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WITHHOLDING TAX AT SOURCE

(Revenue Regulations No. 2-98, as amended)


Presented by:

Ms. Susan D. Tusoy, cpa, mps Asst. Chief, Assessment Division RR 19- Davao City

Importance of Withholding Tax System


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

Types of Withholding Taxes


Withholding Tax on Compensation Expanded Withholding Tax Final Withholding Tax; and Withholding Tax on Government Money Payment

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

I. REGISTER
1901 SELF-EMPLOYED/PROFESSIONALS/TRUST

1903 CORPORATIONS / GOCC /PARTNERSHIP


1903 GOVERNMENT AGENCIES / LGUs
WHEN:
ON OR BEFORE COMMENCEMENT OF BUSINESS/ BEFORE PAYMENT OF ANY TAX DUE/ UPON FILING A RETURN 10 DAYS AFTER BECOMING AN EMPLOYER
( SEC 2.83.6 Rev. Regulations No. 2-98)

WHERE: RDO

II. WITHHOLD TAXES


TIME
COMPENSATION WHEN PAID / CONTRUCTIVELY PAID WHEN PAID / PAYABLE

TAX BASE
TAXABLE COMPENSATION INCOME GROSS PAYMENT (NET OF VAT) GROSS PAYMENT

EXPANDED GMP
(VAT PAYEE)

GMP
(NON VAT PAYEE)

WHEN PAID / PAYABLE WHEN PAID / PAYABLE

FINAL OTHER FINAL


FRINGE BENEFITS

GROSS PAYMENT GROSS UP MONETARY VALUE

WHEN PAID

III. WITHHOLING TAX REMITTANCE


TYPES FORM 1601-C MANUAL FILING/ PAYMENT 10th day of the ff month except for the month of December which is due on the Jan. 15 EFPS FILING

EFPS PAYMENT
15th day of the ff month except for the month of December which is due on the Jan. 20

COMPENSATION EXPANDED

1601-E

Staggered Filing (RR 26-2002)

BANKS
Real Property (Ordinary Asset) FINAL OTHER FINAL W/TAX ON VAT & PERCENTAGE FRINGE BENEFITS

1602
1606 10th day of the ff month 10th day of the ff month 10th day of the ff month 10th day of the month following the end of the qtr.

Not applicable
Staggered Filing (RR 26-2002) 10th day of the ff month

Not applicable
15th day of the ff month 10th day of the ff month 15th day of the month ff the end of the quarter

1601-F

1600 (ALPH ALIST) 1603

15th day of the month ff the end of the quarter

IV. WITHHOLDING TAX CERTIFICATES


TYPES FORM

TIME

COMPENSATION

2316

Jan 31 of the ff year For terminated employees - last payment of salary

EXPANDED

2304 (Exempt)
2307 (Taxable)

20 days ff. close of the quarter or upon demand

GOVT. MONEY PAYMENTS

2307 2306

For Non-VAT : 10th day of the ff month For VAT month : 10th day on the month ff

FINAL TAX
FRINGE BENEFITS

2306
2306

Jan. 31 of the following year


Jan. 31 of the following year

V. ANNUAL RETURNS
TYPE
COMPENSATION

FORM
1604 CF

DESCRIPTION
Alphalist of employees Less than 10 employees manual filing 10 employees or more - softcopy eFPS Filer - e-attach

TIME
Jan. 31 of the ff year

EXPANDED

1604E

Alphalist of payees
Less than 10 payees 10 payees or more eFPS Filer manual filing - softcopy - e-attach

March 1 of the ff year

DIFFERENCE: FINAL AND CREDITABLE WITHHOLDING TAX


FINAL CREDITABLE

the amount of income tax withheld by the withholding agent is constituted as a full & final payment liability rests with the payor as withholding agent payee is not required to file an ITR for the particular income

taxes withheld are intended to equal the tax due of the payee on the said income the income recipient is still required to file an income tax return

EXPANDED WITHHOLDING TAX

Persons Required to Deduct & withhold


Juridical persons, whether or not engaged in

trade or business; Individuals in connection with his trade or business, however, individual buyers of real properties are also constituted as withholding agents; All government offices.

INCOME PAYMENTS SUBJEC TO EWT

DESCRIPTION

A. Professional fees, talent fees, etc., for services rendered by individuals

15% if gross income exceeds P720T 10% if otherwise On the gross professional, promotional and talent fees or any other form of remuneration for the services rendered. 1) Those engaged in the practice of profession 2) Professional entertainers 3) Professional athletes 4) Directors and producers of movies, stage, etc. 5) Insurance agents and adjusters 6) Management and technical consultants 7) Bookkeeping agents and agencies 8) Other recipients of talent fees 9) Fees of directors who are not employees of the company.

INCOME PAYMENTS SUBJEC TO EWT

DESCRIPTION

DISCLOSURE REQUIREMENT

Every individual shall periodically disclose his gross income for the current year to the BIR by submitting a Notarized Sworn Declaration to the Collection Division
Can also be filed by the income payor on behalf of the professionals/talents/directors whose services were being rendered exclusively to the aforesaid payor;

Should be filed on June 30 of each year or w/in 15 days after the end of the month the professional/talent/directors income reaches P720T, w/ever comes first.

INCOME PAYMENTS SUBJEC TO EWT B. Professional Fees, talent fees, etc., for services of taxable juridical persons

DESCRIPTION

15% if gross income exceeds P720T 10% if otherwise On the gross professional, promotional and talent fees or any other form of remuneration for the services rendered. On real properties 5% On personal properties - on gross rental or lease in excess of p10,000 annually Poles, satellites and transmission facilities 5% Billboards 5%

C. Rentals

INCOME PAYMENTS SUBJEC TO EWT

DESCRIPTION

D. Cinematographic film rental and other payments E.Income Payments to certain contractors

5% on gross payment

2% on gross payments of the ff: General engineering contractors General building contractors Specialty contractors other contractors

F.Income distribution to the beneficiaries 15% on the income distributed to the beneficiaries of estates and trusts

INCOME PAYMENTS SUBJEC TO EWT

DESCRIPTION

G. Gross payments to certain brokers and agents

10% on gross commissions or service fees

H.Income payments to partners of general professional partnerships

On income payments made to partners such as drawings, advances, sharings, allowances and stipends 15% if gross income exceeds P720T 10% if otherwise

INCOME PAYMENTS SUBJECT TO EWT I.

DESCRIPTION

Professional fees paid 15% if gross income exceeds P720T to medical 10% if otherwise practitioners 1. On PF paid by hospitals or clinics, or paid directly to the medical practitioners by patients who were admitted and confined 2. PF paid by HMOs to medical practitioners

It shall be the duty of the hosp./clinic/HMO to remit taxes withheld from professional fees The W/tax shall not apply if there is proof that no PF has in fact been charged in a form of sworn declaration The hosp shall inform the BIR about any medical practitioner who fails or refuses to execute the sworn declaration within ten days from occurrence.

INCOME PAYMENTS SUBJEC TO EWT

DESCRIPTION

Hospitals and clinics shall submit the names and address of medical practitioners every 15th day after end of each quarter The hospitals and clinics shall be responsible for the accurate computation, timely remittance and issuance of withholding tax certificates J. Gross selling price or total amount of consideration or its equivalent paid to seller/owner for the sale, exchange, or transfer of real property classified ad ordinary asset Seller/transferor is exempt from CWT in accordance with Sec. 2.57.5 of the regulation Seller/transferor is habitually engaged in the real estate business: Selling price is P500k of less - 1.5% SP <P500K but => P2M - 3.0% SP <P2M - 5.0% Seller/transferor is not habitually engaged in the real estate business - 6.0%

INCOME PAYMENTS SUBJEC TO EWT K. Additional income payments to govt. personnel from importers, shipping and airline companies L. Certain income payments made by credit card companies M. Income payments made by the top 20K private corp to their local/resident supplier of goods/services other than those covered by other wtax rates

DESCRIPTION

On gross additional payments to govt. personnel for overtime services as authorized by law 15%

1% on 1/2of the gross amounts paid

Supplier of goods 1% Supplier of services 2%

INCOME PAYMENTS SUBJEC TO EWT N. Income payments made by the govt. to its local/resident supplier of goods/services other than those covered by other wtax rates O. Commissions of independent and/or exclusive sales representatives, and marketing agents and companies

DESCRIPTION

Supplier of goods 1% Supplier of services 2%

10% on gross commissions, rebates, discounts, and other similar considerations

INCOME PAYMENTS SUBJEC TO EWT

DESCRIPTION

P. Tolling fees paid to refineries

5% on gross processing/tolling fees

Q. Payments made by 1% on gross payments pre-need companies to funeral parlor R. Payments to embalmers 1% on gross payment

S. Income payments to 1% suppliers of agricultural products

On Agricultural Products
23

For purchases involving agricultural

products in their original state, the tax required to be withheld shall only apply to purchases in excess of the cumulative amount of P300,000.00 within the same taxable year.

