10.-GCRO Top230 PG April2019 PDF

Topic 230
General Course for Revenue Officers WT 230 Slide – 1

VER 2.0 – April 2019
Percent Distribution of BIR Collection by
Major Type of Tax (CY 2017)
Income Taxes had the highest contribution to the Bureau’s CY 2017
collection, amounting to P1.03T or 57.76%.
Value-Added Tax;
20.51%
Excise
Taxes;
11.76%
Other Taxes;
Income Taxes; 5.67%
57.76%
Percentage
Tax; 4.30%

Objectives
Realize the importance of withholding tax system;
Differentiate the various types of withholding taxes;
Compute the withholding tax on compensation,
expanded, final and government money payments;
Determine the duties and obligations of a withholding
agent; and
Identify the different withholding tax returns required to
be accomplished and filed by the withholding agents

Topic Outline
• Importance of the Withholding Tax System;
• Withholding Tax on Compensation;
• Expanded Withholding Taxes;
• Final Withholding Taxes;
• Withholding Tax on Government Money Payments;
• Time of Withholding;
• Time of Filing and Payment;
• Duties and Obligations of a Withholding Agent; and
• Withholding Tax Returns.
Importance of Withholding Tax System
It is considered as an effective tool in the collection of

taxes for the following reasons:
1. It encourages voluntary compliance;
2. It reduces cost of collection effort;
3. It prevents delinquencies and revenue loss; and
4. It prevents dry spells in the fiscal condition of the
government by providing revenues throughout
the taxable year.

Types of Withholding Taxes
1. Withholding Tax on Compensation
2. Expanded Withholding Tax
3. Final Withholding Tax; and
4. Withholding Tax on Government Money Payment

Withholding Tax on Compensation
Compensation or Wages
- means all remuneration for services
performed by an employee for his employer
under an employee-employer relationship
unless exempted by the NIRC and pertinent
laws.

Kinds of Compensation
• Regular Compensation
- includes basic salary, fixed allowances

for representation, transportation and
others paid to an employee.

Kinds of Compensation (cont.)
• Supplementary Compensation -includes payments to an
employee in addition to the regular compensation as follows:
- Commissions
- Overtime pay
- Fees, including director’s fees
- Profit sharing
- Monetization of leave credits
- Sick Leave
- Fringe benefit received by rank & file employee
- Hazard pay
- Taxable 13th month pay
- Other remuneration received from an employee-
employer relationship
Exemptions from Withholding
Tax on Compensation
1. Remuneration received as an incident of

employment (RA 7641; those with approved
reasonable private retirement plan; Social Security
Act 1954, as amended; GSIS Act of 1937, as
amended; and etc.);
2. Remuneration paid for agricultural labor;
3. Remuneration for domestic services;
4. Remuneration for casual labor not in the course of
an employer's trade or business;
Tax on Compensation
5. Compensation for services by a citizen or resident
of the Philippines for a foreign government or
International Organization;
6. Damages (Actual, moral, exemplary and nominal);
7. Life insurance;
8. Amounts received by the insured as a return of
premium;
9. Compensation for injuries or sickness;

Tax on Compensation
10.Income exempt under treaty
11. Thirteenth (13th) month pay & other benefits
12. GSIS, SSS Medicare & other contributions (employee’s
share only);
13. Compensation income of minimum wage earners
(MWEs) who work in the private sector and being paid
the Statutory Minimum Wage (SMW), as fixed by the
Regional Tripartite Wage and Productivity Board
(RTWPB) / National Wages Productivity Commission
(NWPC), applicable to the place where he/she is
assigned;
Tax on Compensation
14.Compensation income of employees in the
public sector with compensation income of not
more than Statutory Minimum Wage in the non-
agricultural sector as fixed by the
RTWPB/NWPC applicable to the place where
he/she is assigned
15.“De Minimis Benefits” enumerated under
Revenue Regulations (RR) No. 5-2011, as
amended by RR 8-2012;

Tax on Compensation
16.Fringe benefits given to employees other than

rank and file and subjected to Fringe Benefits
Tax (FBT);
17.Personnel Economic Relief Allowance (PERA)
given to government employees; and
18.Representation and Transportation Allowance
(RATA) granted to public officers and employees
under the General Appropriations Act

Minimum Wage Earners
No withholding tax shall be required on the Statutory
Minimum Wage (SMW) of the Minimum Wage earner in
the private/public sectors as defined in RR 2-1998, as
amended by RR 10-2008, including:
• Holiday pay
• Overtime pay
• Night shift differential
• Hazard pay
of Minimum Wage Earners (MWE) in the private/public
sectors as defined by these Regulations
Minimum Wage Earners
Provided further, that a MWE who receives additional
compensation such as:
• commissions
• honoraria
• fringe benefits
• benefits in excess of the allowable statutory amount of
P90,000.00
• taxable allowances and other taxable income other
than the SMW
shall not enjoy the privilege of being a MWE and therefore,
his/her entire earnings are not exempt from income tax and,
consequently, shall be subject to withholding tax.
De Minimis Benefits Not
Subject to Withholding Tax
a. Monetized unused vacation leave credits of private
employees not exceeding ten (10) days during the year;
b. Monetized value of vacation and sick leave credits paid to
government officials and employees;
c. Medical cash allowance to dependents of employees not
exceeding One Thousand Five Hundred Pesos (P1,500.00)
per employee per semester or Two Hundred Fifty Pesos
(P250.00) per month;
d. Rice subsidy of Two Thousand Pesos (P2,000.00) or one (1)
sack of fifty (50) kg. rice per month amounting to not more
than Two Thousand Pesos (P2,000.00);
e. Uniform and clothing allowance not exceeding Six
Thousand Pesos (P6,000.00) per annum;
f. 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 Ten Thousand
Pesos (P10,000.00) per annum;
g. Laundry allowance not exceeding Three Hundred
Pesos (P300.00) per month;

h. 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 annual monetary value not exceeding
Ten Thousand Pesos (P10,000.00) received by the
employee under an established written plan which does
not discriminate in favor of highly paid employees;
i. Gifts given during Christmas and major anniversary
celebrations not exceeding Five Thousand Pesos
(P5,000.00) per employee per annum; and

j. 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.
k. Benefits received by an employee by virtue of a collective
bargaining agreement (CBA) and productivity incentive
schemes provided that the total annual monetary value
received from both CBA and productivity incentive
schemes combined do not exceed ten thousand pesos
(P10,000.00) per employee per taxable year.
All other benefits given by employers which are not included in the above enumeration shall
not be considered as “de minimis” benefits, and hence, shall be subject to income tax as
well as withholding tax on compensation income.

Steps to Determine the Amount of Tax to
be Withheld (Before TRAIN Law)
Step 1. Determine monetary and non-monetary
compensation paid to an employee for the
payroll period segregating;
• gross benefits (e.g. 13th month pay, productivity
incentives, Christmas bonus and other benefits)
• employees contribution (e.g. SSS, GSIS, HDMF,
PHIC, and Union Dues)
Step 2. Segregate the taxable from the non-taxable
compensation paid to the employee for the
payroll period

Step 3. Segregate the taxable compensation income as
determined in Step 2 into:
• Regular taxable income
• Supplementary compensation income
Step 4. Use the appropriate Withholding Tax Tables for the

payroll period
• Monthly
• Semi-monthly
• Weekly
• Daily
Step 5. Fix the compensation level as follows:
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% +5% +10% +15% +20% +25% +30% +32%
over over over over over over over 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

Step 6. Compute the withholding tax due by adding the tax

predetermined in the compensation level indicated
at the top of the column, to the tax on the excess of
the total regular and supplementary compensation
over the compensation level, which is computed by
multiplying the excess by the rate also indicated at
the top of the same column/compensation level.

Sample Problem 1
Mr. A, single with no dependent, receives P12,000.00 (net of
SSS/GSIS, PHIC, HDMF employee share only) as monthly regular
compensation and P5,000.00 as supplementary compensation for
January 2009 or a total of P17,000.00.
COMPUTATION: Using the monthly withholding tax table (Revised
Withholding Tax Tables beginning January 1, 2009), the withholding
tax for January 2009 is computed by referring to Table A line 2 S of
column 5 (fix compensation level taking into account only the regular
compensation income of P12,000.00 which shows a tax of P708.33 on
P10,000.00 plus 20% of the excess of P2,000.00 (P12,000.00 less
P10,000.00) plus P5,000.00 supplementary compensation.

Computation on Sample Problem 1
Regular compensation P12,000.00
Less: compensation level
(line A-2 Column 5) 10,000.00
Excess P 2,000.00
Add: Supplementary compensation 5,000.00
Total P 7,000.00
Tax on P10,000.00 P 708.33

Tax on excess (P7,000 x 20%) 1,400.00
Withholding tax for January 2009 P 2,108.33
========
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% +5% +10% +15% +20% +25% +30% +32%
over over over over over over over 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

Use of Exceptional Computation
a. Cumulative Average Method

b. Annualized Withholding Tax Method

Cumulative Average Method
When to use –
• If the employee’s regular compensation is below the
compensation level, but supplementary compensation
is paid during the calendar year;
• The employee’s supplementary compensation is equal
to or more than the regular compensation to be paid;
and
• The employee is newly hired and had previous
employer/s within the calendar year.

Step 1 – Add the amount of taxable regular and
supplementary compensation to be paid to
an employee for the payroll period subject
of computation to the sum of the taxable
regular and supplementary compensation
since the beginning of the current calendar
year including the compensation paid by
the previous employers within the same
calendar year, if any;
Step 2 – Divide the aggregate amount of compensation
computed in Step 1 by the number of payroll
period to which the amount relates;
Step 3 – Compute the tax to be deducted and
withheld on the cumulative average
compensation determined in Step 2 in
accordance with the withholding tax table;
Step 4 – Multiply the tax computed in Step 3 by the
number of payroll period to which it relates; and

Step 5 – Determine the excess, if any of the amount of tax computed
in Step 4 over the total amount of tax already deducted and
withheld from the beginning payroll period to the last
payroll period, including that withheld by the previous
employer/s within the calendar year, if any. The excess, as
computed, shall be deducted and withheld from the
compensation to be paid for the last payroll period of the
current calendar year.
Note: The cumulative average method, once applicable to a particular
employee at any time during the calendar year, shall be the same method to be
consistently used for the remaining payroll period/s of the same calendar year.

Sample Problem:
Employee A, married, with three (3) qualified dependent children,
received the following compensation beginning January 2009:
Month Regular Supplementary Total

Compensation Compensation
January 8,500 15,000 23,500
February 8,500 15,000 23,500
March 8,400 15,500 23,500

Computation:
Step 1 – For January P23,500 + 0 = P23,500
For February P23,500 + P23,500 = P 47,000
For March P23,500 + P23,500 + P23,900 = P70,900
Step 2 – For January P23,500/1
For February P47,000/2
For March P70,900/3

Step 3 – For January, Tax on P22,083 = P1,875.00
Tax on the excess (1,417x25%) = 354.25
Tax on P23,500 = P2,229.25
For February (same with January)
For March, Tax on P22,083 = P 1,875.00

Tax on the excess (1,550.83x25%)= 387.58
Tax on P23,500 = P2,262.58

Step 4 – For January P2,229.25x1 = P2,229.25
For February P2,229.25x2 = 4,458.50
For March P2,262.58x3 = 6,787.74
Step 5 – For January P2,229.25–0 = P2,229.25

For February P4,458.50–2,229.25 = 2,229.25
For March P6,787.84-4,458.50 = 2,329.24

Annualized Withholding Tax
When to use –
• When the employer – employee relationship is
terminated before the end of the calendar year.
• When computing for the year-end adjustment, the
employer shall determine the amount to be withheld
from the compensation of the last month of
employment or in December of the current calendar
year.

Step 1 – Determine the taxable regular and supplementary
compensation paid to the employee for the entire
calendar year;
Step 2 – If the employee has previous employment/s within

the year, add the amount of taxable regular and
supplementary compensation paid to the employee
by the present employer;

Step 3 – Deduct from the aggregate amount of compensation
computed in Step 2 the amount of the total personal
and additional exemptions of the employee;
Basic personal exemption P50,000

Additional exemption for P25,000 per child
each qualified dependent
child (maximum of 4)
Note: Husband is the proper claimant of the additional exemption unless he

explicitly waives his right in favor of the wife in BIR Form Nos. 1902 or 2305
[required to attach a waiver, Section 79 (F) (1) of the Tax Code.]
Step 4 – Deduct the amount of premium payments on Health
and/or Hospitalization Insurance of employees who
have presented evidence, that they have paid the
same during the taxable year.
Note 1: The deductible amount shall not exceed P2,400.00 per annum or P200.00 per month
whichever is lower and total family gross income does not exceed P250,000.00 for the
calendar year.
Note 2: For purposes of substantiating the claim of insurance expense and determining the
aggregate family income, the policy contract shall be presented to the employer
together with the original official receipt of the premium payment for the current year,
BIR Form No. 2316 for the current year or Certificate of Gross Income for the Current
Year (Annex “E”) issued by the employer/s of the nuclear family.

Certificate of Gross Income for
the Current Year

Step 5 – Compute the amount of tax on the difference
arrived at in Step 4.
Over But Not Over Amount Rate Of Excess Over
Not over 10,000 5%
10,000 30,000 500+10% 10,000
30,000 70,000 2,500+15% 30,000
70,000 140,000 8,500+20% 70,000
140,000 250,000 22,500+25% 140,000
250,000 500,000 50,000+30% 250,000
500,000 Over 125,000+32% 500,000

Step 6 – Determine the deficiency or excess, if any,

of the tax computed in Step 5 over the
cumulative tax already deducted and
withheld since the beginning of the current
calendar year.

Formula
Gross Compensation Income (present + previous employer) P xxx
Less: Non-taxable/Exempt Compensation Income
a.) 13th month pay and other benefits xx
b.) Other non-taxable benefits xx
c.) SSS, GSIS, PHIC, HDMF and
Union Dues (employees share only) xx xxx
Less: a.) Personal and additional exemption xx
b.) Health /Hospitalization premium payment
(if applicable) xx xxx
Taxable Compensation Income xxx
Tax Due xx
Tax Withheld (Jan. – Nov./termination date) xx
Collectible: Tax due > tax withheld collect before payment of last salary
Refund: Tax due < tax withheld refund on or before Jan. 25th of the year/
last payment of salary
Break even: Tax due = tax withheld no more withholding for December salary
Year-end Adjustment
On or before the calendar year and prior to
the payment of the compensation for last
payroll period, the employer shall determine
the sum of the taxable regular and
supplementary compensation paid to each
employee for the whole year and must ensure
that the tax due is equal to tax withheld.

