Pursuant to the provisions of Section 245, in relation to Section 50(b), both of the National Internal Revenue Code, this regulation is issued to amend Revenue Regulations No. 6-85 by inserting paragraph (L) to Section 1 thereof to read as follows:

"Section 1. Income payments subject to Creditable Withholding 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,

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"(L) Additional Compensation of customs personnel from importers, shipping companies, or their agents - On gross additional payments by importers, shipping companies, or their agents to certain customs personnel for overtime services and reimbursement of meal allowance - 15%.

"For this purpose, the importers, shipping companies of their agents, shall be the withholding agent of the Government."

This regulation shall take effect immediately.

Adopted: 30 July 1991

(Sgd.) JESUS P. ESTANISLAO
Secretary of Finance