witholding tax.docx

WITHOLDING TAX

Description

Withholding Tax on Compensation is the tax withheld from income payments to individuals arising from an employer-employee relationship.

Expanded Withholding Tax is a kind of withholding tax which is prescribed on certain income payments and is creditable against the income tax due of the payee for the taxable quarter/year in which the particular income was earned.

Final Withholding Tax is a kind of withholding tax which is prescribed on certain income payments and is not creditable against the income tax due of the payee on other income subject to regular rates of tax for the taxable year. Income Tax withheld constitutes the full and final payment of the Income Tax due from the payee on the particular income subjected to final withholding tax.

Withholding Tax on Government Money Payments (GMP) - Percentage Taxes - is the tax withheld by National Government Agencies (NGAs) and instrumentalities, including government-owned and controlled corporations (GOCCs) and local government units (LGUs), before making any payments to non-VAT registered taxpayers/suppliers/payees

Withholding Tax on GMP - Value Added Taxes (GVAT) - is the tax withheld by National Government Agencies (NGAs) and instrumentalities, including government-owned and controlled corporations (GOCCs) and local government units (LGUs), before making any payments to VAT registered taxpayers/suppliers/payees on account of theipurchases of goods and services.

[return to index]

Codal Reference

Republic Act Nos. 8424, 9337, 9442, 9504

Sections 57 to 58 and 78 to 83 of the National Internal Revenue Code (NIRC)

[return to index]

Monthly Remittance of Taxes Withheld on Compensation

Tax Form

BIR Form 1601-C : Monthly Remittance Return of Income Taxes Withheld on Compensation

Who Are Required To File

Every registered withholding agent on compensation, which includes, but not limited to the following:

1) Individuals engaged in business or practice of profession with employees subject to income tax

2) All Juridical persons (e.g., Corporations, general partnerships, associations, etc.) whether or not engaged in business.

3) Government Agencies and Instrumentalities (e.g.,NGAs, GOCCs, etc.), including local government units (LGUs)

Documentary Requirements/Attachments to the tax return:

1) For amended return, proof of remittance and the return previously filed.

2) For those with advance payments, BIR Form No. 0605

3) For Private Sector, copy of the list of MWEs who received hazard pay submitted to the DOLE Regional/Provincial Offices-Operations Division/Unit, for the return period March, June, September and December, if applicable.

4) For Public Sector, copy of Department of Budget and Management (DBM) circular/s or equivalent on MWEs allowed to receive hazard pay, for the return period March, June, September and December, if applicable.

5) Electronic Tax Remittance Advice (eTRA) previously Tax Remittance Advice (TRA) for National Government Agencies (NGAs) as required under DOF-DBM Joint Circular No. 1-2000A and RR 1-2013.

Procedures for Filing and Payment

1. Read instructions indicated in the tax return.

2. Accomplish correctly BIR Form No. 1601-C in triplicate copies.

3. If there is tax required to be remitted:

- Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office (RDO) where you are registered or withholding agent is registered and present the duly

accomplished BIR Form No. 1601-C, together with the required attachments (if applicable) and your payment.

- In places where there are no AABs, proceed to the Revenue Collection Officer or duly Authorized City or Municipal Treasurer located within the Revenue District Office where you are registered or withholding agent is registered and present the duly accomplished BIR Form No. 1601- C, together with the required attachments (if applicable) and your payment.

- Receive your copy of the duly stamped and validated form from the teller of the AAB's/Revenue Collection Officer/duly Authorized City or Municipal Treasurer.

4. If there is no tax required to be remitted:

- Proceed to the Revenue District Office where you are registered or where the withholding agent is registered and present the duly accomplished BIR Form No. 1601-C, together with the required attachments.

- Receive your copy of the duly stamped and validated BIR Form from the RDO.

Deadline

Filing Via EFPS

Group A - Fifteen (15) days following end of the monthGroup B - Fourteen (14) days following end of the monthGroup C - Thirteen (13) days following end of the monthGroup D - Twelve (12) days following end of the monthGroup E - Eleven (11) days following end of the month

Note: The staggered manner of filing is only allowed to taxpayers using the Electronic Filing and Payment System (EFPS) based on the industry classification groupings per RR No. 26-2002.

However, the staggered filing of returns allowed for withholding agents/taxpayers enrolled in the EFPS facility of the Bureau shall not apply in the case of the NGAs per RR 1-2013.

Payment Via EFPS

On or before the fifteenth (15th) day of the month following the month withholding was made, except for taxes withheld for the month of December which shall be paid on or before January 20 of the succeeding year.

Provided however that, in the case of NGAs, all returns must be electronically filed (e-filed) and payment of the tax due must also be made on the same day the return is e-

filed which shall be on or before the 10th day following the month in which withholding was made, except for taxes withheld for the month of December of each year, which shall be filed on or before January 15 of the succeeding year.

Manual Filing and Payment

On or before the tenth (10th) day of the month following the month the withholding was made, except for taxes withheld for the month of December which shall be filed and paid on or before January 15 of the succeeding year

Tax Rates

REVISED WITHHOLDING TAX TABLESEffective January 1, 2009

DAILY 1 2 3 4 5 6 7 8Exemption 0.00 0.00 1.65 8.25 28.05 74.26 165.02 412.54

Status(‘000P

)+0% over

+5% over

+10% over

+15% over

+20% over

+25% over

+30% over

+32% over

A. Table for employees without qualified dependent1. Z 0.0 1 0 33 99 231 462 825 1,6502. S/ME 50.0 1 165 198 264 396 627 990 1,815B. Table for single/married employee with qualified dependent child(ren)1. ME1 / S1 75.0 1 248 281 347 479 710 1,073 1,8982. ME2 / S2 100.0 1 330 363 429 561 792 1,155 1,9803. ME3 / S3 125.0 1 413 446 512 644 875 1,238 2,0634. ME4 / S4 150.0 1 495 528 594 726 957 1,320 2,145

WEEKLY 1 2 3 4 5 6 7 8Exemption 0.00 0.00 9.62 48.08 163.46 432.69 961.54 2,403.85

Status +0% over

+5% over

+10% over

+15% over

+20% over

+25% over

+30% over

+32% over

A. Table for employees without qualified dependent1. Z 0.0 1 0 192 577 1,346 2,692 4,808 9,6152. S/ME 50.0 1 962 1,154 1,538 2,308 3,654 5,769 10,577B. Table for single/married employee with qualified dependent child(ren)1. ME1 / S1 75.0 1 1,442 1,635 2,019 2,788 4,135 6,250 11,0582. ME2 / S2 100.0 1 1,923 2,115 2,500 3,269 4,615 6,731 11,5383. ME3 / S3 125.0 1 2,404 2,596 2,981 3,750 5,096 7,212 12,0194. ME4 / S4 150.0 1 2,885 3,077 3,462 4,231 5,577 7,692 12,500

SEMI-MONTHLY

1 2 3 4 5 6 7 8

Exemption 0.00 0.00 20.83 104.17 354.17 937.50 2,083.33 5,208.33

Status +0% over

+5% over

+10% over

+15% over

+20% over

+25% over

+30% over

+32% over

A. Table for employees without qualified dependent1. Z 0.0 1 0 417 1,250 2,917 5,833 10,417 20,8332. S/ME 50.0 1 2,083 2,500 3,333 5,000 7,917 12,500 22,917B. Table for single/married employee with qualified dependent child(ren)1. ME1 / S1 75.0 1 3,125 3,542 4,375 6,042 8,958 13,542 23,9582. ME2 / S2 100.0 1 4,167 4,583 5,417 7,083 10,000 14,583 25,000

3. ME3 / S3 125.0 1 5,208 5,625 6,458 8,125 11,042 15,625 26,0424. ME4 / S4 150.0 1 6,250 6,667 7,500 9,167 12,083 16,667 27,083

MONTHLY 1 2 3 4 5 6 7 8Exemption 0.00 0.00 41.67 208.33 708.33 1,875.00 4,166.67 10,416.67

Status +0% over

+5% over

+10% over

+15% over

+20% over

+25% over

+30% over

+32% over

A. Table for employees without qualified dependent1. Z 0.0 1 0 833 2,500 5,833 11,667 20,833 41,6672. S/ME 50.0 1 4,167 5,000 6,667 10,000 15,833 25,000 45,833B. Table for single/married employee with qualified dependent child(ren)1. ME1 / S1 75.0 1 6,250 7,083 8,750 12,083 17,917 27,083 47,9172. ME2 / S2 100.0 1 8,333 9,167 10,833 14,167 20,000 29,167 50,0003. ME3 / S3 125.0 1 10,417 11,250 12,917 16,250 22,083 31,250 52,0834. ME4 / S4 150.0 1 12,500 13,333 15,000 18,333 24,167 33,333 54,167

Legend: Z-Zero exemption S-Single ME-Married Employee 1;2;3;4-Number of qualified dependent children

S/ME = P50,000 EACH WORKING EMPLOYEE Qualified Dependent Child = P25,000 each but not exceeding four (4) children

USE TABLE A FOR SINGLE/MARRIED EMPLOYEES WITH NO QUALIFIED DEPENDENT

1. Married Employee (Husband or Wife) whose spouse is unemployed.2. Married Employee (Husband or Wife) whose spouse is a non-resident citizen receiving income from foreign sources3. Married Employee (Husband or Wife) whose spouse is engaged in business4. Single6. Zero Exemption for employees with multiple employers for their 2nd, 3rd…..employers (main employer claims personal & additional exemption7. Zero Exemption for those who failed to file Application for Registration

USE TABLE B FOR THE FOLLOWING SINGLE/MARRIED EMPLOYEES WITH QUALIFIED DEPENDENT

1. Employed husband and husband claims exemptions of children2. Employed wife whose husband is also employed or engaged in business; husband waived claim for dependent children in favor of the employed wife3. Single with qualified dependent children

[return to index]

Monthly Remittance Of Income Taxes Withheld (Expanded) [Except for Transactions Involving Onerous Transfer of Real Property Classified as Ordinary Asset]

Tax Form

BIR Form No. 1601-E : Monthly Remittance Return of Income Taxes Withheld (Expanded) [Except for Transactions Involving Onerous Transfer of Real Property Classified as Ordinary Asset]


Every registered withholding agent on Expanded Withholding Tax, which may include, but not limited to the following:

1) In general, any juridical person, whether or not engaged in trade or business

2) An individual, with respect to payments made in connection with his trade or business. However, insofar as taxable sale, exchange or transfer of real property is concerned, individual buyers who are not engaged in trade or business are also constituted as withholding agents.

