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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 their purchases of goods and services.

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Codal Reference

Republic Act Nos. 8424, 9337, 9442, 9504

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

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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 month
Group B - Fourteen (14) days following end of the month
Group C - Thirteen (13) days following end of the month
Group D - Twelve (12) days following end of the month
Group 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 TABLES


Effective January 1, 2009

DAILY 1 2 3 4 5 6 7 8
Exemption 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 dependent
1. Z 0.0 1 0 33 99 231 462 825 1,650
2. S/ME 50.0 1 165 198 264 396 627 990 1,815
B. Table for single/married employee with qualified dependent child(ren)
1. ME1 / S1 75.0 1 248 281 347 479 710 1,073 1,898
2. ME2 / S2 100.0 1 330 363 429 561 792 1,155 1,980
3. ME3 / S3 125.0 1 413 446 512 644 875 1,238 2,063
4. ME4 / S4 150.0 1 495 528 594 726 957 1,320 2,145

WEEKLY 1 2 3 4 5 6 7 8
Exemption 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 dependent
1. Z 0.0 1 0 192 577 1,346 2,692 4,808 9,615
2. S/ME 50.0 1 962 1,154 1,538 2,308 3,654 5,769 10,577
B. 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 11,058
2. ME2 / S2 100.0 1 1,923 2,115 2,500 3,269 4,615 6,731 11,538
3. ME3 / S3 125.0 1 2,404 2,596 2,981 3,750 5,096 7,212 12,019
4. 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 dependent
1. Z 0.0 1 0 417 1,250 2,917 5,833 10,417 20,833
2. S/ME 50.0 1 2,083 2,500 3,333 5,000 7,917 12,500 22,917
B. 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 23,958
2. 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 26,042
4. 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 8
Exemption 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 dependent
1. Z 0.0 1 0 833 2,500 5,833 11,667 20,833 41,667
2. S/ME 50.0 1 4,167 5,000 6,667 10,000 15,833 25,000 45,833
B. 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 47,917
2. ME2 / S2 100.0 1 8,333 9,167 10,833 14,167 20,000 29,167 50,000
3. ME3 / S3 125.0 1 10,417 11,250 12,917 16,250 22,083 31,250 52,083
4. 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 sources
3. Married Employee (Husband or Wife) whose spouse is engaged in business
4. Single
6. Zero Exemption for employees with multiple employers for their 2 nd, 3rd..employers (main
employer claims personal & additional exemption
7. 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 children


2. Employed wife whose husband is also employed or engaged in business; husband waived claim for
dependent children in favor of the employed wife
3. Single with qualified dependent children

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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]

Who Are Required To File

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

Procedures for Filing and Payment

1. Read instructions indicated in the tax return.

2. Accomplish BIR Form No. 1601-E 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 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.

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

- 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

Group A - Fifteen (15) days following end of the month


Group B - Fourteen (14) days following end of the month
Group C - Thirteen (13) days following end of the month
Group D - Twelve (12) days following end of the month
Group 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 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.

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

BIR FORM TAX TYPE DESCRIPTION ATC TAX RATES


MONTHLY REMITTANCE RETURN OF
BIR FORM NO. 1601-
CREDITABLE INCOME TAXES WITHHELD
E
(EXPANDED)
Professionals (lawyers, CPAs, engineers, etc.),
1601-E/2307 WE talent fees paid to individuals - If the current WI010 10%
years gross income is P720,000 and below
Professionals (lawyers, CPAs, engineers, etc.),
1601-E/2307 WE talent fees paid to individuals - If the current WI011 15%
years gross income exceeds P 720,000
Professionals/ talent fees paid to juridical persons
1601-E/2307 WE - If the current years gross income is P720,000 WC010 10%
and below
Professionals/ talent fees paid to juridical persons
1601-E/2307 WE - If the current years gross income exceeds P WC011 15%
720,000
Professional entertainers, such as, but not limited
to, actors and actresses, singers, lyricist,
1601-E/2307 WE WI020 10%
composers, emcees - If the current years gross
income is P 720,000 and below
Professional entertainers, such as, but not limited
to, actors and actresses, singers, lyricist,
1601-E/2307 WE WI021 15%
composers, emcees - If the current years gross
income exceeds P 720,000
Professional athletes, including basketball
1601-E/2307 WE players, pelotaris and jockeys - If the current WI030 10%
years gross income is P 720,000 and below
Professional athletes including basketball players,
1601-E/2307 WE pelotaris and jockeys - If the current years gross WI031 15%
income exceeds P720,000
Movie, stage, radio, television and musical
1601-E/2307 WE directors and producers - If the current years WI040 10%
gross income is P720,000 and below
Movie, stage, radio, television and musical
1601-E/2307 WE directors and producers - If the current years WI041 15%
gross income exceeds P 720,000
Management and technical consultants paid to
1601-E/2307 WE individuals. If the current years gross income is P WI050 10%
720,000 and below
Management and technical consultants paid to
1601-E/2307 WE individuals - If the current years gross income WI051 15%
exceeds P 720,000
Management and technical consultants paid to
1601-E/2307 WE juridical person - If the current years gross WC050 10%
income is P 720,000 and below
Management and technical consultants paid to
1601-E/2307 WE juridical person - If the currents years gross WC051 15%
income exceeds P720,000
Business and bookkeeping agents and agencies -
1601-E/2307 WE If the current years gross income is P 720,000 WI060 10%
and below
Business and bookkeeping agents and agencies -
1601-E/2307 WE If the current years gross income exceeds P WI061 15%
720,000
Insurance agents and insurance adjusters - If the
1601-E/2307 WE current years gross income is P 720,000 and WI070 10%
below
Insurance agents and insurance adjusters - If the
1601-E/2307 WE WI071 15%
current years gross income exceeds P 720,000
Other recipients of talent fees - If the current
1601-E/2307 WE WI080 10%
years gross income is P 720,000 and below
Other recipients of talent fees - If the current
1601-E/2307 WE WI081 15%
years gross income exceeds P 720,000
Fees of directors who are not employees of the
1601-E/2307 WE company - If the current years gross income is P WI090 10%
720,000 and below
Fees of directors who are not employees of the
1601-E/2307 WE company - If the current years gross income WI091 15%
exceeds P 720,000
Rentals- real/personal properties, poles, satellites
1601-E/2307 WE WI100 5%
& transmission facilities, billboards - Individual
Rentals- real/personal properties, poles, satellites
1601-E/2307 WE WC100 5%
& transmission facilities, billboards - Corporate
1601-E/2307 WE Cinematographic film rentals - Individual WI110 5%
1601-E/2307 WE Cinematographic film rentals - Corporate WC110 5%
Income payments to prime contractors/sub-
1601-E/2307 WE WI120 2%
contractors - Individual
Income payments to prime contractors/sub-
1601-E/2307 WE WC120 2%
contractors - Corporate
Income distribution to beneficiaries of estates and
1601-E/2307 WE WI130 15%
trusts
Gross commission or service fees of custom,
insurance, stock, real estate, immigration and
1601-E/2307 WE WI140 10%
commercial brokers & fees of agents of
professional entertainers - Individual
Gross commission or service fees of custom,
insurance, stock, real estate, immigration and
1601-E/2307 WE WC140 10%
commercial brokers & fees of agents of
professional entertainers - Corporate
Payments to medical practitioners by a duly
registered professional partnership for the
1601-E/2307 WE practice of the medical profession - If the currents WI141 10%
year's income payments to the medical
practitioner is P720,000 and below
Payments to medical practitioners by a duly
registered professional partnership for the
1601-E/2307 WE practice of the medical profession - If the currents WI142 15%
year's income payments to the medical
practitioner exceeds P720,000
Payments for medical/dental/veterinary services
thru Hospitals/ Clinics/Health Maintenance
Organizations, including direct payments to
1601-E/2307 WE WI150 15%
service providers - If the current year's income
payments for the medical/dental/veterinary
services exceeds P 720,000
Payments for medical/dental/veterinary services
thru Hospitals/ Clinics/Health Maintenance
Organizations, including direct payments to
1601-E/2307 WE WI151 10%
service providers - If the current year's income
payments for the medical/dental/veterinary
services is P 720,000 and below
Payment by the general professional partnerships
1601-E/2307 WE GPP) to its partners - If the current year's income WI152 10%
payments to the partners is P 720,000 and below
Payment by the general professional partnerships
1601-E/2307 WE GPP) to its partners - If the current year's income WI153 15%
payments to the partners exceeds P 720,000
Payments made by credit card companies -
1601-E/2307 WE WI156 1% of 1/2
Individual
1601-E/2307 WE Payments made by credit card companies - WC156 1% of 1/2
Corporate
Income payments made by the government to its
1601-E/2307 WE WI640 1%
local/resident suppliers of goods - Individual
Income payments made by the government to its
1601-E/2307 WE WC640 1%
local/resident suppliers of goods - Corporate
Income payments made by the government to its
1601-E/2307 WE WI157 2%
local/resident suppliers of service - Individual
Income payments made by the government to its
1601-E/2307 WE WC157 2%
local/resident suppliers of services - Corporate
Income payments made by top 20,000 private
1601-E/2307 WE corporations to their local/resident suppliers of WI158 1%
goods - Individual
Income payments made by top 20,000 private
1601-E/2307 WE corporations to their local/resident suppliers of WC158 1%
goods - Corporate
Income payments made by top 20,000 private
1601-E/2307 WE corporations to their local/resident suppliers of WI160 2%
services - Individual
Income payments made by top 20,000 private
1601-E/2307 WE corporations to their local/resident suppliers of WC160 2%
services - Corporate
Additional payments to government personnel
1601-E/2307 WE from importers, shipping and airline companies or WI159 15%
their agents for overtime services
Commission, rebates, discounts and other similar
considerations paid/granted to independent &
1601-E/2307 WE exclusive distributors, medical/technical & sales WI515 10%
representatives & marketing agents & sub-agents
of multi-level marketing companies - Individual
Commission, rebates, discounts and other similar
considerations paid/granted to independent &
exclusive distributors, medical/technical & sales
1601-E/2307 WE WC515 10%
representatives & marketing agents and sub-
agents of multi-level marketing companies -
Corporate
1601-E/2307 WE Gross payments to embalmers by funeral parlors WI530 1%
Payments made by pre-need companies to
1601-E/2307 WE WI535 1%
funeral parlors - Individual
Payments made by pre-need companies to
1601-E/2307 WE WC535 1%
funeral parlors - Corporate
1601-E/2307 WE Tolling fee paid to refineries - Individual WI540 5%
1601-E/2307 WE Tolling fee paid to refineries - Corporate WC540 5%
Income payments made to suppliers of
1601-E/2307 WE WI610 1%
Agricultural products - Individual
Income payments made to suppliers of
1601-E/2307 WE WC610 1%
Agricultural products - Corporate
Income payments on purchases of minerals,
1601-E/2307 WE WI630 5%
mineral products & quarry resources - Individual
Income payments on purchases of minerals,
1601-E/2307 WE WC630 5%
mineral products & quarry resources - Corporate
Income payments on purchases of gold by
Bangko Sentral ng Pilipinas (BSP) from gold
1601-E/2307 WE WI632 5%
miners/suppliers under PD 1899, as amended by
RA No. 7076- Individual
Income payments on purchases of gold by
Bangko Sentral ng Pilipinas (BSP) from gold
1601-E/2307 WE WC632 5%
miners/suppliers under PD 1899, as amended by
RA No. 7076 - Corporate
On gross amount of refund given by Meralco to
1601-E/2307 WE customers with active contracts as classified by WI650 25%
Meralco - Individual
On gross amount of refund given by Meralco to
1601-E/2307 WE customers with active contracts as classified by WC650 25%
