Authorized Withholding Agent
AWA are Authorized Withholding Agents, now known as Top Withholding Agents under Revenue Regulations (RR) No. 11-2018, and shall include the following.
a. Classified and duly notified by the Bureau of Internal Revenue (BIR) as either any of the following unless previously de-classified as such or had already ceased business operations
A large taxpayer under RR No.1-98, as amended;
Top 20,000 private corporations under RR No.6-2009; or
Top 5,000 individuals under RR No. 6-2009;
b. Taxpayers identified and included as Medium Taxpayers – per Revenue Memorandum Order No. 17-2017, these are the top 500 non-individual taxpayers identified by BIR Regional offices; and
c. Those under the Taxpayer Account Management Program (TAMP).
Among its obligations, an AWA is required to withhold 2% creditable withholding tax (CWT) on its payments for purchases of services, including electricity bills. As an AWA, the following shall be submitted by the customer to Meralco.
Copy of BIR letter-notice designating the customer as among the Top Withholding Agents, or an excerpt of the list of Top Withholding Agents published by the BIR, to substantiate its AWA status; and BIR Form No. 2307 of the Certificate of Creditable Tax Withheld at Source for each payment of electricity bill to support the amount of tax withheld and remitted to the BIR.
The BIR published the list of Top Withholding Agents in a newspaper of general circulation and in the BIR website (www.bir.gov.ph), which serves as the notice to the top withholding agents. Existing withholding agents classified as large taxpayers, top 20,000 corporations, or top 5,000 individuals which have not been delisted by the BIR shall remain as top withholding agents.
The initial and succeeding publications of the BIR shall include the additional top withholding agents and those that are delisted.
This also means that once an individual or organization/taxpayer is no longer found on the published list, they are no longer required to withhold the 2% creditable withholding tax under RR No. 11-2018.
No, not all customers-AWA that are already tagged are required to update and submit documents. Customers are required to update if there is any change in their information, such as but not limited to the following:
a. The corporation changed its name
b. The name reflected on the bill is not the full and/or correct name of the corporation or individual
c. There was a change in the terms and conditions of the AWA tagged customer’s contract of lease.
d .The contract of lease of the AWA customer has ended
A customer-AWA who needs to update their records should submit the following documents:
- 1 valid ID with photo and signature
- Board Resolution/Secretary’s Certificate
- 1 valid ID of authorized representative with photo and signature
- Certificate of Registration (i.e. SEC-first page only; CDA; NEA; HLURB)
AWA eligible customers who are owners of the service must present and submit photocopy of ANY of the following valid proof of ownership of the place of service:
- Certificate of Award/Notice/Order issued by National Government Agencies
- Certificate of Sale
- Condominium Certificate of Title
- Contract to Sell
- Deed of Conditional Sale
- Deed of Donation
- Deed of Sale
- Lease Purchase Agreement
- National Housing Authority (NHA) Certification
- Tax Declaration
- Transfer Certificate of Title
AWA eligible customers who are tenants of the service must present and submit photocopy of ANY of the following valid proof of ownership:
- Original, Notarized and Unexpired Contract of Lease or Written Authorization from the owner of the premises
- Photocopy of any valid occupancy from required from an owner e.g. Transfer Certificate of Title, Deed of Sale, Tax Declaration etc.
- Original and Notarized copy of the Undertaking.
- Bureau of Internal Revenue (BIR) Certificate of Registration (BIR Form 2303)
- Income Tax Return (ITR)
- Tax Identification Number (TIN) card
- Bureau of Internal Revenue (BIR) Certificate of Registration (BIR Form 2303)
- Tax Identification Number card
All documents necessary for the update must be submitted to any Meralco Business Center.
Yes. Customers who are no longer considered as AWA by the BIR should notify Meralco of the change.
Yes. Government offices, national or local, including barangays, or their attached agencies or bodies, and GOCCs are required to withhold their payments to their regular suppliers of goods and services.