3) Government agencies and instrumentalities (e.g., National Government Agencies, Government-Owned or Controlled Corporations, Local Government Units, etc.)

4) All individuals, juridical persons and political parties, with respect to their income payments made as campaign expenditures and/or purchase of goods and services intended as campaign contributions.

Documentary Requirements

1. Return previously filed and proof of remittance, if amended return

2. Monthly Alphalist of Payees (MAP), except income payments made by political parties, candidates and income payments made by individual or juridical person on the purchase of goods and services as campaign contributions to political parties and candidates

3. For advance payment, BIR Form No. 0605

4. Electronic Tax Remittance Advice (eTRA) previously Tax Remittance Advice (TRA) for National Government Agencies (NGAs) as required under DOF- DBM Joint Circular No. 1-2000A and RR 1-2013



2. Accomplish BIR Form No. 1601-E in triplicate copies.


- Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office where you are registered or taxpayer concerned is registered and present the duly accomplished BIR Form No. 1601- E, together with the required attachments and your payment.

- In places where there are no AABs, proceed to the Revenue Collection Officer or duly Authorized City or Municipal Treasurer located within the Revenue District Office where you are registered or taxpayer concerned is registered and present the duly accomplished BIR Form 1601-E, together with the required attachments and your payment

- Receive your copy of the duly stamped and validated form from the teller of the AABs/Revenue Collection Officer/duly Authorized City or Municipal Treasurer.


- Proceed to the Revenue District Office where you are registered and present the duly accomplished BIR Form 1601-E, together with the required attachments.

- Receive your copy of the duly stamped and validated form from the RDO representative.

Deadline

Filing Via EFPS




Payment Via EFPS

On or before the fifteenth (15th) day of the month following the month withholding was made, except for taxes withheld for the month of December which shall be paid on or before January 20th of the succeeding year.

Provided however that, in the case of NGAs, all returns must be electronically filed (e-filed) and payment of the tax due must also be made on the same day the return is e-filed which shall be on or before the 10th day following the month in which withholding was made, except for taxes withheld for the month of December of each year, which shall be filed on or before January 15 of the succeeding year.



Tax Rates

BIR FORM TAX TYPE DESCRIPTION ATCTAX

RATES

BIR FORM NO. 1601-E

MONTHLY REMITTANCE RETURN OF CREDITABLE INCOME TAXES WITHHELD (EXPANDED)

1601-E/2307 WE

Professionals (lawyers, CPAs, engineers, etc.), talent fees paid to individuals - If the current year’s gross income is P720,000 and below

WI010 10%

1601-E/2307 WE

Professionals (lawyers, CPAs, engineers, etc.), talent fees paid to individuals - If the current year’s gross income exceeds P 720,000

WI011 15%

1601-E/2307 WE

Professionals/ talent fees paid to juridical persons - If the current year’s gross income is P720,000 and below

WC010 10%

1601-E/2307 WE Professionals/ talent fees paid to juridical

WC011 15%

persons - If the current year’s gross income exceeds P 720,000

1601-E/2307 WE

Professional entertainers, such as, but not limited to, actors and actresses, singers, lyricist, composers, emcees - If the current year’s gross income is P 720,000 and below

WI020 10%

1601-E/2307 WE

Professional entertainers, such as, but not limited to, actors and actresses, singers, lyricist, composers, emcees - If the current year’s gross income exceeds P 720,000

WI021 15%

1601-E/2307 WE

Professional athletes, including basketball players, pelotaris and jockeys - If the current year’s gross income is P 720,000 and below

WI030 10%

1601-E/2307 WE

Professional athletes including basketball players, pelotaris and jockeys - If the current year’s gross income exceeds P720,000

WI031 15%

1601-E/2307 WE

Movie, stage, radio, television and musical directors and producers - If the current year’s gross income is P720,000 and below

WI040 10%

1601-E/2307 WE

Movie, stage, radio, television and musical directors and producers - If the current year’s gross income exceeds P 720,000

WI041 15%

1601-E/2307 WE

Management and technical consultants paid to individuals. If the current year’s gross income is P 720,000 and below

WI050 10%

1601-E/2307 WE

Management and technical consultants paid to individuals - If the current year’s gross income exceeds P 720,000

WI051 15%

1601-E/2307 WE

Management and technical consultants paid to juridical person - If the current year’s gross income is P 720,000 and below

WC050 10%

1601-E/2307 WE

Management and technical consultants paid to juridical person - If the currents year’s gross income exceeds P720,000

WC051 15%

1601-E/2307 WE

Business and bookkeeping agents and agencies - If the current year’s gross income is P 720,000 and below

WI060 10%

1601-E/2307 WE

Business and bookkeeping agents and agencies - If the current year’s gross income exceeds P 720,000

WI061 15%

1601-E/2307 WE

Insurance agents and insurance adjusters - If the current year’s gross income is P 720,000 and below

WI070 10%

1601-E/2307 WE

Insurance agents and insurance adjusters - If the current year’s gross income exceeds P 720,000

WI071 15%

1601-E/2307 WE

Other recipients of talent fees - If the current year’s gross income is P 720,000 and below

WI080 10%

1601-E/2307 WE

Other recipients of talent fees - If the current year’s gross income exceeds P 720,000

WI081 15%

1601-E/2307 WE

Fees of directors who are not employees of the company - If the current year’s gross income is P 720,000 and below

WI090 10%

1601-E/2307 WE

Fees of directors who are not employees of the company - If the current year’s gross income exceeds P 720,000

WI091 15%

1601-E/2307 WE Rentals- real/personal properties, poles, satellites &

WI100 5%

transmission facilities, billboards - Individual

1601-E/2307 WE

Rentals- real/personal properties, poles, satellites & transmission facilities, billboards - Corporate

WC100 5%

1601-E/2307 WECinematographic film rentals - Individual

WI110 5%

1601-E/2307 WECinematographic film rentals - Corporate

WC110 5%

1601-E/2307 WE

Income payments to prime contractors/sub-contractors - Individual

WI120 2%

1601-E/2307 WE

Income payments to prime contractors/sub-contractors - Corporate

WC120 2%

1601-E/2307 WEIncome distribution to beneficiaries of estates and trusts

WI130 15%

1601-E/2307 WE

Gross commission or service fees of custom, insurance, stock, real estate, immigration and commercial brokers & fees of agents of professional entertainers - Individual

WI140 10%

1601-E/2307 WE

Gross commission or service fees of custom, insurance, stock, real estate, immigration and commercial brokers & fees of agents of professional entertainers - Corporate

WC140 10%

1601-E/2307 WE

Payments to medical practitioners by a duly registered professional partnership for the practice of the medical profession - If the currents year's income payments to the medical practitioner is P720,000 and below

WI141 10%

1601-E/2307 WE Payments to medical practitioners by a duly registered professional partnership for the practice of the

WI142 15%

medical profession - If the currents year's income payments to the medical practitioner exceeds P720,000

1601-E/2307 WE

Payments for medical/dental/veterinary services thru Hospitals/ Clinics/Health Maintenance Organizations, including direct payments to service providers - If the current year's income payments for the medical/dental/veterinary services exceeds P 720,000

WI150 15%

1601-E/2307 WE

Payments for medical/dental/veterinary services thru Hospitals/ Clinics/Health Maintenance Organizations, including direct payments to service providers - If the current year's income payments for the medical/dental/veterinary services is P 720,000 and below

WI151 10%

1601-E/2307 WE

Payment by the general professional partnerships GPP) to its partners - If the current year's income payments to the partners is P 720,000 and below

WI152 10%

1601-E/2307 WE

Payment by the general professional partnerships GPP) to its partners - If the current year's income payments to the partners exceeds P 720,000

WI153 15%

1601-E/2307 WEPayments made by credit card companies - Individual

WI1561% of

1/2

1601-E/2307 WEPayments made by credit card companies - Corporate

WC1561% of

1/2

1601-E/2307 WE Income payments made by the government to its

WI640 1%

local/resident suppliers of goods - Individual

1601-E/2307 WE

Income payments made by the government to its local/resident suppliers of goods - Corporate

WC640 1%

1601-E/2307 WE

Income payments made by the government to its local/resident suppliers of service - Individual