Meralco - Corporate
On gross amount of refund given by Meralco to
1601-E/2307 WE customers with terminated contracts as classified WI651 32%
by Meralco - Individual
On gross amount of refund given by Meralco to
1601-E/2307 WE customers with terminated contracts as classified WC651 32%
by Meralco - Corporate
Withholding on gross amount of interest on the
refund of meter deposit whether paid directly to
the customers or applied against customer's
1601-E/2307 WE billing - Residential and General Service WI660 10%
customers whose monthly electricity consumption
exceeds 200 kwh as classified by MERALCO -
Individual
Withholding on gross amount of interest on the
refund of meter deposit whether paid directly to
the customers or applied against customer's
1601-E/2307 WE billing - Residential and General Service WC660 10%
customers whose monthly electricity consumption
exceeds 200 kwh as classified by MERALCO -
Corporate
Withholding on gross amount of interest on the
refund of meter deposit whether paid directly to
the customers or applied against customer's
1601-E/2307 WE WI661 10%
billing - Non-Residential customers whose
monthly electricity consumption exceeds 200 kwh
as classified by MERALCO - Individual
Withholding on gross amount of interest on the
refund of meter deposit whether paid directly to
the customers or applied against customer's
1601-E/2307 WE WC661 10%
billing - Non-Residential customers whose
monthly electricity consumption exceeds 200 kwh
as classified by MERALCO - Corporate
Withholding on gross amount of interest on the
refund of meter deposit whether paid directly to
the customers or applied against customer's
1601-E/2307 WE billing - Residential and General Service WI662 10%
customers whose monthly electricity consumption
exceeds 200 kwh as classified by other electric
Distribution Utilities (DU) - Individual
Withholding on gross amount of interest on the
refund of meter deposit whether paid directly to
the customers or applied against customer's
1601-E/2307 WE billing - Residential and General Service WC662 10%
customers whose monthly electricity consumption
exceeds 200 kwh as classified by other electric
Distribution Utilities (DU) - Corporate
Withholding on gross amount of interest on the
refund of meter deposit whether paid directly to
the customers or applied against customer's
1601-E/2307 WE billing - Non-Residential customers whose WI663 20%
monthly electricity consumption exceeds 200 kwh
as classified by other electric Distribution Utilities
(DU) - Individual
Withholding on gross amount of interest on the
refund of meter deposit whether paid directly to
the customers or applied against customer's
1601-E/2307 WE billing - Non-Residential customers whose WC663 20%
monthly electricity consumption exceeds 200 kwh
as classified by other electric Distribution Utilities
(DU) - Corporate
Income payments made by the top five thousand
(5,000) individual taxpayers to their local/resident
1601-E/2307 WE WI670 1%
suppliers of goods other than those covered by
other rates of withholding tax - Individual
Income payments made by the top five thousand
(5,000) individual taxpayers to their local/resident
1601-E/2307 WE WC670 1%
suppliers of goods other than those covered by
other rates of withholding tax - Corporation
Income payments made by the top five thousand
(5,000) individual taxpayers to their local/resident
1601-E/2307 WE WI672 2%
suppliers of services other than those covered by
other rates of withholding tax - i) Individual
Income payments made by the top five thousand
(5,000) individual taxpayers to their local/resident
1601-E/2307 WE WC672 2%
suppliers of services other than those covered by
other rates of withholding tax - ii) Corporation
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
1601-E/2307 WE WI680 5%
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
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
1601-E/2307 WE WC680 5%
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
Income payments received by Real Estate
1601-E/2307 WE WC690 1%
Investment Trust (REIT)
Interest income derived from any other debt
instruments not within the coverage of deposit
1601-E/2307 WE substitutes and Revenue Regulations No. 14- WI710 20%
2012 subject to Creditable/ Expanded
Withholding Tax - Individual
Interest income derived from any other debt
instruments not within the coverage of deposit
1601-E/2307 WE substitutes and Revenue Regulations No. 14- WC710 20%
2012 subject to Creditable/ Expanded
Withholding Tax - Corporate

