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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 governmentowned 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. 1601C, together with the required attachments.
- Receive your copy of the duly stamped and validated BIR Form from the RDO.
Deadline
Filing Via EFPS
Group
Group

A
B

Fifteen
Fourteen

(15)
(14)

days
days

following
following

end
end

of
of

the
the

month
month

Group
C
Thirteen
(13)
days
following
Group
D
Twelve
(12)
days
following
Group E - Eleven (11) days following end of the month

end
end

of
of

the
the

month
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 (efiled) and payment of the tax due must also be made on the same day the return is efiled 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
Exemption
Status

(000P)

0.00

0.00

1.65

8.25

28.05

74.26

165.02

412.54

+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

33

99

231

462

825

1,650

2. S/ME

50.0

165

198

264

396

627

990

1,815

B. Table for single/married employee with qualified dependent child(ren)


1. ME1 / S1

75.0

248

281

347

479

710

1,073

1,898

2. ME2 / S2

100.0

330

363

429

561

792

1,155

1,980

3. ME3 / S3

125.0

413

446

512

644

875

1,238

2,063

4. ME4 / S4

150.0

495

528

594

726

957

1,320

2,145

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

WEEKLY

A. Table for employees without qualified dependent


1. Z

0.0

192

577

1,346

2,692

4,808

9,615

2. S/ME

50.0

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

1,442

1,635

2,019

2,788

4,135

6,250

11,058

2. ME2 / S2

100.0

1,923

2,115

2,500

3,269

4,615

6,731

11,538

3. ME3 / S3

125.0

2,404

2,596

2,981

3,750

5,096

7,212

12,019

4. ME4 / S4

150.0

2,885

3,077

3,462

4,231

5,577

7,692

12,500

SEMIMONTHLY

Exemption

0.00

0.00

20.83

104.17

354.17

937.50

Status

+0%
over

+5%
over

+10%
over

+15%
over

+20%
over

+25%
over

+30%
over

+32% over

2,083.33 5,208.33

A. Table for employees without qualified dependent


1. Z

0.0

417

1,250

2,917

5,833

10,417

20,833

2. S/ME

50.0

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

3,125

3,542

4,375

6,042

8,958

13,542

23,958

2. ME2 / S2

100.0

4,167

4,583

5,417

7,083

10,000

14,583

25,000

3. ME3 / S3

125.0

5,208

5,625

6,458

8,125

11,042

15,625

26,042

4. ME4 / S4

150.0

6,250

6,667

7,500

9,167

12,083

16,667

27,083

MONTHLY

Exemption

0.00

0.00

41.67

208.33

708.33

Status

+0%
over

+5%
over

+10%
over

+15%
over

+20%
over

A. Table for employees without qualified dependent

1,875.00 4,166.67 10,416.67


+25%
over

+30%
over

+32% over

1. Z

0.0

833

2,500

5,833

11,667

20,833

41,667

2. S/ME

50.0

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

6,250

7,083

8,750

12,083

17,917

27,083

47,917

2. ME2 / S2

100.0

8,333

9,167

10,833

14,167

20,000

29,167

50,000

3. ME3 / S3

125.0

10,417

11,250

12,917

16,250

22,083

31,250

52,083

4. ME4 / S4

150.0

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
[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]
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
Group

A
B

Fifteen
Fourteen

(15)
(14)

days
days

following
following

end
end

of
of

the
the

month
month

Group
C
Thirteen
(13)
days
following
Group
D
Twelve
(12)
days
following
Group E - Eleven (11) days following end of the month

end
end

of
of

the
the

month
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 (efiled) and payment of the tax due must also be made on the same day the return is efiled 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
BIR FORM NO. 1601E

TAX TYPE

DESCRIPTION
MONTHLY
REMITTANCE
RETURN OF
CREDITABLE
INCOME TAXES
WITHHELD

ATC

TAX
RATE
S

(EXPANDED)

WE

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

WI010

10%

WE

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

WI011

15%

WE

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

WC010

10%

WE

Professionals/ talent
fees paid to juridical
persons - If the current
years gross income
exceeds P 720,000

WC011

15%

WE

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

WI021

15%

1601-E/2307

WE

WI030

10%

1601-E/2307

1601-E/2307

1601-E/2307

1601-E/2307

1601-E/2307

Professional athletes,
including basketball
players, pelotaris and
jockeys - If the current
years gross income is

P 720,000 and below

WE

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

WI031

15%

WE

Movie, stage, radio,


television and musical
directors and
producers - If the
current years gross
income is P720,000
and below

