22-2018 to supplement RR 11-2018 on the changes to the withholding tax rates of the following transactions: • Payments to Manila Electric Company (Meralco) and other electric distribution utilities; and • Interest income on debt instruments not classified as deposit substitutes Pursuant to the Tax Reform for Acceleration and Inclusion (Train) Law, the withholding tax rate must not be less than one percent, but not more than 15 percent. Hence, effective Jan. 1, 2019, the withholding tax rates of the following income payments were updated: