Withholding Tax Expanded

1. If the supplier is a VAT registered person, subtract first the 12% Vat before multiply to certain
rates Because 12% VAT is not included to withholding tax expanded.
2. Before, 1601-E is to be used for monthly remittance of creditable withholding tax. Under TRAIN
LAW, 0619-E (Monthly Remittance Form of Creditable Income Tax Withheld) is to be used for
filing monthly remittance form of creditable income taxes withheld (expanded).
Note: only for the first two months of every quarter.
3. Under TRAIN LAW,1601-EQ (Quarterly Remittance Return of Creditable Income Taxes Withheld
(Expanded)) is to be used for the 3rd month of every quarter.

**Add all tax withheld from one to three months of every quarter then deduct all the payments
made using BiR form 0619-E (first two months of every quarter). So the remaining will be the
third month remittance.

4. MAP (Monthly Alphalist of Payees) is the required attachment for 1601-E, not applicable under
train law. No MAP (Monthly Alphalist of Payees) is required for 0619-E.

5. Under TRAIN LAW, QAP (Quarterly Alpahlist of Payee) is the required attachment for 1601-EQ.
So quarterly na lang , wala ng monthly.

QAP will be submitted through E-submission validation report of BIR.

6. Not all income payment is subject to withholding tax.
7. If there is no remittance but there is withholding tax expanded on your COR (Certificate of
Registration), you still need to file para di mag open case.

**required magfile kapag merong withholding tax expanded sa COR kahit walang ireremit. And
even if walang nakalagay sa COR, we still need to file kung merong ireremit. Kapag di
nakapagremit, ang expenses,like rent, na subject sa expanded withholding tax ay magiging no
deductible expense for income tax purposes. And also, ikaw ang magbabayd ng withholding tax
na dapat si payee ang magbabayad. Ikaw ang hahabulin ng BIR.
8. 0619-E deadline – 10th day of the following month
1601-EQ deadline- last day of the month following the close of every quarter.

For example: for the 1st quarter, April 30.

for the 2nd quarter, July 31.
Not later than last day of the month following the close of the quarter.
 3 TYPES OF WITHHOLDING TAX
1. Expanded,
2. Final, and
3. Compensation

BIR form 2306 (Certificate of Final Tax Withheld at Source)

 Ibinibigay sa payee (income recipient),na nasubject ang income sa final withholding tax. Example
is yung mga shareholders na nakareceive ng dividends, prices in winnings exceeding 10,000
pesos.
 Payor or buyer ang magbibigay. (withholding agent)

BIR form 2307 (Certificate of Creditable Tax Withheld at Source)

 Binibigay sa payee kapag ang income is subject to expanded withholding tax.

Example kapag ang income ng payee ay nabawasan ng expanded withholding tax:

Income- 50,000 less 10% withholding tax= 45,000
*kapag nagfile ng ITR (income tax return), ang ilalagay na income ay 50,000 . ang nabawas na
5,000 ay magagamit as tax credit, pambawas sa tax due at ang proof of tax credit is yung bir
form 2307.

 Deadline ng pagbibigay ng 2307 at 2306 sa payee (3 original copies sa payee, isa sa payor as
receiving copy) – 20th day of the month following the close of the quarter. So kapag 1 st quarter,
April 20. Or upon request of the payee o pagkabayad ni payor ng income kay payee.
 Report sa BIR if ayaw magpakaltas. Kasi pag si payor ay di nakapagremit, hindi magagamit as
deductible expense sa kanilang gross income ang kanilang expenses. And also, you will be
penalize.

** 2307 or creditable withholding tax may be used as tax credit for ITR but 2306 is not because it is final
(nakaltas na lahat ng tax) and should not be reported to ITR .

**visit RR11 2018 for the list of income payments subject to final and expanded withholding tax.

Suppliers Subject to withholding tax

 Regualar Supplier (meron na kayong 6 transaction regardless of the amount)

 Casual Supplier (merong kang single purchase amounting to 10,000 pesos and above)
 Not Regular and Casual Supplier – not required to withhold tax