2. What sectors in the BPO are affected by the BIR Ruling DA-219-2008?
The Bureau of Internal Revenue (BIR) issued BIR Ruling DA-219-2008?----dated April8, 2008---- to clarify the applicable withholding tax rate on various services offered by business process outsourcing (BPO) companies.
3. What are the corresponding creditable withholding tax for categories under Back Offices?
Tax treatment for payroll processing, HR benefit administration, data processing and staff outsourcing services. They qualify under the category of contractual services. Thus, a BPO that provides these kinds of services may be classified under the category of a service contractor. Income payments for such services are subject to the 2-percent CWT.