Philippines Tax Agency Issues Ruling on Withholding Tax for Joint Ventures

The Philippine Bureau of Internal Revenue May 19 issued BIR Ruling No. 225-2020, on withholding taxes for joint ventures registered under the Philippines tax law. The joint venture is licensed in the Philippines to provide consultancy and management services in the construction industry. The tax agency found that the joint venture is: 1) not considered a taxable corporation under Philippines tax law; and 2) exempt from corporate income tax and the 2 percent creditable withholding tax. The co-venturers are subject to regular corporate income tax and the creditable withholding tax. [Philippines, Bureau of Internal Revenue, 05/19/20]

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