Year-end Adjustment
SAMPLE 1: (Year-end adjustments computation)
For taxable year 2018, WTD Corporation has the following
employees :
Mr. F, married, whose wife is also employed, with two

qualified dependent children, received for the year:
Basic Monthly Salary P 30,000.00

Thirteenth Month Pay P 30,000.00
Other Benefits P 55,000.00
Withholding tax (Jan – Nov) P 12,924.23

Year-end Adjustment
Compensation Received For Non-Taxable Taxable

the Year
Basic Salary P 198,000 P198,000
13th month pay 16,500 P16,500
Other benefits 16,500 13,500 3,000*
Totals P231,000 P30,000* P363,000
========= ========= =========
* Excess of 13th month pay and other benefits

over the P90,000.00 ceiling under Sec. 32(b)(7)(e).
Year-end Adjustment
Total Compensation P 201,000.00

Less: Personal and additional
exemptions (ME2) 100,000.00
Net taxable compensation income P 101,000.00
Tax Due P 14,700.00

Less: Tax withheld from previous
months (Jan-Nov) 12,924.23
Amount to be withheld in December 2009 P 1,775.77
=========

Year-end Adjustment
Mr. G, single, who was hired on July 6, 2009 received the
following:
Basic Monthly Salary P 20,000.00
Thirteenth Month Pay P 20,000.00
Monthly Salary from Previous
Employer (Jan-June) P 6,000.00
Withholding tax – Previous employer P 2,899.68
Present employer 17,500.50
He paid for the year an annual premium on health and

hospitalization insurance amounting to P2,400.00.

Year-end Adjustment
Mr. G, Single – Computation of withholding tax for December
Compensation from previous employer (Jan. to June) P 36,000.00
Compensation from present employer (July 6 to Dec) 120,000.00
Total taxable compensation (Jan. to Dec.) 156,000.00
Less: Personal exemptions 50,000.00
Premium payments on health &
hospitalization insurance *2,400.00 52,400.00
Net taxable compensation P103,600.00
Tax Due P 15,220.00

Less: Taxes Withheld –
** Previous employer P 2,899.68
***Present employer 17,500.50 20,400.18
Amount to be refunded in December (P 5,180.18)
=========
* Premium payment on health and/or hospitalization shall be allowed considering that gross compensation amounted to
P156,000 only and did not exceed P250,000.00.
** Refer to Certificate of Compensation Payment /Tax Withheld (BIR Form No. 2316) issued by previous employer.
*** Taxes withheld from July 6 to December 31, 2008 computed by the present employer using the cumulative computation.

Requirement for Deductibility
The provisions of Sec 2.58.5 of RR 2-98, as amended,
shall apply. Provided, that compensation income where
no income taxes were withheld pursuant to Section
2.79(A) of these regulations, shall be allowed as
deduction from an employer’s gross income when the
required employees withholding statement (BIR Form No.
2316) have been issued to subject employees in
accordance with Sec. 2.83.1 of RR 2-98, as amended.
Provided, further, that the Alphabetical List of the subject
employees, including MWEs, shall be submitted under
BIR Form No. 1604-CF with Alphalists of Employees in
accordance with Sec. 2.83.2 of RR 2-98, as amended.
BIR Forms to be Accomplished
by the Employee
1. BIR Form No. 1902 – this form is being

accomplished within ten (10) days from date
of employment.
2. BIR Form No. 1905 – this form is being
accomplished in case of replacement copy of
certificate of registration, replacement copy
of TIN card, cessation of registration,
cancellation of TIN and other update of
registration information.
Application for Registration for Individuals Earning
Compensation Income (BIR Form No. 1902)
1. Name/Taxpayer’s Identification Number (TIN)/ Address
of employee/other information required as stated in BIR
Form No. 1902;
2. Status of employee whether SINGLE/ legally
separated/ widow or widower with no dependent child
or married;
3. Status of spouse of the employee. – If the employee is
legally married, the Name/ TIN, if any, of the spouse
and whether said spouse is employed, unemployed,
employed abroad, or is engaged in trade or business
should be indicated on the application;

Required Forms and Attachments
(BIR Form Nos. 1902)
a. Marriage Contract;
b. Certificate of employment of the husband if
he is working abroad;
d. Death Certificate; and
e. Other documentary evidence, where the
above documents are not available.

Responsibilities of Employer
1. Submit the duly-accomplished BIR Form Nos. 1902
and /or 1905 to the RDO within thirty (30) days from
receipt;
2. Withhold the tax due from the employees following
the prescribed manner;
3. Remit the amount of tax withheld from the employee
within the prescribed due dates;
4. Do the year-end adjustment;

Responsibilities of Employer
5. Submit Annual information return (BIR Form 1604-
CF), including the required alphabetical list of
employees/payees on or before January 31
following the close of the calendar year;
6. Issue the Certificate of Compensation Payment/Tax
Withheld (BIR Form 2316) to the employees; and
7. Refund excess tax withheld.

Substituted Filing
• An individual taxpayer will no longer have to
personally file his own Income Tax Return (BIR Form No.
1700) but instead the employer’s Annual Information
Return on Income Taxes Withheld (BIR Form No.
1604CF) filed will be considered as the “substitute” ITR
of the employee.
• Effectivity - Year 2001 voluntary basis

- Year 2002 and thereafter mandatory
[RR 3-2002, RR 19-2002 and RMC 7-2014]

Requisites for Individuals Qualified for Substituted Filing
and May No Longer/No Need to File BIR Form No. 1700
1. Receives purely compensation income regardless of

amount;
2. Compensation from only one employer in the
Philippines for the calendar year;
3. Income tax has been withheld correctly by the
employer (tax due equals tax withheld);
4. The employee’s spouse also complies with all the three
conditions stated above;
5. Employer files the BIR Form 1604-CF; and

Requisites for Individuals Qualified for Substituted Filing
and May No Longer/No Need to File BIR Form No. 1700
6. The employer issues each employee BIR Form No.

2316 (July 2008 ENCS or any later version).
Note: All of the above requisites must be present. The Annual Information
Return of Income Taxes Withheld on Compensation and Final Withholding
Taxes (BIR Form No. 1604-CF) filed by their respective employers duly
stamped “Received”, shall be tantamount to the substituted filing of income
tax returns by said employees.

Individuals NOT Qualified for Substituted
Filing and Must File BIR Form No. 1700
1. Individuals with two or more employers
concurrently and/or successively at anytime
during the taxable year.
2. Employees whose income tax have not been
withheld correctly resulting to collectible or
refundable return.
3. Individuals deriving other non-business, non-
profession-related income in addition to
compensation income not otherwise subject to
final tax.

Individuals NOT Qualified for Substituted
Filing and Must File BIR Form No. 1700
4. Individuals receiving purely compensation income from a
single employer whose income tax has been correctly
withheld but whose spouse does not qualify for substituted
filing.
5. Non-resident aliens engaged in trade or business in the
Philippines deriving purely compensation income or
compensation income and other non-business, non-
profession-related income.
Note: In case of married individuals who are still required to file returns, only
ONE RETURN FOR THE TAXABLE YEAR SHALL BE FILED by either of the
spouses to cover income of both. It shall be SIGNED BY HUSBAND AND WIFE
unless physically impossible to do so, in which case, signature of one of the
spouses would suffice.
Certificate of Compensation
Payment/Tax Withheld
What to issue: BIR Form No. 2316
(BIR Form 2316, July 2008 version)
Who to issue: Employer
When to issue: a. On or before January 31 of the
succeeding calendar year; or
b. On the day of last payment of
compensation, if terminated
Number of copies: Three (3) copies
Signed by: Both employer and employee
(under the penalty of perjury)
Note: An extra copy shall be furnished by the employer duly certified by

him to his NEW employer in case of transfer of employment within the
taxable year.

Certificate of Compensation Payment/
Tax Withheld - (BIR Form No. 2316)
• This certificate shall include a certification that the
employer’s filing of BIR Form No. 1604-CF shall be
considered a substituted filing of the employee’s
income tax return.
• It shall be signed by both the employees and
employer attesting the information stated therein
has been verified and is true and correct to the best
of their knowledge.
NOTE: However, the withholding agents/employers are required
to retain copies of the duly signed BIR Form No. 2316 for a period
of three (3) years as required under the NIRC.
Certificate of Compensation Payment/
Tax Withheld - (BIR Form No. 2316)
• Information referring to the certification, appearing
at the bottom of BIR Form No. 2316, shall not be
signed by both the employer and the employee if
the latter is not qualified for substituted filing.
• BIR Form No. 2316 furnished by the employer to

the employee shall be attached to the employee’s
Income Tax Return (BIR Form No. 1700) to be filed
on or before April 15 of the following year.

Uses of Certificate of Compensation Payment/
Tax Withheld (BIR Form No. 2316)
• Proof of financial capacity for purposes of
loan, credit card, or other applications;
• Proof of payment of tax or for availing tax
credit in the employee’s home country;
• Securing travel tax exemption, when
necessary; and
• Other purposes with various government
agencies.

What to Do with BIR Form No. 2316
“Issued by Employer”
• If the BIR Form No. 2316 was issued by a
previous employer as a result of termination of
employment and the employee has been
subsequently employed within the same
calendar year, the employee should submit a
copy of BIR Form No. 2316 issued by the
previous employer to his present employer, for
consolidation with his current compensation
received from the present employer.

What to Do with BIR Form No. 2316
“Issued by Employer”
• If the employee is qualified for substituted filing, a
copy of BIR Form No. 2316 signed both by the
employer and employee shall be retained and kept
by the employer and the employee.
• If an employee is not qualified for substituted filing,
he is required by law to file his Income Tax Return
(BIR Form No. 1700 or BIR Form No. 1701) and BIR
Form No. 2316 should be attached as proof of his
compensation income and withholding taxes.

Revised Withholding Tax Tables
Effective January 1, 2018 under RR 11-2018

Expanded Withholding Taxes (EWT)
The Withholding of Creditable Tax at Source or
simply called Expanded Withholding Tax is a tax
imposed and prescribed on the items of income
payable to natural or juridical persons, residing in
the Philippines, by a payor-corporation/person
which shall be credited against the income tax
liability of the taxpayer for the taxable year.

Income Payments Covered & Its Applicable
Expanded Withholding Tax Rates
Income Subject to EWT Rate
A. Professional fees, talent fees, etc. 10% if the gross income
for services rendered by individuals for the current year
exceeds P3,000,000 or
VAT registered
regardless of the amount
1. Individuals engaged in the practice of profession or 5% if P3,000,000 or less

callings like Lawyers, CPAs, Engineers, Real Estate
service practitioners and all other professionals
who have passed licensure examinations regulated
by the PRC, Supreme Court, etc.
2. Professional entertainers, such as, but not limited to,
actors and actresses, singers lyricist, composers
and emcees.
A. Professional fees, talent fees, etc. for services 10% if the gross income
rendered by individuals for the current year
VAT registered
3. Professional athletes, including basketball 5% if P3,000,000 or less

player, pelotaris and jockeys.
4. All directors and producers involved in
movies, stage, radio, television and
musical productions.
5. Insurance agents and Insurance adjusters
6. Management and technical consultants.

A. Professional fees, talent fees, etc. 10% if the gross income
for services rendered by individuals for the current year
VAT registered
7. Bookkeeping agents and agencies. 5% if P3,000,000 or less

8. Other recipients of talent fees
9. 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.
Income Payee’s Sworn Declaration of
Gross Receipt/Sales

B. Professional fees, talent fees, etc. for 15% if the gross
services of taxable juridical persons income for the current
year exceeds
P720,000.00
10% if P720,000 or
less
C. Rentals
• Real properties
• Personal properties used in business in
excess of P10,000 annually except RA 5%
8556 (Financial Company Act of 1998)
• Poles, satellites and transmission facilities
• Billboards

D. Cinematographic film rentals & other 5%
payments
E. Income payments to certain contractors:
2%
• General engineering contractors
• General building contractors
• Specialty contractors
• Other contractors
F. Income distribution to the beneficiaries 15%
of estate and trusts

G. Gross commission of customs, insurance, stock, - 5% if 3M or less
immigration and commercial brokers and fees of - 10% if the gross income
agents of professional entertainers and real estate for current year exceeds
service practitioner who failed or did not take up 3M or VAT registered
licensure examination given by and not registered regardless of the amount
with the Real Estate Service under PRC
H. Payment by the general professional For Individual Payer
partnership (GPP) to its partners - 5% if 3M or less
I. Payments to medical/dental/veterinary - 10% if above 3M or VAT
registered
services thru hospitals/clinics/health
For Non-individual Payer
maintenance organizations, including
- 15% if the gross income
direct payments to service providers for the current year exceeds
P720,000.00
- 10% if P720,000 or less
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:
1. Seller/transferor is exempt from CWT in exempt
accordance with Sec. 2.57.5 of RR 2-98
• With a selling price of P500,000 or less 1.5%
• With a selling price of more than P500,000 but 3.0%
not more than P2,000,000
• With a selling price of more than P2,000,000 5%
2. Seller/transferor is not habitually engaged in the 6%

real estate business

K. Additional income payments to 15%
government personnel from
importers, shipping and airline
companies or their agents for
overtime services
L. Certain income payments made 1% on one-half of the
by credit card companies gross amount paid

M. Income payments made by TWA’s to their
local/resident suppliers of goods and
services other than those covered by other
rates of withholding tax
• Supplier of goods 1%
• Supplier of services 2%
Note: Provided, however, that for purchases involving agricultural products in their
original state, the tax required to be withheld under this sub-section shall only apply
to purchases in excess of the cumulative amount of Three Hundred Thousand Pesos
(P300,000) within the same taxable year. For this purpose, agricultural products in their
original state as used in these regulations, shall only include corn, coconut, copra,
palay, rice, cassava, sugar cane, coffee, fruits, vegetables, marine food products,
poultry and livestocks.