WI040

10%

WE

Movie, stage, radio,


television and musical
directors and
producers - If the
current years gross
income exceeds P
720,000

WI041

15%

WE

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

WI050

10%

WE

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

WI051

15%

WE

Management and
technical consultants
paid to juridical person
- If the current years
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 years
gross income exceeds
P720,000

WC051

15%

1601-E/2307

WE

WI060

10%

1601-E/2307

1601-E/2307

1601-E/2307

1601-E/2307

1601-E/2307

1601-E/2307

Business and
bookkeeping agents

and agencies - If the


current years gross
income is P 720,000
and below

1601-E/2307

1601-E/2307

1601-E/2307

1601-E/2307

1601-E/2307

1601-E/2307

1601-E/2307

1601-E/2307

WE

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

WI061

15%

WE

Insurance agents and


insurance adjusters - If
the current years
gross income is P
720,000 and below

WI070

10%

WE

Insurance agents and


insurance adjusters - If
the current years
gross income exceeds
P 720,000

WI071

15%

WE

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

WI080

10%

WE

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

WI081

15%

WE

Fees of directors who


are not employees of
the company - If the
current years gross
income is P 720,000
and below

WI090

10%

WE

Fees of directors who


are not employees of
the company - If the
current years gross
income exceeds P
720,000

WI091

15%

WE

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

WI100

5%

1601-E/2307

WE

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

1601-E/2307

WE

Cinematographic film
rentals - Individual

WI110

5%

1601-E/2307

WE

Cinematographic film
rentals - Corporate

WC110

5%

1601-E/2307

WE

Income payments to
prime contractors/subcontractors - Individual

WI120

2%

1601-E/2307

WE

Income payments to
prime contractors/subcontractors Corporate

WC120

2%

1601-E/2307

WE

Income distribution to
beneficiaries of
estates and trusts

WI130

15%

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

WI141

10%

1601-E/2307

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

WC100

5%

medical practitioner is
P720,000 and below

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
exceeds P720,000

WI142

15%

WE

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

WI150

15%

1601-E/2307

WE

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

WI151

10%

1601-E/2307

WE

WI152

10%

1601-E/2307

1601-E/2307

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

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

1601-E/2307

WE

Payments made by
credit card companies
- Individual

WI156

1% of
1/2

1601-E/2307

WE

Payments made by
credit card companies
- Corporate

WC156

1% of
1/2

WE

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

WI640

1%

WE

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

WC640

1%

WE

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

WI157

2%

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

WC158

1%

1601-E/2307

1601-E/2307

1601-E/2307

1601-E/2307

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

WI153

15%

Corporate

WE

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

WI160

2%

WE

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

WC160

2%

WE

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

WI159

15%

WE

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

WI515

10%

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

WE

Gross payments to
embalmers by funeral
parlors

WI530

1%

1601-E/2307

WE

Payments made by

WI535

1%

1601-E/2307

1601-E/2307

1601-E/2307

1601-E/2307

pre-need companies
to funeral parlors Individual
1601-E/2307

WE

Payments made by
pre-need companies
to 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%

WE

Income payments
made to suppliers of
Agricultural products Individual

WI610

1%

WE

Income payments
made to suppliers of
Agricultural products Corporate

WC610

1%

WE

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

WI630

5%

WE

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

WC630

5%

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

WC632

5%

1601-E/2307

WE

WI650

25%

1601-E/2307

1601-E/2307

1601-E/2307

1601-E/2307

1601-E/2307

On gross amount of
refund given by

WC535

1%

Meralco to customers
with active contracts
as classified by
Meralco - Individual

WE

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

WC650

25%

WE

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

WI651

32%

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

WC660

10%

1601-E/2307

1601-E/2307

1601-E/2307

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 Corporate

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 - NonResidential 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 - NonResidential customers
whose monthly
electricity consumption
exceeds 200 kwh as
classified by
MERALCO Corporate

WC661

10%

1601-E/2307

WE

WI662

10%

1601-E/2307

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

1601-E/2307

1601-E/2307

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) - Corporate

WC662

10%

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 - NonResidential customers
whose monthly
electricity consumption
exceeds 200 kwh as
classified by other
electric Distribution
Utilities (DU) Individual

WI663

20%

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 - NonResidential customers
whose monthly
electricity consumption
exceeds 200 kwh as
classified by other
electric Distribution
Utilities (DU) Corporate