WI157 2%

1601-E/2307 WE

Income payments made by the government to its local/resident suppliers of services - Corporate

WC157 2%

1601-E/2307 WE

Income payments made by top 20,000 private corporations to their local/resident suppliers of goods - Individual

WI158 1%

1601-E/2307 WE

Income payments made by top 20,000 private corporations to their local/resident suppliers of goods - Corporate

WC158 1%

1601-E/2307 WE

Income payments made by top 20,000 private corporations to their local/resident suppliers of services - Individual

WI160 2%

1601-E/2307 WE

Income payments made by top 20,000 private corporations to their local/resident suppliers of services - Corporate

WC160 2%

1601-E/2307 WE

Additional payments to government personnel from importers, shipping and airline companies or their agents for overtime services

WI159 15%

1601-E/2307 WE Commission, rebates, discounts and other similar considerations paid/granted to independent & exclusive distributors, medical/technical & sales representatives

WI515 10%

& marketing agents & sub-agents of multi-level marketing companies - Individual

1601-E/2307 WE

Commission, rebates, discounts and other similar considerations paid/granted to independent & exclusive distributors, medical/technical & sales representatives & marketing agents and sub-agents of multi-level marketing companies - Corporate

WC515 10%

1601-E/2307 WEGross payments to embalmers by funeral parlors

WI530 1%

1601-E/2307 WE

Payments made by pre-need companies to funeral parlors - Individual

WI535 1%

1601-E/2307 WE

Payments made by pre-need companies to funeral parlors - Corporate

WC535 1%

1601-E/2307 WETolling fee paid to refineries - Individual

WI540 5%

1601-E/2307 WETolling fee paid to refineries - Corporate

WC540 5%

1601-E/2307 WE

Income payments made to suppliers of Agricultural products - Individual

WI610 1%

1601-E/2307 WE

Income payments made to suppliers of Agricultural products - Corporate

WC610 1%

1601-E/2307 WE

Income payments on purchases of minerals, mineral products & quarry resources - Individual

WI630 5%

1601-E/2307 WE

Income payments on purchases of minerals, mineral products & quarry resources - Corporate

WC630 5%

1601-E/2307 WE

Income payments on purchases of gold by Bangko Sentral ng Pilipinas (BSP) from gold miners/suppliers under PD 1899, as amended by RA No. 7076- Individual

WI632 5%

1601-E/2307 WE Income payments on purchases of gold by

WC632 5%

Bangko Sentral ng Pilipinas (BSP) from gold miners/suppliers under PD 1899, as amended by RA No. 7076 - Corporate

1601-E/2307 WE

On gross amount of refund given by Meralco to customers with active contracts as classified by Meralco - Individual

WI650 25%

1601-E/2307 WE

On gross amount of refund given by Meralco to customers with active contracts as classified by Meralco - Corporate

WC650 25%

1601-E/2307 WE

On gross amount of refund given by Meralco to customers with terminated contracts as classified by Meralco - Individual

WI651 32%

1601-E/2307 WE

On gross amount of refund given by Meralco to customers with terminated contracts as classified by Meralco - Corporate

WC651 32%

1601-E/2307 WE

Withholding on gross amount of interest on the refund of meter deposit whether paid directly to the customers or applied against customer's billing - Residential and General Service customers whose monthly electricity consumption exceeds 200 kwh as classified by MERALCO - Individual

WI660 10%

1601-E/2307 WE Withholding on gross amount of interest on the refund of meter deposit whether paid directly to the customers or applied against customer's billing - Residential and General Service customers whose monthly electricity consumption exceeds 200 kwh as classified by MERALCO -

WC660 10%

Corporate

1601-E/2307 WE

Withholding on gross amount of interest on the refund of meter deposit whether paid directly to the customers or applied against customer's billing - Non-Residential customers whose monthly electricity consumption exceeds 200 kwh as classified by MERALCO - Individual

WI661 10%

1601-E/2307 WE

Withholding on gross amount of interest on the refund of meter deposit whether paid directly to the customers or applied against customer's billing - Non-Residential customers whose monthly electricity consumption exceeds 200 kwh as classified by MERALCO - Corporate

WC661 10%

1601-E/2307 WE

Withholding on gross amount of interest on the refund of meter deposit whether paid directly to the customers or applied against customer's billing - Residential and General Service customers whose monthly electricity consumption exceeds 200 kwh as classified by other electric Distribution Utilities (DU) - Individual

WI662 10%

1601-E/2307 WE Withholding on gross amount of interest on the refund of meter deposit whether paid directly to the customers or applied against customer's billing - Residential and General Service customers whose monthly electricity consumption exceeds 200 kwh as classified by other electric

WC662 10%

Distribution Utilities (DU) - Corporate

1601-E/2307 WE

Withholding on gross amount of interest on the refund of meter deposit whether paid directly to the customers or applied against customer's billing - Non-Residential customers whose monthly electricity consumption exceeds 200 kwh as classified by other electric Distribution Utilities (DU) - Individual

WI663 20%

1601-E/2307 WE

Withholding on gross amount of interest on the refund of meter deposit whether paid directly to the customers or applied against customer's billing - Non-Residential customers whose monthly electricity consumption exceeds 200 kwh as classified by other electric Distribution Utilities (DU) - Corporate

WC663 20%

1601-E/2307 WE

Income payments made by the top five thousand (5,000) individual taxpayers to their local/resident suppliers of goods other than those covered by other rates of withholding tax - Individual

WI670 1%

1601-E/2307 WE

Income payments made by the top five thousand (5,000) individual taxpayers to their local/resident suppliers of goods other than those covered by other rates of withholding tax - Corporation

WC670 1%

1601-E/2307 WE Income payments made by the top five thousand (5,000) individual taxpayers to their local/resident suppliers of services other than those

WI672 2%

covered by other rates of withholding tax - i) Individual

1601-E/2307 WE

Income payments made by the top five thousand (5,000) individual taxpayers to their local/resident suppliers of services other than those covered by other rates of withholding tax - ii) Corporation

WC672 2%

1601-E/2307 WE

Income payments made by political parties and candidates of local and national elections of all their purchase of goods and services as campaign expenditures, and income payments made by individuals or juridical persons for their purchases of goods and services intended to be given as campaign contribution to political parties and candidates - Individual

WI680 5%

1601-E/2307 WE

Income payments made by political parties and candidates of local and national elections of all their purchase of goods and services as campaign expenditures, and income payments made by individuals or juridical persons for their purchases of goods and services intended to be given as campaign contribution to political parties and candidates - Corporation

WC680 5%

1601-E/2307 WE

Income payments received by Real Estate Investment Trust (REIT)

WC690 1%

1601-E/2307 WE Interest income derived from any other debt instruments not within the coverage of deposit

WI710 20%

substitutes and Revenue Regulations No. 14-2012 subject to Creditable/ Expanded Withholding Tax - Individual

1601-E/2307 WE

Interest income derived from any other debt instruments not within the coverage of deposit substitutes and Revenue Regulations No. 14-2012 subject to Creditable/ Expanded Withholding Tax - Corporate

WC710 20%

[return to index]

Monthly Remittance Of Value-Added Taxes And Other Percentage Taxes Withheld

Tax Form

BIR Form No. 1600 - Monthly Remittance Return of Value-Added Taxes and Other Percentage Taxes Withheld


1. All government offices, bureaus, agencies or instrumentalities, local government units, government owned and controlled corporation on money payments made to private individuals, corporations, partnerships, associations and other judicial/artificial entities as required under RA Nos. 1051, 7649, 8241, 8424 and 9337.

2. Payors of income subject to Value-Added Tax to Non-residents.

3. Payors of income to persons, natural or juridical, who opted to remit his/its VAT or percentage tax through the withholding and remittance of the same by the withholding agent/payor which option is manifested by filing the “Notice of Availment of the option to Pay the Tax through the Withholding Process”, copy furnished the withholding agent-payor and the revenue district offices of both the payor and payee.


1. Alphabetical list of payees (MAP) indicating the following:

- Month and Year - TIN of withholding agent - Name of Withholding Agent - TIN of Payee - ATC- Nature of Payment - Name of Payee- Amount of Payment - Tax Rate- Tax Required to be Withheld

2. Return previously filed and proof of tax payments, if amended return

3. Certificate of Tax Treaty Relief, if applicable

4. Authorization Letter, if the return is filed by the authorized representative


6. BIR Form 0605, for advance payment.


1. Read instructions indicated at the back of the tax return.

2. Accomplish BIR No. Form 1600 in triplicate copies.


- Proceed to the nearest Authorized Agents Banks (AABs) of the Revenue District Office where you are registered or taxpayer concerned is registered and present the duly accomplished BIR Form No.1600, together with the required attachments and your payment.

- In places where there are no AABs, proceed to the Revenue Collection Officer or duly Authorized City or Municipal Treasurer located within the Revenue District Office where you are registered or taxpayer concerned is registered and present the duly accomplished BIR Form No. 1600, together with the required attachments and your payment.

- Receive your copy of the duly stamped and validated form from the teller of the AABs /Revenue Collection Officer/duly authorized City or Municipal Treasurer.


- Proceed to the Revenue District Office where you are registered and present the duly accomplished BIR Form No. 1600, together with the required attachments.


Deadline

On or before the tenth (10th) day of the month following the month the withholding was made, whether EFPS or manual filing and payment.

