REVENUE REGULATIONS NO. 12-2001 issued September 10, 2001 amends pertinent provisions of RR Nos. 1-98, 2-98 and 6-2001 relative to the revision of Withholding Tax rates on certain income payments subject to Withholding Tax, deferment of the new deadline dates for filing selected tax returns, reporting requirements for recipients of talent fees, among others. The revised Creditable Withholding Tax rate on professional fees, talent fees, etc. for services rendered by the following individuals (residing in the Philippines) is 20%, if their gross income for the current year exceeds P 720,000, and 10% if otherwise: 1) professional entertainers, such as, but not limited to, actors and actresses, singers and emcees; 2) professional athletes, including basketball players, pelotaris and jockeys; 3) all directors involved in movies, stage, radio, television and musical production; and 4) other recipients of talent fees. The amounts subject to Withholding Tax in the preceding paragraph shall include not only fees, but also per diems, allowances and any other form of income payments not subject to Withholding Tax on compensation. In the case of professional entertainers, professional athletes, directors involved in movies, stage, radio, television and musical productions and other recipients of talent fees, the amounts subject to Withholding Tax shall also include amounts paid to them in consideration for the use of their names or pictures in print, broadcast, or other media or for public appearances, for purposes of advertisements or sales promotions. To determine the applicable tax rate (10% or 20%) to be applied/withheld by the withholding agent, said individuals shall submit to the BIR a notarized sworn declaration of their gross income for the current year. The disclosure shall be filed on June 30 of each year or within 15 days after the end of the month the talent’s income reaches P 720,000, whichever comes earlier. In case the talent’s total gross income is less than P 720,000 as of June 30, he/she shall submit a second disclosure within 15 days after the end of the month that his/her gross income for the current year to date reaches P 720,000. The initial disclosure shall be filed on or before September 30, 2001 or within 15 days after the effectivity of the Regulations, whichever comes later. In case of failure to submit the annual declaration/disclosure to the BIR, the payor shall withhold the tax at the rate of 20%. If an individual recipient receives talent fees in addition to salaries from the same payor, the said talent fees shall be considered as supplemental compensation and, thus, be subject to the Withholding Tax on compensation. The obligation of the payor to deduct and withhold the tax arises at the time an income payment is paid or payable, or the income payment is accrued or recorded as an expense or asset, whichever is applicable, in the payor’s books, whichever comes first. Provided, however, that where income is not yet paid or payable but the same has been recorded as an asset or expense, the obligation to withhold shall arise in the last month of the return period in which the same is claimed as an expense or amortized for tax purposes.