N. Income payments made by the government
to its local/resident suppliers of goods &
local/resident supplier of services other
than those covered by other rates of
withholding tax 1%
• Supplier of goods 2%
• Supplier of services

O. Commissions, rebates, discounts For Individual Payer
and other similar considerations - 5% if 3M or less
paid/granted to independent and - 10% if above 3M or VAT
exclusive distributors, registered
medical/technical and sale For Non-individual Payer
representative and marketing - 15% if the gross income for
agents and sub-agents of multi- the current year exceeds
level marketing companies P720,000.00
- 10% if P720,000 or less
P. Tolling fees paid to refineries 5%
Q. Payments made by pre-need 1%
companies to funeral parlors
R. Gross payments to embalmers by funeral 1%
companies
S. Income payments made to suppliers of 1%
agricultural products
(Note: Suspended per RR 3-2004)
T. Income payments on purchases of minerals, 5%
mineral products and quarry resources as defined
in section 151 of the NIRC
• Income payments on purchases of gold by BSP
from gold miners/suppliers under PD 1899, as
amended by RA 7076

U. MERALCO Refund arising from Supreme
Court case G.R. No. 14814 of April 9, 2003
to customers under phase 4 as approved
by the ERC
• Customers with active contracts 15%

• Customers with terminated contracts
15%

V. Withholding on gross amount of interest on the refund of
meter deposit whether paid directly to the customers or
applied against customer’s billings
1. Residential and General Service
customers as classified by Meralco 10%
2. Non-residential customers as classified
by Meralco 15%
3. Residential and General Service
customers as classified by other electric 10%
Distribution Utilities (DU)
4. Non-residential customers as classified 15%
by other electric Distribution Utilities (DU)
W. Political parties - Income payments made by political
parties and candidates of local and national elections of 5%
all their purchase of goods and services as juridical
persons for their purchases of goods and services
intended to be given as campaign contribution to
political parties and candidates.
X. Interest income derived from any other debt instrument 15%
not within the coverage of “deposit substitute” and RR 14-
2012 unless otherwise provided by law or regulations
Y. Income payments received by Real Estate Investment 1%
Trust (REIT)
Z. Income payments on locally produced raw sugar 1%

Income Tax/Creditable VAT/Percentage
Creditable Income Tax Creditable VAT/
Percentage Tax
What to issue: BIR Form No. 2307 BIR Form No. 2307
Who to issue: Payor Payor
When to 20th following the close of 5th day of the following
issue: the taxable Quarter month
employed by the payee in
filing his income tax return or
upon request of the payee
No. of copies: Three (3) copies Three (3) copies
Signed by: Both payor and payee Both payor and payee
(under the penalty of perjury) (under the penalty of
perjury)
Final Withholding Taxes
The amount of income tax withheld by the
withholding agent is constituted as a full and final
payment of the income tax due from the payee on the
said income.
The liability for payment of tax rests primarily on the

payor as a withholding agent. Failure to withhold the
tax or in case of under withholding, the deficiency tax
shall be collected from payor/withholding agent.
The payee is not required to file an income tax return

for the particular income.
A. Income Payments to a Citizen
or to a Resident Alien Individual
Income Subject to FWT Rate
1. Interest from any peso bank deposit, and yield 20%
or any other monetary benefit from deposit
substitutes and from trust funds and similar
arrangements
2. Royalties on books as well as other literary 10%
works and musical compositions
3. Prizes (except prizes amounting to P10,000 or 20%
less which is subject to tax under Sec. 24 (A) (1)
of the NIRC)


4. Winnings (except from Philippine Charity 20%
Sweepstakes Office and lotto amounting to
P19,000.00 or less)
5. Interest income received from a depository 15%
bank under Foreign Currency Deposit System

6. Interest income from long-term deposit or investment
in the form of savings, common or individual trust
funds, deposit substitutes, investment management
accounts and other investments evidenced by
by certificates prescribed by Bangko Sentral ng
Pilipinas
Holding Period
Four (4) years to less than five (5) years 5%
Three (3) years to less than four (4) years 12%
Less than three (3) years 20%


7. Cash and/or property dividends actually or
constructively received from a domestic corp., joint
stock company, insurance or mutual fund companies
or on the share of an individual partner - at the
following rate:
Beginning January 1, 1998 6%

Beginning January 1, 1999 and 8%
Beginning January 1, 2000 and thereafter 10%

8. On capital gains presumed to have been realized from the 6%
sale, exchange or other disposition of real property located
in the Philippines, classified as capital assets including
pacto de retro sales and other form of conditional sales
9. Gross Income derived from contracts by sub- 8%

contractors from service contractors engaged
in “petroleum operation” as defined under P.D.
87 (also known as the “Oil Exploration and
Development Act”) in the Philippines
10. Cash or property dividends paid by REIT 10%

B. Income Payments to Non-resident Aliens
Engaged in Trade or Business in the Philippines
1. On certain passive income 20%
a. Cash and/or property dividend from a

domestic corporation or from joint stock,
or from an insurance or mutual fund
company or from a regional operating
headquarters of a multinational company
b. Share in the distributable net income after

tax of a partnership of which he is a partner

c. Interests from any currency bank deposits 20%
and yield or any other monetary benefit
from deposit substitutes and from trust
funds and similar arrangements
d. Royalties (except royalties on books, as 20%
well as other literary works and musical
compositions which shall be subject to
10%)
e. Prizes exceeding P10,000 and other 20%
winnings (except PCSO and Lotto Winnings
amounting to P10,000.00 or less)

2. Interest income derived from long-term deposit or
investment in the form of savings, common or individual
trust funds, deposit substitutes, investment management
accounts and other investments evidenced by certificates
prescribed by Bangko Sentral ng Pilipinas at the following
rate:
Holding Period
5%
Four (4) years to less than five (5) years
Three (3) years to less than four (4) years 12%
Less than three (3) years 20%


3. On capital gains presumed to have been realized from the 6%
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
4. Gross income from all sources within the Philippines derived by 25%
non-resident cinematographic film owners, lessors or
distributors
5. Gross income derived from contracts by subcontractors from 8%
service contractors engaged in “petroleum operation” as
defined under P.D.87 (also as the “Oil Exploration and

C. Income Derived Within the Philippines by a Non-resident
Alien Individual Not Engaged In Trade or Business

1. On the gross amount of income derived from all 25%
sources as interest, cash and/or property dividends,
rents, salaries, wages, premiums, annuities,
compensation, remuneration, emoluments, or other
fixed or determinable annual or periodic or casual
gains, profits and income and capital gains
2. On capital gains presumed to have been realized from 6%
the sale, exchange or other disposition of real property
located in the Philippines, classified as capital assets

D. Income Payment to a
Domestic Corporation
1. Interest from any currency bank deposit & yield or any other 20%
monetary benefit from deposit substitutes & from trust fund
& similar arrangements derived from sources within the
Philippines
2. Royalties derived from sources within the Philippines 20%
3. Interest derived from a depository bank under 15%

the Expanded Foreign Currency Deposit
System, otherwise known as a Foreign
Currency Deposit Unit (FCDU)
4. Income derived by a Depository Bank under 10%
the FCDU from foreign transactions with
local commercial banks

D. Income Payment to a
Domestic Corporation
5. On capital gains presumed to have been realized 6%
from sale, exchange or other disposition of land
and building located in the Philippines classified
as capital assets
contractors from service contractors engaged in
“petroleum operation” as defined under P.D. 87
(also known as the “Oil Exploration and
7. Cash or property dividends paid by REIT 10%

E. Income Payment to a
Resident Foreign Corporation
1. Offshore Banking Units 10%
2. Tax on Branch Profit Remittances 15%
3. Interest on any currency bank unit deposit & yield or any 20%
other monetary benefit from deposit substitutes & from
trust funds & similar arrangements & royalties derived from
sources within the Philippines
4. Interest income derived from a Depository Bank under the 15%

Expanded Foreign Currency Deposit System

E. Income Payment to a
Resident Foreign Corporation
5. Income derived by the depository bank under the 10%
expanded foreign currency deposit system from
foreign currency transactions with local
commercial banks including branches of foreign
banks that may be authorized by the Bangko
Sentral ng Pilipinas
contractors from service contractors engaged in
“petroleum operation” as defined under P.D. 87
(also known as the “Oil Exploration and

F. Income Derived from All Sources Within the
Philippines by Non-resident Foreign Corporations
1. Interests, dividends, rents, royalties, salaries, premiums
(except reinsurance premiums), annuities, emoluments,
or other fixed or determinable annual, periodic or casual
gains, profits & income & capital gains (except capital
gains realized from sale, exchange, disposition of shares
of stock in any domestic corporation)
subject to the following rates:
34% - beginning January 1, 1998 34%

33% - beginning January 1, 1999 and 33%
32% - beginning January 1, 2000 and thereafter 32%


2. Gross income from all sources within the 25%
Philippines derived by non-resident
cinematographic film owners, lessors or
distributors
3. On the gross rentals, lease & charter fees, derived 4.5%
by non-resident owner or lessor of vessels from
leases or charters to Filipino citizens or
corporations as approved by the Maritime
Industry Authority

4. On the gross rentals, charter & other fees 7.5%
derived by non-resident lessor of aircraft,
machineries & other equipment
5. Interest on foreign loans contracted on or 20%
after August 1, 1986
6. Dividends received from a domestic corporation 15%
subject to the condition that the country in which
the non-resident foreign corporation is domiciled.

G. Fringe Benefits Granted to Employees
(Except Rank and File Employee)
Employee is a citizen/resident 35%

alien/non-resident alien
engaged in trade or business
within the Philippines
Employee is a non-resident 25%
alien not engaged in trade or
business within the Philippines

K. Informer’s Reward

Informer’s reward to persons instrumental in the 10%
discovery of violators of the NIRC and the discovery
and seizure of smuggled goods

Withholding Tax on Government
Money Payment
Simplify, streamline, and make more efficient the

collection of tax thru withholding at source:
• percentage tax on sales of goods or services

• VAT on sales of goods or services

Persons Required to Withhold (Requirements)
Final VAT / Final Percentage Tax
Final Percentage Tax Final Value-Added Tax
BY BY
• Any person, natural or • Any person, natural or
juridical, with respect to the juridical, with respect to the
purchase of goods or purchase of goods or
payments for purchase of payments for purchase of
services subject to 3% services subject to VAT
percentage tax under Sec. under Sec. 106 & 108 made in
116 made in the course of the course of trade or
trade or business (including business (including exercise
exercise of profession or of profession or calling)
calling)

Persons Required to Withhold (Requirements)
Final VAT / Final Percentage Tax
FROM FROM
• NON-VAT registered persons • VAT registered persons subject to
subject to the 3% percentage tax Value Added Tax
(whose gross annual sales or
receipts do not exceed RATE 12%
P3,000,000.00 and who do not opt
to be registered as VAT taxpayer) CONDITION Opts to remit VAT
thru the withholding
RATE 3% system; executes waiver
CONDITION Opts to remit PT of claim of input tax credits
thru the withholding system / and notice of availment of
files notice of availment of the the option
option
- 8% Income Tax

Withholding of Final Value-Added Tax Rate
RATE
On gross payment for the purchase of goods 5%
On gross payment for services rendered 5%
Payments for lease or use of property or property 12%
rights to non-resident owners
Other services rendered in the Philippines by non- 12%
residents

Certificate of Final Income Tax
Withheld at Source
What to issue: BIR Form No. 2306
Who to issue: Payor
When to issue: On or before January 31 of the

following calendar year; or
Number of copies: Three (3) copies

Withholding on Percentage Tax
Income Recipient/Nature of Income Payments Rate
Subject to Percentage Tax
• Persons exempt from VAT under Section 109 (v) 3%
• Domestic carries and keepers of garages 3%
• International Carriers 3%
On gross payments to international air carriers doing
business in the Philippines.
On gross payments to international shipping carriers
doing business in the Philippines.
• Franchises paid to radio and TV broadcasting companies 3%
whose annual gross receipts do not exceed P10 M and
who are not VAT - registered taxpayers
• Franchises paid to Gas and Water utilities 2%

Income Recipient/Nature of Income Rate
Payments Subject to Percentage Tax
• Life insurance premiums 2%
• Payment on overseas dispatch, message or conversation 10%
from the Philippines
• Payments to fire, marine or miscellaneous insurance 4%
agents of foreign insurance company
• Payments of insurance premium directly to the foreign 5%
companies where the owner of the property does not
make use of the services of any agent
• Tax on cockpits 18%

• Gross payments to the proprietor, lessee or operator of 18%
amusement places such as cabarets, night and day
clubs, videoke and karaoke bars, karaoke televisions,
karaoke boxes and music lounges
Boxing Exhibitions
professional basketball games
Jai-alai and race tracks

• Payment on the purchase, barter or exchange of shares 1/2 of 1%
of stocks listed and traded through Local Stock
Exchange
• Issuing Corporation/Selling shareholders with respect to
the sale, barter or exchange of shares through initial
public offering (IPO) 4%
Not over 25%
Over 25% but not over 33 1/3% 2%
Over 33 1/3% 1%
• Winnings from double, forecast/quinella and trifecta 4%
bets on horse races

• Winnings from horse race tickets other than double, 10%
forecast/quinella and trifecta bets/winnings or prizes
paid to owners of winning horses
• Payments to banks and non-bank financial
intermediaries performing quasi-banking functions-
On interest, commissions and discounts from 5%
lending activities as well as income from financial
leasing where the remaining maturities of the
instrument from which such receipts are derived
is five years or less

On interest, commissions and discounts from lending 1%
activities as well as income from financial leasing
where the remaining maturities of the instrument from
which such receipts are derived is more than five
years
On royalties, rentals of property, real or personal, 7%
profits from exchange and all other items treated as
gross income under Section 32 of the Tax Code
On the net trading gains within the taxable year on 7%
foreign currency, debt securities, derivatives, and
other similar financial instruments

• Payment to Other Non-Bank Financial Intermediaries not
Performing Quasi-Banking Functions
activities as well as income from financial leasing where
the remaining maturities of the instrument from which
such receipts are derived is five years or less
activities as well as income from financial leasing where
the remaining maturities of the instrument from which
such receipts are derived is more than five years
On all other items treated as gross income under the 5%
Code

Persons Required to Withhold
• Purchase of goods/services
- by the agents/employees or any person purchasing
goods/services
Official Receipt shall be in the name of person they
represent
Certificate of Taxes Withheld (BIR Form No. 2307)
shall be issued
• Income payments which are subjected to withholding tax
- by the person having control over the payment, who at
the same time, claims expenses (RR 12-2001)

Persons Required to Withhold
• Income payments made through broker/agents/persons
authorized to collect/receive payments for and on behalf
of payee
- by the person having control over the payment
Note:
Obligation to withhold is imposed upon the buyer-payor
although the burden of tax is really upon the seller-income
earner.
All government offices including GOCC, as well as provincial,
city & municipal government. (RMO 8-2003)

Returns & Payments of Taxes Withheld
on Final VAT/Final Percentage Tax
Final Value-Added Tax Withholding/Final Percentage

Tax Withholding
• BIR Form No. 1600 (Monthly Remittance Return of VAT &

Other Percentage Taxes Withheld)
• No. of copies – Three (3) copies

• Where to file/pay:
a. Authorized Agent Banks (AABs) under the jurisdiction
of the LTS & LTDO in case of large taxpayers; or
b. A
\ ABs under the jurisdiction of the RDO where the
withholding agent is located in case of non-large
taxpayers; or
c. Revenue Collection Officer (RCO) or duly authorized
Treasurer of the City or Municipality where the WA is
required to register (in the absence of AABs)

• When to file/pay:
Within ten (10) days following the end of the

month the withholding was MADE.
(If WA is enrolled in EFPS, filing of returns and

payment of taxes are governed by EFPS rules and
regulations)

Certificate of Tax Withheld -
Payee with Only One Payor
Percentage Tax Value-Added Tax
1. BIR Form No. 2306 (Certificate 1. BIR Form No. 2306 (Certificate of
of Final Tax Withheld at Source) Final Tax Withheld at Source)
2. No. of copies – Four (4) 2. No. of copies – Four (4)
a. Two (2) copies to the payee a. Two (2) copies to the payee
given within ten (10) days given within ten (10) days
following the end of the following the end of the month
month the withholding was made
the withholding was made b. One copy – file copy of WA
b. One copy – file copy of WA c. One copy – copy to be
c. One copy – copy to be attached to the filed BIR
attached to the filed BIR Form Form No. 1600
No. 1600

Payee with Only One Payor
3. Signed by both the payee and 3. Signed by both the payee and
WA. WA.
4. Serves as the authority given 4. Serves as the authority given by
by the payee to the payor to file the payee to the payor to file and
and consider the payor’s duly consider the payor’s duly filed BIR
filed BIR Form No. 1600 as the Form No. 1600 as the substituted
substituted percentage tax VAT return.
return. 5. Constituted and treated as
substituted official receipt (for
seller of service).