Tax Rates


RATES

BIR FORM NO. 1600

MONTHLY REMITTANCE RETURN OF VALUE-ADDED TAX AND OTHER PERCENTAGE TAXES WITHHELD

1600/2306 WG

FWVAT on payments for purchases of Goods

WV010 5%

1600/2306 WG

FWVAT on payments for purchases of Services

WV020 5%

1600/2306 WG

Lease or use of properties or property rights owned by non-residents (Government Withholding Agent)

WV040 12%

1600/2306 WG

Lease or use of properties or property rights owned by non-residents (Private Withholding Agent)

WV050 12%

1600/2306 WG

Other services rendered in the Philippines by non-residents (Government Withholding Agent)

WV060 12%

1600/2306 WG Other services WV070 12%

rendered in the Philippines by non-residents (Private Withholding Agent)

1600/2307 WGTax on carriers and keepers of garages

WB030 3%

1600/2307 WGFranchise Tax on Gas and Water Utilities

WB040 2%

1600/2307 WG

Franchise Tax on radio & TV broadcasting companies whose annual gross receipts does not exceed P10M & who are not VAT registered taxpayers

WB050 3%

1600/2307 WGTax on life insurance premiums

WB070 2%

1600/2307 WG

Persons exempt from VAT under Sec. 109(v) (creditable)-Government Withholding Agent

WB080 3%

1600/2307 WG

Tax on overseas dispatch, message or conversation originating from the Philippines

WB090 10%

1600/2307 WG Tax on Banks and Non-Bank Financial Intermediaries Performing Quasi-Banking Functions. On interest, commissions and discounts from lending activities as well as income from financial leasing, on the basis of remaining maturities of instruments from which such receipts are derived: - Maturity period

WB301 5%

is five years or less

1600/2307 WG

Tax on Banks and Non-Bank Financial Intermediaries Performing Quasi-Banking Functions. On interest, commissions and discounts from lending activities as well as income from financial leasing, on the basis of remaining maturities of instruments from which such receipts are derived: - Maturity period is more than five years

WB303 1%

1600/2307 WG

Tax on Banks and Non-Bank Financial Intermediaries Performing Quasi-Banking Functions. On dividends and equity shares and net income of subsidiaries

WB102 0%

1600/2307 WG

Tax on Banks and Non-Bank Financial Intermediaries Performing Quasi-Banking Functions. On royalties, rentals of property, real or personal, profits from exchange and all other items treated as gross income under the Code

WB103 7%

1600/2307 WG Tax on Banks and Non-Bank Financial Intermediaries Performing Quasi-Banking Functions. On net trading gains

WB104 7%

within the taxable year on foreign currency, debt securities, derivatives, and other similar financial instruments

1600/2307 WG

Tax on Other Non-Banks Financial Intermediaries Not Performing Quasi-Banking Functions. On interest, commissions and discounts from lending activities as well as income from financial leasing, on the basis of the remaining maturities of instrument from which such receipts are derived: - Maturity period is five years or less

WB108 5%

1600/2307 WG

Tax on Other Non-Banks Financial Intermediaries Not Performing Quasi-Banking Functions. On interest, commissions and discounts from lending activities as well as income from financial leasing, on the basis of the remaining maturities of instrument from which such receipts are derived: - Maturity period is more than five years

WB109 1%

1600/2307 WG Tax on Other Non-Banks Financial Intermediaries

WB110 5%

Not Performing Quasi-Banking Functions. On all other items treated as gross income under the Code

1600/2307 WG

Business Tax on Agents of foreign insurance co. - insurance agents

WB120 4%

1600/2307 WG

Business Tax on Agents of foreign insurance co. - owner of the property

WB121 5%

1600/2307 WGTax on International Carriers

WB130 3%

1600/2307 WG Tax on cockpits WB140 18%

1600/2307 WG

Tax on amusement places, such as cabaret, night or day clubs, videoke bars, karaoke bars, karaoke television, karaoke boxes, music lounges and other similar establishments

WB150 18%

1600/2307 WGTax on boxing exhibitions

WB160 10%

1600/2307 WG

Tax on professional basketball games

WB170 15%

1600/2307 WGTax on jai-alai & race tracks

WB180 30%

1600/2307 WG

Tax on sale, barter or exchange of shares of stocks listed and traded through the Local Stock Exchange

WB2001/2 of 1%

1600/2307 WG

Tax on shares of stock sold or exchanged through initial and secondary public offering - Not over 25%

WB201 4%

1600/2307 WG Tax on shares WB202 2%

of stock sold or exchanged through initial and secondary public offering - Over 25% but not exceeding 33 1/3%

1600/2307 WG

Tax on shares of stock sold or exchanged through initial and secondary public offering - Over 33 1/3%

WB203 1%

1600/2307 WG

VAT Withholding on Purchase of Goods (with waiver of privilege to claim input tax credit (creditable)

WV012 12%

1600/2306 WG

Vat Withholding on Purchase of Goods (with waiver of privilege to claim input tax credit (final)

WV014 12%

1600/2307 WG

VAT Withholding on Purchase of Services (with waiver of privilege to claim input tax credit (creditable)

WV022 12%

1600/2306 WG

VAT Withholding on Purchase of Services (with waiver of privilege to claim input tax credit (final)

WV024 12%

1600/2307 WG

Persons exempt from VAT under Section 109v (creditable) - Private Withholding Agent

WB082 3%

1600/2306 WG

Persons exempt from VAT under Section 109v (final)

WB084 3%

[return to index]

Monthly Remittance of Final Income Taxes Withheld

Tax Form

BIR Form 1601-F : Monthly Remittance Return of Final Income Taxes Withheld


Every withholding agent/payor who is either an individual or non-individual required to deduct and withhold taxes on income payments subject to Final Withholding Taxes


1. Return previously filed and proof of remittance, if amended return

2. Monthly Alphalist of Payees (MAP)

3. For advance payment, BIR Form No. 0605

4. Electronic Tax Remittance Advice (eTRA) previously Tax Remittance Advice (TRA) for National Government Agencies (NGAs) as required under DOF-DBM Joint Circular No. 1-2000A and RR 1-2003



2. Accomplish BIR Form No. 1601-F in triplicate copies.


- Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office where you are registered or taxpayer concerned is registered and present the duly accomplished BIR Form No. 1601F, together with the required attachments and your payment.

- In places where there are no AAB, the return shall be filed and the tax paid with the Revenue Collection Officer or duly Authorized City or Municipal Treasurer within the Revenue District Office where the withholding agent’s place of business/office is located who will issue a Revenue Official Receipt (BIR Form No. 2524) therefor;


- Proceed to the Revenue District Office where you are registered and present the duly accomplished BIR Form 1601-F, together with the required attachments.


Deadlines

Filing Via EFPS




Payment Via EFPS

On or before the fifteenth (15th) day of the month following the month withholding was made, except for taxes withheld for the month of December which shall be paid on or before January 20 of the succeeding year.

Provided however that, in the case of NGAs, all returns must be electronically filed (e-filed) and payment of the tax due must also be made on the same day the return is e-filed which shall be on or before the 10th day following the month in which withholding was made, except for taxes withheld for the month of December of each year, which shall be filed on or before January 15 of the succeeding year.



Tax Rates


RATES

BIR FORM NO. 1601-F

MONTHLY REMITTANCE RETURN OF FINAL INCOME TAXES WITHHELD

1601-F/2306 WF Interest on foreign loans WC180 20%

payable to non-resident foreign corporations (NRFCs)

1601-F/2306 WF

Interest and other income payments on foreign currency transactions/loans payable to OBUs

WC190 10%

1601-F/2306 WF

Interest and other income payments on foreign currency transactions/loans payable to FCDUs

WC191 10%

1601-F/2306 WF

Cash dividend payments by domestic corporation to citizens and resident aliens

WI202 10%

1601-F/2306 WF

Property dividend payments by domestic corporation to citizens and resident aliens

WI203 10%

1601-F/2306 WF

Cash dividend payment by domestic corporation to Non-Resident Foreign Corporations

WC21230% -

Effective Jan.

1, 2009

1601-F/2306 WF

Property dividend payment by domestic corporation to Non-Resident Foreign Corporations

WC21330% -

Effective Jan.

1, 2009

1601-F/2306 WF

Cash dividend payment by domestic corporation to Non-Resident Foreign Corporations whose countries allow tax deemed paid credit (subject to tax sparing rule)

WC222 15%

1601-F/2306 WF

Property dividend payment by domestic corporation to Non-Resident Foreign Corporations whose countries allowed tax deemed paid credit (subject to tax sparing rule)

WC223 15%

1601-F/2306 WF

Cash dividend payment by domestic corporation to non-resident alien engaged in trade or business (NRAETB)

WI224 20%

1601-F/2306 WF

Property dividend payment by domestic corporation to non-resident alien engaged in trade or business (NRAETB)

WI225 20%

1601-F/2306 WF Share of a NRAETB in WI226 20%

the distributable net income after tax of a partnership (except GPP) of which he is a partner, or share in the net income after tax of an association, joint account, or a joint venture taxable as a corporation of which he is a member or a co-venturer

1601-F/2306 WFOn other payments to non-resident foreign corporations (NRFCs)

WC23030% -

Effective Jan.

