REVENUE REGULATIONS NO. 6-2009 issued on July 9, 2009 amends further pertinent provisions of Revenue Regulations (RR) No. 2-98, as amended, providing for additional criteria in the determination of Top 20,000 Private Corporations, including the threshold on their purchases of agricultural products and additional transactions subject to creditable withholding tax on income payments made by the Top 5,000 Individual Taxpayers engaged in trade/business or practice of profession. Income payments made by the Top 20,000 Private Corporations and by the Top 5,000 Individual Taxpayers engaged in trade or business in the Philippines (as determined by the Commissioner of Internal Revenue [CIR]), to their local/resident supplier of goods and local/resident supplier of services, other than those covered by other rates of withholding tax, including non-resident aliens engaged in trade or business in the Philippines are subject to creditable withholding tax of 1%, for supplier of goods and 2%, for supplier of services. Provided, however, that for purchases involving agricultural products in their original state, the tax required to be withheld shall only apply to purchases in excess of the cumulative amount of P 300,000 within the same taxable year. For this purpose, agricultural products in their original state, as used in these regulations, shall only include corn, coconut, copra, palay, rice, cassava, sugar cane, coffee, fruits, vegetables, marine food products, poultry and livestocks. The Top 20,000 Private Corporations shall include a corporate taxpayer who has been determined and notified by the Bureau of Internal Revenue (BIR) as having satisfied any of the following criteria: a. Classified and duly notified by the CIR as a large taxpayer under RR No. 1-98, as amended, or belonging to the Top 5,000 Private Corporations under RR No. 12- 94, or to the Top 10,000 Private Corporations under RR No. 17-2003, unless previously de-classified as such or had already ceased business operations (automatic inclusion); b. Value-Added Tax (VAT) payment or payable, whichever is higher, of at least P 100,000 for the preceding year; c. Annual Income Tax due of at least P 200,000 for the preceding year; d. Total Percentage Tax paid of at least P 100,000 for the preceding year; e. Gross sales of P 10,000,000 and above for the preceding year; f. Gross purchases of P 5,000,000 and above for the preceding year; g. Total Excise Tax payment of at least P 100,000 for the preceding year. The Top 5,000 Individual Taxpayers shall refer to individual taxpayers engaged in trade or business or exercise of profession who have been determined and notified by the BIR as having satisfied any of the following criteria: a. VAT payment or payable, whichever is higher, of at least P 100,000 for the preceding year; b. Annual Income Tax due of at least P 200,000 for the preceding year; c. Total Percentage Tax paid of at least P 100,000 for the preceding year; d. Gross sales of P 10,000,000 and above for the preceding year; e. Gross purchases of P 5,000,000 and above for the preceding year; f. Total Excise Tax payment of at least P 100,000 for the preceding year. For individuals classified as resident citizen with multiple lines of business, the tax payments, gross sales and gross purchases shall be determined by taking into consideration all lines of business inasmuch as said taxpayers are required by Section 51(A)(4)(a) of the Tax Code, as amended, to declare in their return their income from all sources. In the case of other individuals (resident alien, non-resident alien and non-resident citizen) engaged in trade or business in the Philippines, only those derived in the Philippines shall be included in the computation of their gross sales and purchases for purposes of determining if they shall qualify as Top 5,000 Individual Taxpayer. An individual shall not be considered as withholding agent for purposes of these Regulations unless such individual has been determined and duly notified in writing by the CIR that he/she has been selected as one of the Top 5,000 Individual Taxpayers and shall remain as such unless the CIR notifies such individual in writing that he/she shall cease to be one. A taxpayer shall cease to be a withholding agent for purposes of these Regulations when the individual submits to the BIR a notice of closure or cessation of all lines of business or fails to meet all the criteria mentioned above and a notice of deletion is issued to him/her in writing by the CIR. The Top 5,000 Individual Taxpayers shall submit a list of regular suppliers of goods and/or services to the Revenue District Officer having jurisdiction over their principal place of business on or before July 31 and January 31 for the first and second semester of each year, respectively, in diskette/CD format or through e-submission. The technical specifications of the said list is prescribed in a separate revenue issuance. The initial list, however, shall be submitted within 15 days from receipt of the notice as one of the Top 5,000 Individual Taxpayers. The CIR may recommend to the Secretary of Finance the amendment to or modification of any or all of the criteria in the determination and selection of taxpayers forming part of the Top 5,000 Individual Taxpayers considering such factors as inflation, volume of business and similar factors. Provided, however, that the CIR is empowered to conduct a periodic review as to the number of taxpayers who ceased to qualify under the category of Top 5,000 Individual Taxpayers for purposes of delisting/excluding them from the list and to identify taxpayers to be included in the list. The Top 5,000 Individual Taxpayers engaged in trade or business or practice of profession are required to file returns and remit the taxes withheld thru the Electronic Filing and Payment System (EFPS) pursuant to RR No. 9-2001, as amended by RR Nos. 2-2002, 9- 2002, 26-2002 and 5-2004.