CEBU, Philippines - The Bureau of Internal Revenue will now impose a one percent creditable withholding tax on the income payments of local raw sugar producers who are among its potential tax targets.
Based on a new regulation from the Bureau of Internal Revenue, sugar refinery owners who get mill share and direct buyers of molasses from sugar planters will withhold the income tax and remit the same amount to the agency. It should be based on the applicable starting prices of P1,000 for 50-kilogram bag and P4,000 per metric ton. The amount can be changed if necessary with the consent from the administrator of Sugar Regulatory Administration.
Mill share is the payment of sugar planters for the milling of sugarcane.
Jose Hector Baronda, assistant legal chief of BIR Cebu, explained the oddity of operations of sugar firms was one of the reasons for the agency to tap the sugar planters.
Baronda said the revenue district offices would watch over the release of locally produced raw sugar to sugar mill operators. RDOs could only oversee once they have copies of proofs of payment of withholding tax, he said.
“There should be proof nga nabayran ang witholding tax,” he said in an interview.
He added there are a number of milling corporations in Cebu which should be covered by the new ruling. — (FREEMAN)