WC663

20%

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%

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%

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 - i)
Individual

WI672

2%

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

WI680

5%

1601-E/2307

1601-E/2307

1601-E/2307

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

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%

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 substitutes
and Revenue
Regulations No. 142012 subject to
Creditable/ Expanded
Withholding Tax Individual

WI710

20%

1601-E/2307

WE

WC710

20%

1601-E/2307

1601-E/2307

Interest income
derived from any other
debt instruments not
within the coverage of
deposit substitutes

and Revenue
Regulations No. 142012 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 agentpayor and the revenue district offices of both the payor and payee.
Documentary Requirements
1. Alphabetical list of payees (MAP) indicating the following:
-

Month
TIN
Name

of
of
TIN

and
withholding
Withholding
of

Year
agent
Agent
Payee

Nature
Name
Amount
- Tax Required to be Withheld

of
of
of
Tax

ATC
Payment
Payee
Payment
Rate

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
ATC

TAX
RATES

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

WV040

12%

BIR FORM

TAX TYPE DESCRIPTION


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

BIR FORM NO. 1600

1600/2306

Lease or use of
properties or
property rights
owned by nonresidents
(Government
Withholding

Agent)

WG

Lease or use of
properties or
property rights
owned by nonresidents
(Private
Withholding
Agent)

WV050

12%

WG

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

WV060

12%

1600/2306

WG

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

WV070

12%

1600/2307

WG

Tax on carriers
and keepers of
garages

WB030

3%

WG

Franchise 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

WG

Tax on life
insurance
premiums

WB070

2%

1600/2307

WG

WB080

3%

1600/2306

1600/2306

1600/2307

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

Government
Withholding
Agent

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
is five years or
less

WB301

5%

1600/2307

WG

WB303

1%

1600/2307

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

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

WB104

7%

1600/2307

Tax on Banks
and Non-Bank
Financial
Intermediaries
Performing
Quasi-Banking
Functions. On
net trading gains
within the
taxable year on
foreign currency,
debt securities,
derivatives, and
other similar

financial
instruments

1600/2307

WG

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
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

WB108

5%

WB109

1%

years

WG

Tax on Other
Non-Banks
Financial
Intermediaries
Not Performing
Quasi-Banking
Functions. On all
other items
treated as gross
income under
the Code

WB110

5%

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

WG

Tax 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

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%

1600/2307

WG

Tax on sale,

WB200

1/2 of

1600/2307

1600/2307

barter or
exchange of
shares of stocks
listed and traded
through the
Local Stock
Exchange

1%

WG

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

WB201

4%

WG

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

WB202

2%

WG

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

WB203

1%

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

WV022

12%

1600/2307

1600/2307

1600/2307

1600/2307

VAT Withholding
on Purchase of
Services (with
waiver of

privilege to claim
input tax credit
(creditable)

1600/2306

1600/2307

1600/2306

WG

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

WV024

12%

WG

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

WB082

3%

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

end
end
end
end

of
of
of
of

the
the
the
the

month
month
month
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 (15 th) 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 (efiled) and payment of the tax due must also be made on the same day the return is efiled 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

ATC

TAX
RATES

WC180

20%

Interest and other income WC190


payments on foreign
currency

10%

DESCRIPTION

BIR FORM NO. 1601F

MONTHLY
REMITTANCE RETURN
OF FINAL INCOME
TAXES WITHHELD

1601-F/2306

WF

Interest on foreign loans


payable to non-resident
foreign corporations
(NRFCs)

1601-F/2306

WF

transactions/loans
payable to OBUs

1601-F/2306

1601-F/2306

1601-F/2306

1601-F/2306

1601-F/2306

1601-F/2306

1601-F/2306

1601-F/2306

WF

Interest and other income


payments on foreign
currency
WC191
transactions/loans
payable to FCDUs

10%

WF

Cash dividend payments


by domestic corporation
to citizens and resident
aliens

WI202

10%

WF

Property dividend
payments by domestic
corporation to citizens
and resident aliens

WI203

10%

WF

Cash dividend payment


by domestic corporation
to Non-Resident Foreign
Corporations

WF

Property dividend
payment by domestic
corporation to NonResident Foreign
Corporations

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%

WF

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

WC223

15%

WF

Cash dividend payment


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

WI224

20%

30% WC212 Effectiv


e Jan.
1, 2009
30% WC213 Effectiv
e Jan.
1, 2009

WF

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

WI225

20%

WF

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 after tax of an
association, joint
account, or a joint
venture taxable as a
corporation of which he is
a member or a coventurer

WI226

20%

WF

On other payments to
non-resident foreign
corporations (NRFCs)

