7/12/24, 12:22 PM Income payments by joint ventures or consortiums now subject to withholding tax | Grant Thornton

TA X N OT E S

Income payments by joint ventures or

consortiums now subject to withholding tax

24 Dec 2023 2 min read

The Bureau of Internal Revenue (BIR) issued Revenue Regulation (RR) No. 14-
2023 on the imposition of creditable withholding taxes on certain income
payments by joint ventures or consortiums, amending RR No. 2-98.

The following are the creditable withholding tax rates:

I. Income payments made by joint ventures, whether incorporated or not taxable

or non-taxable, to their local/resident supplier of goods and services:

i. Supplier of goods – one percent (1%)

ii. Supplier of services – two percent (2%)

II. The share of each co-venturer or member from the net income of the joint
venture or consortium that is not taxable as a corporation, prior to actual or
constructive distribution, shall be subject to a 15% withholding tax rate.

The addition of withholding taxes on payments by joint ventures or consortiums

enables the BIR to collect taxes ahead of the annual tax filing deadline and to
capture information on suppliers’ income through data matching of alphalists
submitted by the withholding agent and the supplier.

RR No. 14-2023 took effect on November 30, 2023, or fifteen (15) days after
publication in a newspaper of general circulation in the Philippines.

Please be guided accordingly.

Source:

https://www.grantthornton.com.ph/insights/articles-and-updates1/tax-notes/income-payments-by-joint-ventures-or-consortiums-now-subject-to-withholding-tax/ 1/2
7/12/24, 12:22 PM Income payments by joint ventures or consortiums now subject to withholding tax | Grant Thornton

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As published in SunStar Cebu, dated 24 December 2023

https://www.grantthornton.com.ph/insights/articles-and-updates1/tax-notes/income-payments-by-joint-ventures-or-consortiums-now-subject-to-withholding-tax/ 2/2