REVENUE REGULATIONS NO. 2-2009 issued on February 26, 2009 amends further Sections 2.57.2 and 2.58 of Revenue Regulations (RR) No. 2-98, as amended, subjecting to creditable withholding tax the interest portion of the refund of meter deposits by MERALCO and other distribution utilities to residential and non-residential electricity consumers/customers. Section 2.57.2 of RR No. 2-98, as amended, is hereby further amended, to read as follows: “Sec. 2.57.2.Income payments subject to creditable tax and rates prescribed thereon. – Except as herein otherwise provided, there shall be withheld a creditable income tax at the rates herein specified for each class of payee from the following items of income payments to persons residing in the Philippines: xxx xxx xxx “(U) MERALCO Payments on the following: “(1) MERALCO Refund arising from Supreme Court Case G.R. No. 14814 of April 9, 2003 to customers under Phase IV as approved by ERC – On gross amount of refund given by MERALCO to Customers with active contracts as classified by MERALCO – Twenty Five Percent (25%); To Customers with terminated contracts – Thirty Two Percent (32%); and (2) Interest income on the refund of meter deposits determined, computed and paid in accordance with the “Rules to Govern Refund of Meter Deposits to Residential and Non-Residential Customers”, as approved by the Energy Regulatory Commission under Resolution No. 8, Series of 2008, dated June 4, 2008 implementing Article 8 of the Magna Carta for Residential Electricity Consumers and ERC Resolution No. 2005-10 RM (otherwise known as DSOAR) dated January 18, 2006, exempting all electricity consumers from the payment of meter deposit . On gross amount of interest whether paid directly to the customers or applied against customer’s billing: (i) Residential and General Service customers whose monthly electricity consumption exceeds 200 kwh as classified by MERALCO – Ten percent (10%); (ii) Non-Residential customers – Twenty percent (20%) (V) Interest income on the refund paid either through direct payment or application against customers’ billings by other electric Distribution Utilities (DUs) in accordance with the rules embodied in ERC Resolution No. 8, Series of 2008, dated June 4, 2008, governing the refund of meter deposits which was approved and adopted by ERC in compliance with the mandate of Article 8 of the Magna Carta for Residential Electricity Consumers and Article 3.4.2 of DSOAR, exempting all electricity consumers, whether residential or nonresidential, from the payment of meter deposit. On gross amount of interest whether paid directly to the customers or applied against customer’s billing: (i) Residential and General Service customers whose monthly electricity consumption exceeds 200 kwh as classified by the concerned DU – Ten percent (10%) (ii) Non-Residential – Twenty percent (20%)” Section 2.58(A)(2) of RR No. 2-98, as amended by RR No. 8-2005, is hereby further amended to read as follows: “Sec. 2.58. RETURNS AND PAYMENT OF TAXES WITHHELD AT SOURCE. – “(A) Monthly return and payment of taxes withheld at source — “(1) WHERE TO FILE — xxx xxx xxx “(2) WHEN TO FILE — xxx xxx xxx “ MERALCO and other Distribution Utilities (DUs) required to withhold taxes pursuant to Sec.2.57.2 (U) and (V) above shall submit a Monthly Alphalist of Payees (MAP) (Annex “A”) for each calendar quarter, which shall be electronically attached to the monthly remittance return of the calendar quarter (e.g. BIR Form 1601-E for the quarter ending March with attached MAP for January, February, March). It shall contain an alphalist of customers from whom taxes have been withheld for the return period and in whose behalf, the taxes were remitted under BIR Form No. 1601-E showing the total amount of income and taxes withheld and remitted. “xxx xxx xxx “xxx xxx xxx”