Issuance of Sworn Statement of Gross Income for the Year 2025

TO: ACCREDITED PHYSICIANS AND PROVIDERS

FROM: PROVIDER RELATIONS DEPARTMENT

SUBJECT: REMINDER ON THE ISSUANCE OF SWORN STATEMENT OF GROSS INCOME FOR THE YEAR 2025

DATE: 25 November 2024

Section 2.57.2 of Revenue Regulations (RR) No. 2-98, as amended by RR No. 11-2018, which implements certain withholding tax requirements on income payments under the Tax Code, as amended by TRAIN Law (Republic Act No. 11256), requires the submission of a sworn declaration of gross receipts/sales, together with a copy of Certificate of Registration (COR) to all income payors/withholding agents no later than January 15 of each year, or at least prior to the initial payment of the professional fees, commissions, and the like in order to be subjected to the lower withholding tax rate:

1. Individual payees whose gross receipts/ sales in a taxable year shall not exceed ₱3M will be subjected to five percent (5%) withholding tax rate. The 10% withholding tax rate shall be applied in the following cases:

• • The payee failed to provide the income payor/withholding agent of such declaration; or
  • The income payment exceeds ₱3M, despite receiving the sworn declaration from the income payee.

2. Non-individual payees, if the company or corporation’s gross income is estimated not to exceed ₱720,000 during the taxable year will be subjected to 10% withholding tax rate. The sworn declaration shall be executed by the president/managing partner of the corporation/company/general professional partnerships. The 15% withholding tax rate shall be applied in the following cases:

• • The payee failed to provide the income payor/withholding agent of such declaration; or
  • The income payment exceeds ₱720,000, despite receiving the sworn declaration from the income payee.

To ensure compliance with the abovementioned requirements, please be informed with the guidelines on the submission of said documents below:

SWORN DECLARATION TEMPLATES

Only BIR-prescribed templates of the sworn declarations will be accepted. The links below will redirect to the BIR website for the templates for your reference and ease of access.

• Annex B-1 RR 11-2018 – For Self-Employed and/or Engaged in the Practice of Profession with Several Income Payors
• Annex B-2 RR 11-2018 – For Self-Employed and/or Engaged in the Practice of Profession with Lone Income Payor
• Annex B-3 RR 11-2018 – For Non-Individual Taxpayer with Several Income Payors

Income payees should fill out the required information on all blank spaces and tick appropriate boxes in the sworn declaration. Sworn declarations with incomplete details will not be accepted.

MODE OF SUBMISSION

1. Income payees should submit the complete set of documents, as follows:

• • Duly notarized sworn declaration with affixed Documentary Stamp Tax (DST)
  • Copy of BIR Form No. 2303 (BIR Certificate of Registration)

2. Submission for the taxable year 2025 shall be made through Microsoft Forms using this link: https://forms.office.com/r/2dw6Z17Lc9

DEADLINE OF SUBMISSION

Acceptance of sworn declarations for taxable year 2025 is until January 15, 2025, only. Failure to comply with the requirement shall render all income payments to be made in 2025 subject to the higher withholding tax rate.

We look forward to your usual cooperation on this matter.