[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

Who Are Required To File

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.

Documentary Requirements

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

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

6. BIR Form 0605, for advance payment.

Procedures for Filing and Payment

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

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

3. If there is tax required to be remitted:

- 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.

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

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

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

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

BIR FORM TAX TYPE DESCRIPTION ATC TAX RATES


MONTHLY REMITTANCE RETURN OF VALUE-
BIR FORM NO. 1600 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%
Lease or use of properties or property rights
1600/2306 WG owned by non-residents (Government Withholding WV040 12%
Agent)
Lease or use of properties or property rights
1600/2306 WG owned by non-residents (Private Withholding WV050 12%
Agent)
Other services rendered in the Philippines by non-
1600/2306 WG WV060 12%
residents (Government Withholding Agent)
Other services rendered in the Philippines by non-
1600/2306 WG WV070 12%
residents (Private Withholding Agent)
1600/2307 WG Tax on carriers and keepers of garages WB030 3%
1600/2307 WG Franchise Tax on Gas and Water Utilities WB040 2%
Franchise Tax on radio & TV broadcasting
companies whose annual gross receipts does not
1600/2307 WG WB050 3%
exceed P10M & who are not VAT registered
taxpayers
1600/2307 WG Tax on life insurance premiums WB070 2%
Persons exempt from VAT under Sec. 109(v)
1600/2307 WG WB080 3%
(creditable)-Government Withholding Agent
Tax on overseas dispatch, message or
1600/2307 WG WB090 10%
conversation originating from the Philippines
Tax on Banks and Non-Bank Financial
Intermediaries Performing Quasi-Banking
Functions. On interest, commissions and
discounts from lending activities as well as income
1600/2307 WG WB301 5%
from financial leasing, on the basis of remaining
maturities of instruments from which such receipts
are derived:
- Maturity period is five years or less
1600/2307 WG Tax on Banks and Non-Bank Financial WB303 1%
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
Tax on Banks and Non-Bank Financial
Intermediaries Performing Quasi-Banking
1600/2307 WG WB102 0%
Functions. On dividends and equity shares and
net income of subsidiaries
Tax on Banks and Non-Bank Financial
Intermediaries Performing Quasi-Banking
1600/2307 WG Functions. On royalties, rentals of property, real or WB103 7%
personal, profits from exchange and all other
items treated as gross income under the Code
Tax on Banks and Non-Bank Financial
Intermediaries Performing Quasi-Banking
1600/2307 WG Functions. On net trading gains within the taxable WB104 7%
year on foreign currency, debt securities,
derivatives, and other similar financial instruments
Tax on Other Non-Banks Financial Intermediaries
Not Performing Quasi-Banking Functions. On
interest, commissions and discounts from lending
1600/2307 WG activities as well as income from financial leasing, WB108 5%
on the basis of the remaining maturities of
instrument from which such receipts are derived:
- Maturity period is five years or less
Tax on Other Non-Banks Financial Intermediaries
Not Performing Quasi-Banking Functions. On
interest, commissions and discounts from lending
1600/2307 WG activities as well as income from financial leasing, WB109 1%
on the basis of the remaining maturities of
instrument from which such receipts are derived:
- Maturity period is more than five years
Tax on Other Non-Banks Financial Intermediaries
Not Performing Quasi-Banking Functions. On all
1600/2307 WG WB110 5%
other items treated as gross income under the
Code
Business Tax on Agents of foreign insurance co. -
1600/2307 WG WB120 4%
insurance agents
Business Tax on Agents of foreign insurance co. -
1600/2307 WG WB121 5%
owner of the property
1600/2307 WG Tax on International Carriers WB130 3%
1600/2307 WG Tax on cockpits WB140 18%
Tax on amusement places, such as cabaret, night
or day clubs, videoke bars, karaoke bars, karaoke
1600/2307 WG WB150 18%
television, karaoke boxes, music lounges and
other similar establishments
1600/2307 WG Tax on boxing exhibitions WB160 10%
1600/2307 WG Tax on professional basketball games WB170 15%
1600/2307 WG Tax on jai-alai & race tracks WB180 30%
Tax on sale, barter or exchange of shares of
1600/2307 WG stocks listed and traded through the Local Stock WB200 1/2 of 1%
Exchange
Tax on shares of stock sold or exchanged through
1600/2307 WG initial and secondary public offering - Not over WB201 4%
25%
Tax on shares of stock sold or exchanged through
1600/2307 WG initial and secondary public offering - Over 25% WB202 2%
but not exceeding 33 1/3%
Tax on shares of stock sold or exchanged through
1600/2307 WG initial and secondary public offering - Over 33 WB203 1%
1/3%
VAT Withholding on Purchase of Goods (with
1600/2307 WG waiver of privilege to claim input tax credit WV012 12%
(creditable)
Vat Withholding on Purchase of Goods (with
1600/2306 WG WV014 12%
waiver of privilege to claim input tax credit (final)
VAT Withholding on Purchase of Services (with
1600/2307 WG waiver of privilege to claim input tax credit WV022 12%
(creditable)
VAT Withholding on Purchase of Services (with
1600/2306 WG WV024 12%
waiver of privilege to claim input tax credit (final)
Persons exempt from VAT under Section 109v
1600/2307 WG WB082 3%
(creditable) - Private Withholding Agent
Persons exempt from VAT under Section 109v
1600/2306 WG WB084 3%
(final)

[return to index]

Monthly Remittance of Final Income Taxes Withheld

Tax Form

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

Who Are Required To File

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

Documentary Requirements

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

Procedures for Filing and Payment

1. Read instructions indicated in the tax return.

2. Accomplish BIR Form No. 1601-F 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 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 agents place of business/office is located who will issue a Revenue Official
Receipt (BIR Form No. 2524) therefor;

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

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

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

Deadlines

Filing Via EFPS

Group A - Fifteen (15) days following end of the month


Group B - Fourteen (14) days following end of the month
Group C - Thirteen (13) days following end of the month
Group D - Twelve (12) days following end of the month
Group 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

BIR FORM TAX TYPE DESCRIPTION ATC TAX RATES


BIR FORM NO. MONTHLY REMITTANCE RETURN OF FINAL
1601-F INCOME TAXES WITHHELD
Interest on foreign loans payable to non-resident
1601-F/2306 WF WC180 20%
foreign corporations (NRFCs)
Interest and other income payments on foreign
1601-F/2306 WF WC190 10%
currency transactions/loans payable to OBUs
Interest and other income payments on foreign
1601-F/2306 WF WC191 10%
currency transactions/loans payable to FCDUs
Cash dividend payments by domestic corporation
1601-F/2306 WF WI202 10%
to citizens and resident aliens
Property dividend payments by domestic
1601-F/2306 WF WI203 10%
corporation to citizens and resident aliens

Cash dividend payment by domestic corporation 30% -


1601-F/2306 WF WC212
to Non-Resident Foreign Corporations Effective Jan.
1, 2009

Property dividend payment by domestic 30% -


1601-F/2306 WF WC213
corporation to Non-Resident Foreign Corporations Effective Jan.
1, 2009
Cash dividend payment by domestic corporation
to Non-Resident Foreign Corporations whose
1601-F/2306 WF WC222 15%
countries allow tax deemed paid credit (subject to
tax sparing rule)
Property dividend payment by domestic
corporation to Non-Resident Foreign Corporations
1601-F/2306 WF WC223 15%
whose countries allowed tax deemed paid credit
(subject to tax sparing rule)
Cash dividend payment by domestic corporation
1601-F/2306 WF to non-resident alien engaged in trade or business WI224 20%
(NRAETB)
Property dividend payment by domestic
1601-F/2306 WF corporation to non-resident alien engaged in trade WI225 20%
or business (NRAETB)
Share of a NRAETB in the distributable net
income after tax of a partnership (except GPP) of
which he is a partner, or share in the net income
1601-F/2306 WF WI226 20%
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

On other payments to non-resident foreign 30% -


1601-F/2306 WF WC230
corporations (NRFCs) Effective Jan.
1, 2009
Distributive share of individual partners in a
1601-F/2306 WF taxable partnerships, association, joint account, or WI240 10%
joint venture or consortium
All kinds of royalty payments to citizens, resident
1601-F/2306 WF aliens and non-resident aliens engaged in trade or WI250 20%
business (other than WI 380 and WI 341)
All kinds of royalty payments to domestic and
1601-F/2306 WF WC250 20%
resident foreign corporation
On prizes exceeding P10,000 and other winnings
1601-F/2306 WF WI260 20%
paid to individuals
Branch profit remittances by all corporations
1601-F/2306 WF WC280 15%
except PEZA/SBMA/CDA registered
On gross rentals, lease and charter fees derived
1601-F/2306 WF WC290 4.5%
by non-resident owner or lessor of foreign vessels
On the gross rentals, lease and charter fees
1601-F/2306 WF derived by non-resident lessor of aircraft, WC300 7.5%
machineries and other equipment
On payments to oil exploration service contractors
1601-F/2306 WF WI310 8%
and subcontractors (OESS) - Individual (NRAETB)
On payments to oil exploration service contractors
and subcontractors (OESS) - Corporate (non-
1601-F/2306 WF WC310 8%
resident foreign corporation engage in trade or
business)
Payments to Filipinos or alien individuals
employed by Foreign Petroleum Service
Contractors/Subcontractors, Offshore Banking
1601-F/2306 WF Units and Regional or Area Headquarters and WI320 15%
Regional Operating Headquarters of Multinational
Companies occupying executive/managerial and
technical positions
Payments to NRANETB except on sale of shares
1601-F/2306 WF WI330 25%
in domestic corporation and real property
On payments to non-resident individual
1601-F/2306 WF cinematographic film owners, lessors or WI340 25%
distributors
On payments to foreign corporate
1601-F/2306 WF cinematographic film owners, lessors or WC340 25%
distributors
Royalties paid to NRAETB on cinematographic
1601-F/2306 WF WI341 25%
films and similar works
Final tax on interest or other payments upon tax-
free covenant bonds, mortgages, deeds of trust or
1601-F/2306 WF WI 350 30%
other obligations under Sec. 57C of the NIRC of
1997
Royalties paid to citizens, resident aliens and
1601-F/2306 WF NRAETB on books, other literary works and WI380 10%
musical composition
1601-F/2306 WF Informer's cash reward paid to individuals WI410 10%
1601-F/2306 WF Informer's cash reward paid to juridical persons WC410 10%
Cash or property dividends paid by a Real Estate
1601-F/2306 WF WI700 10%
Investment Trust (REIT) to individuals
Cash or property dividends paid by a Real Estate
1601-F/2306 WF WC700 10%
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

Who Are Required To File

- Operators of race tracks

Documentary Requirements

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.

