REVENUE REGULATIONS NO. 14-2002 issued on September 13, 2002 amends further pertinent provisions of RR No. 2-98 by providing for additional income payments to be subjected to withholding tax and clarifying pertinent provisions in relation thereto. A creditable income tax shall be withheld from the following items of income payments to persons residing in the Philippines at the rate specified: A) 5% on: 1) gross rental for the continued use or possession of real property used in business; 2) gross rental or lease in excess of P 10,000.00 per payment for the continued use or possession of personal property used in business (i.e. land/water/air transport equipment; industrial, commercial and scientific equipment; telecommunication equipment; office furniture machines/equipment; computer machines/equipment, etc.); 3) gross rentals or lease for the use of poles, satellites and/or transponder and transmission facilities; 4) gross rentals or lease of spaces used in posting advertisements in the form of billboards and/or other similar structures posted in public places; and 5) gross processing/tolling fees paid to refineries for the conversion of molasses to its by-products and raw sugar to refined sugar; B) 2% on: 1) gross payments to persons engaged in the sale of computer services, computer programmers, software/program developer/designer, internet service providers, web page designing, computer data processing, conversion or base services and other computer-related activities; and 2) income payments, except any casual or single purchase of P 10,000.00 and below, which are made by a government office, national or local, including barangays or their attached agencies or bodies, and government-owned or controlled corporations, on their purchases of goods from local suppliers; C) 10% on: 1) gross commissions of customs, insurance, stock, real estate, immigration and commercial brokers, and fees of agents of professional entertainers; 2) any amount collected for and paid to medical practitioners by hospitals and clinics or paid directly to the medical practitioners by patients who were “admitted and confined” to such hospitals or clinics; and 3) gross commissions paid by multi-level marketing companies to independent and exclusive distributors, medical/technical and sales representatives, and marketing agents and sub-agents on their sale of goods or services by way of direct selling or similar arrangements; and D) 1% on: 1) gross payments made by pre-need companies to funeral parlors for funeral services rendered; and 2) gross payments made to embalmers for embalming services rendered to funeral companies. The gross payments to non-residents by both government and private entities for services rendered in the Philippines shall be subject to Final Withholding Tax at the rate of 10%. The following gross payments made by the government to sellers of goods and services who are subject to the Value-Added Tax shall be subject to withholding at the rate specified: A) 3% on gross selling price for the purchase of goods (creditable); B) 6% on gross payment for services rendered (creditable); C) 8.5% on: 1) payments made to government public works contractors (creditable); and 2) payments for services rendered in the Philippines by non-residents; and D) 10% on: 1) lease or use of property or property rights owned by non-residents in the Philippines (final); 2) services rendered to local insurance companies, with respect to reinsurance premiums payable to nonresident insurance or reinsurance companies (final); and 3) other services rendered in the Philippines by non-residents (finaREVENUE REGULATIONS NO. 14-2002 issued on September 13, 2002 amends further pertinent provisions of RR No. 2-98 by providing for additional income payments to be subjected to withholding tax and clarifying pertinent provisions in relation thereto. A creditable income tax shall be withheld from the following items of income payments to persons residing in the Philippines at the rate specified: A) 5% on: 1) gross rental for the continued use or possession of real property used in business; 2) gross rental or lease in excess of P 10,000.00 per payment for the continued use or possession of personal property used in business (i.e. land/water/air transport equipment; industrial, commercial and scientific equipment; telecommunication equipment; office furniture machines/equipment; computer machines/equipment, etc.); 3) gross rentals or lease for the use of poles, satellites and/or transponder and transmission facilities; 4) gross rentals or lease of spaces used in posting advertisements in the form of billboards and/or other similar structures posted in public places; and 5) gross processing/tolling fees paid to refineries for the conversion of molasses to its by-products and raw sugar to refined sugar; B) 2% on: 1) gross payments to persons engaged in the sale of computer services, computer programmers, software/program developer/designer, internet service providers, web page designing, computer data processing, conversion or base services and other computer-related activities; and 2) income payments, except any casual or single purchase of P 10,000.00 and below, which are made by a government office, national or local, including barangays or their attached agencies or bodies, and government-owned or controlled corporations, on their purchases of goods from local suppliers; C) 10% on: 1) gross commissions of customs, insurance, stock, real estate, immigration and commercial brokers, and fees of agents of professional entertainers; 2) any amount collected for and paid to medical practitioners by hospitals and clinics or paid directly to the medical practitioners by patients who were “admitted and confined” to such hospitals or clinics; and 3) gross commissions paid by multi-level marketing companies to independent and exclusive distributors, medical/technical and sales representatives, and marketing agents and sub-agents on their sale of goods or services by way of direct selling or similar arrangements; and D) 1% on: 1) gross payments made by pre-need companies to funeral parlors for funeral services rendered; and 2) gross payments made to embalmers for embalming services rendered to funeral companies. The gross payments to non-residents by both government and private entities for services rendered in the Philippines shall be subject to Final Withholding Tax at the rate of 10%. The following gross payments made by the government to sellers of goods and services who are subject to the Value-Added Tax shall be subject to withholding at the rate specified: A) 3% on gross selling price for the purchase of goods (creditable); B) 6% on gross payment for services rendered (creditable); C) 8.5% on: 1) payments made to government public works contractors (creditable); and 2) payments for services rendered in the Philippines by non-residents; and D) 10% on: 1) lease or use of property or property rights owned by non-residents in the Philippines (final); 2) services rendered to local insurance companies, with respect to reinsurance premiums payable to nonresident insurance or reinsurance companies (final); and 3) other services rendered in the Philippines by non-residents (fina