Illustration:
Number of Transactions One Year Purchase Amount

2009

P 90,000

Two

2010

320,000

One

2011

400,000

One

2012

90,000

Amount of EWT:
In 2009 In 2010 In 2011 In 2012

not subject P20,000 x 1% = P200.00 P100,000 x 2% = P1,000 not subject

On Agricultural Products
Agricultural Products in their original state

shall only include:


corn rice coffee coconut cassava fruits

copra sugar cane marine food

poultry and

livestocks

products vegetables palay

INCOME PAYMENTS SUBJEC TO EWT

DESCRIPTION

T. Income payments on 10% on income payments purchases to minerals, mineral products and quarry resources as defined and discussed in Sec. 151 of the Tax Code

U. MERALCO payments

10% / 20%

V. Interest income on the 10% / 20% refund paid either through direct payment or application against customers billing by other electric distribution utilities.

FINAL WITHHOLDING TAX

Income Payments Subject to Final Withholding Tax:


Interest from any peso bank deposit, and yield or any other monetary benefit from deposit substitutes and from trust funds and similar arrangements 20% Royalties (except on books as well as other literary works and musical compositions 20%
Prizes (except prizes amounting to P10,000.00 or less ) 20% Winnings (except Philippines Charity Sweepstakes Winnings and lotto winnings ) - 20%

Income Payments Subject to Final Withholding Tax:


Royalties on books, as well as other literary works and musical compositions 10%

Interest income received by a resident individual taxpayer from a depository bank under the Foreign Currency Deposit System 7.5%

Income Payments Subject to Final Withholding Tax:


Cash and/or property dividends (received by individuals) - 10% Net capital gains from sale, barter, exchange of shares of stocks in a domestic (except through stock exchange ):
Not over P100,000.00 - 5% On any amount in excess of P100,000.00 10%

Income Payments Subject to Final Withholding Tax:


Interest income from long-term deposit or investment :
Four years to less than five years 5% Three years to less than four years 12% Less than three years 20%

On capital gains from sale, exchange, or other disposition of real property classified as capital assets - 6%

ON GOVERNMENT MONEY PAYMENTS


RMC 56-2009

Final Withholding VAT on Government Purchases


NIRC RA 9337

Contractors by the government or any of its political subdivisions, instrumentalities or agencies, including government-owned and controlled corporations (GOCCs)

3% on gross payment for the purchase of goods 6% on gross receipts for services by contractors 8.5% on government public works contractors

5% Final VAT

CREDITABLE

FINAL
VAT 5%

NATURE OF INCOME PAYMENT


Communication Services (Smart, PLDT, etc) Repairs and Maintenance of Govt. Facilities and Vehicles Transport of Goods, Merchandise, Cargo domestic air, sea & land (w/in the Phils)

INCOME % TAX TAX 2% 3%

2%

3%

5%

2%

3%

5%

domestic air, sea & land (Phils to foreign country) Intl. air & sea (Phils. To Foreign)

2%

none

none

2%

3%

none

CREDITABLE

FINAL
VAT

NATURE OF INCOME PAYMENT


Transport of Passengers:

INCOME % TAX TAX

domestic air, & sea (w/in the Phils)

2%

none

5%

domestic land (w/in the Phils) Intl. air & sea (Phils. To Foreign)

2%

3%

none

2%

3%

none

Purchase of Supplies & Materials, including equipments

1%

3%

5%

CREDITABLE

FINAL VAT

NATURE OF INCOME PAYMENT


Payment for Rental of Properties 1. Real Property 2. Cinematographic films 3. Personal Property (in excess of P10,000 except financial leasing) Payment for: a. Use or Lease of property or property rights to non-resident owner b. Services rendered by local insurance companies with respect to reinsurance premiums payable to non-residents

INCOME TAX

% TAX

5% 5% 5%

3% 3% 3%

5% 5% 5%

None

None

12%

None

None

12%

c. Other services rendered in the Phils. by non-residents

None

None

12%

CREDITABLE

FINAL
VAT

NATURE OF INCOME PAYMENT


Payment to Water Distribution Utilities Manila Water Company, Inc. Maynilad Water Services, Inc. (MWSI)* *Income Tax Holiday up to Dec. 31, 2009 (BIR Ruling No. DA-278-2009)

INCOME TAX

% TAX

2% 2% none

None None none

5% 5% 5%

Other Water Utilities

2%

2%

5%

CREDITABLE

FINAL VAT 5%

NATURE OF INCOME PAYMENT


Payment to Power Distribution Utilities Meralco, VECO, etc.

INCOME TAX 2%

% TAX None

Electric Coops
1. Registered with NEA 2. Registered with CDA a. Do not transact with non-members b. Transacting w/ members & non-mem b.1 With members b.2 With members and have an accumulated reserves and undivided net savings of not more than P10M b.3 With members and have an accumulated reserves and undivided net savings of more than P10M none none none none 5% 5% none none 5% none none 5%

none

none

5%

CREDITABLE

FINAL VAT

NATURE OF INCOME PAYMENT


Payment to Cooperatives (other than Electric Cooperatives duly registered with CDA) SERVICES A. 1. With BIR issued exemption certificate 2. W/o BIR issued exemption certificate GOODS B. 1. With BIR exemption certificate 2. Without BIR exemption certificate Payment for Trainings and Seminars

INCOME TAX

% TAX

none 2%

none none

none 5%

none
1% 2%

none
none 3%

none
5% 5%

Purchase of Gasoline/Petroleum Products


For Services Rendered by Gasoline Stations

1%
2%

3%
3%

5%
5%

CREDITABLE

FINAL VAT

NATURE OF INCOME PAYMENT


Payment of Insurance Premiums Non-Life
Life Payment for Purchase of Library Books Payment for Purchase of Other Library Materials Payment for Services of the contractors: Security, Janitorial, Maintenance of aircon, computers, elevators, etc.

INCOME TAX 2% 2% 1% 1%

% TAX 3% 5% none 3%

5% none None 5%

2%

3%

5%

Payment of Professional Services rendered by GPP


Payment of Professional Fee paid to Juridical Person

none
10% or 15%

3%

5%

3% 3%

5% 5%

Payment of Professional Fee paid to Individuals 10% or 15%

CREDITABLE

FINAL VAT 5%

NATURE OF INCOME PAYMENT


Payment for Purchase of Other Goods
(for casual or single purchase of P10k & above)

INCOME TAX 1%

% TAX 3%

Payment for Purchase of Agricultural Products (except corn, coconut etc. per RR 6-2009) Payment of Commissions or Service Fees Paid to Customs, Insurance, Real Estate, Stock, Immigration and Commercial Brokers Payment for Purchase of Services other than those covered by other rates of withholding tax (RR 17-2003)
(for single or casual purchase or P10k & above)

1%

none

none

10%

3%

5%

2%

3%

5%

For Purchase of Land Classified as Ordinary Asset

1.5%, 3%, 5% or 6%

3%

5%

CREDITABLE

FINAL VAT 5% 5% 5% 5% 5%

NATURE OF INCOME PAYMENT


For Land Improvements - goods -services For Buildings and Improvements Straight Contract (Labor & Materials)-Service Separate Invoice/Billing for Labor

INCOME TAX 1% 2% 2% 2%

% TAX 3% 3% 3% 3% 3%

Separate Invoice/Billing for Materials-goods 1%

For Furniture, Fixtures, and Equipment For Information Technology (IT) Equipment - Services - Goods

1%
1% 2%

3%
3% 3% 3%

5%
5% 5% none

Payment to Radio & TV Broadcasting Companies Whose Annual Gross Receipts do 2% not exceed P10M and who are Non-VAT reg. TP Payment to Agents of Foreign Insurance Companies Insurance Agents 2%

