Rules on Government Purchases

Beginning January 1, 2021, the VAT withholding system under shall shift from final to a creditable system:

The payment for lease or use of properties rights tonon resident owners shall still be subject to twelve percent (12%) withholding tax at thetime of payment;

Payments for purchase of goods and services arising from projects funded by Official Development Assistance (RA No. 8182) shall not be subject to the Final/Creditable Withholding taxes

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