Payee with Several Payor
BIR Form No. 2307 (Certificate of BIR Form No. 2307 (Certificate
Creditable Tax Withheld at of Creditable Tax Withheld
Source) at Source)
• No. of copies: Four (4) • No. of copies: Four (4)
a. Two copies for attachment a. Two copies for attachment to
to percentage tax return VAT return (BIR Form No.
(BIR Form No. 2551Q) 2550Q)
b. One copy attached to the b. One copy attached to the
filed BIR Form No. 1600 filed BIR Form No. 1600
c. One copy – file copy of c. One copy - file copy of payor
payor

Substituted Official Receipts
Seller of services whose gross receipts were subjected
to withholding of 3% percentage tax / 12% VAT are
exempted from issuing non-VAT/ VAT receipts. In lieu
thereof:
BIR Form No. 2306 BIR Form No. 2307

for Payees with for Payees with
just ONE payor SEVERAL payors
shall be constituted and treated as the substituted official

receipts.

Substituted Returns
Payee with only 1 payor
• NO longer required to file the Monthly Percentage

Tax/ Monthly & Quarterly Value Added Tax return/s
(BIR Form Nos. 2551Q / 2550M & 2550Q).
• The filed BIR Form No. 1600 serves as the substituted
return of the payee provided that BIR Form No. 2306
executed and signed by both payor and payee is
attached to the filed BIR Form No. 1600.
• Payee is not entitled to input tax credit.

Substituted Percentage Tax Return
(BIR Form No. 1600)
Allowed if the income recipient/payee
1. has only one payor
2. has filed with the RDO
a. Notice of Availment of the Option to Pay the Tax
through the Withholding Process
b. Notice of Availment of the Substituted
Filing of Percentage Tax Return copy furnished
the lone payor and the RDO of both the payor and
the payee
3. updates his registration with his home RDO
4. the three percent (3%) percentage tax has been
withheld and remitted by the lone payor
Substituted VAT Return
(BIR Form No. 1600)
Allowed if the income recipient/payee
1. has only one payor
2. has filed with the RDO
a. Notice of Availment of the Option to Pay the Tax
through the Withholding Process
b. Notice of Availment of the Substituted Filing of
VAT Return copy
c. Waiver of the Privilege to Claim Input Tax Credit
copy furnished the lone payor and the RDO of
both the payor and the payee
3. updates his registration with his home RDO
4. the twelve percent (12%) VAT has been withheld and
remitted by the lone payor

Regular Percentage and VAT Returns
Payees with several payors (all sales receipts are subject to withholding)
• Still required to file percentage • Still required to file the regular
tax return (2551Q) value added tax return (2550Q)
• Tax withheld can be deducted • Tax withheld can be deducted
as tax credit as tax credit
• No tax payable
• No tax payable • BIR Form No. 2550Q merely a
• BIR Form No. 2551Q merely a consolidation of all taxable
consolidation of all taxable transactions
transactions • To be filed with the appropriate
BIR offices
• To be filed with the appropriate • Payee not entitled to input tax
BIR offices credit
Regular Percentage and VAT Returns
Payees with several payors (incorrect withholding/
transactions with non-business engaged payors)
• Still required to file percentage • Still required to file the regular
tax / VAT return/s (2551Q) value added tax return
(2550M/2550Q)
• Tax withheld can be deducted • Tax withheld can be deducted as
as tax credit tax credit
• BIR Form Nos. 2551Q shall • BIR Form Nos. 2550M / 2550Q
reflect an amount payable shall reflect an amount payable
• To be filed in the appropriate
• To be filed with the AABs / BIR offices
RDOs • Payee not entitled to input tax
credit
Option to REMIT Tax under the
Withholding Tax System
The option to REMIT the percentage tax/

VAT once chosen remains as the manner
of remitting the tax unless cancelled by the
payee (Notice of Cancellation of Availment
of the Option to Pay the Tax through the
Withholding Process)

Notice of Availment of the Option
Notice of Availment of the To be filed with the RDO copy
Option to Pay the Tax Through furnished the payor-withholding
the Withholding Process agent and the RDO of both the
payor and the payee.
Notice of Availment of To be filed with the RDO where
Substituted Filing of the income recipient is registered
Percentage Tax Return/VAT or required to register, copy
Return (for payee with only one furnished the lone payor of
payor) income.
Waiver of the Privilege to To be executed and furnished the
Claim VAT Input Tax Credits payor-withholding agent
and the RDO of both payor
and payee.
Cancellation of Availment
When to file
Notice of 10th day of the Automatic
Cancellation of month following reversion to
Availment of the close of the regular filing
Substituted Filing taxable year procedure
of Return
Immediately Additional client or
customer comes in
within the taxable
year

Quarterly Submission of SLSPs
VAT-registered taxpayers shall still comply

with the conditions set forth by RR No. 8-2002
regarding the submission of Summary List/s
of Sales/Domestic Purchases/Importations.

Withholding Agent
Withholding Agent - is any person or entity
who is in control of the payment subject to
withholding tax and therefore is required
to deduct and remit the taxes withheld to the
government. A Withholding agent can be an
individual, a corporation, a financial institution
or a government agency.

Duties & Obligations of a
Withholding Agent
• To register
• To deduct and withhold
• To remit the tax withheld
• To file withholding tax returns
• To issue withholding tax certificate

Time of Withholding
A. Ordinarily, the obligation of the payor to deduct and withhold
arises:
• at the time an income payment is paid or payable; and
• income payment is accrued or recorded as an expense or asset,
whichever is applicable in the payor’s books, whichever comes first.
B. When income is not yet paid or payable but has been recorded
as an expense or asset, whichever is applicable, in the payor’s
books:
• last month of the return period in which the same is claimed as an
expense or amortized for tax purposes.

Time of Filing and eFiling of Other Taxes
Taxes Affected by the Acceleration of Filing of Returns and Payment
Taxes Due Thereon (see RR 6-2001 as amended by RR 12-2001& further
amended by RR 4-2002)
Tax To (Manual) To (EFPS)

1. Creditable and final NOTE: All EFPS must follow the
withholding tax staggered filing of return
a. Non-Large Within 10 days Within 15 days after the end of

Taxpayer after the end of each month
each month
b. Large Taxpayer Within 10 days Within 15 days after the end of

after the end of the month
the month

Taxes Due Thereon (see RR 6-2001 as amended by RR 12-2001&
further amended by RR 4-2002)
2. Creditable and final NOTE: All EFPS must
withholding follow the staggered
tax for the month filing of return
December
a. Non-Large On or before January 15 On or before January

Taxpayer of the following year 20 of the following year
b. Large Taxpayer On or before January 15 On or before January

of the following year 20 of the following year

Taxes Affected by the Acceleration of Filing of Returns and Payment Taxes
Due Thereon (see RR 6-2001 as amended by RR 12-2001& further
amended by RR 4-2002)
3. Final withholding tax on NOTE: All EFPS must
interest from any follow the staggered
currency bank deposits filing of return
and yield or any other
monetary benefit from
deposit substitutes and
from trusts funds and
similar arrangements:

a. Non-Large For Jan. to Nov.- within 10 For January to November- within
Taxpayer days after the end of each 15 days after the end of each
month For December- on or month
before January 15 of For December- on or before
the following year January 20 of the following year
b. Large For Jan. to Nov.-within For January to November -

Taxpayer 10 days after the end within 15 days after the end of
of each month each month
For December- on or For December- on or
before January 15 of before January 20 of the following
the following year year


4. Withholding tax on NOTE: All EFPS
compensation must follow the
(excluding the staggered
month of filing of return
December:

a. Non-Large On or before the 10th On or before the 15th
Taxpayer day of the month day of the month
following the month following the month in
in which withholding which withholding was
was made made
b. Large On or before the 10th On or before the 15th

Taxpayer day of the month day of the month
following the month following the month in
in which withholding which withholding was
was made made

Taxes Due Thereon (see RR 6-2001 as amended by RR 12-2001 &
5. Withholding tax on NOTE: All EFPS
compensation must follow the
for the month of staggered filing of return
December:
Not later than January 20
a. Non-Large Not later than of the following year
Taxpayer January 15 of the
following year Not later than January 20
of the following year
b. Large Taxpayer Not later than
January 15 of


6. Final income NOTE: All EFPS must
taxes withheld follow the staggered
on fringe benefits filing of return
to employee
other than rank
and file:
(BIR Form 1603)

a. Non-Large On or before the 10th day of the On or before the 15th
Taxpayer month following the calendar day of the month
quarter in which the fringe following the calendar
benefits were granted quarter in which the
fringe benefits were
granted
b. Large On or before the 10th day of the On or before the 15th day of
Taxpayer month following the calendar the month following the
quarter in which the fringe calendar quarter in which the
benefits were granted fringe benefits were granted


7. Documentary Within 5 days after the
stamp tax: close of the month when the
a. Non-Large taxable document was made,
Taxpayer signed, accepted, or transferred
b. Large Taxpayer Within 5 days after the close of

the month when the taxable
document was made, signed,
accepted, or transferred

Withholding Tax Returns
A. Remittance Returns
• Form 1600 - Monthly Remittance of VAT and Other
Percentage Taxes Withheld
• Form 1600 WP- Remittance Return of Percentage Tax
on Winnings and Prizes Withheld by Racetrack
Operators
• Form 1601 C - Monthly Remittance Return of Income
Taxes Withheld on Compensation
• Form 0619 E – Monthly Remittance Form for Creditable
Income Taxes Withheld (Expanded)
• Form 1601 EQ - Monthly Remittance Return of
Creditable Income Taxes Withheld (Expanded)
• Form 0619 F – Monthly Remittance Form for Final
Income Taxes Withheld
• Form 1601 FQ - Monthly Remittance Return of Final
Income Taxes Withheld
• Form 1602 Q - Monthly Remittance Return of Final
Income Taxes Withheld (On Interest Paid on Deposits
and Yield on Deposit Substitute/Trusts/Etc.)
• Form 1603 Q - Quarterly Remittance Return of Final
Income Taxes Withheld on Fringe Benefits Paid to
Employees Other than Rank and File
• Form 1606 - Withholding Tax Remittance Return
(For Transactions Involving Real Property Other than
Capital Asset including Taxable and Exempt)

Monthly Alphalists of Payees (MAP)
(BIR Form Nos. 1600/1601E/1601F)
All withholding agents regardless of the number of

employees
• and payees, whether the employees/payees
are exempt or not .… under the following mode:
• As attachment in the Electronic Filing and Payment
System (eFPS)
• Through Electronic Submission using the BIR
website’s address at esubmission@bir.gov.ph
• Through Electronic Mail (email) at dedicated BIR
email addresses using the data entry module of the
Bureau of Internal Revenue (BIR).
Source: RR 1 – 2014; RMC 5 – 2014

MAP – SAWT
1601-E
(To be fi lled up b ythe BIR)
MAP
DLN: PSIC:
Republika ng Pilipinas Monthly Remittance Return BIR Form No.

