BIR: Remittance of CWT (Form 1606) should be in the

name of the Buyer

jaspatag November 06, 2019

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Why is this important?

If you use the wrong Tax Identification Number (TIN) (i.e., Seller’s TIN), you risk being
penalized 25% of the tax payable. In BIR’s (Bureau of Internal Revenue) eyes, the right
TIN (Buyer’s TIN) didn’t get any payment within the proper deadlines.

For example, if the Creditable Withholding Tax (CWT) payable is Php1,000,000 and the
filing was tagged under the Seller’s TIN unless you’re able to amend the filing to reflect
the Buyer’s TIN BEFORE THE SAME DEADLINE (10th of the following month), you
risk paying a penalty of Php250,000.

Here’s the text of the Bank Bulletin from the BIR.

TO: ALL BIR AUTHORIZED AGENT BANKS

FROM: The Commissioner of Internal Revenue

SUBJECT: Encoding of Buyer’s Name and Taxpayer’s Identification Number for

Transfer Tax Payment of BIR Form 1606 (Withholding Tax Remittance Return for
Onerous Transfer of Real Property Other than Capital Asset, including taxable
and exempt).

DATE: May 2, 2019

All AABs (Authorized Agent Banks) are advised that the proper encoding of BIR
Form 1606 (Withholding Tax Remittance Return for Onerous Transfer of Real
Property Other than Capital Asset. including taxable and exempt). Annex “A”
hereof, as payment for transfer tax, should be in the name and TIN of the buyer,
instead of the name and TIN of the seller, even if it was the latter who paid the
corresponding tax due. This return is filed by every Withholding Agent/Buyer on
the sale- transfer or exchange oI real property.
 For your guidance and strict compliance.

Caesar R. Dulay – Commissioner of Internal Revenue (SGD)

Here’s a link to the Bank Bulletin.

 BIR, CWT

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