1, 2009

1601-F/2306 WF

Distributive share of individual partners in a taxable partnerships, association, joint account, or joint venture or consortium

WI240 10%

1601-F/2306 WF

All kinds of royalty payments to citizens, resident aliens and non-resident aliens engaged in trade or business (other than WI 380 and WI 341)

WI250 20%

1601-F/2306 WF

All kinds of royalty payments to domestic and resident foreign corporation

WC250 20%

1601-F/2306 WF

On prizes exceeding P10,000 and other winnings paid to individuals

WI260 20%

1601-F/2306 WF

Branch profit remittances by all corporations except PEZA/SBMA/CDA registered

WC280 15%

1601-F/2306 WF

On gross rentals, lease and charter fees derived by non-resident owner or lessor of foreign vessels

WC290 4.5%

1601-F/2306 WF

On the gross rentals, lease and charter fees derived by non-resident lessor of aircraft, machineries and other equipment

WC300 7.5%

1601-F/2306 WF

On payments to oil exploration service contractors and subcontractors (OESS) - Individual (NRAETB)

WI310 8%

1601-F/2306 WF On payments to oil exploration service

WC310 8%

contractors and subcontractors (OESS) - Corporate (non-resident foreign corporation engage in trade or business)

1601-F/2306 WF

Payments to Filipinos or alien individuals employed by Foreign Petroleum Service Contractors/Subcontractors, Offshore Banking Units and Regional or Area Headquarters and Regional Operating Headquarters of Multinational Companies occupying executive/managerial and technical positions

WI320 15%

1601-F/2306 WF

Payments to NRANETB except on sale of shares in domestic corporation and real property

WI330 25%

1601-F/2306 WF

On payments to non-resident individual cinematographic film owners, lessors or distributors

WI340 25%

1601-F/2306 WF

On payments to foreign corporate cinematographic film owners, lessors or distributors

WC340 25%

1601-F/2306 WF

Royalties paid to NRAETB on cinematographic films and similar works

WI341 25%

1601-F/2306 WF

Final tax on interest or other payments upon tax-free covenant bonds, mortgages, deeds of trust or other obligations under Sec. 57C of the NIRC of 1997

WI 350 30%

1601-F/2306 WF

Royalties paid to citizens, resident aliens and NRAETB on books, other literary works and musical composition

WI380 10%

1601-F/2306 WFInformer's cash reward paid to individuals

WI410 10%

1601-F/2306 WFInformer's cash reward paid to juridical persons

WC410 10%

1601-F/2306 WF

Cash or property dividends paid by a Real Estate Investment Trust (REIT) to individuals

WI700 10%

1601-F/2306 WF Cash or property dividends paid by a Real

WC700 10%

Estate Investment Trust (REIT) to corporations

[return to index]

Remittance Return of Percentage Tax On Winnings And Prizes Withheld By Race Track Operators

Tax Form

BIR Form No. 1600-WP : Remittance Return of Percentage Tax on Winnings and Prizes Withheld by Race Track Operators


- Operators of race tracks


1. Alphalist of Payees indicating the following:

- Tax Year and Month - TIN of withholding agent - Name of Withholding Agent - TIN of Payee - Name of Payee - ATC- Nature of Payment- Amount of Payment- Tax Rate- Tax Required to be Withheld

2. Return previously filed and proof of tax payments, if amended return

Procedures for Manual Filing and Payment

1. Accomplish BIR Form 1600-WP in triplicate copies.


- Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office where you are registered or taxpayer concerned is registered and present the duly accomplished BIR Form No. 1600-WP, together with the required attachments and your payment.

- In places where there are no AAB, proceed to the Revenue Collection Officer or duly Authorized City or Municipal Treasurer located within the Revenue District Office where you are registered or taxpayer concerned is registered and present the duly accomplished BIR Form No. 1600-WP, together with the required attachments and your payment



- Proceed to the Revenue District Office where you are registered or taxpayer concerned is registered and present the duly accomplished BIR Form No. 1600-WP, together with the required attachments.

- Receive your copy of the duly stamped and validated form from the RDO representative

Deadline

Within twenty (20) days from the date the tax was deducted and withheld

Tax Rates


RATES

BIR FORM NO. 1600-WP

-

REMITTANCE RETURN OF PERCENTAGE TAX ON WINNINGS AND PRIZES WITHHELD BY RACE TRACK OPERATORS

1600-WP/2306 WW

Tax on Winnings from double, forecast/quinella and trifecta bets on horse races paid by government withholding agent

WB191 4%

1600-WP/2306 WW Tax on Winnings or prizes paid to winners of winning horse race tickets other than double, forecast/quinella

WB192 10%

and trifecta bets; and owners of winning race horses paid by government withholding agent

1600-WP/2306 WW

Tax on Winnings from double, forecast/quinella and trifecta bets on horse races paid by private withholding agent

WB193 4%

1600-WP/2306 WW

Tax on Winnings or prizes paid to winners of winning horse race tickets other than double, forecast/quinella and trifecta bets; and owners of winning race horses paid by private withholding agent

WB194 10%

[return to index]

Quarterly Remittance Of Final Income Taxes Withheld On Fringe Benefits Paid To Employees Other Than Rank And File

Tax Form

BIR Form No. 1603 - Quarterly Remittance Return of Final Income Taxes Withheld on Fringe Benefits Paid to Employees Other than Rank and File


Every withholding agent/payor who is either an individual or non-individual required to deduct and withhold taxes on fringe benefits furnished to employees other than rank and file employees subject to Final Withholding Tax


1. Return previously filed and proof of tax payments , if amended return




2. Accomplish BIR Form No. 1603 in triplicate copies.


- Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office where you are registered or taxpayer concerned is registered and present the duly accomplished BIR Form No. 1603, together with the required attachments and your payment.

- In places where there are no AAB, proceed to the Revenue Collection Officer or duly Authorized City or Municipal Treasurer located within the Revenue District Office where you are registered or taxpayer concerned is registered and present the duly accomplished BIR Form No. 1603, together with the required attachments and your payment.



- Proceed to the Revenue District Office where you are registered or taxpayer concerned is registered and present the duly accomplished BIR Form No. 1603, together with the required attachments.

- Receive your copy of the duly stamped and validated form from the RDO representative

Deadline

Filing and Payment Via EFPS

On or before the fifteenth (15th) day of the month following the end of the calendar quarter in which the fringe benefits were granted to the recipient.Provided however that, in the case of NGAs, it shall be e-filed and paid on or before the 10 th day of the month following the quarter.


On or before the tenth (10th) day of the month following the end of the calendar quarter in which the fringe benefits were granted to the recipient.

Tax Rates

BIR FORM TAX TYPEDESCRIPTIO

NATC

TAX RATES

BIR FORM NO. 1603

QUARTERLY REMITTANCE RETURN OF FINAL INCOME TAXES WITHHELD

1603/2306 WR

Alien & Filipino employed & occupying the same position as those of aliens employed in selected multinational companies

WF320

15%Percentage Divisor

- 85%

1603/2306 WR

Payment of fringe benefits to Non-Resident Alien Not Engaged in Trade or Business (NRAETB)

WF330

25%Percentage Divisisor

- 75%

1603/2306 WR

Employees other than rank and file (Fringe Benefit Tax) based on the grossed up monetary value

WF360

32%Percentage Divisisor

- 68%

[return to index]

Monthly Remittance Of Final Income Taxes Withheld On Interest Paid And Yield On Deposit Substitutes, Trust, Etc.

Tax Form

BIR Form No. 1602 - Monthly Remittance Return of Final Income Taxes Withheld on Interest Paid and Yield on Deposit Substitutes/Trust/Etc.


Banks, non-bank financial intermediaries, finance corporations, investment and trust companies and other institutions required to withhold final income tax on interest paid/accrued on deposit and yield or any other monetary benefit from deposits substitutes and from trust fund and similar arrangements.


Return previously filed and proof of tax payments, if amended return

Procedures (for Manual filing of tax returns)

1. Accomplish BIR Form No. 1602 in triplicate copies.


- Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office where you are registered or taxpayer concerned is registered and present the duly accomplished BIR FormNo. 1602, together with the required attachments and your payment.

- In places where there are no AAB, proceed to the Revenue Collection Officer or duly Authorized City or Municipal Treasurer within the Revenue District Office where the withholding agent’s place of business/office is located and present the duly accomplished BIR Form No. 1602, together with the required attachments and your payment who will issue a Revenue Official Receipt (BIR Form No. 2524) therefor.

- Receive your copy of the duly stamped and validated form from the teller of the AAB's/Revenue Collection Officer/duly Authorized City or Municipal Treasurer.


- Proceed to the Revenue District Office where you are registered or taxpayer concerned is registered and present the duly accomplished BIR Form No. 1602, together with the required attachments.

Deadline

Filing Via EFPS

On or before the fifteenth (15th) day of the month following the month withholding was made

Payment Via EFPS

On or before the fifteenth (15th) day of the month following the month withholding was made, except for taxes withheld for the month of December which shall be paid on or before January 20th of the succeeding year


On or before the tenth (10th) day of the month following the month the withholding was made, except for taxes withheld for the month of December which shall be filed and paid on or before January 15 of the succeeding year.