WF

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

WI240

10%

WF

All kinds of royalty


payments to citizens,
resident aliens and nonresident aliens engaged
in trade or business
(other than WI 380 and
WI 341)

WI250

20%

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 WC280


by all corporations except
PEZA/SBMA/CDA

15%

1601-F/2306

1601-F/2306

1601-F/2306

1601-F/2306

1601-F/2306

1601-F/2306

30% WC230 Effectiv


e Jan.
1, 2009

registered
1601-F/2306

1601-F/2306

1601-F/2306

1601-F/2306

1601-F/2306

1601-F/2306

1601-F/2306

WF

On gross rentals, lease


and charter fees derived
by non-resident owner or
lessor of foreign vessels

WC290

4.5%

WF

On the gross rentals,


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

WC300

7.5%

WF

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

WI310

8%

WF

On payments to oil
exploration service
contractors and
subcontractors (OESS) Corporate (non-resident
foreign corporation
engage in trade or
business)

WC310

8%

WF

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

WI320

15%

WF

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

WI330

25%

WF

On payments to nonresident individual


cinematographic film
owners, lessors or
distributors

WI340

25%

WF

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

WC340

25%

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 taxfree covenant bonds,
mortgages, deeds of trust WI 350
or other obligations under
Sec. 57C of the NIRC of
1997

30%

1601-F/2306

WF

1601-F/2306

WF

1601-F/2306

1601-F/2306

1601-F/2306

1601-F/2306

1601-F/2306

Royalties paid to citizens,


resident aliens and
NRAETB on books, other
literary works and
musical composition

WI380

10%

Informer's cash reward


paid to individuals

WI410

10%

WF

Informer's cash reward


paid to juridical persons

WC410

10%

WF

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

WI700

10%

WF

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

WC700

10%

[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
TIN
Name
TIN
Name
Nature
Amount
- Tax Required to be Withheld

Year
of
of

and
withholding
Withholding
of
of
of
of

Tax

Month
agent
Agent
Payee
Payee
ATC
Payment
Payment
Rate

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

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

1600-WP/2306

WW

BIR FORM NO. 1600WP

Tax on Winnings
or prizes paid to
winners of
winning horse
race tickets other
than double,

ATC

TAX
RATES

WB191

4%

WB192

10%

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

1600-WP/2306

1600-WP/2306

WW

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

WB193

4%

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
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 10 th 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

DESCRIPTIO
N

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

1603/2306

WR

Payment of
fringe benefits
to NonResident Alien
Not Engaged
in Trade or

ATC

TAX
RATES

15%
Percentage
WF320
Divisor
- 85%

WF330

25%
Percentage
Divisisor
- 75%

Business
(NRAETB)

1603/2306

WR

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

32%
Percentage
WF360
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.
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 (15 th) 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

BIR FORM NO. 1602

MONTHLY
REMITTANCE
RETURN OF
FINAL INCOME
TAXES
WITHHELD

1602/2306

WB

From bank
deposits Savings/Time Individual

WI161

20%

WB

From bank
deposits Savings/Time Corporate

WC161

20%

WB

From Treasury
Bills and Other
Government
Securities Individual

WI162

20%

WB

From Treasury
Bills and Other
Government
Securities Corporate

WC162

20%

WB

From deposit
substitutes,
trusts funds and
other similar
arrangements Individual

WI163

20%

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

WC170

7.5%

1602/2306

1602/2306

1602/2306

1602/2306

1602/2306

On foreign
currency
deposits
Resident -

Corporate

WB

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

WC390

5%

WB

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

WI441

12%

1602/2306

WB

WI442

5%

1602/2306

1602/2306

On interest
income from
long-term
deposit in the
form of savings
trust funds,
deposit
substitutes which
was preterminated by

the holder before


the 5th year individual ( 4
years to less
than 5 years)

1602/2306

WB

On interest
income from
long-term
deposit in the
form of savings
trust funds,
deposit
substitutes which
was preterminated by
the holder before
the 5th year corporate

WC440

20%

[return to index]

Annual Information Return On Creditable Income


(Expanded)/Income Payments Exempt From Withholding Tax

Taxes

Withheld

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 32004, 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 12009, 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. 62012, RR No. 8-2012, RR No. 14-2012, RR No. 16-2012, RR No. 1-2013, RR No. 102013, 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
Expanded
Withholding
- Withholding of Business Tax (VAT and Percentage)

Compensation
Tax

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

Pay
fees
Commission
Sharing
Leave
employees
Pay
benefits

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 32004)


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 nonresidential 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 efilers. 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.

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