REVENUE MEMORANDUM CIRCULAR NO. 73-2014 issued on September 15, 2014 clarifies the Withholding Tax rates on dividend payments to Philippine Central Depository (PCD) Nominees.

      In case of PCD Nominee-Filipino, unless it is satisfactorily shown that the actual equity investor is a domestic corporation, the income recipient is deemed to be an individual subject to Final Withholding Tax of 10% under Section 24(B)(2) of the Tax Code.

       Further, in case of PCD Nominee-Non Filipino, unless it is satisfactorily shown that the actual equity investor is a resident alien, non-resident alien whether engaged or not engaged in trade or business in the Philippines or resident foreign corporation, the income recipient is deemed to be a non-resident foreign corporation subject to Final Withholding Tax of 30% under Section 28(B)(1) of the Tax Code.