10%

none

CREDITABLE

FINAL VAT

NATURE OF INCOME PAYMENT


Payment to Agents of Foreign Insurance Companies Owner of the Property

INCOME TAX

% TAX

2%

5%

none

Payment for Sale, barter or exchange of stocks Listed and traded through Local Stock 2% Exchange Payment for shares of stock sold or exchanged through initial and secondary public offering -not over 2% -over 25% but not exceeding 33 1/3% - Over 33 1/3%

of 1%

none

2% 2% 2%

4% 2% 1%

None None none

CREDITABLE

FINAL VAT

NATURE OF INCOME PAYMENT


Payment to Banks and Non-Bank Financial Intermediaries performing quasi-banking functions (Sec. 121 of RA 8424 as amended by RA
9337)
1.On interests, commissions and discounts from lending activities as well as income from financial leasing, on the basis of remaining maturities of instruments from which such receipts are derived: - Maturity period is 5 years or less - Maturity period is more than 5 years 2. On dividends and equity shares and net income of subsidiaries

INCOME TAX

% TAX

2% 2% 2% 2%

5% 5% 1% 0%

None none None none

CREDITABLE

FINAL

NATURE OF INCOME PAYMENT


3. On the following payments treated as gross income under Sec. 32 of the Tax Code: -Royalties -Rental of Property -Profits for exchange and all other items treated as gross income

INCOME TAX

% TAX

VAT

None 5% none

7% 7% 7%

None None None

4. On the net trading gains within the taxable year on foreign currency, debt securities, derivatives, and other similar financial instruments

None

7%

None

Illustration
The Office of the Provincial Capitol of Davao del Sur

purchased the following goods and services for the month of Feb. 2011. Invoice Price
Rice P50,000.00 Construction Materials 44,800.00 Repair of Aircon Units 22,400.00 Rental of equipments 33,600.00 Compute for the withholding tax on government money payments assuming the seller is: a) Non-VAT registered b) VAT taxpayer

Answer Non VAT Supplier


Invoice Price Rice Const. Materials Repair of Aircon Untis 50,000.00 44,800.00 Tax Base 50,000.00 44,800.00 Tax Rate EWT 1% EWT 1% GMP 3% EWT 2% GMP 3% EWT 500.00 448.00 1,344.00 448.00 672.00 GMP % Tax None

22,400.00

22,400.00

Rental of 33,600.00 Equipments

33,600.00

EWT 5% GMP 3%

1,680.00 1,008.00

Answer VAT Supplier


Invoice Price Rice Const. Materials Repair of Aircon Untis 50,000.00 44,800.00 Tax Base 50,000.00 40,000.00 Tax Rate EWT 1% EWT 1% GMP 5% EWT 500.00 400.00 2,000.00 GMP VAT None

22,400.00

20,000.00

EWT 2% GMP 5%

400.00 1,000.00

Rental of Equipments 33,600.00

30,000.00

EWT 5% GMP 5%

1,500.00 1,500.00

FRINGE BENEFITS TAX (FBT)

fringe

benefit means any goods, service or other benefit furnished or granted in cash or in kind by an employer to an individual employee (except rank and file employees), such as, but not limited to the following:
(1) Housing; (2)Expense Account; (3)Vehicle of any kind; (4)Household personnel; (5)Interest on loan at less than market rate ; (6)Membership fees, dues and other expenses borne by the employer for the employee in social and athletic clubs/similar organizations; (7)Expenses for foreign travel;

Fringe Benefit (Cont.)


(8) Holiday and vacation expenses; (9) Educational assistance to the employee or his dependents; (10) Life or health insurance and other non-life insurance premiums

Fringe Benefits Granted to the Employee (Except Rank and File Employee) 32% on the grossed-up monetary value of fringe benefits granted or furnished by the employer to his employees.

Exception:
if the fringe benefits are required by the nature of or necessary to the trade, business or profession of the employer, or where such fringe benefit is for the convenience and advantage of the employer shall not be subject to the fringe benefits tax.

WITHHOLDING TAX ON COMPENSATION


(Revenue Regulations No. 2-98, as amended)
Presented by:

Sheila Joy C. Benedicto Revenue Officer RDO 113-West Davao

Compensation Income Defined


Compensation means all remuneration for services performed by an employee for his employer under an employeeemployer relationship unless exempted by the Code.

Exemptions from withholding tax on compensation


1. Remunerations received as an incident of employment (retirement/separation)
2. Remuneration paid for agricultural labor 3. Remuneration for domestic services 4. Remuneration for casual labor not in the course of an employers trade or business

Exemptions (cont)
5. Compensation for services by a citizen or

resident of the Philippines to a Foreign Government or an International Organization; 6. Damages 7. Life Insurance 8. Amount Received by the Insured as a Return of Premium

Exemptions (cont)
9. Compensation for Injuries or sickness 10. Income Exempt Under Treaty 11. GSIS, SSS, Medicare and other contributions (HDMF and Union Dues)

Exemptions (cont)
12. Thirteenth(13th) Month Pay and Other Benefits not exceeding P 30,000 Other Benefits such as Christmas bonus Productivity Loyalty Award Gifts in cash or in kind Other benefits of similar nature Excess over the prescribed ceiling of the de minimis benefits

DE MINIMIS BENEFITS
a.) Monetized unused vacation leave credits of employees not exceeding 10 days during the year the monetized value of leave credits paid to government officials and employees b.) Medical cash allowance to dependents Not exceeding P750/employee/semester or P125/month

DE MINIMIS BENEFITS
c) Rice subsidy of P1,500 or 1 sack of 50 kg rice per month amounting to not more than P 1,500. d.) Uniform and clothing allowance not exceeding P4,000/ annum e.) Actual yearly medical benefits not exceeding P10,000 per annum f.) Laundry allowance not exceeding P 300.00 /month

DE MINIMIS BENEFITS
g.) Employees achievement awards in the form of tangible personal property other than cash or gift certificate with annual value not exceeding P10,000 under established written plan h.) gifts given during Christmas and major anniversary celebrations P5,000/annum/employee

DE MINIMIS BENEFITS
i.) Flowers, fruits, books or similar items j.) daily meal allowance for overtime not to exceed 25% of basic min. wage.

DE MINIMIS Rules
DE MINIMIS BENEFITS conforming to the

ceiling shall not be considered in determining the P 30,000 the excess over the respective ceilings shall be considered as part of the other benefits and the employee receiving it will be subject to tax only on the excess over the P30,000.

Exemptions (cont)
(13) Compensation income of MWEs who work

in the private sector and being paid the

Statutory Minimum Wage applicable to

the place where he is assigned.

The following compensation received by minimum wage earners shall likewise be exempt from income tax: holiday pay overtime pay night shift differential pay hazard pay

Take note!

An employee who receives additional compensation other than SMW, holiday pay, overtime, hazard pay, and night shift differential pay such as: Commissions Honoraria Fringe benefits Taxable allowances And other taxable income shall not enjoy the privilege of being a WME.

Take Note!
MWEs

receiving other income from business or practice of profession, except income subject to Final Tax, shall be subject to Income Tax on their entire income SMW, Holiday pay, overtime pay, night shift differential pay, and hazard pay shall still be exempt from WT

Hazard Pay
the amount paid by the employer to MWEs
Actually

areas Disease-infested places Distressed or isolated stations and camps which exposed them to great danger or contagion or peril to life
Any hazard pay paid to MWEs which does not satisfy the above criteria is deemed subject to IT and consequently to WT.

assigned to danger or strife-torn

Hazardous Employment
The employer shall attach to BIR Form

1601C for the months of March, June, Sept., and Dec. A copy of the List submitted to the nearest DOLE Regional/Provincial Office showing the names of the MWEs who received the hazard pay; period of employment; amount of hazard pay per month; and Justification of payment of hazard pay

Caution
Any reduction or diminution of wages for

purposes of exemption from Income Tax shall constitute misrepresentation and

therefore, employer.

shall

result

to

automatic

disallowance of expense on the part of the

Exemptions (cont)
(14) Compensation income of employees in the
public sector with compensation income of not more than the SMW in the non-agricultural sector, as fixed by RTWPB/NWPC, applicable

to the place where he is assigned.

SMW in the public sector


The determination of the SMW in the public

sector shall likewise adopt the same procedures and consideration as those of the private sector, except:
In

case of hazardous employment the employer shall attach to BIR Form 1601C for the months of March, June, Sept., and Dec. a copy of DBM Circular/s, or equivalent, as to who are allowed to receive hazard pay.