Tax Rates


RATES

BIR FORM NO. 1602

MONTHLY REMITTANCE RETURN OF FINAL INCOME TAXES WITHHELD

1602/2306 WB

From bank deposits - Savings/Time - Individual

WI161 20%

1602/2306 WB

From bank deposits - Savings/Time - Corporate

WC161 20%

1602/2306 WB

From Treasury Bills and Other Government Securities - Individual

WI162 20%

1602/2306 WB

From Treasury Bills and Other Government Securities - Corporate

WC162 20%

1602/2306 WB

From deposit substitutes, trusts funds and other similar arrangements - Individual

WI163 20%

1602/2306 WB

From deposit substitutes, trusts funds and other similar arrangements - Corporate

WC163 20%

1602/2306 WB

On foreign currency deposits Resident - Individual

WI170 7.5%

1602/2306 WB On foreign WC170 7.5%

currency deposits Resident - Corporate

1602/2306 WB

Interest payments to taxpayers enjoying preferential tax rates (i.e. PEZA Registered Enterprises)

WC390 5%

1602/2306 WB

On interest income from long-term deposit in the form of savings trust funds, deposit substitutes which was pre-terminated by the holder before the 5th year - individual (Less than 3 years)

WI440 20%

1602/2306 WB

On interest income from long-term deposit in the form of savings trust funds, deposit substitutes which was pre-terminated by the holder before the 5th year - individual (3 years to less than 4 years)

WI441 12%

1602/2306 WB

On interest income from long-term deposit in the form of savings trust funds, deposit substitutes which was pre-terminated by the holder before the 5th year - individual ( 4 years to less than 5 years)

WI442 5%

1602/2306 WB On interest income from long-term deposit in the

WC440 20%

form of savings trust funds, deposit substitutes which was pre-terminated by the holder before the 5th year - corporate

[return to index]

Annual Information Return On Creditable Income Taxes Withheld (Expanded)/Income Payments Exempt From Withholding Tax

Tax Form

BIR Form No. 1604-E : Annual Information Return of Creditable Income Taxes Withheld (Expanded)/Income Payments Exempt from Withholding Tax


Every withholding agent/payor who is either an individual or non-individual required to deduct and withhold taxes on income payments subject to Expanded/Creditable Withholding Taxes


1. Alphalist of Payees subjected to Expanded Withholding Tax

2. Alphalist of Other Payees Whose Income Payments Are Exempt from Withholding Tax but subject to Income Tax

3. Return previously filed and proof of tax payment for amended return

Note: Above alphalists are to be submitted in accordance with RR 1-2014 as amended.

Procedures for Manual Filing

1. Accomplish BIR Form No. 1604-E in triplicate copies.

2. Proceed to the Revenue District Office where you are registered and present the duly accomplished BIR Form No. 1604-E, together with the required attachments.

3. Receive your copy of the duly stamped and validated form from the RDO representative

Deadline

On or before March 1 of the year following the calendar year in which the income payments subjected to expanded withholding taxes or exempt from withholding tax were paid.

[return to index]

Annual Information On Income Taxes Withheld On Compensation And Final Withholding Taxes

Tax Form

BIR Form No. 1604-CF : Annual Information Return of Income Taxes Withheld on Compensation and Final Withholding taxes.


Every withholding agent/payor who is either an individual or non-individual required to deduct and withhold taxes on:

- compensation paid to employees

- income payments subject to Final Withholding Taxes


1. Alphalist of Employees as of December 31 With no Previous Employer within the year

2. Alphalist of Employees as of December 31 with Previous Employer/s within the year

3. Alphalist of Employees Terminated Before December 31

4. Alphalist of Employees Whose Compensation Income Are Exempt from Withholding Tax But Subject to Income Tax

5. Alphalist of Minimum Wage Earners

6. Alphalist of Employees other than Rank and File Who Were Given Fringe Benefits During the Year

7. Alphalist of Payees Subjected to Final Withholding Tax

8. Return previously filed and proof of tax payment for amended return

Note: Above alphalists are to be submitted in accordance with RR 1-2014 as amended.

Procedures

1. Accomplish BIR Form No. 1604-CF in triplicate copies and attach the necessary schedules in prescribed form (hard and soft copy)

2. Proceed to the Revenue District Office where you are registered and present the duly accomplished BIR Form No. 1604-CF, together with the required attachments.

3. Receive your copy of the duly stamped and validated form from the RDO representative.

Deadline

On or before January 31 following the calendar year in which the compensation payment and other income payments subjected to final withholding taxes were paid or accrued.

[return to index]

Related Revenue Issuances

RR No. 2-98, RR No. 3-98, RR No. 8-98, RR No. 10-98, RR No. 12-98, RR No. 3-99, RR No. 8-2000, RR No. 10-2000, RR No. 6-2001, RR No. 12-2001, RR No. 9-2001, RR No. 3-2002, RR No. 4-2002, RR No. 14-2002, RR No. 19-2002, RR No. 26-2002, RR No. 14-2003, RR No. 16-2003, RR No. 17-2003, RR No. 30-2003, RR 1-2004, RR 3-2004, RR No. 5-2004, RR No. 8-2005, RR 1-2006, RR 2-2006, RR 4-2006, RR 4-2007, RR 4-2008, RR 5-2008, RR 6-2008, RR 7-2008, RR 14-2008, RR No. 10-2008, RR 1-2009, RR 2-2009, RR 3-2009, RR 5-2009, RR 6-2009, RR 8-2009, RR 10-2009, RR No. 11-2010, RR No. 5-2011, RR No. 7-2011, RR No. 13-2011, RR No. 3-2012, RR No. 6-2012, RR No. 8-2012, RR No. 14-2012, RR No. 16-2012, RR No. 1-2013, RR No. 10-2013, RR No. 11-2013

[return to index]

Frequently Asked Questions

1) What are the types of Withholding Taxes?

There are two main classifications or types of withholding tax. These are:

a) Creditable Withholding Tax

- Withholding Tax on Compensation- Expanded Withholding Tax- Withholding of Business Tax (VAT and Percentage)

b) Final Withholding Tax

2) What is compensation?

It means any remuneration received for services performed by an employee from his employer under an employee-employer relationship.

3) What are the different kinds of compensation?

a) Regular compensation - includes basic salary, fixed allowances for representation, transportation and others paid to an employee

b) Supplemental compensation - includes payments to an employee in addition to the regular compensation such as but not limited to the following:

- Overtime Pay- Fees, including director's fees- Commission- Profit Sharing- Monetized Vacation and Sick Leave- Fringe benefits received by rank & file employees- Hazard Pay- Taxable 13th month pay and other benefits- Other remunerations received from an employee-employer relationship

4) What are exempted from Withholding Tax on Compensation?

1. Remuneration as an incident of employment, such as the following:

a. Retirement benefits received under RA 7641

b. Any amount received by an official or employee or by his heirs from the employer due to death, sickness or other physical disability or for any cause beyond the control of the said official or employee such as retrenchment, redundancy or cessation of business

c. Social security benefits, retirement gratuities, pensions and other similar benefits

d. Payment of benefits due or to become due to any person residing in the Philippines under the law of the US administered by the US Veterans Administration

e. Payment of benefits made under the SSS Act of 1954, as amended

f. Benefits received from the GSIS Act of 1937, as amended, and the retirement gratuity received by the government official and employees

2. Remuneration paid for agricultural labor and paid entirely in products of the farm where the labor is performed

3. Remuneration for domestic services

4. Remuneration for casual labor not in the course of an employer's trade or business

5. Compensation for services by a citizen or resident of the Philippines for a foreign government or an international organization

6. Payment for damages

7. Proceeds of Life Insurance

8. Amount received by the insured as a return of premium

9. Compensation for injuries or sickness

10. Income exempt under Treaty

11. Thirteenth (13th) month pay and other benefits (not to exceed P 30,000)

12. GSIS, SSS, Medicare and other contributions

13. Compensation Income of Minimum Wage Earners (MWEs) with respect to their Statutory Minimum Wage (SMW) as fixed by Regional Tripartite Wage and Productivity Board (RTWPB)/National Wage and Productivity Commission (NWPC), including overtime pay, holiday pay, night shift differential and hazard pay, applicable to the place where he/she is assigned.

14. Compensation Income of employees in the public sector if the same is equivalent to or not more than the SMW in the non-agricultural sector, as fixed by RTWPB/NWPC, including overtime pay, holiday pay, night shift differential and hazard pay, applicable to the place where he/she is assigned.

5) What are De Minimis Benefits?

- These are facilities and privileges of relatively small value and are offered or furnished by the employer to his employees merely as means of promoting their health, goodwill, contentment or efficiency. The following shall be considered "De Minimis" benefits not subject to income tax, hence not subject to withholding tax on compensation income of both managerial and rank and file employees:

• Monetized unused vacation leave credits of private employees not exceeding ten (10) days during the year;

• Monetized value of vacation and sick leave credits paid to government officials and employees.

• Medical cash allowance to dependents of employees, not exceeding P750.00 per employee per semester or P125.00 per month;

• Rice subsidy of P1,500 or one (1) sack of 50 kg. rice per month amounting to not more than P1,500;

• Uniform and clothing allowance not exceeding P5,000 per annum;

• Actual medical assistance, e.g. medical allowance to cover medical and healthcare needs, annual medical/executive check-up, maternity assistance, and routine consultations, not exceeding P10,000 per annum;

• Laundry allowance not exceeding P300.00 per month;

• Employees achievement awards, e.g., for length of service or safety achievement, which must be in the form of a tangible personal property other than cash or gift certificate, with an annual monetary value not exceeding P10,000 received by the employee under an established written plan which does not discriminate in favor of highly paid employees;

• Gifts given during Christmas and major anniversary celebration not exceeding P5,000.00 per employee perannum;

• Daily meal allowance for overtime work and night/graveyard shift not exceeding twenty-five percent (25%) of the basic minimum wage on a per region basis;

6) What is substituted Filing of income tax returns (ITR)?

