Withholding tax on fees for technical services clarified with a lower deduction rate and distinct treatment for royalties.

Amendment revises withholding tax under section by creating a two-tier deduction rate: a lower rate for fees for technical services (excluding professional services) and for royalties that are consideration for sale, distribution or exhibition of cinematographic films, and a higher rate for other fees. It also replaces the prior reference to monetary limits for audit-triggering purposes with explicit monetary thresholds for business and for profession, changing when the proviso's conditions apply.

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