SMW in the public sector

The basic salary of MWEs in the public

sector shall be equated to the SMW in the non-agricultural sector applicable to the place where he/she is assigned.

computation of wages
The basis of the computation of the minimum

wage rates prescribed by law shall be the normal working hours not more than 8 hours a day.
The computation of wages shall be in accordance

with the Collective Bargaining Agreement (CBA), if any or the provisions of the Labor Code as implemented

FACTOR OR NUMBER OF WORKING/PAID DAYS IN A YEAR

1. For those who do not work and are not considered paid on Saturdays and Sundays or rest day
Equivalent Monthly Rate (EMR) =
Where 261 days
Applicable Daily Wage Rate (ADR) x 261 days 12 months

247113261-

ordinary working days regular holidays Special days Total number of days/year

Example: P 382.00 MWE in NCR Equivalent Monthy Rate= P 382.00 x 261 days 12 months P 8,308

2. For those who do not work and are not considered paid on Sundays or rest day
Equivalent Monthly Rate (EMR) =
Where 313 days
Applicable Daily Wage Rate (ADR) x 313 days 12 months

299113313-

ordinary working days regular holidays Special days Total number of days/year

Example: P 382.00 MWE in NCR Equivalent Monthy Rate= P 382.00 x 313 days 12 months P 9,964

3. For those who do not work but are considered paid on rest days, special days and regular holidays
Equivalent Monthly Rate (EMR) =
Where 365 days
Applicable Daily Wage Rate (ADR) x 365 days 12 months

299- ordinary working days 11- regular holidays 52 Sunday/Rest days 3- Special days 365- Total number of days/year

Example: P 382.00 MWE in NCR


Equivalent Monthy Rate= P 382.00 x 365 days 12 months P 11,619

4. For those who are required to work everyday including Sundays or rest day, special days & regular holidays:
Equivalent Monthly Rate (EMR) =
Where 392.5 days
Applicable Daily Wage Rate (ADR) x 261 days 12 months

299 22 67.6 3.9 392.5 -

ordinary working days regular holidays 52 rest days x 130% - Special days Total number of days/year

Example: P 382.00 MWE in NCR


Equivalent Monthy Rate= P 382.00 x 392.5 days 12 months P 12,495

Salient Features
Sec. 22 Definition

statutory minimum wage shall refer to the rate


fixed by the Regional Tripartite Wage and

Productivity Board, as defined by the Bureau of


Labor and Employment Statistics (BLES) of the Department of Labor and Employment (DOLE).

Sec. 2.79. (B) Computation of


Withholding tax
(1) Withholding tax table

(a) Old table (effective January 1, 2006) - January 1 to July 5, 2008 (b) Revised Transitory Withholding tax Table - July 6 to December 31, 2008 (c) Revised Withholding tax Table - January 1, 2009 & beyond

Use of WTax Table


Four Tables for monthly, semi-monthly, weekly, and daily Each tax table is groups into Tables A and B

A for employees with no QDC B for employees with QDC

1st column exemption status


2nd column amount of exemption in pesos Columns 1 to 8 reflect the portion of the amount of taxes Z for zero exemption S single ME married employee Numerals 1 to 4 represents the number of dependents

Steps to determine the amount of tax to be withheld


1. Determine the total monetary and non-

monetary compensation.
-13th

month pay -Productivity incentives -Christmas Bonus -other benefits -GSIS/SSS etc
2. Segregate the taxable from non-taxable

compensation income paid to an employee for the payroll period.


-P30,000

ceiling -non-taxable retirement benefits / separation pay

Steps to determine the amount of tax to be withheld


(3.)Segregate the taxable compensation income

determined in step 3 into regular taxable compensation income and supplementary compensation. Regular compensation basic salary, fixed allowances for representation, transportation and other allowances Supplementary compensation commission, overtime pay, taxable retirement pay, taxable bonus and other taxable benefits

Steps..
(4) Use the appropriate tables

(5) Fix the compensation level using the regular compensation income. (6) Compute the withholding tax due.

Illustration
(1) Mr. Sy, single with no dependent receives

P12,000(net of SSS/GSIS, PHIC, HDMF employee share


only) as monthly regular compensation and P5,000

as supplementary compensation for January, 2011 or


a total of P17,000. Compute for the Withholding tax for Jan. 2011.

Computation
Computation: Regular compensation Less : compensation level(line A-2 column 5) Excess P 12,000.00 10,000.00 2,000.00

Add: Supplementary compensation

5,000.00
7,000.00

Tax on P10,000

708.33

Tax on excess (P7,000 x 20%)


Withholding tax for Jan. 2011

1,400.00
P 2,108.33

Applicable Wtax Table


Monthly
Exemption Status

1
0.00 0% over

2
0.00 +5%

3
41.67 +10% over

4
208.33 +15% over

6
1,875

7
4,166.67

8
10,416.67

A. Table for employees without qualified dependent 1. Z


0.0

833

2,500

5,833

11,667

20,833

41,667

15,833

25,000

45,833

Lets Check:
Withholding tax Jan. 2011 = P 2,108.33

Withholding Tax (Feb.- Dec.11) 1,108.33 x 11


Total Gross Income Exemption Single Taxable Income

12,191.63
P14,299.66 P149,000.00 50,000.00 P 99,000.00

Tax due

P 14,300.00

Tax Table
But not over
10,000.00 30,000.00 70,000.00

Over Not over 10,000.00 30,000.00

Amount rate 5% P500 + 10% 2,500 + 15% 8,500 + 20% 22,500 + 25% 50,000 + 30% 125,000 + 32%

Of excess over
10,000.00 30,000.00 70,000.00 140,000.00 250,000.00 500,000.00

70,000.00 140,000.00 140,000.00 250,000.00 250,000.00 500,000.00 500,000.00 over

Illustration:
(2) For the month of January 2011, Mrs. A, married with one qualified

dependent child, with basic salary equivalent to the SMW, receives P


7,460.00 (P 286/day x 313 days/ 12) as statutory monthly minimum wage plus other compensation such as: Commission.. . P 10,000 Transportation allowance.. Hazard Pay. 2,000 1,000

Overtime
Night shift differential

5,000
2,000

Computation:
Statutory Minimum Wage Gross Benefits Hazard pay Overtime Night Shift Differential Sub-total Taxable compensation commission* Transportation* Total Taxable Compensation Income P 7,460.00

P 1,000.00 5,000.00 2,000.00


P 10,000.00 2,000.00

8,000.00 P 15,460.00

12,000.00 P 27,460.00
7,460.00 7,083.00 377.00 20,000.00 20,377.00

Regular compensation P Less: Compensation Level (B-1 col3) Excess P Add: Supplementary compensation(8,000+12,000) Total P

Continuation..

Tax on P7,083 (Line B1, col. 3) Tax on excess (P20,377 x 10%) Withholding tax January 2011

41.67 2,037.70 P 2,079.37

*An employee who receives compensation other than SMW, OT, NS differential, HPay shall no longer enjoy the privilege of being a minimum wage earner, and his entire earnings are no longer considered exempt.

Tax Table
But not over
10,000.00 30,000.00 70,000.00

Over Not over 10,000.00 30,000.00

Amount rate 5% P500 + 10% 2,500 + 15% 8,500 + 20% 22,500 + 25% 50,000 + 30% 125,000 + 32%

Of excess over
10,000.00 30,000.00 70,000.00 140,000.00 250,000.00 500,000.00

70,000.00 140,000.00 140,000.00 250,000.00 250,000.00 500,000.00 500,000.00 over

ILLUSTRATIVE PROBLEM
For taxable year 2010, WTD Service Company employed Mr. J, married with two qualified dependent children. He received the following compensation for the year:
Basic Monthly Salary Overtime Pay for Nov. Thirteenth Month Pay Other Benefits Withholding Tax

P 45,000.00 5,000.00 45,000.00 12,000.00 98,082.00

COMPUTATION:`

Received For the Year

NonTaxable Taxable 540,000.00 5,000.00 30,000.00 30,000.00 15,000.00 12,000.00 572,000.00 572,000.00

Basic Salary (P45K x 12) Overtime (Nov.) 13th Month Pay Other Benefits Totals Total Gross Compensation

540,000.00 5,000.00 45,000.00 12,000.00 602,000.00

Less:Personal exemption
Additional exemption (2 x P25k) Net Taxable Compensation Tax Due (using the Income Tax Table)

