Under Revenue Memorandum Circular No. 8-2014, withholding agents must require all individuals and entities to present valid, current and subsisting tax exemption certificates or rulings before payment of related income. Failure on the part of the taxpayer to present such exemption certificate or ruling shall subject the income to appropriate withholding taxes due on the transaction. On the other hand, failure of the withholding agent to withhold taxes in the absence of said certificate or ruling shall subject the withholding agent to penalties equal to the total amount of tax not withheld as provided under Section 251 of the Tax Code.
RMC 60-2014 clarifies that the provisions of RMC 8-2014 do not apply to General Professional Partnerships (GPPs) inasmuch as income payments to GPPs are not subject to income tax and withholding tax.