Kagaw aran ng Pananalapi
Kaw anihan ng Rentas Inter nas
(Except f or transactions involving oner ous transfer
of Creditable Income Taxes
Withheld (Expanded) Apr il 2003 (ENCS)
1601-E
of r eal pr oper ty classif ied as or dinar y
Fill in all applicable spaces. Mark all appropr iate boxes w ith an “ X” .
1 For the Month 2 Amended Retur n? 3 No. of Sheets Attached 4 Any Taxes Withheld?
( MM / YYYY) Yes No Yes No
Part I B ac k g r o u n d I n f o r m a t i o n
WITHHOLDING
5 TIN 6 RDO Code 7 Line of Business
8 Withholding Agent's Name (Las t Name , First Name, M iddl e N ame fo r In divid uals)/(R egiste re d Na me fo r N on -Indiv idual s) 9 Telephone Number
10 Register ed Addr ess 11 Z ip Code

FORMAT
12 Categor y of Withholding Agent 13 A re ther e payees availing of tax relief under special law or international tax tr eaty?
Part II
Pr ivate Gover nment Yes No If yes, specif y
Com p ut at ion of Tax
Annex“B”
TA X TAX REQUIRED
NATURE OF INCOME PAYM ENT AT C T AX BASE RATE TO BE WITHHELD
BIRREGISTEREDNAME
TRADENAME
ADDRESS
TIN
AGENTS/
MONTHLYALPHALISTOFWITHHOLDINGTAXES(MAWT)
RETURNPERIOD
Seq TIN RegisteredName Return Natureofincome ATC Taxrate Taxbase Tax

no. (Alphalist) period payment Withheld
3 mm/yy 5
1 2 4 6 7 8 9
1
14 Total Tax Requir ed to be Withheld and Remitted 14
15 Less: Tax Remitted in Retur n Pr eviously Filed, if this is an amended r etur n 15 2
PAYORS
16 Tax Still Due/(Over remittance) 16
17 Add: Penalties
17A
Surcharge
17B
Inter est
17C
Compromise
17D 3
18 Total Amount Still Due/( Overr emittance) ( Sum of Items 16 & 17D) 18
I declar e, under the penalties of per jur y, that this r etur n has been made in good faith, verif ied by me, and to the best of my know ledge, and belief,
4
is true and corr ect, pursuant to the pr ovisions of the National Internal Revenue Code, as amended, and the r egulations issued under authority thereof .
5
19 20
President/Vice Pr esident/Author ized Repr esentative/Tax Agent
( Signature Over Pr inted Name)
Tr easurer /Asst. Tr easurer /Author ized Repr esentative
( Signatur e Over Printed Name)
TOTAL P P
AMOUNT
Title/Position of Signator y Title/Position of Signatory
TIN of Tax Agent ( if applicable) Tax A gent A ccred itatio n N o ./Date o f Acc re ditatio n (i f appl icab le)
Part III Det ails of Paym en t Stamp of Receiving
Drawe e Bank/ Date Of fice and
Par ticulars Ag en cy Num be r MM DD YYYY A m oun t Date of Receipt
21 Cash/Bank 21
1601-F
DLN: PSIC:
Monthly Remittance Return
MAP
Republika ng Pilipinas BIR Form No.
1601-E
( MM / YYYY) Yes No Yes No
Part I B ac k g r o u n d I n f o r m a t i o n
8 Withholding Agent's Name (Las t Name , First Name, M iddl e N ame fo r In divid uals)/(R egiste re d Na me fo r N on -Indiv idual s) 9 Telephone Number

FORMAT
Pr ivate Gover nment Yes No If yes, specif y
Part II
NATURE OF INCOME PAYM ENT
AT C T AX BASE
TA X TAX REQUIRED Annex“B”
RATE TO BE WITHHELD
BIRREGISTEREDNAME
TRADENAME
ADDRESS
TIN
RETURNPERIOD

3 mm/yy 5
1 2 4 6 7 8 9
1
15 Less: Tax Remitted in Retur n Pr eviously Filed, if this is an amended r etur n 15
16 Tax Still Due/(Over remittance)
17 Add: Penalties Surcharge Inter est
16 2
Compromise
17A 17B 17C 17D
18 Total Amount Still Due/( Overr emittance) ( Sum of Items 16 & 17D) 18 3
is true and corr ect, pursuant to the pr ovisions of the National Internal Revenue Code, as amended, and the r egulations issued under authority thereof . 4
19
President/Vice Pr esident/Author ized Repr esentative/Tax Agent
20
Tr easurer /Asst. Tr easurer /Author ized Repr esentative
5
( Signature Over Pr inted Name) ( Signatur e Over Printed Name)
TOTAL P P
Title/Position of Signator y Title/Position of Signatory AMOUNT
21 Cash/Bank 21
1600
DLN:
Republika ng Pilipinas
Monthly Remittance Return
PSIC:
BIR Form No.
1601-E
MAP BIR
( MM / YYYY)
Part I
Yes No
B ac k g r o u n d I n f o r m a t i o n
Yes No FORMAT
8 Withholding Agent's Name Telephone Number

(Las t Name , First Name, M iddl e N ame fo r In divid uals)/(R egiste re d Na me fo r N on -Indiv idual s) 9
Annex“B”
email
Pr ivate Gover nment Yes No If yes, specif y BIRREGISTEREDNAME
Part II
NATURE OF INCOME PAYM ENT
AT C T AX BASE
TA X
RATE
TAX REQUIRED
TO BE WITHHELD
TRADENAME
ADDRESS
TIN
RETURNPERIOD

3 mm/yy 5
1 2 4 6 7 8 9
1
2
3
15 Less: Tax Remitted in Retur n Pr eviously Filed, if this is an amended r etur n 15 4
17 Add: Penalties Surcharge Inter est Compromise 5
17A 17B 17C 17D
18 Total Amount Still Due/( Overr emittance) ( Sum of Items 16 & 17D) 18 TOTAL P P
is true and corr ect, pursuant to the pr ovisions of the National Internal Revenue Code, as amended, and the r egulations issued under authority thereof . AMOUNT
19 20
President/Vice Pr esident/Author ized Repr esentative/Tax Agent Tr easurer /Asst. Tr easurer /Author ized Repr esentative
( Signature Over Pr inted Name) ( Signatur e Over Printed Name)
Title/Position of Signator y Title/Position of Signatory
General Course for Revenue Officers

21 Cash/Bank 21
WT 230 Slide – 154

MAP – SAWT
1700 DLN :
2316
Repu blika ng Pilipin as
Kaga w ara n ng Pa nanalapi
Kawanihan ng Rentas Internas
For Comp en satio n Pay ment Wit h or Wit hout T ax Wit hheld
Certificate of Compensation
Payment/Tax Withheld
BIR Form No.
2316
Octo ber 2002 (ENCS)
SAWT
1 For the Y ear 1 2 For the Period
( YY YY ) From (MM/DD) To (MM/DD)
Par t I Em ploye e Inform ation Par t IVD e ta i l s o f Co mp ens at i o n I nc o me a nd T ax W i t hh el d f r o m Pr es en t Emp l o y er
(To be fill ed up by the BIR )
3 Ta xpayer 3 A mou nt
DLN: PSIC :
Identification No. A. Non-Ta xable /Exe mpt Compe ns ati on Incom e
Rep ublika ng Pilip inas Monthly Remittance Return BIR Form No.
4 Employee' s Name (La st Name , First Name, Middle Name) 5 RDO Co de 2 5 13th Month Pay an d
Ot her Benef its
25
FORMAT
Kag aw aran ng Pana nalapi 2 6 SSS, GSIS, PHIC & Pag-ibig 26
Kaw anihan ng Renta s Interna s
(Except fo r transac tion s inv olving onero us trans fer Withheld (Expanded) April 2003 (ENCS)
1601-E 6 Reg istered A ddress 6A Zip Code Contribu tions , & Un ion d ues
2 7 Salaries & Ot her Forms of
Comp ensation
27
o f rea l pro perty cla ssified as ordina ry
Fill in a ll app licable spac es. Mark all a ppropria te boxes w ith an “X”.
1 For the Month 2 Amended Retur n?
6B Loc al Home A ddress 6C Zip Code 2 8 Total Non-Taxab le/Ex empt
Comp ensation In come
28 Annex“B”
3 No. of Shee ts Attach ed 4 Any Taxes Withheld ?
(MM / YY YY) Yes No Yes No 6D Foreign A ddress 6E Zip Code B. Tax able Com pe ns ation Income
Par t I B ac k g r o u n d I n f o r m a t i o n
REGULAR
5 TIN 6 RDO Code 7 Line of Busin ess
8 Withhold ing A gent's Name (Las t Name, First N ame, M iddle Name f or Individuals )/ (Regi st ered N ame f or No n-Indiv iduals) 9 Teleph one Number
7 Date of Birth (MM/DD/YY YY ) 8 Telephone Nu mber 2 9 Basic Salary 29
BIRREGISTEREDNAME
10 Registered Addre ss 1 1 Zip Co de
9 Exemp tion Stat us
Single He ad of the Family Married
3 0 Represent ation 30
TRADENAME
12 Cate gory of With holding Agen t 13 Are th ere payees avai ling o f tax relief under spe cial law or in tern ation al tax tre aty?
9A Is the w if e claiming the add itio nal e xemp tion f or qua lif ied depe ndent ch ild ren ?
Yes No 3 1 Transpo rta tion 31 ADDRESS
Priva te Governme nt Yes No If yes, spe cify 10 Na me of Qualif ied Dep endent Ch ildren 11 Da te o f B i rth (M M /D D /YYYY )
Par t II C om put ation of Tax

TAX TAX REQUIRED 3 2 Cost of Living Allow anc e 32
TIN
NATURE OF INCOME PAYMENT ATC TAX BASE
RATE TO BE WITHHELD
3 3 Fix ed Housing A llo wa nce 33
3 4 Ot hers (Sp ecif y)
12 Othe r Dep endent (to be acco mplished if taxpa yer is h ead of the family) 3 4 A
Name of Dependen t Relation ship
D a te o f B i rth
(M M /D D /YYYY
34A
Par t II Em ploye r Infor ma tion (Pre s e nt)
3 4B
SUPPLEM ENTARY
34B
RETURNPERIOD
13 Taxpaye r 13 3 5 Commis sion 35
Identification No.
14 Employer's Na me 3 6 Prof it Sharing 36
3 7 Fees Includin g Director' s
Fees
37
15 Reg istered Address 15A Zip cod e 3 8 Taxa ble 13 th Mo nth Pay 38
and Other Bene fits
3 9 Hazard Pa y 39 no. (Alphalist) period payment Withheld
ma in emplo yer sec ondary emplo yer 4 0 Ot hers (Sp ecif y)
Par t II I
16 Taxpaye r
Em ploye r Inform ation (Pre vi ous )-1 3 mm/yy 5
16 4 0A 40A
Identification No.
17 Employer's Na me 4 0B 40B
1 2 4 6 7 8 9
18 Reg istered Address 18A Zip cod e
4 1 Total Taxa ble Compensa tion 41
Inc ome
1
Sum mar y
Em ploye r Inform ation (Pre vi ous )-2

4 2 Taxa ble Compensa tion Income
f ro m Prese nt Employe r
42
2
19 Taxpaye r 19 4 3 Ad d: Taxa ble Compens ation 43
Identification No.
20 Employer's Na me
f rom Prev ious Employer (s)
4 4 Gros s Taxab le
44 3
4 5 Less : Total Exemption s
21 Reg istered Address 21A Zip cod e 4 6 Less : Premium Paid o n
Healt h and/or Hosp ital
45
46
4
14 Total Tax Req uired to be Withheld and Remitted 14
Ins urance (If ap plic able)
15 Le ss: Tax Remitted in Retur n Pre viously Filed , if this is an amended return
16 Tax Still Due /(Ov erremitta nce)
15
16 22 Taxpaye r
Em ploye r Inform ation (Pre vi ous )-3
22
4 7 Taxa ble
47 5
17 A dd: Penalties
17 A
Surc harge
17B
Inter est
17C
Comp romise
17 D
Identif ication No.
23 Employer's Na me
4 8 Tax Due
49 A mou nt of Taxe s Withhe ld
49A Presen t Emp loyer
48
49A
TOTAL P P
18 Total Amount Still Due /(Ov erremitta nce) (Su m o f Items 16 & 17D) 18
I de clare, un der the pena lties of perjur y, th at th is re turn has bee n ma de i n go od f aith, verified by me, a nd to the bes t of my know ledge, a nd b elief,
24 Reg istered Address 24A Zip cod e 49B Previous Employer(s) 49B
50 Total Amount of Taxes 50
AMOUNT
is true and corr ect, pursuan t to the p rovisions of the National Internal Revenue Code, as ame nded, an d the regula tions issu ed u nder authority thereo f.
Withh eld
I d ec lare , un de r th e p en al tie s o f pe rju ry, t hat thi s ce rtifi ca te h as b ee n m ad e in go o d fai th, ve rifi ed by us , a nd to the b est o f o ur kno wle dg e a nd b eli ef, i s tr ue an d co rre ct
19 20
Preside nt/Vice Presi dent/Authoriz ed Repr esentativ e/Ta x A gent Tre asurer/Asst. Tre asurer/Authorize d Repres enta tive
(Sig natu re Over Printed Name ) (Sign atu re Over Printe d Name )
Title/Position of Sig nato ry Ti tle/Position of Sig nato ry
TIN o f Ta x Ag ent (if applic able) Tax Agent Ac c redit ation N o./ Date of Ac c reditatio n (if applic able)
Par t III De tails of Pa yme nt Stamp of Rece iving
Dra wee Ba nk / Date Of fice and
Par ticulars Age ncy Num be r MM DD YYYY A mount Date of Receipt
21 Cash /Bank 21
1701/Q 2307/2316 FORMAT

SAWT
( To be filled up by th e B IR)
DLN: PSIC:
Republika ng Pilipinas Monthly Remittance Return BIR Form No.

Annex“B”
Kaw anihan ng Rentas Internas
(Except for transactions involving onerous transfer W ithheld (Expanded) April 2003 (ENCS)
1601-E
of real property classified as ordinary
1
Fill in all applicable spaces. Mark all appropriate boxes w ith an “X”.
For the Month 2 Amended Return? 3 No. of Sheets Attached 4 Any Taxes Withheld? Republika ng Pilipinas
Kaw anihan
Summary List of Creditable Withholding Tax at Source (2307) Received BIRREGISTEREDNAME
(MM / YYYY) Yes No Yes No Kagaw aranng
ngRentas
PananaInternas
lapi
Part I
5 TIN
B a c k g r ou n d I n f o rm a t i o n
6 RDO Code 7 Line of Business For the Period 1 TRADENAME
From To
8 Withholding Agent's Name ( La st Name , First Na me, Mid dle Name fo r Indiv idu als) /( Re gis ter ed Na me fo r No n- Ind ivid uals ) 9 Telephone Number
( M M / DD / YYYY ) ( M M / DD / YYYY ) ADDRESS
Part I P a y e e I n f o r m a t i o n
10 Registered Address 11 Z ip Code
Taxpaye r 2 2A Zip 3 Payee's Name (Las t N am e, First Na me, M id dl e N am e fo r Ind ivi dua ls)(R e gis tered N ame fo r N o n- Ind ivi dua ls) TIN
12 Category of Withholding Agent 13 Are there payees availing of tax relief under special law or international tax treaty? Identif ication No. Code
Private Government Yes No If yes, specify
Part II Co mpu tation o f Tax Registered Address 4A Foreign
NAT URE OF INCOM E PAYM ENT AT C TAX BASE
T AX
RATE
T AX REQUIRED
T O BE WIT HHEL D
A ddress MONTHLYALPHALISTOFWITHHOLDINGTAXES(MAWT)
Part II Summ ary List of Payors
Payor 's Name Am o u n t o f I nco m e P aym e n ts RETURNPERIOD
Payor's Last Name, First Name, Middle Name for Individuals AT C 1st M onth 2nd M onth 3r d M onth Tax Withhe ld
TIN Registered Name f or Non-Individuals of the Quarte r of the Quarte r of the Quarte r Total For the Quar te r

3 mm/yy 5
1 2 4 6 7 8 9
1
2
3
4
14 Total Tax Required to be Withheld and Remitted
15 Less: Tax Remitted in Return Previously Filed, if this is an amended return
14
15
5
16 Tax Still Due/(Overremittance)
17 Add: Penalties Surcharge Interest Compromise
16
TOTAL P P
17A 17B 17C
18 Total Amount Still Due/(Overremittance) (Sum of Items 16 & 17D)
17D
18 AMOUNT
I declare, under the penalties of perjury, that this return has been made in good faith, verified by me, and to the best of my know ledge, and belief,
is true and correct, pursuant to the provisions of the National Internal Revenue Code, as amended, and the regulations issued under authority thereof.
19 20
President/Vice President/Authorized Representative/Tax Agent Treasurer/Asst. Treasurer/Authorized Representative
(Signature Over Printed Name) (Signature Over Printed Name)
Title/Position of Signatory Title/Position of Signatory
TIN of Tax Agent (if applicable) Tax A gen t A cc red ita tio n N o ./D at e o f A cc red ita tio n (if a pp lica ble) TOTAL: P P P P P
Part III Details of Payme nt Stamp of Receiving
Dr aw ee Ban k/ Date Office and Note: The taxpayer/filer attest to the accuracy of the information entered herein.
PAYEE/
Par ticulars Ag ency Nu mb er MM DD YYYY Amo unt Date of Receipt
21 Cash/Bank 21
1702/Q 2307 SAWT

INCOME (To b e fille d up b y th e BIR )
8
DLN:
(MM / YY YY)
Par t I
5 TIN
Repu blika ng Pilipin as
Kaga w aran ng Panana lapi
Kaw a nihan ng Ren tas Internas
(Except for transactions invol ving onerous transfer
of rea l prop erty clas sified as ordinary
Withholdi ng A gent's Name

Monthly Remittanc e Return
of Creditable Income Ta xes
Withhe ld (Expanded)
Fill in al l app licable spaces . Mark al l app ropriate b oxes w ith an “X”.
1 For the Month 2 Amend ed Return?
Ye s
6
No
3 No. o f Sh eets Attached
Ba c k g r o u n d I n f o r m at i o n
RDO Code 7 Line of Bu siness
April 2003 (ENCS)
4 Any Taxes Withhel d?

