The Bureau of Internal Revenue (BIR) has instructed movie and television show producers to withhold and remit to the agency eight percent of the talent fees they pay to their actors and actresses.
The BIR issued the reminder as it issued Revenue Memorandum Circular 1-2018 implementing the new tax reform law which required changes in the creditable withholding tax schedules for self-employed individuals and professionals like doctors and lawyers.
The circular stated that the same withholding tax rate applies to others working in the entertainment industry receiving professional fees and commission for services rendered.
It added the withholding tax rate is also applicable for income distribution to beneficiaries of estates and trusts, as well as income payment to brokers and agents, professionals paid to medical practitioners and commission of sales representatives and marketing agents of companies. (Jun Ramirez)