50,000.00
50,000.00 100,000.00 472,000.00 116,600.00 98,082.27 18,517.73

Less: Tax Withheld from previous months(Jan-Nov) Tax to be collected in Dec 2010

Right to claim WT exemption


An employee receiving compensation

income shall be entitled to w/tax exemptions, provided he/she must file 1902 Application for registration 2305 Cert.of Update of Exemption and of Employers and Employees Information

PERSONAL AND ADDITIONAL EXEMPTION

Single Married Qualified dependent child

50,000 50,000 25,000

On exemptions
Every employer should ascertain whether or not a

child being claimed is a qualified dependent If TP should have additional exemption during the taxable year, he may claim the corresponding additional exemption in full for such year If the TP dies during the taxable year, the estate may claim the full exemptions as if he died at the close of the year

On exemptions
TP may still claim full exemptions during

the taxable year on the following cases: Spouse or any of the dependent dies Any of such dependents marries Becomes 21 y.o. Becomes gainfully employed As if it occurred at the close of such year

Requirement for deductibility


Compensation where no income taxes were

withheld shall be allowed as deduction when form 2316 is issued to the employees; Alphabetical list of employees whose compensation are exempt from withholding tax but subject to income tax shall be submitted together with the form 1604-CF; If with previous/successive employers BIR form 2316 and/or ITR filed

Registration
Use BIR Form 1902 for new employees Submit to the employer within10 days from date of employment Use BIR Form 2305 in case of change/s of

information data in previously submitted 1902


Submit to the employer within 10 days after the following changes Status Personal and additional exemption Employment or working status of the spouse Multiple employment status Amount of compensation income

Registration
The employer shall review the exemptions of the

employees The employer shall transmit all copies after accomplishing the employers portion to the RDO where the employer is registered within thirty (30) days following its receipt from the employee Registration of employees shall be at the RDO having jurisdiction over the employees place of assignment In case of multiple employment, it shall be at the RDO where the main employer is registered

Additional requisites (cont.)


a) Marriage contract b.) Birth certificate of each qualified dependent (child(ren) certified by the Local Civil Registry Office/National Statistics Office/equivalent document issued by government office

Additional requisites (cont..)


c. Certificate of employment of husband if he is

working abroad; d. Sworn Declaration and Waiver of Right to Claim Exemptions of Qualified Dependent Chil(dren) by the husband in case wife is claiming the additional exemption

Additional requisites (cont.)

e.) Medical Certificate of qualified dependent child, if physically/mentally incapacitated; f.) Court decision of legal adoption of children g.) Death certificate

Failure to Register / Update


Failure to file 1902

employer shall withhold under zero exemption Failure to file 2305 The employer shall withhold based on the reported exemption existing prior to the change of such status Any refund/under-withholding shall be covered by the penalties prescribed under Sec. 80 of the Code

The

Waiver
H is the proper claimant of dependent

children W shall claim full additional exemption


H is unemployed H is non-resident citizen deriving income from foreign sources H waives his right

In case H waives his right to claim the

additional exemption

Shall accomplish Sworn declaration and waiver of Right to Claim Exemptions of Qualified Dependent Children

Liability for Tax


Employer

for withholding and remittance of correct amount of tax Employee Responsible for submission of 1902 / 2305

Responsible

Statements and Returns


BIR Form 2316 Employer shall furnish the employees NLT Jan. 31 Failure to furnish shall be a ground for mandatory audit upon verified complaint of the payee It shall include the fringe benefits given to rank & file employees Employers of MWEs are still required to issue BIR Form 2316 (June 2008 Encs version) It shall indicate the health &/or hosp. insurance, if any The amount of SMW, OT, Holiday pay, Night diff, and hazard pay shall be indicated Among others

Statements and Returns


Form 2316 cont.

It shall be signed by both the employers authorized representative and the employee Shall contain a written declaration that it is made under the penalties of perjury Shall contain a certification that the employers filing of BIR Form 1604-CF shall be considered as substituted filing The employer shall retain the duly signed 2316 for a period of three (3) years.

Statements and Returns


Form 2316 continued

The applicable box for MWEs shall be indicated (under the enhanced form). This serves as proof of financial capacity for purposes of loans, etc In case of successive employment during the taxable year, an extra copy of BIR Form 2316 shall be furnished to his new employer

Statements and Returns


BIR Form 1604CF Annual Info Return
Due

date: Jan. 31 of the succeeding year Employers with centralized accounting system, or those mandated to consolidate remittances (large taxpayers), shall prepare alphalist on a regional basis or per branch office, due to the identification of SMW per region where the employee is assigned, which shall be submitted to the BIR where the head office is registered

Statements and Returns


Requirement for List of Payees
Less

than ten (10) payees Manually prepared alphalist With ten(10) or more payees Manually prepared alphalist + softcopy In diskette/cd/or email: esubmission@bir.gov.ph

Transitory Provision
5. For those who shall register for the 1st time, BIR Form 1902 shall be submitted to the RDO either to his principal/head office of employment/ place of business or place of residence of the employee-taxpayer at the option of the latter

BASIC CONCEPT OF YEAR -END ADJUSTMENT


Compensation Income-net Less: Exemption (single) Taxable Income Tax Due Less: Tax Withheld JanNov EVEN PAYABLE REFUNDABLE
A 200,000 50,000 150,000 25,000 25,000 0__ B C 200,000 200,000 50,000 50,000 150,000 150,000 25,000 25,000 22,500 27,000 2,500 (2,000)

Annualized Computation

To be used when the employer-

employee relationship is terminated before the end of the calendar year; When computing for the year-end adjustment

Steps in the annualized computation


1. Determine the taxable regular and supplementary compensation 2. If the employee has previous employment during the year, add the taxable regular and supplementary compensation paid to the present employer 3. Deduct the personal and additional exemptions of the employee

Steps in the annualized computation


4.

Deduct the amount of premium payments on health and/or hospitalization insurance on employees
Present proof of premium payments (origl. OR) Deductible amount shall not exceed P2,400 or P200/month Aggregate family income shall not exceed P250,000 Form 2316 or Cert. of Gross Income (Annex E of RR 102008) to prove the aggregate income of the nuclear family

Note: the spouse claiming the additional exemptions for the QDC shall be the same spouse to claim the deductions for premium payments.

Steps in the annualized computation


5. Compute the amount of tax 6. Determine the deficiency or excess

if Tax due > W/tax, the employer shall pay difference Is a matter of settlement between the employer and employee If tax due < w/tax, the employer shall refund not later than Jan.25

Illustrative problem # 1
Ms. Jally Vi, single with a qualified dependent brother receives P18,000 (net of SSS, PHIC and Pag-ibig contributions of P1,000/mo.) as monthly regular compensation starting January 1, 2010. On June 1, 2010, he filed his resignation effective June 30, 2010 and was not reemployed for the rest of the year. 13th month pay and other benefits received amounted to P 10,000. The tax withheld from January to May was P15,208.75.

Answer
Total Compensation (Jan. 1 May 31, 2010) Add Compensation to be received on June Gross compensation (Jan. to June 2010) Less Personal Exemption Net Taxable Compensation Tax Due Less Tax Withheld from Jan. to May P 90,000.00 18,000.00 P108,000.00 50,000.00 P 58,000.00 P 6,700.00* 15,208.75

To be refunded to Ms. Jally Vi


*Tax on P30,000 Tax on excess (P28,000 x 15%) Tax on P83,000.00 P 2,500 4,200 P 6,700

(P

8,508.75)

Illustrative Problem # 2
Mr. Jacob, married with 2 qualified dependent

children received P14,500 monthly compensation (net of SSS, Philhealth, HDMF employees contributions). Taxes withheld from Jan. to Nov. were P8,158.00.