2. If there is tax required to be remitted:

- 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

- 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.

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

- 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

BIR FORM TAX TYPE DESCRIPTION ATC TAX RATES


REMITTANCE RETURN OF PERCENTAGE TAX
BIR FORM NO.
- ON WINNINGS AND PRIZES WITHHELD BY
1600-WP
RACE TRACK OPERATORS
Tax on Winnings from double, forecast/quinella
1600-WP/2306 WW and trifecta bets on horse races paid by WB191 4%
government withholding agent
Tax on Winnings or prizes paid to winners of
winning horse race tickets other than double,
1600-WP/2306 WW forecast/quinella and trifecta bets; and owners of WB192 10%
winning race horses paid by government
withholding agent
Tax on Winnings from double, forecast/quinella
1600-WP/2306 WW and trifecta bets on horse races paid by private WB193 4%
withholding agent
1600-WP/2306 WW Tax on Winnings or prizes paid to winners of WB194 10%
winning horse race tickets other than double,
forecast/quinella and trifecta bets; and owners of
winning race horses paid by private withholding
agent

[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

Who Are Required To 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

Documentary Requirements

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

2. 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 BIR Form No. 1603 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 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.

- 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.

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

- 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 10th day of the month following the quarter.

Manual Filing and Payment

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 TYPE DESCRIPTION ATC TAX RATES


QUARTERLY REMITTANCE RETURN OF FINAL
BIR FORM NO. 1603
INCOME TAXES WITHHELD
15%
Alien & Filipino employed & occupying the same
Percentage
1603/2306 WR position as those of aliens employed in selected WF320
Divisor
multinational companies
- 85%
25%
Payment of fringe benefits to Non-Resident Alien Percentage
1603/2306 WR WF330
Not Engaged in Trade or Business (NRAETB) Divisisor
- 75%
32%
Employees other than rank and file (Fringe
Percentage
1603/2306 WR Benefit Tax) based on the grossed up monetary WF360
Divisisor
value
- 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.

Who Are Required To File

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.

Documentary Requirements

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.

2. If there is tax required to be remitted:

- 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 agents 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.

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

- 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

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

BIR FORM TAX TYPE DESCRIPTION ATC TAX RATES


MONTHLY REMITTANCE RETURN OF FINAL
BIR FORM NO. 1602
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%
From Treasury Bills and Other Government
1602/2306 WB WI162 20%
Securities - Individual
From Treasury Bills and Other Government
1602/2306 WB WC162 20%
Securities - Corporate
From deposit substitutes, trusts funds and other
1602/2306 WB WI163 20%
similar arrangements - Individual
1602/2306 WB From deposit substitutes, trusts funds and other WC163 20%
similar arrangements - Corporate
1602/2306 WB On foreign currency deposits Resident - Individual WI170 7.5%
1602/2306 WB On foreign currency deposits Resident - Corporate WC170 7.5%
Interest payments to taxpayers enjoying
1602/2306 WB preferential tax rates (i.e. PEZA Registered WC390 5%
Enterprises)
On interest income from long-term deposit in the
form of savings trust funds, deposit substitutes
1602/2306 WB WI440 20%
which was pre-terminated by the holder before the
5th year - individual (Less than 3 years)
On interest income from long-term deposit in the
form of savings trust funds, deposit substitutes
1602/2306 WB WI441 12%
which was pre-terminated by the holder before the
5th year - individual (3 years to less than 4 years)
On interest income from long-term deposit in the
form of savings trust funds, deposit substitutes
1602/2306 WB WI442 5%
which was pre-terminated by the holder before the
5th year - individual ( 4 years to less than 5 years)
On interest income from long-term deposit in the
form of savings trust funds, deposit substitutes
1602/2306 WB WC440 20%
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

Who Are Required To File

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

Documentary Requirements

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.

Who Are Required To File

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

Documentary Requirements

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 employers 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 employees 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 15 th 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]