Yes
( L as t N a me, Firs t Na me , Mid d le N a me f o r Ind iv idu a ls) /( R eg is te re d Na me fo r N o n- In div id ua ls)

PSIC:
BIR Form No.
1601-E
9 Telep hone Number

No From
Kaw anihan ng Rentas Internas
Kagaw aran ng Panana lapi
For the Period 1
( M M / DD /
Part I P a y e e I n f o r m a t i o n
Taxpaye r 2
Summary List of Creditable Withholding Tax at Source (2307) Received
YYYY )
To
( M M / DD / YYYY )
2A Zip 3 Payee's Name (Las t N am e, First Na me, M id dl e N am e fo r Ind ivi dua ls)(R e gis tered N ame fo r N o n- Ind ivi dua ls)
FORMAT
Annex“B”
BIRREGISTEREDNAME
TRADENAME
BIR
Identif ication No. Code
10 Registered Addres s
12 Cate gory of W ithh olding Agent 13 Are ther e pay ees availing of ta x reli ef un der special law or inte rnational tax treaty ?
11 Zip Code
Registered Address 4A Foreign

ADDRESS
RECIPIENT
Par t II
Private Go vernmen t Yes No If yes, specify
Co m pu tation of T ax
T AX TA X REQUIRED
A ddress TIN
NATURE O F INCOME PAYM ENT AT C TAX BA SE RAT E TO BE W IT HHEL D Part II Summ ary List of Payors
Payor 's Name Am o u n t o f I nco m e P aym e n ts
Payor's Last Name, First Name, Middle Name for Individuals AT C 1st M onth 2nd M onth 3r d M onth Tax Withhe ld
TIN Registered Name f or Non-Individuals of the Quarte r of the Quarte r of the Quarte r Total For the Quar te r MONTHLYALPHALISTOFWITHHOLDINGTAXES(MAWT)
RETURNPERIOD

3 mm/yy 5
1 2 4 6 7 8 9
1
email
14 Total Tax Req uired to be Withheld and Re mitted
15 Le ss: Tax Remitted in Re turn Prev iously Filed, if this is an ame nded return
14
15
2
16 Tax Still Due/(Ove rremittan ce) 16
17 Ad d: Penalties
17A
Surch arge
17B
Interest
18 Total Amount Still Due/(Ove rremittan ce) ( Sum of Ite ms 16 & 17D)
17C
Co mpromis e
17D
18
3
I dec lare, und er the penalties of perjury, that this return has been made in good faith, verifi ed b y me , and to the be st of my know ledge, a nd b elief,
is true and corre ct, p ursuant to the pro visions of the Natio nal Inter nal Reven ue Code , as amended , and the regu lation s is sued under authority thereo f. 4
19
Presiden t/Vice Preside nt/Authorized Represe ntative/Tax Agent
(Signa ture Ove r Pri nted Name)
20
Treasur er/A sst. T reasure r/Authoriz ed Repre sentative
(Signature Over Printed Name)
5
Title/Position of Signa tory Titl e/Pos ition of Signatory TOTAL P P
Par t III
TIN of Tax Age nt (if applicab le)
Deta ils o f Paym e nt
Ta x A ge nt A cc r ed ita t io n N o ./ D at e o f A cc r ed ita t io n ( if ap p lica ble )
Stamp of Rece iving
AMOUNT
Draw ee Ban k / Da te O ffice and
Par ticu lars Ag en cy Num b er MM DD YYYY Am ou n t Date of Receipt
21 Cash /Bank 21
TOTAL: P P P P P
Note: The taxpayer/filer attest to the accuracy of the information entered herein.
2550M/Q
2551M/2553
(T o be fill ed u p by the BIR)
2307 FORMAT
SAWT
DL N: PSIC:
Republika ng Pilipinas Summary List of Creditable Withholding Tax at Source (2307) Received
Kagaw ar an ng Pananalapi
Monthly Remittance Return BIR Form No. Kaw anihan
Kagaw aranng
ngRentas
PananaInternas
lapi Annex“B”
Kaw anihan ng Rentas Internas of Creditable Income Taxes
Withheld (Expanded)
1601-E For the Period 1
(Except for transactions involving oner ous tr ansf er
of real pr oper ty classified as ordinar y
April 2003 ( ENCS) From To
( M M / DD / YYYY ) ( M M / DD / YYYY )
1
Fill in all applicable spaces. Mar k all appr opr iate boxes w ith an “X”.
For the Month
(MM / Y YYY)
2 Amended Return?
Yes No
3 No. of Sheets Attached 4 Any Taxes Withheld?
Y es No
Part I P a y e e I n f o r m a t i o n BIRREGISTEREDNAME
Taxpaye r 2 2A Zip 3 Payee's Name (Las t N am e, First Na me, M id dl e N am e fo r Ind ivi dua ls)(R e gis tered N ame fo r N o n- Ind ivi dua ls)
Par t I
5 TIN
Ba c k g r o u n d I nf or m a t i on
6 RDO Code 7 Line of Business Identif ication No. Code TRADENAME
8 Withholding Agent's Name (Las t Na me, F irst N ame, M idd le N ame fo r Ind ivid uals )/(Reg istered Na me fo r N o n-In divi dual s) 9 Telephone Number
Registered Address 4A Foreign
A ddress
ADDRESS
10 Registered Addr ess 11 Z ip Code
12 Category of Withholding Agent 13 Ar e ther e payees availing of tax r elief under special law or international tax treaty?
Part II Summ ary List of Payors TIN
Pr ivate Government Y es No If yes, specif y Payor 's Name Am o u n t o f I nco m e P aym e n ts
Par t II Co m p ut atio n o f T ax Payor's Last Name, First Name, Middle Name for Individuals AT C 1st M onth 2nd M onth 3r d M onth Tax Withhe ld
TAX T AX REQUIRED
NATURE OF INCOME PAYMENT AT C T AX BASE TIN Registered Name f or Non-Individuals of the Quarte r of the Quarte r of the Quarte r Total For the Quar te r
RAT E T O BE WITHHEL D
RETURNPERIOD

3 mm/yy 5
1 2 4 6 7 8 9
1
2
3
14 Total Tax Requir ed to be Withheld and Remitted
15 Less: Tax Remitted in Retur n Pr eviously Filed, if this is an amended retur n
14
15 4
17 A dd: Penalties
17A
Sur char ge
17B
Interest
17C
Compr omise
17D
5
18 Total A mount Still Due/(Over remittance) (Sum of Items 16 & 17D) 18
I declare, under the penalties of perjur y, that this r etur n has been made in good f aith, ver if ied by me, and to the best of my know ledge, and belief ,
is true and corr ect, pur suant to the pr ovisions of the National Inter nal Revenue Code, as amended, and the regulations issued under author ity thereof .
TOTAL P P
19 20 AMOUNT
General Course for Revenue Officers

Pr esident/V ice Pr esident/Author ized Repr esentative/Tax Agent Treasurer /Asst. Tr easurer /Author ized Repr esentative
(Signature Over Pr inted Name) ( Signature Over Printed Name)
Title/Position of Signator y Title/Position of Signator y

TOTAL: P P P P P
TIN of Tax Agent (if applicable) T ax Ag ent A ccred itatio n No ./D ate o f Ac credita tio n (i f appl ica ble) Note: The taxpayer/filer attest to the accuracy of the information entered herein.
Par t III De tails o f Paym en t Stamp of Receiving
WT 230 Slide – 155

Draw ee Ban k/ Dat e Of fice and
Particu lars A ge ncy Num b er MM DD YYYY Am o un t Date of Receipt
21 Cash/Bank 21

Withholding Tax Returns (cont.)
B. Annual Returns
• Form 1604 CF - Annual Information Return of Income

Taxes Withheld on Compensation and Final
Withholding Taxes (with Alphalists of Employees
and/or payees)
• Form 1604 E - Annual Information Return of Creditable

Income Taxes Withheld (with Alphalists of Payees)

Annual Information Return (BIR Form 1604CF / 1604-E) Including
the Alphabetical List of Employees and Income Recipient
What to use: 1604CF + alphalist 1604 E + alphalist
When to submit: on or before Jan. 31 on or before March1

of the following year of the following year
Where to submit: RDO RDO

LTDO LTDO
LTAD LTAD
Online Online
Retention: 3 years in a secondary 3 years in a secondary

storage (CD-R) storage (CD-R)

Withholding Tax Returns (cont.)
C. Certificates
• Form 2304 - Certificate of Income Payment not Subject to
Withholding Tax (Excluding Compensation Income)
•Form 2306 - Certificate of Final Tax Withheld at Source
• Form 2307 - Certificate of Creditable Tax Withheld at Source
• Form 2316 - Employer’s Certificate of Compensation
Payment/Tax Withheld (for Compensation
Payment With or Without Tax Withheld)

Payee’s Claiming or Applying the Creditable
Taxes Withheld (BIR Form No. 2307)
Attachment to the following:
Individual Payee
• BIR Form 1701Q - Quarterly Income Tax Return
• BIR Form 1701 - Annual Income Tax Return
Corporate Payee
• BIR Form 1702Q - Quarterly Corporate Income Tax Return
• BIR Form 1702 - Annual Income Tax Return
Creditable VAT Withheld
• BIR Form 2550M - Monthly VAT Declaration
• BIR Form 2550Q - Quarterly VAT Return
Creditable Percentage Taxes Withheld
• BIR Form 2551M - Monthly Percentage Tax Return
• BIR Form 2551Q - Quarterly Percentage Tax Return

Details Required Under Schedule Summary of
Creditable Withholding Tax (BIR Form No. 2307)
• Payor’s Name;
• Nature of Income Payment;
• Period Covered;
• Tax Base;
• Rate;
• Applied Tax Withheld; and
• Unapplied Tax Withheld in the Current Return.

Violations
Violations Penalties under Chapter I, Penalties under Chapter II, Title X
Title X (Additions to the Tax) (Crimes, Other Offenses and
Forfeitures)
Penalties Legal Basis Penalties Legal Basis
Non- Amount of Sec. 251, Tax Fine of not less than Ten Sec. 255,
withholding tax not Code Thousand Pesos Tax Code
of required withheld; (P10,000.00) and suffer
20% interest Sec. 249, imprisonment of not less
Tax Code than one (1) year but not
more than ten (10) years,
upon conviction
Under- Amount of Sec. 251, Tax
withholding under- Code
of tax withheld tax
20% interest Sec. 249,
Tax Code

Violations
Violations Penalties under Chapter Penalties under Chapter II, Title X
I, Title X (Additions to the (Crimes, Other Offenses and
Tax) Forfeitures)
Non- Amount Sec. 251, Fine of not less than Sec. 255,
remittanc of tax Tax Code Ten Thousand Pesos Tax Code
e of taxes withheld (P10,000.00) and
withheld but nor suffer imprisonment
remitted of not less than one
20% Sec. 249, (1) year but not more
interest Tax Code than ten (10) years,
upon conviction

Violations
Violations Penalties under Chapter I, Penalties under Chapter II,
Title X (Additions to the Tax) Title X (Crimes, Other
Offenses and Forfeitures)
Late 25% Sec. 248, Tax
remittance/ surcharge Code
Late filing of on the
withholding amount
tax returns remitted
late
20% Sec. 249, Tax
interest Code

Violations
Violations Penalties under Penalties under Chapter II, Title
Chapter I, Title X X (Crimes, Other Offenses and
(Additions to the Tax) Forfeitures)
Penalties Legal Penalties Legal Basis
Basis
Failure to Amount Sec. 252, Fine of not less Sec. 255,
refund excess of tax not Tax Code than Ten Thousand Tax Code
taxes refunded Pesos (P10,000.00)
withheld on 20% Sec. 249, and suffer
compensation interest Tax Code imprisonment of
not less than one (1)
year but not more
than ten (10) years,
upon conviction

Violations
I, Title X (Additions to (Crimes, Other Offenses and
the Tax) Forfeitures)
Failure to P1,000 for Sec. 250, Fine of not less than Sec. 255,
file each Tax Code Ten Thousand Pesos Tax Code
withholding failure, but (P10,000.00) and
tax return or not to suffer imprisonment
certain exceed of not less than one
information P25,000 (1) year but not more
return during a than ten (10) years,
calendar upon conviction
year

Violations
Tax) Forfeitures)
Failure to Fine of not less than Sec. 255,
supply Ten Thousand Pesos Tax Code
correct and (P10,000.00) and
accurate suffer imprisonment
information of not less than one
(1) year but not more
than ten (10) years,
upon conviction

Violations
Violations Penalties under Chapter I, Penalties under Chapter II, Title X
Title X (Additions to the (Crimes, Other Offenses and Forfeitures)
Tax)
Violations of Penalty of not less than Sec. 272, Tax
Withholding Five Thousand Pesos Code
Tax Provision, (P5,000.00) but not more
rules and than Fifty Thousand
regulations Pesos (P50,000.00) or
of Public suffer imprisonment of
Officers not less than six (6)
months and one (1) day
but not more than two (2)
years, or both, for each
act or omission, upon
conviction

Violations
Tax) Forfeitures)
Acts or Fine of not less than Sec. 256,
omissions Fifty Thousand Pesos Tax Code
penalized (P50,000.00) but not
under the Tax more than One
Code Hundred Thousand
committed by Pesos (P100,000.00),
any for each act or
corporation, omission, upon
association or conviction
general co-
partnership

Violations
I, Title X (Additions to (Crimes, Other Offenses and
the Tax) Forfeitures)
Violation of Fine of One Thousand Sec. 275,
any provision Pesos (P1,000.00) or Tax Code
of the Tax suffer imprisonment of
Code or any not more than six (6)
rule or months, or both, for
regulation for each act or omission,
which no upon conviction
specific
penalty is
provided

Updates
a. TRAIN Law
b. RR No. 11-2018

Sec. 2.57.2 Income Payments Subject
to Creditable Withholding Tax
• How the Withholding Agent Determine the Applicable
Withholding Tax Rates to be Applied to the Payee?
The individual payee shall execute a sworn declaration
(Annex B-1 of the RR) and, together with a copy of COR,
provide all income payors every January 15 of each year,
or prior to the initial income payment
Withholding agent shall likewise execute a sworn
statement (Annex C of the RR) declaring the number of
payees who have executed sworn declaration (Annex B-1,
B-2, B-3 of the RR), and submit the same not later than
January 30 of each year or within fifteen (15) days following
the month when new recipient of income have submitted
a sworn declaration with a copy of COR.
• What shall be the Applicable Withholding Tax Rates if

the Individual Payee did not Submit Any Sworn
Declaration to the Payor?
The withholding agent shall withhold the higher
rate of withholding TAX WHICH is 10%.