Computation:
Total Compensation (Jan - Nov)
Add: Dec. compensation Gross Compensation Less: Personal/additional exemption

Total Compensation

P159,500.00 14,500.00 P174,000.00 100,000.00 P 74,000.00


P 9,300.00 8,158.00 P 1,142.00

Tax due

Less: Tax Withheld

Collectible W/tax for Dec. salary

Annualized Withholding Tax


Gross Compensation Income (present + previous employer) P xxx Less: Non-taxable/Exempt Compensation Income a.) 13th month pay and other benefits 30,000 b.) Other non-taxable benefits incl. de-minimis xx c.) SSS, GSIS,PHIC, HDMF& Union Dues (employees share only) xx xxx Less: a.) Personal and additional exemption xx b.) Health /Hospitalization premium payment (if applicable) xx Taxable Compensation Income Tax Due Tax Withheld (Jan. Nov. OR termination date) Collectible: Tax due > tax withheld Refund: Tax due < tax withheld xxx xxx xxx xxxx ====

Collect before payment of last wage Refund on or before Jan. 25th of the year /last payment of wage Do not withhold for Dec. salary

Break even: Tax due = tax withheld

Annual Information Return of Income taxes withheld on compensation and final withholding taxes
(Form 1604-CF version June 2008)

The alphabetical list of employees separate listing of

the ff.:
(1) (2)

(3)

(4)

Employees terminated before December 31; Employees whose compensation income are exempt from withholding tax but subject to income tax; Employees whose compensation income are exempt from withholding tax and not subject to income tax (minimum wage earners); Employees as of December 31 without previous employment during the year;

Annual Information Return of Income taxes withheld on compensation and final withholding taxes
(Form 1604-CF version June 2008)

(5) Employees as of December 31 with previous employment; (6) Employees who received fringe benefits subjected to fringe benefit tax; and (7) Alien employees subject to final tax

REVENUE REGULATIONS NO. 2-2006


M A N D ATO RY AT TA C H M E N T S :
1 . S U M M A RY A L P H A L I S T O F W I T H H O L D I N G

A G E N T S O F I N C O M E PAY M E N T S S U B J E C T E D TO TA X W I T H H E L D AT S O U R C E ( S AW T ) TO TA X R E T U R N S W I T H C L A I M E D TA X C R E D I T S D U E TO C R E D I TA B L E TA X W I T H H E L D AT SOURCE 2 . M O N T H LY A L P H A L I S T O F PAY E E S ( M A P ) W H O S E I N C O M E R E C E I V E D H AV E B E E N S U B J E C T E D TO W I T H H O L D I N G TA X I N T H E W I T H H O L D I N G TA X R E M I T TA N C E R E T U R N F I L E D B Y T H E W I T H H O L D I N G A G E N T / PAY O R O F I N C O M E PAY M E N T S

SAWT- defined
a consolidated Summary alphalist of withholding agents from whom income was earned or received and subjected to withholding tax

S- Summary A- Alphalist of withholding agents


W- subjected to Withholding T- Tax

SAWT - defined
to be submitted by the payee-recipient of income

as attachment to its duly filed return for a given period


which Summary List contains a summary of

information showing, among others,

total amounts of income/gross sales/gross receipts and

claimed tax credits taken from all Certificates of Creditable Withholding Tax at Source (BIR Form Nos. 2307/2304/2306/2316) issued by the payors of income payment

FORMAT Annex A BIR REGISTERED NAME TRADE NAME ADDRESS TIN SUMMARY ALPHALIST OF WITHHOLDING AGENTS OF INCOME PAYMENTS SUBJECTED TO WITHHOLDING TAX AT SOURCE (SAWT) From _______________ to _________________

Seq no. 1

TIN
Including branch code

Registered name (Alphalist) 3

Return period From


Mm/dd/yy

Return Period To
Mm/dd/y y

ATC 5

Nature of income payment 6

AMOUNT Tax base 7

Tax rate 8

Tax Withheld 9

2
1

4a

4b
2

TOTAL AMOUNT

I declare under the penalties of perjury, that this certificate has been made in good faith, verified by me, and to the best of my knowledge and belief, is true and correct pursuant to the provisions of the NIRC, and the regulations issued under the authority thereof ; that the information contained herein completely reflects a summary of information on all Certificates of Creditable Withholding Tax at Source (BIR Form No. 2307/2304/2306/2316) issued by the payor; that, the income payments has been declared part of the gross income/receipt in the our Income Tax/ VAT/ Percentage Tax Returns where the taxable income was earned or received; that, the information appearing herein is consistent with the information contained in the Certificate of Tax Withheld at Source and that, inconsistent information shall result to denial of the claims for refund/tax credit. _ _________________________ Signature over printed name Taxpayer/Authorized representative

Attachments to BIR Form Nos. 1700, 1701Q, 1701, 1702Q, 1702, 2550M, 2550Q, 2551M, 2553

Monthly Alphalist of Payees(MAP)


is a consolidated alphalist of

income earners from whom taxes have been withheld by the payor of income for a given return period and in whose behalf, the taxes were remitted.

It contains a summary of information on taxes

withheld and remitted through the monthly remittance returns (BIR Form Nos. 1601E, 1601-F, 1600) showing , among others,
total amounts of income/gross sales/gross receipts and taxes withheld and remitted.

FORMAT Annex B BIR REGISTERED NAME TRADE NAME ADDRESS TIN MONTHLY ALPHALIST OF PAYEES (MAP) RETURN PERIOD (mm/yyyy) TIN Seq no. 1 1 2 3 4 5 TOTAL AMOUNT P
Including branch code

Registered Name (Alphalist) 3

Return period mm/yy 4

ATC 5

Nature of income payment 6

AMOUNT Tax base 7

Tax rate 8

Tax Withheld 9

I declare under the penalties of perjury, that this has been made in good faith, verified by me, and to the best of my knowledge and belief, is true and correct pursuant to the provisions of the NIRC, and the regulations issued under the authority thereof; that the information contained herein completely reflects all income payments with the corresponding taxes withheld from payees are duly remitted to the BIR and proper Certificates of Creditable Withholding Tax at Source (BIR Form Nos. 2304/2307/2306/2316) have been issued to payees; that, the information appearing herein shall be consistent with the total amount remitted and that, inconsistent information shall result to denial of the claims for expenses. __________________________

Signature over printed name Taxpayer/Authorized representative

Attachments to BIR Form Nos. 1601-E, 1601-F, 1600

SAWT/MAP
Below 10 payees 10 or more payees EFPS regardless of the number of income payees/ income recipient - hard copy - 3.5 diskette - e-attach

Returns required to be filed with SAWT &


Certificate of Creditable Tax Withheld at Source
BIR Form No. 1701Q

BIR Form No. 1701


BIR Form No. 1700 BIR Form No. 1702Q BIR Form No. 1702 BIR Form No. 2550Q BIR Form No. 2550M BIR Form No. 2551M BIR Form No. 2553

1700
(To be filled up by the B IR)

2316
DLN:

Republika ng Pilipinas Kagaw aran ng Pananalapi

Kawanihan ng Rentas Internas


1 For the Year 1 ( YYYY ) Part I Em ployee Inform ation 3 Taxpayer 3 Identification No. 4 Employee's Name (Last Name, First Name, Middle Name)

Certificate of Compensation Payment/Tax Withheld

BIR Form No.

For Compensation Payment With or Without Tax Withheld


DLN: Republika ng Pilipinas Kagaw aran ng Pananalapi Kaw anihan ng Rentas Internas PSIC:

2316

October 2002 (ENCS)

(Except for transactions involving onerous transfer April 2003 (ENCS) of real property classified as ordinary Fill in all applicable spaces. Mark all appropriate boxes w ith an X. 1 For the Month 2 Amended Return? 3 No. of Sheets Attached 4 Any Taxes Withheld? (MM / YYYY) Yes Yes No Part I Ba c k g r o u n d I n f o r m a t i o n 5 TIN 6 RDO Code 7 Line of Business 8 Withholding Agent's Name
(Last Name, First Name, M iddle Name fo r Individuals)/(Registered Name fo r No n-Individuals)

Monthly Remittance Return of Creditable Income Taxes Withheld (Expanded)

BIR Form No.

