(NAR) VOL. 15 NOS. 1-2 / APRIL - JUNE 2004
"(S) Income payments made to suppliers of agricultural products. - Income payments made to agricultural suppliers such as those, but not limited to, payments made by hotels, restaurants, resorts, caterers, food processors, canneries, supermarkets, livestock, poultry, fish and marine products dealers, hardwares, factories, furniture shops and all other establishments, except for income payments to marginal income earners which, as defined in Revenue Regulations 11-2000 dated December 12, 2000, refer to individuals not otherwise deriving compensation as an employee under an employee-employer relationship, but who are self-employed and deriving gross sales/receipts not exceeding P100,000.00 during any 12-month period. One percent (1%).
The term "agricultural suppliers" refers to suppliers/sellers of agricultural, forest and marine food and non-food products, livestock and poultry of a kind generally used as, or yielding or producing foods for human consumption; and breeding stock and genetic materials therefore. "Livestock" shall include cows, bulls and calves, pigs, sheep, goats and other animals similar thereto. "Poultry" shall include fowls, ducks, geese, turkey and others similar thereto. "Marine products" shall include fish and crustaceans, such as but not limited to, eels, trout, lobsters, shrimps, prawns, oysters, mussels and clams, shells and other aquatic products.
Meat, fruits, fish, vegetables and other agricultural and marine food products, even if they have undergone the simple processes of preparation or preservation for the market, such as freezing, drying, salting, smoking or stripping, including those using advanced technological means of packaging, such as shrink wrapping in plastics, vacuum packing, tetra-pak and other similar packaging method, shall still be covered by this subsection.
Polished and/or husked rice, corn grits, locally produced raw cane sugar and ordinary salt shall be considered as agricultural food products."
- to conduct a comprehensive and extensive public education and information campaign to ensure its uniform implementation in all regions all over the country, and
- to establish and maintain the necessary systems and control measures in order to ensure that the withholding tax agents properly report and remit the amount of taxes actually withheld.
- Education and information program for Taxpayers and Revenue Officials.
- Development and implementation of an information and control system to ensure the proper reporting and remittance of the amounts withheld by the withholding agents.
- Audit of withholding agents on their purchases of agricultural products from June 1, 2003 to February 29, 2004; Regional Directors and Revenue District Officers shall obtain from agricultural suppliers in their respective jurisdictions information on transactions entered into by said suppliers for which taxes were withheld and determine if these have been properly reported and remitted, otherwise they shall take the necessary measures to collect said taxes.