Nature of Income Payments Old New Rate
(No Change in Rate) Sub Sec Sub Sec
Rentals C B 5%
Income Payments to Certain Contractors E C 2%
Income Distribution to the Beneficiaries F D 15%
Income Payments to Partners of GPP H E 15% /
10%
Gross Selling Price or Total Amount of J F 1.5% /
Consideration or Its Equivalent paid to 3% / 5%
the Seller/Owner for the Sale, Exchange / 6%
or Transfer of Real Property Classified as
Ordinary Asset
(No Change in Rate) Sub Sub
Sec Sec
Additional Income Payments to Government K G 15%
Personnel from Importers, Shipping and
Airline Companies, or their Agents
Certain Income Payments Made by Credit L H 1% of ½
Card Companies of Gross
Income Payments Made by Top Withholding M, W I 1% / 2%
Agents
Income Payments Made by the Government N J 1% / 2%
Tolling Fees Paid by the Refineries P K 5%

Sec Sec
Payments Made by Pre-Need Companies to Q L 1%
Funeral Parlors
Payments Made to Embalmers R M 1%
Payments Made to Suppliers of Agricultural S N 1%
Products
Income payments on purchases of Minerals, T O 1%/5%
Mineral Products and Quarry Resources
MERALCO Payments U P 10%

Sec Sec
Interest Income on the Refund Paid by other V Q 10% /
Electric Distribution Utilities (DUs) 15%
Income Payments Made by Political Parties X E 5%
and Candidates of Local and National Election
Interest Income Derived from Any Other Debt Y S 15%
Instruments Not Within the Coverage of
Deposit Substitutes
Income Payments to Real Estate Investment Z T 1%
Trust (REIT)
Income Payments on Sugar AA U 1%

Sec. 2.57.3 Persons Required to
Deduct and Withhold
• Amendments pertain to:

Refusal of seller/payee to be subjected to
withholding tax – may be imposed penalties pursuant
to Section 275 of the Tax Code (in addition to the
conduct of audit)
Inclusion of provisions regarding non-withholding of
tax from individuals whose gross income in a year
does not exceed P250,000 from a lone payor subject
to certain requirements

Deduct and Withhold
• Requirements
Individual shall execute a sworn declaration of gross
income (with provided format – Annex B-2 of the RR);
The sworn declaration shall be submitted to the lone
payor;
The lone payor shall likewise execute a sworn
declaration (format also provided – Annex C of the RR)
which shall be submitted to the concerned BIR office,
together with the list of payees who shall not be
subjected to withholding tax
Deduct and Withhold
What if the individual did not submit the sworn

declaration and a copy of COR to the lone payor?
• The lone payor is required to withhold the
prescribed rate of withholding on the entire
payments made

Deduct and Withhold
What if the income payments exceed P250,000

but the individual payee submitted the sworn
declaration?
• The lone payor is required to withhold the
prescribed rate of withholding only on the
excess over P250,000

Deduct and Withhold
Illustration 1
\Ms. Tina supplies special cupcakes on a regular basis to RPSV
Supermarket, a top withholding agent pursuant to Section 2.57.2 (I)
of these regulations. Prior to 2018, her annual sales to RPSV
Supermarket never exceeded ₱250,000. She only bakes cupcakes
upon order. RPSV Supermarket is her lone payor of income; thus,
she executed the sworn declaration of gross receipts stating that
her gross expected receipts shall not exceed ₱250,000 for the year
from RPSV Supermarket. However, in the latter part of 2018, RPSV
Supermarket noted that its purchase of cupcakes shall exceed
₱250,000. As expected, in 2018 the total purchase of cupcakes by
RPSV Supermarket from Ms. Tina amounted to ₱300,000. Compute
for the amount to be withheld.
Deduct and Withhold
Illustration 1: Computation
Gross Receipts P300,000.00

Less: Amount not subject to withholding tax 250,000.00
Income subjects to withholding tax 50,000.00
Multiply by EWT rate x 1%
Amount of withholding tax 500.00
*RPSV Supermarket is included as “Top Withholding Agent,”

thus, the rate of income tax withholding is 1% for the payments
made to Ms. Tina, the supplier of goods
Sec. 2.57.5 Exemption from
Withholding of CWT Withhold
• Sale of real property by person engaged in social housing project
where the SP does not exceed the socialized housing price
applicable to the area as prescribed by HLURB/HUDCC
• Corporations duly registered with the Board of Investments (BOI),
Philippine Export Processing Zones and Subic Bay Metropolitan
Authority enjoying exemption from income tax pursuant to E.O. 226;
• Corporations exempt from income tax under Section 30 of the Tax
Code as amended and GOCCs, namely: GSIS; SSS; PHIC and LWDs;
• GPPs;
• Joint Ventures or consortium formed for the purpose of
undertaking construction project…
• Individuals who earn P250,000 and below from a lone payor
subject to compliance with some requirements
Sec. 2.58 Returns and Payment of
Taxes Withheld at Source
Not later than the last day of

Manual the month following the
close of the quarter
But, withheld taxes are required to

be remitted not later than the 10th
day following the close of the month
(for the first two months of the
quarter)

Not later than the last day of

eFPS the month following the close
of the quarter
But, withheld taxes are required to

be remitted not later than the 15th
day following the close of the
month (for the first two months of
the quarter)

Expanded
Withholding 0619-E BIR Form 1601-
EQ
(first 2 months)
Tax
Final BIR Form 1601-
Withholding 0619-F FQ
(first 2 months) BIR Form 1602
Tax BIR Form 1603

For Sale of Real Property Considered For Sale of Real Property
Capital Asset and Shares of Stock Not Considered Ordinary
Traded Thru a Local Stock Exchange Asset
• Due date is within thirty (30) • Due date is on or

days from the date of before the tenth (10TH)
day following the
transactions month of transaction
• BIR Form to be used: • BIR Form to be used:
BIR Form 1706 – Sale of Real BIR FORM NO. 1606
Property Considered Capital Asset
BIR Form 1707 – Sale of Shares of
Stocks Not Traded in Local Stock
Exchange
Certificate/Statement of Tax Withheld at Source
• BIR Form 2307 (20 days from

Expanded/Creditable
Withholding Tax
the close of the quarter or
upon demand of the payee)
• BIR Form 2306 (20 days from

Final Withholding Tax the close of the quarter or
upon demand of the payee)

Annual Information Return
Expanded • BIR Form 1604-E

Withholding Tax (March 1)
Final Withholding • BIR Form 1604-F

Tax (January 31)

Amendments Pertain to:
• Increase in Medical Cash Allowance to dependents of

“De Minimis” employee to P1,500 per semester or P250 per month
• Increase in Rice Subsidy to P2,000 per month
Benefits • Increase in uniform and clothing allowance from
P5,000 to P6,000
• Increase in threshold of the “13th month pay and other
benefits” to P90,000
Exemption from • Income payment paid to Minimum Wage Earner (MWE)
Withholding Tax by the same employer, other than the basic SMW,
Holiday pay, Hazard pay, Overtime pay, Night-Shift
on Compensation differential pay – shall be taxable and subject to WT;
• Compensation during the year not exceeding P250,000

Sec. 2.78.1 Withholding Tax on Compensation
Illustration 2
Ms. Alona is employed in CSO Corporation. She
received the SMW for 2018 in the total amount of
₱175,000, inclusive of the 13th month pay. In the same
year, she also received overtime pay of ₱40,000 and
night-shift differential of ₱25,000. She also received
commission income from the same employer of
₱20,000, thus, total income received amounted to
₱260,000.
Compute for the withholding tax due.

The employer of Ms. Alona shall determine the nature of income payments. The
amount to be subjected to income tax withholding shall be computed as follows:
Total Income received P260,000.00
Less: Income exempt from tax
Basic SMW P175,000.00
Overtime Pay 40,000.00
Night Shift Differential 25,000.00
Total Exempt Income as MWE 240,000.00
Taxable Income – Commission 20,000.00
Tax Due:
On not over P250,000 (P20,000 x 0%) 0.00
* Taxpayer’s income of SMW, overtime pay, and night shift differential pay are expressly exempt from
income tax under the law and consequently from withholding tax.
* Commission income from the same employer is taxable, however, under the graduated income tax rates
since it is less than ₱250,000, there is no tax due.

Illustration 3
Ms. Cyril is employed in MAFD Corporation and is
also a part-time real estate agent for a real
estate broker. In addition to the SMW of
₱180,000 she received from her employer, she
likewise received ₱75,000 as commissions from
her real estate dealings for the year 2018.

The amount subject to income tax and withholding
tax shall be computed depending on the income
tax regime selected by Ms. Cyril, since she is
qualified to avail of such option (income from
business/practice of profession did not exceed
₱3,000,000) and such option was reflected in the
payee’s sworn declaration given by the taxpayer to
the payor/withholding tax agent-real estate
broker, as follows:
1. Under the graduate income tax (IT) regime:
Less: Income exempt from income tax - SMW 180,000.00
Taxable Income - Commission 75,000.00
Tax Due on not over P250,000.00 (P75,000.00 x 0%) P0.00

2. Under the 8% IT regime:
Less: Income exempt from income tax - SMW 180,000.00
Taxable Income - Commission 75,000.00
Tax Due (P75,000.00 x 8%) P6,000.00

Sec. 2.79 Income Tax Collected at
Source on Compensation Income
• No reference to number of dependents due to
removal of personal and additional exemptions
• Change in Income Tax rates
Withholding • Change in compensation range

• Applicability of the withholding table to
Tax Table employees of Area or Regional Headquarters of
Multinational companies, ROHQ, OBUs, and
Petroleum Service contractors and sub-
contractors
Fringe Benefits • Increase to 35% for citizen, resident alien and

alien engaged in trade or business in the
Rate Philippines

Withholding Tax Rates
(January 1, 2018 until December 31, 2022)
Range of Taxable Tax Due – a + (b x c)
Income
Over Not Over Basic Additional Of Excess
Amount Rate Over
(a) (b) (c)
- 250,000.00 - - -
250,000.00 400,000.00 - 20% 250,000.00
400,000.00 800,000.00 30,000.00 25% 400,000.00
800,000.00 2,000,000.00 130,000.00 30% 800,000.00
2,000,000.00 8,000,000.00 490,000.00 32% 2,000,000.00
8,000,000.00 - 2,410,000.00 35% 8,000,000.00

REVISED WITHHOLDING TAX TABLE
Effective January 1, 2018 to December 31, 2022
DAILY 1 2 3 4 5 6
Compensation P 685 and P685 – P1,096 – P2,192 – P5,479 – P21,918 and
Range below P1,095 P2,191 P5,478 P21,917 above
Prescribed 0.00 P 82.19 P 356.16 P 1,342.47 P 6,602.74
Withholding 0.00 + 20% over + 25% over + 30% over + 32% over P + 35% over
Tax P 685 P 1,096 P2,192 5,479 P21,918
WEEKLY 1 2 3 4 5 6
P 4,808
Compensation P 4,808 – P P 7,692 – P 15,385 – P P 38,462 – P 153,846
and
Range 7,691 P15,384 38,461 P153,845 and above
below
Prescribed 0.00 P 576.92 P 2,500.00 P 9,423.08 P 46,346.15
Withholding 0.00 + 20% over + 25% over + 30% over P + 32% over P + 35% over
Tax P 4,808 P 7,692 15,385 38,462 P 153,846
Effective January 1, 2018 to December 31, 2022
SEMI-
1 2 3 4 5 6
MONTHLY
Compensati P 10,417 P 10,417 – P 16,667 – P 33,333 – P P 83,333 – P 333,333
on Range and below P16,666 P 33,332 83,332 P333,332 and above
P
Prescribed 0.00 P 1,250.00 P 5,416.67 P 20,416.67
100,416.67
Withholding 0.00
+ 20% over + 25% over + 30% over + 32% over + 35% over
Tax
P 10,417 P 16,667 P 33,333 P 83,333 P 333,333
MONTHLY 1 2 3 4 5 6
Compensati P 20,833 P 20,833 – P 33,333 – P 66,667 – P 166,667 – P 666,667
on Range and below P 33,332 P 66,666 P 166,666 P666,666 and above
Prescribed P
0.0 P 2,500.00 P 10,833.33 P 40,833.33
Withholding 0.00 200,833.33
Tax + 20% over + 25% over + 30% over + 32% over +35% over
P 20,833 P 33,333 P 66,667 P 166,667 P 666,667
(Starting January 1, 2023)
Range of Taxable Tax Due – a + (b x c)
Income
Over Not Over Basic Additional Of Excess
Amount Rate Over
(a) (b) (c)
- 250,000.00 - - -
250,000.00 400,000.00 - 15% 250,000.00
400,000.00 800,000.00 22,500.00 20% 400,000.00
800,000.00 2,000,000.00 105,000.00 25% 800,000.00
2,000,000.00 8,000,000.00 402,500.00 30% 2,000,000.00
8,000,000.00 - 2,202,500.00 35% 8,000,000.00