1601-E
No

6 Registered Address 6B Local Home Address 6D Foreign Address 7 Date of Birth (MM/DD/YYYY)

2 For the Period From (MM/DD) To (MM/DD) D et ails o f C o mp ensat io n Inco me and T ax W it hheld f r o m Pr esent Part IV Amount A. Non-Taxable/Exem pt Com pensation Incom e 5 RDO Code 25 13th Month Pay and 25 Other Benefits 26 SSS, GSIS, PHIC & Pag-ibig 26 Contributions, & Union dues 27 Salaries & Other Forms of 27 Compensation 6C Zip Code 28 Total Non-Taxable/Exempt 28 Compensation Income 6A Zip Code 6E Zip Code B. Taxable Com pensation Incom e REGULAR 29 Basic Salary 29 30

Emp lo yer

Telephone Number

10 Registered Address 12 Category of Withholding Agent Private Government Part II NATURE OF INCOME PAYMENT

11 Zip Code 13 Are there payees availing of tax relief under special law or international tax treaty? No If yes, specify Yes Com putation of Tax ATC TAX BASE TAX RATE TAX REQUIRED TO BE WITHHELD

8 Telephone Number

FORMAT Annex B

9 Exemption Status 30 Representation Single Head of the Family Married 9A Is the w ife claiming the additional exemption for qualified dependent children? 31 Transportation Yes No 10 Name of Qualified Dependent Children 11 Date o f B irth (M M /DD/YYYY) 32 Cost of Living Allow ance 33 Fixed Housing Allow ance 34 Others (Specify) 12 Other Dependent (to be accomplished if taxpayer is head of the family) 3 4 A Date o f B irth Name of Dependent Relationship
(M M /DD/YYYY 34B

31

32 33
34A

SAW T
BIR REGISTERED NAME TRADE NAME ADDRESS TIN Registered Name (Alphalist) 3 Return period mm/yy 4 Nature of income payment 5 ATC Tax rate Tax base Tax Withheld 9 6 7 8 TOTAL P AMOUNT P

34B

Part II Em ployer Inform ation (Present) 13 13 Taxpayer Identification No. 14 Employer's Name

SUPPLEMENTARY 35 Commission 36 Profit Sharing 37 Fees Including Director's Fees 38 Taxable 13th Month Pay and Other Benefits 39 Hazard Pay 40 Others (Specify)
40A 40B

35 36 37 38 39

15 Registered Address

15A Zip code

MONTHLY ALPHALIST OF WITHHOLDING TAXES (MAWT) RETURN PERIOD Seq TIN no. 1 1 2 3 4 5 2

main employer secondary employer Part III Em ployer Inform ation (Previous)-1 16 Taxpayer 16 Identification No. 17 Employer's Name

40A 40B

18 Registered Address

14 Total Tax Required to be Withheld and Remitted 15 Less: Tax Remitted in Return Previously Filed, if this is an amended return 16 Tax Still Due/(Overremittance) 17 Add: Penalties Surcharge Interest 17A 17B 17C 18 Total Amount Still Due/(Overremittance) (Sum of Items 16 & 17D)

14 15 16 Compromise 17D 18

Em ployer Inform ation (Previous)-2 19 19 Taxpayer Identification No. 20 Employer's Name

21 Registered Address

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 President/Vice President/Authorized Representative/Tax Agent (Signature Over Printed Name) 20 Treasurer/Asst. Treasurer/Authorized Representative (Signature Over Printed Name)

Em ployer Inform ation (Previous)-3 22 22 Taxpayer Identification No. 23 Employer's Name 24 Registered Address

41 Total Taxable Compensation 41 Income Sum m ary 42 42 Taxable Compensation Income from Present Employer 43 Add: Taxable Compensation 43 from Previous Employer (s) 44 Gross Taxable 44 Compensation Income 45 Less: Total Exemptions 45 21A Zip code 46 Less: Premium Paid on Health and/or Hospital 46 Insurance (If applicable) 47 Taxable 47 Compensation Income 48 Tax Due 48 49 Amount of Taxes Withheld 49A Present Employer 49A 18A Zip code 24A Zip code 49B Previous Employer(s) 49B 50 Total Amount of Taxes 50 Withheld

Title/Position of Signatory

Title/Position of Signatory

I declare, under the penalties o f perjury, that this certificate has been made in go o d faith, verified by us, and to the best o f o ur kno wledge and belief, is true and co rrect

TIN of Tax Agent (if applicable) Part III Particulars 21 Cash/Bank Draw ee Bank/ Agency Num ber Details of Paym ent Date MM DD YYYY

Tax A gent A ccreditatio n No ./Date o f A ccreditatio n (if applicable)

Am ount
21

Stamp of Receiving Office and Date of Receipt

1701/Q
(To be filled up by the B IR)

DLN: Republika ng Pilipinas Kagaw aran ng Pananalapi Kaw anihan ng Rentas Internas

PSIC:

(Except for transactions involving onerous transfer April 2003 (ENCS) of real property classified as ordinary Fill in all applicable spaces. Mark all appropriate boxes w ith an X. 1 For the Month 2 Amended Return? 3 No. of Sheets Attached 4 Any Taxes Withheld? (MM / YYYY) Yes Yes No Part I Ba c k g r o u n d I n f o r m a t i o n 5 TIN 6 RDO Code 7 Line of Business 8 Withholding Agent's Name
(Last Name, First Name, M iddle Name fo r Individuals)/(Registered Name fo r No n-Individuals)

Monthly Remittance Return of Creditable Income Taxes Withheld (Expanded)

BIR Form No.

1601-E
No

2307/2316
Republika ng Pilipinas Kaw anihan ng Rentas Internas Kagaw aran ng Pananalapi For the Period From 1 To
( M M / DD / YYYY ) ( M M / DD / YYYY )

SAWT
FORMAT Annex B BIR REGISTERED NAME TRADE NAME ADDRESS TIN MONTHLY ALPHALIST OF WITHHOLDING TAXES (MAWT) RETURN PERIOD Seq TIN no. 1 1 2 3 4 5 2 Registered Name (Alphalist) 3 Return period mm/yy 4 Nature of income payment 5 ATC Tax rate Tax base Tax Withheld 9

Telephone Number

Summary List of Creditable Withholding Tax at Source (2307) Received

10 Registered Address 12 Category of Withholding Agent Private Government Part II NATURE OF INCOME PAYMENT

11 Zip Code 13 Are there payees availing of tax relief under special law or international tax treaty? No If yes, specify Yes Com putation of Tax ATC TAX BASE TAX RATE TAX REQUIRED TO BE WITHHELD

Part I P a y e e I n f o r m a t i o n 2 Taxpayer 2 Identification No. Registered Address Part II Sum m ary List of Payors Payor's TIN Payor's Nam e Last Name, First Name, Middle Name for Individuals Registered Name for Non-Individuals ATC

2A Zip Code

Payee's Name (Last Name, First Name, M iddle Name fo r Individuals)(Registered Name fo r No n-Individuals)

4A Foreign Address Am ount of Incom e Paym e nts 2nd Month 3rd Month of the Quarter of the Quarter

1st Month of the Quarter

Total

Tax Withheld For the Quarter

14 Total Tax Required to be Withheld and Remitted 15 Less: Tax Remitted in Return Previously Filed, if this is an amended return 16 Tax Still Due/(Overremittance) 17 Add: Penalties Surcharge Interest 17A 17B 17C 18 Total Amount Still Due/(Overremittance) (Sum of Items 16 & 17D)

14 15 16 Compromise 17D 18

TOTAL P 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 President/Vice President/Authorized Representative/Tax Agent (Signature Over Printed Name) 20 Treasurer/Asst. Treasurer/Authorized Representative (Signature Over Printed Name)

Title/Position of Signatory

Title/Position of Signatory

TOTAL: P

Note: The taxpayer/filer attest to the accuracy of the information entered herein.
Stamp of Receiving Office and Date of Receipt

INCOME 1702/Q RECIPIENTS


TIN of Tax Agent (if applicable)
Tax A gent A ccreditatio n No ./Date o f A ccreditatio n (if applicable)

Part III

Particulars 21 Cash/Bank

Draw ee Bank/ Agency

Num ber

Details of Paym ent Date MM DD YYYY

Am ount

21

(To be filled up by the B IR)

DLN:

PSIC:

Republika ng Pilipinas Kagaw aran ng Pananalapi Kaw anihan ng Rentas Internas

(Except for transactions involving onerous transfer April 2003 (ENCS) of real property classified as ordinary Fill in all applicable spaces. Mark all appropriate boxes w ith an X. 1 For the Month 2 Amended Return? 3 No. of Sheets Attached 4 Any Taxes Withheld? (MM / YYYY) Yes Yes No Part I Ba c k g r o u n d I n f o r m a t i o n 5 TIN 6 RDO Code 7 Line of Business 8 Withholding Agent's Name
(Last Name, First Name, M iddle Name fo r Individuals)/(Registered Name fo r No n-Individuals)

Monthly Remittance Return of Creditable Income Taxes Withheld (Expanded)

BIR Form No.