Substituted Filing of ITR is the manner by which declaration of income of individuals receiving purely compensation income the taxes of which have been withheld correctly by their employers. Instead of the filing of Individual Income Tax Return (BIR Form 1700), the employer’s annual information return (BIR Form No. 1604-CF) duly stamped received by the BIR may be considered as the “substitute” Income Tax Return (ITR) of the employee, inasmuch as the information provided therein are exactly the same

information required to be provided in his income tax return (BIR Form No. 1700). However, said employees may still file ITR at his/her option.

7) Who are qualified to avail of the substituted filing of ITR?

Employees who satisfies all of the following conditions:

a. Receiving purely compensation income regardless of amount;

b. Working for only one employer in the Philippines for the calendar year;

c. Tax has been withheld correctly by the employer (tax due equals tax withheld);

d. The employee’s spouse also complies with all three (3) conditions stated above.

e. The employer files the annual information return (BIR Form No. 1604-CF)

f. The employer issues BIR Form No. 2316 to each employee.

Note: For those employees qualified under the substituted filing, the employer

8) What income payments are subject to Expanded Withholding Tax?

a) Professional fees / talent fees for services rendered by the following:

- Those individually engaged in the practice of professions or callings such as lawyers; certified public accountants; doctors of medicine; architects; civil, electrical, chemical, mechanical, structural, industrial, mining, sanitary, metallurgical and geodetic engineers; marine surveyors; doctors of veterinary science; dentist; professional appraisers; connoisseurs of tobacco; actuaries; interior decorators, designers, real estate service practitioners (RESPs), (i. e. real estate consultants, real estate appraisers and real estate brokers) requiring government licensure examination given by the Real Estate Service pursuant to Republic Act No. 9646 and all other profession requiring government licensure examinations and/or regulated by the Professional Regulations Commission, Supreme Court, etc.

- Professional entertainers such as but not limited to actors and actresses, singers, lyricist, composers and emcees

- Professional athletes including basketball players, pelotaris and jockeys

- Directors and producers involved in movies, stage, radio, television and musical productions

- Insurance agents and insurance adjusters

- Management and technical consultants

- Bookkeeping agents and agencies

- Other recipient of talent fees

- Fees of directors who are not employees of the company paying such fees whose duties are confined to attendance at and participation in the meetings of the Board of Directors

b) Professional fees, talent fees, etc for services of taxable juridical persons

c) Rentals:

- Rental of real property used in business

- Rental of personal properties in excess of P 10,000 annually

- Rental of poles, satellites and transmission facilities

- Rental of billboards

d) Cinematographic film rentals and other payments

e) Income payments to certain contractors

- General engineering contractors

- General building contractors

- Specialty contractors

- Other contractors like:

1. Filling, demolition and salvage work contractors and operators of mine drilling apparatus

2. Operators of dockyards

3. Persons engaged in the installation of water system, and gas or electric light, heat or power

4. Operators of stevedoring, warehousing or forwarding establishments

5. Transportation Contractors

6. Printers, bookbinders, lithographers and publishers, except those principally engaged in the publication or printing of any newspaper, magazine, review or bulletin which appears at regular intervals, with fixed prices for subscription and sale

7. Advertising agencies, exclusive of payments to media

8. Messengerial, janitorial, security, private detective, credit and/or collection agenciesand other business agencies

9. Independent producers of television, radio and stage performances or shows

10. Independent producers of "jingles"

11. Labor recruiting agencies and/or “labor-only” contractors

12. Persons engaged in the installation of elevators, central air conditioning units, computer machines and other equipment and machineries and the maintenance services thereon

13. Persons engaged in the sale of computer services, computer programmers, software developer/designer, etc.

14. Persons engaged in landscaping services

15. Persons engaged in the collection and disposal of garbage

16. TV and radio station operators on sale of TV and radio airtime, and

17. TV and radio blocktimers on sale of TV and radio commercial spots

f) Income distribution to the beneficiaries of estates and trusts

g) Gross commissions of customs, insurance, stock, immigration and commercial brokers, fees of agents of professional entertainers and real estate service practitioners (RESPs), (i. e. real estate consultants, real estate appraisers and real estate brokers) who failed or did not take up the licensure examination given by and not registered with the Real Estate Service under the Professional Regulations Commission

h) Income payments to partners of general professional partnerships

i) Payments made to medical practitioners

j) Gross selling price or total amount of consideration or its equivalent paid to the seller/owner for the sale, exchange or transfer of real property classified as ordinary asset

k) Additional income payments to government personnel from importers, shipping and airline companies or their agents

l) Certain income payments made by credit card companies

m) Income payments made by the top 20,000 private corporations to their purchase of goods and services from local/resident suppliers other than those covered by other rates of withholding

n) Income payments by government offices on their purchase of goods and services, from local/resident suppliers other than those covered by other rates of withholding

o) Commission, rebates, discounts and other similar considerations paid/granted to independent and exclusive distributors, medical/technical and sales representatives and marketing agents and sub-agents of multi level marketing companies.

p) Tolling fees paid to refineries

q) Payments made by pre-need companies to funeral parlors

r) Payments made to embalmers by funeral parlors

s) Income payments made to suppliers of agricultural products (suspended per RR 3-2004)

t) Income payments on purchases of mineral, mineral products and quarry resources

u) On gross amount of refund given by MERALCO to customers with active contracts as classified by MERALCO;

v) Interest income on the refund paid through direct payment or application against customers' billing by other electric Distribution Utilities in accordance with the rules embodied in ERC Resolution No. 8 series of 2008 dated June 4, 2008 governing the refund of meter deposits which was approved and adopted by ERC in compliance with the mandate of Article 8 of the Magna Carta for Residential Electricity Consumers and Article 3.4.2 of DSOAR exempting all electricity consumers, whether residential or non-residential from the payment of meter deposit.

w) Income payments made by the top 5,000 individual taxpayers to their purchase of goods and services from their local/resident suppliers other than those covered by other rates of withholding

x) Income payments made by political parties and candidates of local and national elections of all their campaign expenditures, and income payments made by individuals or juridical persons for their purchases of goods and services intended to be given as campaign contribution to political parties and candidates

y) Interest Income derived from any other debt instruments not within the coverage of deposit substitutes and RR No. 14-2012

z) Income payments subject to Withholding Tax received by Real Estate Investment Trust (REIT) (Sec.12 of RR No. 13-2011)

9) What income payments are subject to Final Withholding Tax?

a) Income Payments to a Citizen or to a Resident Alien Individual:

- Interest on any peso bank deposit- Royalties - Prizes [except prizes amounting to P10,000 or less which is subject to tax under Sec. 24(A)(1) of the Tax Code]- Winnings (except winnings from Philippine Charity Sweepstake Office and Lotto)- Interest income on foreign currency deposit- Interest income from long term deposit (except those with term of five years or more)- Cash and/or property dividends- Capital Gains presumed to have been realized from the sale, exchange or other disposition of real property

b) Income Payments to a Non-Resident Alien Engaged in Trade or Business in the Philippines

- On Certain Passive Income - cash and/or property dividend - Share in the distributable net income of a partnership- Interest on any bank deposits- Royalties- Prizes (except prizes amounting to P10,000 or less which is subject to tax under Sec. 25(A)(1) of the Tax Code.- Winnings (except from Philippine Charity Sweepstake Office and Lotto)- Interest on Long Term Deposits (except those with term of five years or more)- Capital Gains presumed to have been realized from the sale, exchange or other disposition of real property

c) Income Derived from All Sources Within the Philippines by a Non-Resident Alien Individual Not Engaged in Trade or Business

- On gross amount of income derived from all sources within the Philippines

- On Capital Gains presumed to have been realized from the sale, exchange or disposition of real property located in the Philippines

d) Income Derived by Alien Individual Employed by a Regional or Area Headquarters and Regional Operating Headquarters of Multinational Companies, Income Derived by

Alien Individual Employed by Offshore Banking Units and Income of Aliens Employed by Foreign Petroleum Service Contractors and Subcontractors

e) Income Payment to a Domestic Corporation

- Interest from any currency bank deposits and yield or any other monetary benefit from deposit substitutes and from trust fund and similar arrangements derived from sources within the Philippines

- Royalties derived from sources within the Philippines

- Interest income derived from a depository bank under the Expanded Foreign Currency Deposit (FCDU) System

- Income derived by a depository bank under the FCDU from foreign transactions with local commercial banks

- On capital gains presumed to have been realized from the sale, exchange or other disposition of real property located in the Philippines classified as capital assets, including pacto de retro sales and other forms of conditional sales based on the gross selling price or fair market value as determined in accordance with Sec. 6(E) of the NIRC, whichever is higher

f) Income Payments to a Resident Foreign Corporation

- Offshore Banking Units

- Tax on branch Profit Remittances

- Interest on any currency bank deposits and yield or any other monetary benefit from deposit substitute and from trust funds and similar arrangements and royalties derived from sources within the Philippines

- Interest income on FCDU

- Income derived by a depository bank under the expanded foreign currency deposits system from foreign currency transactions with local commercial banks

g) Income Derived from all Sources Within the Philippines by a Non-Resident Foreign Corporation

- Gross income from all sources within the Philippines such as interest, dividends, rents, royalties, salaries, premiums (except re-insurance premiums), annuities, emoluments or other fixed determinable annual, periodic or casual gains, profits and income or capital gains;