Effective January 1, 2023 and onwards
DAILY 1 2 3 4 5 6
Compensation P 685 and P 685 – P 1,096 – P 2,192 – P P 5,479 – P 21,918 and
Range below P 1,095 P 2,191 5,478 P 21,917 above
0.00 0.00 P 61.65 P 280.85 P 1,102.60 P 6,034.00.30
Prescribed
+ 15%
Withholding
over P + 20% over + 25% over + 30% over + 35% over P
Tax
685 P 1,096 P2,192 P 5,479 21,918
WEEKLY 1 2 3 4 5 6
Compensation P 4,808 P 4,808 – P 7,692 – P 15,385 – P 38,462 – P 153,846
Range and below P 7,691 P 15,384 P 38,461 P 153,845 and above
0.00 0.00 P 432.60 P 1,971.20 P 7,740.45 P 42,355.65
Prescribed
+ 15%
Withholding
over P + 20% over + 25% over + 30% over + 35% over P
Tax
4,808 P 7,692 P 15,385 P 38,462 153,846
Effective January 1, 2023 and onwards
SEMI-
1 2 3 4 5 6
MONTHLY
P 10,417 P 10,417 – P 16,667 – P 33,333 – P P 83,333 – P P 333,333 and
Compensation
and P 16,666 P 33,332 83,332 333,332 above
Range
below
Prescribed 0.00 0.00 P 937.50 P 4,270.70 P 16,770.70 P 91,770.70
Withholding
+ 15% over + 20% over + 25% over + 30% over P + 35% over P
Tax
P 10,417 P 16,667 P 33,333 83,333 333,333
MONTHLY 1 2 3 4 5 6
P 20,833 P 20,833 – P 33,333 – P 66,667 – P P 166,667 – P 666,667 and
Compensation
and P 33,332 P66,666 166,666 P666,666 above
Range
below
Prescribed 0.00 0.00 P 1,875.00 P 8,541.80 P 33,541.80 P 183,541.80
Withholding
+ 15% over + 20% over + 25% over + 30% over P + 35% over P
Tax
P 20,833 P 33,333 P 66,667 166,667 666,667
Illustration 4
Ms. Lyn, an employee of MAG Corp. is receiving
regular monthly compensation in the amount of
₱165,000, net of mandatory contributions, with
supplemental compensation in the amount of
₱5,000 for the month.

By using the monthly withholding tax table, the
withholding tax beginning January 2018 is computed by
referring to compensation range under column 4 which
shows a predetermined tax of ₱10,833.33 on ₱66,667 plus
30% of the excess of Compensation Range (Minimum)
amounting to ₱103,833 (₱165,000.00 – ₱ 66,667.00 +
₱5,000), which is ₱30,999.90. As such, the withholding tax
to be withheld by the employer shall be ₱43,659.89.
Compute for the amount to be withheld.

Total taxable compensation P165,000.00
Less: Compensation Range (Minimum) 66,667.00
Excess 98,333.00
Add: Supplemental Compensation 5,000.00
Total P103,333.00
Withholding tax shall be computed as follows:

On P66,667.00 P10,833.33
On Excess (P165,000.00 – P66,667.00 +
Supplemental compensation of P5,000.00) x 30% 30,999.90
Total monthly withholding tax P6,000.00

Sec. 2.79.1 Application for Registration for
Individuals Earning Compensation Income
• Name/Taxpayer’s identification
• Number/Residential address
Require • Civil status of employee, whether single,
Information married, legally separated, widow or
widower
• Occupational status of the spouse
• Reduced requirements to 2, namely:

Required Forms • Any identification issued by any
and Attachments government body
• Copy of marriage contract, if married

EMPLOYEE EMPLOYER FILL-

BIR RECEIVES THE
ACCOMPLISHES OUT PART IV OF
DULY
BIR FORM 1902 THE BIR FORM
ACCOMPLISHED
AND SUBMITS TO 1902 AND
BIR FORM 1902
EMPLOYER SUBMITS TO BIR
Within Ten (10) Days From Date of

Employment

WITHIN TEN (10) WITHIN THE LAST DAY

DAYS FROM SUCH OF THE MONTH OF
CHANGE RECEIPT OF THE ‘1905’
EMPLOYEE EMPLOYER
BIR RECEIVES THE
ACCOMPLISHES BIR RECEIVES THE
DULY
FORM 1905 AND ACCOMPLISHED BIR
ACCOMPLISHED BIR
SUBMITS TO FORM 1905 AND
FORM 1905
EMPLOYER SUBMITS TO BIR
In Case of Update of
Registration Information

Distribution of BIR Form Nos. 1902/1905
Copy For Employee

T
R
Copy for Employer D
I
U
O P P
Copy for BIR R L L
I
I I
C C
G
A A
I T
T
N E
E
A
L

Sec. 2.79.2 Failure to File Application
for Registration (BIR Form No. 1902)
• Where an employee, in violaion of these

regulations either fails or refuses to file an
Application for Registration (BIR Form No.
1902) together with the required
attachments, the employer shall withhold
the taxes prescribed under the revised
withholding tax table (Annex “D” or “E”,
whichever is applicable.

Sec. 2.79.4 Husband and Wife
• Where both husband and wife are each

recipients of compensation either from
the same or different employers, taxes
shall be withheld separately in
accordance with the applicable revised
withholding tax table (Annex “D” or “E”)

Sec. 2.80 Liability for Tax
• Interest – There shall be assessed and collected on
any unpaid amount of tax, interest at the rate of
double the legal interest rate for loans or forbearance
of any money in the absence of an express stipulation
set by the Bangko Sentral ng Pilipinas from the date
prescribed for payment until the amount is fully paid.
Provided, that in no case shall the deficiency and the
delinquency interest prescribed under Subsections (B)
and (C) of Section 249 of the Tax Code, be imposed
simultaneously.

Sec. 2.80 Liability for Tax
• Deficiency Interest – Any deficiency in the tax
due, as the term is defined in this Code, shall
be subject to the interest prescribed in
Subsection (A) of Section 249 of the Tax
Code, which interest shall be assessed and
collected from the date prescribed for its
payment until the full payment thereof, or
upon issuance of a notice and demand by the
Commissioner of Internal Revenue,
whichever comes earlier.
Sec. 2.83.1 Employees Withholding
Statement (BIR Form 2316)
DUPLICATE FOR
THE BIR
EMPLOYER BIR FORM

SHALL ISSUE TRIPLICATE
BIR FORM 2316
NOT 2316
LATER FOR THE
TO EMPLOYEES
THAN
ORIGINAL EMPLOYER
JANUARY COPY FOR (TO BE
31 RETAINED
THE FOR A PERIOD
EMPLOYEE OF 10 YEARS)

The Certificate shall indicate the following information:
a) Name and address of the employee;
b) Employee’s taxpayer Identification Number (TIN);
c) Name and Address of the Employer;
d) Employer’s TIN
e) The sum of compensation paid, including the non-taxable
benefits;
f) The amount of statutory minimum wage received if
employee is MWE;
g) Overtime pay, holiday pay, night shift differential pay, and
hazard pay received if employee is MWE;
h) The amount of tax due, if any; and
i) The amount of tax withheld, if any.

CERTIFIED LIST
OF EMPLOYEES
QUALIFIED FOR
DUPLICATE SUBSTITUTED NOT LATER
COPIES OF BIR THAN
FORM 2316
FILING OF
FEBRUARY BIR
ANNUAL 28
INCOME TAX
RETURN (AITR)

Sec. 2.83.4 Substituted Filing of ITR by Employees
Receiving Purely Compensation Income
CERTIFIED LIST OF CONCERNED BIR OFFICE SHALL

STAMP “RECEIVED” THE
EMPLOYEES CERTIFIED LIST OF EMPLOYEES
QUALIFIED FOR NOT LATER
QUALIFIED TO AVAIL OF THE
SUBSTITUTED FILING OF AITR,
SUBSTITUTED THAN
WHICH SHALL BE
FEBRUARY 28
FILING OF TANTAMOUNT TO BIR FORM
1700 (AITR) OF THE QUALIFIED
ANNUAL INCOME EMPLOYEES
TAX RETURN
(AITR)

Individual not qualified for Substituted Filing of AITR:
1. Those deriving compensation from two or more
employers concurrently or successively;
2. Those income tax of which has not been withheld
correctly;
3. Those deriving other non-business, non-
professional-related income in addition to
compensation income not otherwise subject to a
final tax;
Individual not qualified for Substituted Filing of AITR:
4. Individuals receiving purely compensation from a
single employer with income tax due has been
correctly withheld, but whose spouse falls any of the
aforesaid items under (1), (2) and (3);
5. Non-resident aliens engaged in trade or business in
the Philippines, deriving purely compensation income,
or compensation income and other non-business,
non-professional-related income.

Transitory Provisions
For individuals subject to expanded withholding tax under
Section 2.57.2 of RR No. 2-98, as amended, but availing to
be exempt from the said withholding must satisfy the
following:
A. The gross receipts/sales in a year must not exceed
P250,000;
B. The income of the said individual comes only from a
lone payor;
C. The individual must submit the “Sworn Declaration of
Gross Receipts/Sales” not later than April 20, 2018, to
his/her lone payor.

Transitory Provisions
What the income payor should do in case of receipt from
individual payees of the “Sworn Declaration of Gross
Receipts/Sales” ?
1. Execute Sworn Declaration and submit the same to the
concerned RDO, with the List of Payees who submitted the
“Sworn Declaration of Gross Receipts/Sales”;
2. Refund to the individual the excess tax withheld on income
payments made prior to the issuance of RR 11-2018;
3. Issue the correct Certificate of Tax Withheld (BIR Form
2307); and
4. The list of payees who were refunded shall also be
attached to the 1st Quarterly Withholding Tax Return

Tax Rates If Graduated IT rates If 8% IT rate
Particulars Tax Taxability WT Taxability WT
Gross IT Taxable at 0% Not subject Exempt, if earnings from purely No, for purely
P250,000 business/practice of profession; business;
and below 8% if mixed income earner, based on
gross sales/receipts & other non- Yes, if mixed
operating income income earner
BT PT/VAT Subject, if Not subject to PT Not subject
govt payor
Doc Payee’s Sworn Declaration Payee’s Sworn Declaration
Above IT Taxable at Subject at 8% on gross sales/receipts and other Subject to
250,000 to applicable grad applicable non-operating income; however, for applicable rate
3M rates on net rates purely business/practice – entitled to
income reduction of P250,000
BT PT/VAT Subject, if Not subject to PT Not subject
govt payor
Doc Payee’s Sworn Declaration Payee’s Sworn Declaration
Above P3M IT Subject to subject Not entitled to avail
applicable rate
BT VAT Subject WT of
VAT, if govt
payor

Sworn Declarations
1. Annex A: Affidavit-Declaration that No Professional Fee Has
Been Charged by Medical Practitioner
2. Annex B-1: Income Payee’s Sworn Declaration of Gross
Receipts/Sales (For Self-Employed and/or Engaged in the
Practice of Profession with Several Income Payors)
Receipts/Sales (For Self-Employed and/or Engaged in the
Practice of Profession with Lone Income Payor)
Receipts/Sales (For Non-Individual Taxpayer with Several
Income Payors)
5. Annex C: Income Payor/Withholding Agent’s Sworn Declaration
6. Annex F: Certification


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Topic 230

General Course for Revenue Officers WT 230 Slide – 1

General Course for Revenue Officers WT 230 Slide – 2

General Course for Revenue Officers WT 230 Slide – 3

It is considered as an effective tool in the collection of

General Course for Revenue Officers WT 230 Slide – 5

2. Expanded Withholding Tax

3. Final Withholding Tax; and

4. Withholding Tax on Government Money Payment

General Course for Revenue Officers WT 230 Slide – 6

General Course for Revenue Officers WT 230 Slide – 7

- includes basic salary, fixed allowances

General Course for Revenue Officers WT 230 Slide – 8

1. Remuneration received as an incident of

General Course for Revenue Officers WT 230 Slide – 11

General Course for Revenue Officers WT 230 Slide – 13

16.Fringe benefits given to employees other than

General Course for Revenue Officers WT 230 Slide – 14

General Course for Revenue Officers WT 230 Slide – 18

General Course for Revenue Officers WT 230 Slide – 19

General Course for Revenue Officers WT 230 Slide – 20

General Course for Revenue Officers WT 230 Slide – 21

Step 4. Use the appropriate Withholding Tax Tables for the

General Course for Revenue Officers WT 230 Slide – 23

Step 6. Compute the withholding tax due by adding the tax

General Course for Revenue Officers WT 230 Slide – 24

General Course for Revenue Officers WT 230 Slide – 25

Tax on P10,000.00 P 708.33

General Course for Revenue Officers WT 230 Slide – 27

a. Cumulative Average Method

General Course for Revenue Officers WT 230 Slide – 28

General Course for Revenue Officers WT 230 Slide – 29

General Course for Revenue Officers WT 230 Slide – 31

General Course for Revenue Officers WT 230 Slide – 32

Month Regular Supplementary Total

General Course for Revenue Officers WT 230 Slide – 33

General Course for Revenue Officers WT 230 Slide – 34

For February (same with January)

For March, Tax on P22,083 = P 1,875.00

General Course for Revenue Officers WT 230 Slide – 35

Step 5 – For January P2,229.25–0 = P2,229.25

General Course for Revenue Officers WT 230 Slide – 36

General Course for Revenue Officers WT 230 Slide – 37

Step 2 – If the employee has previous employment/s within

General Course for Revenue Officers WT 230 Slide – 38

Basic personal exemption P50,000

Note: Husband is the proper claimant of the additional exemption unless he

General Course for Revenue Officers WT 230 Slide – 40

General Course for Revenue Officers WT 230 Slide – 41

General Course for Revenue Officers WT 230 Slide – 42

Step 6 – Determine the deficiency or excess, if any,

General Course for Revenue Officers WT 230 Slide – 43

General Course for Revenue Officers WT 230 Slide – 45

Mr. F, married, whose wife is also employed, with two

Basic Monthly Salary P 30,000.00

General Course for Revenue Officers WT 230 Slide – 46

Compensation Received For Non-Taxable Taxable

* Excess of 13th month pay and other benefits

Total Compensation P 201,000.00

Tax Due P 14,700.00

General Course for Revenue Officers WT 230 Slide – 48

He paid for the year an annual premium on health and

General Course for Revenue Officers WT 230 Slide – 49