Hi I’m Jolina H.

Henoguin and I’m going to report about the Top 20 000 Private Corporations
and Top 5 000 Individual Taxpayers as Withholding Agents, Monthly Remittance Return of
Final Income Taxes Withheld, Monthly Remittance Return of Final Income Taxes Withheld (On
Interest Paid on Deposits and Yield on Deposit Substitutes/Trusts/etc.), Quarterly Remittance
Return of Final Income Taxes Withheld (On Fringe Benefits Paid to Employees Other than
Rank-and-File), and lastly Withholding Tax Remittance Return (For transactions Involving Real
Property Other than Capital Assets Including Taxable and Exempt))

So, Top 20 000 Private Corporations and Top 5 000 Individual Taxpayers are required
2% expanded withholding tax (EWT) on income payments to their local/resident supplier of
services and 1% EWT on income payments to local/resident supplier of goods other than those
covered by other rates of withholding tax, including non-resident aliens engaged in trade or
business in the Philippines.

The top 20 000 private corporations shall include a corporate taxpayer who has been
determined and notified by BIR as having satisfied any of the following criteria:

a. Classified and duly notified by the Commissioner as a Large Taxpayer (LT) under
Revenue Regulations 17-2010, or belonging to the top five thousand (5 000) private
corporations under RR 12-1994, or to the top ten thousand (10 000) private
corporations under RR 17-2003, unless previously de-classified as such or had
already ceased business operations (automatic inclusions);
b. VAT payment or payable, whichever is higher, of at least P100 000 for the preceding
year;
c. Annual income tax due of at least P200 000 for the preceding year;
d. Total percentage tax paid of at least P100 000 for the preceding year;
e. Gross sales of P10 000 000 and above for the preceding year; or
f. Gross purchases P5 000 000 and above for the preceding year;
g. Total excise tax payment of at least P100 000 for the preceding year;

The top 5 000 Individual Taxpayers shall refer to individual taxpayers engaged in trade or
business or exercise of profession who have been determined and notified by the Bureau
of Internal Revenue (BIR) as having satisfied any of the following criteria:
a. VAT payment or payable, whichever is higher, of at least P100 000 for the preceding
year;
b. Annual income tax due of at least P200 000 for the preceding year;
c. Total percentage tax paid of at least P100 000 for the preceding year;
d. Gross sales of P10 000 000 and above for the preceding year;
e. Gross purchases of P5 000 000 and above for the preceding year;
f. Total excise tax payment of at least P100 000 for the preceding year.

Interest payments on a loan by one of the top 20 000 private corporations are not subject
to the 2% CWT on income payments to local/resident suppliers of services if the supplier
is not one from whom the taxpayer-buyer regularly purchases goods or services. These
interest payments are also not subject to 2% CWT on interest payments made to banks,
quasi-banks, financial institutions or lending investors if the lender is not one of those
enumerated (BIR Ruling 110-2011, Apr. 11, 2011).

A corporation belonging to the top 20 000 corporations that pays its suppliers through
credit card is not required to withhold EWT when presenting its credit card to the
suppliers (BIR Ruling 456-2011, Nov. 16, 2011).

Interest income received by banks from payors belonging to the top 20 000 corporations
and strictly arising from individual loans obtained from banks that are not securitized,
assigned or participated out remains subject to 2% CWT.

The 20% FWT and CWT imposed under the Tax Code and existing regulations cover
interest arising from or paid out of debt securities (RMC 84-2012, Dec. 21, 2012).
Who shall file in BIR form 1601- F

This return shall be filed in triplicate by every withholding agent (WA)/payor who
is either an individual or non-individual, required to deduct and withhold taxes on
compensation paid to employees. If the Government of the Philippines, its political
subdivisions or any Agency or Instrumentality, as well as government-owned or
controlled corporation is the employer, the return may be made by the officer or
employee having control of payment of compensation/other income payment or other
officer or employee appropriately designated for the purpose.

When and where to file and remit

The return shall be filed and tax paid on or before the tenth (10th) day of the
month following the month in which withholding was made except for taxes withheld for
December which shall be filed/paid on or before January 15 of the succeeding year.
b. Not registered with HLURB as engaged in Socialized Housing Projects Under R.A
7279, the Seller/ Transferor is habitually engaged in real estate business.

Not over P500 000 1.5%

Over P500 000 to P2 000 000 3%

Over P2 000 000 5%

c. Seller/transferor is not habitually engaged in real estate business, 6% (RR 12-2001,

Sept. 10, 2001).

So these are the BIR Form and we can see clearly the percentage of the taxes
where the corporation or individual taxpayers has been involved to.v