- Gross income from all sources within the Philippines derived by a non-resident cinematographic film owner, lessor and distributor

- On the gross rentals, lease and charter fees derived by a non-resident owner or lessor of vessels from leases or charters to Filipino citizens or corporations as approved by the Maritime Industry Authority

- On the gross rentals, charter and other fees derived by a non-resident lessor of aircraft, machineries and other equipment

- Interest on foreign loans contracted on or after August 1, 1986

h) Fringe Benefits Granted to the Employee (except Rank and File)

- Goods, services or other benefits furnished or granted in cash or in kind by an employer to an individual employee (except rank and file) such as but not limited to the following:

- Housing- Vehicle of any kind- Interest on loans- Expenses for foreign travel- Holiday and vacation expenses- Educational assistance to employees or his dependents- Membership fees, dues and other expense in social and athletic clubs or other - similar organizations- Health insurance

i) Informers Reward

j) Cash or property dividends paid by a Real Estate Investment Trust (REIT) pursuant to Section 13 of RR 13-2011

10) Aside from the required withholding of income tax by government agencies and instrumentalities on their payments to their suppliers of goods and services, what other tax types must be withheld by them.

a) Value Added Tax – on all income payments subject to VAT

b) Percentage Tax – on all payments subject to percentage tax such as payments to the following:

- Any person engaged in business whose gross sales or receipts do not exceed P1,919,500 (RR 3-2012) and who are not VAT-registered persons. (Persons exempt from VAT under Sec. 109V of the Tax Code)

- Domestic carriers and keepers of garages, except owners of bancas and owners of animal drawn two wheeled vehicle

- Operators of international carriers doing business in the Philippines.

- Franchise grantees of electric, gas or water utilities

- Franchise grantees of radio and/or television broadcasting companies whose gross annual receipts of the preceding year do not exceed Ten Million (P10,000,000.00) Pesos and did not opt to register as VAT Taxpayers

- Communication providers with regards to overseas dispatch, messages or conversation from the Philippines

- Banks and non-bank financial intermediaries and finance companies

- Life insurance companies

- Agents of foreign insurance companies

- Proprietor, lessee, or operator of cockpits, cabarets, night or day clubs, videoke/karaoke bars, karaoke television, karaoke boxes, music lounges and other similar establishments, boxing exhibitions, professional basketball games, jai-alai and race tracks

- Winners in horse races or owner of winning race horses

- Every stock broker who effected a sale, barter, exchange or other disposition of shares of stock listed and traded through the Local Stock Exchange (LSE) other than the sale by a dealer in securities

- A corporate issuer/stock broker, whether domestic or foreign, engaged in the sale, barter, exchange or other disposition through Initial Public Offering (IPO) /secondary public offering of shares of stock in closely held corporations

11) Who is a withholding agent?

A withholding agent is any person or entity who is required to deduct and remit the taxes withheld to the government.

12) What are the duties and obligations of the withholding agent?

The following are the duties and obligations of the withholding agent:

a) To Register - withholding agent is required to register within ten (10) days after acquiring such status with the Revenue District office having jurisdiction over the place where the business is located

b) To Deduct and Withhold - withholding agent is required to deduct tax from all money payments subject to withholding tax

c) To Remit the Tax Withheld - withholding agent is required to remit tax withheld at the time prescribed by law and regulations

d) To File Annual Return - withholding agent is required to file the corresponding Annual Information Return at the time prescribed by law and regulations

e) To Issue Withholding Tax Certificates - withholding agent shall furnish Withholding Tax Certificates to recipient of income payments subject to withholding

13) Who are considered TOP 20,000 Corporate Taxpayers?

Top twenty thousand (20,000) private corporations shall include a corporate taxpayer who has been determined and notified by the Bureau of Internal Revenue (BIR) as having satisfied any of the following criteria:

a) Classified and duly notified by the Commissioner as a large taxpayer under Revenue Regulation No. 1-98, as amended, or belonging to the top five thousand (5,000) private corporations under RR 12-94, or to the top ten thousand (10,000) private corporations under RR 17-2003, unless previously de-classified as such or had already ceased business operations (automatic inclusion);

b) VAT payment or payable whichever is higher, of at least P100,000 for the preceding year;

c) Annual income tax due of at least P200,000 for the preceding year;

d) Total percentage tax paid of at least P100,000 for the preceding year;

e) Gross sales of P10,000,000 and above for the preceding year;

f) Gross purchases of P5,000,000 and above for the preceding year;

g) Total excise tax payment of at least P100,000 for the preceding year.

14) What are the obligations of Top 20,000 Corporate Taxpayers?

a) In addition to the above responsibilities of a withholding agent, Top 20,000 private corporations shall withhold the one percent (1%) creditable expanded withholding tax on the purchase of goods and two percent (2%) on the purchase of services (other than

those covered by other withholding tax rates) from local suppliers where it regularly makes purchases. However, casual purchase of goods shall not be subject to withholding tax unless the amount of purchase at any one time involves P10,000 or more, in which case, it shall then be required to withhold the tax. The same rule apply to local/resident supplier of services other than those covered by separate rates of withholding tax. Provided, however, that for purchases involving agricultural products in their original state, the tax required to be withheld shall only apply to purchases in excess of the cumulative amount of P300,000 within the same taxable year. For this purpose, agricultural products in their original state shall only include corn, coconut, copra, palay, rice cassava, sugar cane, coffee, fruits, vegetables, marine food products, poultry and livestocks.

b) Taxes withheld shall be remitted using BIR Form 1601-E on a monthly basis thru the use of the Electronic Filing and Payment System (EFPS) on the dates prescribed for e-filers. Filing shall be done on a staggered basis provided under RR 26-2002 and payment shall be made every 15th day following the end of the month for Jan-Nov and Jan. 20 of the following year for the month of December.

c) Certificate of Creditable Tax Withheld at Source (BIR Form No. 2307) shall be issued to the payees within twenty (20) days following the close of such payees’ taxable quarter or upon demand of the payees;

d) A list of regular supplier of goods and/or services shall be submitted on a semestral basis through e-submission facility or as an attachment under Electronic Filing and Payment System (EFPS). Deadline for submission of the list is not later than July 31 and January 31 of each year. However, initial list of regular suppliers should be submitted within fifteen (15) days from actual receipt hereof.

15) Who are considered TOP 5,000 Individual Taxpayers?

Top 5,000 Individual Taxpayers shall refer to individual taxpayers engaged in trade or business or exercise of profession who have been determined and notified by the Bureau of Internal Revenue (BIR) as having satisfied any of the following criteria:

a) VAT payment or payable whichever is higher, of at least P100,000 for the preceding year;

b) Annual income tax due of at least P200,000 for the preceding year;

c) Total percentage tax paid of at least P100,000 for the preceding year;

d) Gross sales of P10,000,000 and above for the preceding year;

e) Gross purchases of P5,000,000 and above for the preceding year;

f) Total excise tax payment of at least P100,000 for the preceding year.

16) What are the obligations of Top 5,000 Individual Taxpayers?

a) In addition to the obligations of a withholding agent, Top 5,000 Individual Taxpayers shall withhold the one percent (1%) creditable expanded withholding on the purchase of goods and two percent (2%) on the purchase of services (other than those covered by other withholding tax rates) from local suppliers where it regularly makes purchases. However, casual purchase of goods shall not be subject to withholding tax unless the amount of purchase at any one time involves P10,000 or more, in which case, it shall then be required to withhold the tax. The same rule apply to local/resident supplier of services other than those covered by separate rates of withholding tax. Provided, however, that for purchases involving agricultural products in their original state, the tax required to be withheld shall only apply to purchases in excess of the cumulative amount of P300,000 within the same taxable year. For this purpose, agricultural products in their original state shall only include corn, coconut, copra, palay, rice cassava, sugar cane, coffee, fruits, vegetables, marine food products, poultry and livestocks.

b) Taxes withheld shall be remitted under BIR Form 1601-E on a monthly basis thru the Electronic Filing and Payment System (EFPS) facility within the prescribed period.

c) Certificate of Creditable Tax Withheld at Source (BIR Form No. 2307) shall be issued to the payees within twenty (20) days following the close of such payees’ taxable quarter or upon demand of the payees;

d) A list of regular supplier of goods and/or services shall be submitted on a semestral basis through e-submission facility or as an attachment under Electronic Filing and Payment System (EFPS). Deadline for submission of the list is not later than July 31 and January 31 of each year. However, initial list of regular suppliers should be submitted within fifteen (15) days from actual receipt hereof.

17) Who are the responsible officials in the government offices charged with the duty to deduct, withhold and remit withholding taxes?

The following officials are duty bound to deduct, withhold and remit taxes:

a) For Office of the Provincial Government-province- the Chief Accountant, Provincial Treasurer and the Governor;

b) For Office of the City Government-cities- the Chief Accountant, City Treasurer and the City Mayor;

c) For Office of the Municipal Government-municipalities- the Chief Accountant, Municipal Treasurer and the Mayor;

d) Office of the Barangay-Barangay Treasurer and Barangay Captain

e) For NGAs, GOCCs and other Government Offices, the Chief Accountant and the Head of Office or the Official holding the highest position.

[return to index]

witholding tax.docx

Documents

tax return

kind of withholding

regular rates of tax

income subject

certain income payments

particular income

tax remittance advice

income tax2