1601-E

2307
Republika ng Pilipinas Kaw anihan ng Rentas Internas Kagaw aran ng Pananalapi For the Period From 1 To
( M M / DD / YYYY ) ( M M / DD / YYYY )

SAWT
FORMAT Annex B BIR REGISTERED NAME TRADE NAME ADDRESS TIN MONTHLY ALPHALIST OF WITHHOLDING TAXES (MAWT) RETURN PERIOD Seq TIN no. 1 1 2 3 4 5 2 Registered Name (Alphalist) 3 Return period mm/yy 4 Nature of income payment 5 ATC Tax rate Tax base Tax Withheld 9
Total Tax Withheld For the Quarter

Summary List of Creditable Withholding Tax at Source (2307) Received

No

Telephone Number

10 Registered Address

11 Zip Code

Part I P a y e e I n f o r m a t i o n 2 Taxpayer 2 Identification No. Registered Address Part II Sum m ary List of Payors Payor's TIN Payor's Nam e Last Name, First Name, Middle Name for Individuals Registered Name for Non-Individuals ATC

2A Zip Code

Payee's Name (Last Name, First Name, M iddle Name fo r Individuals)(Registered Name fo r No n-Individuals)

12 Category of Withholding Agent Private Government Part II

13 Are there payees availing of tax relief under special law or international tax treaty? No If yes, specify Yes Com putation of Tax ATC TAX BASE TAX RATE

4A Foreign Address Am ount of Incom e Paym e nts 2nd Month 3rd Month of the Quarter of the Quarter

NATURE OF INCOME PAYMENT

TAX REQUIRED TO BE WITHHELD

1st Month of the Quarter

(PAYEES)
(To be filled up by the B IR)

14 Total Tax Required to be Withheld and Remitted 15 Less: Tax Remitted in Return Previously Filed, if this is an amended return 16 Tax Still Due/(Overremittance) 17 Add: Penalties Surcharge Interest 17A 17B 17C 18 Total Amount Still Due/(Overremittance) (Sum of Items 16 & 17D)

14 15 16 Compromise 17D 18

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 President/Vice President/Authorized Representative/Tax Agent (Signature Over Printed Name) 20 Treasurer/Asst. Treasurer/Authorized Representative (Signature Over Printed Name)

TOTAL: P

TOTAL P AMOUNT

Note: The taxpayer/filer attest to the accuracy of the information entered herein.

Title/Position of Signatory

Title/Position of Signatory

TIN of Tax Agent (if applicable) Part III Particulars 21 Cash/Bank Draw ee Bank/ Agency Num ber Details of Paym ent Date MM DD YYYY

Tax A gent A ccreditatio n No ./Date o f A ccreditatio n (if applicable)

2550M/Q 2551M/2553
Am ount
21

Stamp of Receiving Office and Date of Receipt

BIR

DLN: Republika ng Pilipinas Kagaw aran ng Pananalapi Kaw anihan ng Rentas Internas

PSIC:

(Except f or transactions involving onerous transf er April 2003 (ENCS) of real property classif ied as ordinary Fill in all applicable spaces. Mark all appropriate boxes w ith an X. 1 For the Month 2 Amended Return? 3 No. of Sheets Attached 4 Any Taxes Withheld? (MM / YYYY) Yes Yes No Part I Ba c k g r o u n d I n f o r m a t i o n 5 TIN 6 RDO Code 7 Line of Business 8 Withholding Agent's Name
(Last Name, First Name, M iddle Name fo r Individuals)/(Registered Name fo r No n-Individuals)

Monthly Remittance Return of Creditable Income Taxes Withheld (Expanded)

BIR Form No.

1601-E
No

2307
Republika ng Pilipinas Kaw anihan ng Rentas Internas Kagaw aran ng Pananalapi For the Period From 1 To
( M M / DD / YYYY ) ( M M / DD / YYYY )

SAWT
FORMAT Annex B BIR REGISTERED NAME TRADE NAME ADDRESS TIN MONTHLY ALPHALIST OF WITHHOLDING TAXES (MAWT) RETURN PERIOD Seq TIN no. 1 1 2 3 4 5 TOTAL P AMOUNT P 2 Registered Name (Alphalist) 3 Return period mm/yy 4 Nature of income payment 5 ATC Tax rate Tax base Tax Withheld 9
Total Tax Withheld For the Quarter

9 11

Telephone Number Zip Code

Summary List of Creditable Withholding Tax at Source (2307) Received

10 Registered Address 12 Category of Withholding Agent Private Government Part II NATURE OF INCOME PAYMENT

13 Are there payees availing of tax relief under special law or international tax treaty? No If yes, specif y Yes Com putation of Tax ATC TAX BASE TAX RATE TAX REQUIRED TO BE WITHHELD

Part I P a y e e I n f o r m a t i o n 2 Taxpayer 2 Identification No. Registered Address Part II Sum m ary List of Payors Payor's TIN Payor's Nam e Last Name, First Name, Middle Name for Individuals Registered Name for Non-Individuals ATC

2A Zip Code

Payee's Name (Last Name, First Name, M iddle Name fo r Individuals)(Registered Name fo r No n-Individuals)

4A Foreign Address Am ount of Incom e Paym e nts 2nd Month 3rd Month of the Quarter of the Quarter

1st Month of the Quarter

14 Total Tax Required to be Withheld and Remitted 15 Less: Tax Remitted in Return Previously Filed, if this is an amended return 16 Tax Still Due/(Overremittance) 17 Add: Penalties Surcharge Interest 17A 17B 17C 18 Total Amount Still Due/(Overremittance) (Sum of Items 16 & 17D)

14 15 16 Compromise 17D 18

I declare, under the penalties of perjury, that this return has been made in good f aith, verif ied 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 President/Vice President/Authorized Representative/Tax Agent (Signature Over Printed Name) 20 Treasurer/Asst. Treasurer/Authorized Representative (Signature Over Printed Name)

Title/Position of Signatory

Title/Position of Signatory

TOTAL: P

Note: The taxpayer/filer attest to the accuracy of the information entered herein.
Stamp of Receiving Of f ice and Date of Receipt

TIN of Tax Agent (if applicable) Part III Particulars 21 Cash/Bank Draw e e Bank / Age ncy Num be r De tails of Paym e nt Date MM DD YYYY

Tax A gent A ccreditatio n No ./Date o f A ccreditatio n (if applicable)

Am ount
21

Note: Transactions beg. Jan. 1, 2006 1702Q/1701Q WITH SAWT

2005 Annual ITR

(calendar Jan-Dec) DUE APRIL 15, 2006

NO SAWT

Returns required to be filed with MAP


BIR Form No. 1601-E
Creditable (Expanded
Monthly Remittance Return of Income Taxes Withheld Withholding tax) Monthly Remittance Return of Withheld Monthly Remittance Return of Tax and Other Percentage Taxes (Under RAs 1051, 4649, 8241 and

BIR Form No. 1601-F


Final Taxes

BIR Form No. 1600


Value Added

The return with the attached MAP shall be filed in three (3) copies to be distributed as follows: Original copy of return with attached MAP - BIR copy Duplicate copy of return with attached MAP - BIR copy Triplicate copy of return with attached MAP - taxpayers file copy

1601-E
(To be filled up by the B IR)

MAP
FORMAT Annex B BIR REGISTERED NAME TRADE NAME ADDRESS TIN MONTHLY ALPHALIST OF WITHHOLDING TAXES (MAWT) RETURN PERIOD Seq TIN no. 1 1 2 2 Registered Name (Alphalist) 3 Return Nature of income ATC Tax rate Tax base Tax period payment Withheld mm/yy 5 4 6 7 8 9

DLN:

PSIC: Republika ng Pilipinas Kagaw aran ng Pananalapi Kaw anihan ng Rentas Internas BIR Form No.

April 2003 (ENCS) of real property classified as ordinary Fill in all applicable spaces. Mark all appropriate boxes w ith an X. 1 For the Month 2 Amended Return? 3 No. of Sheets Attached 4 Any Taxes Withheld? (MM / YYYY) Yes Yes No Part I Ba c k g r o u n d I n f o r m a t i o n 5 TIN 6 RDO Code 7 Line of Business 8 Withholding Agent's Name
(Last Name, First Name, M iddle Name fo r Individuals)/(Registered Name fo r No n-Individuals)

Monthly Remittance Return of Creditable Income Taxes Withheld (Expanded) (Except for transactions involving onerous transfer

1601-E
No

Telephone Number

10 Registered Address 12 Category of Withholding Agent Private Government Part II NATURE OF INCOME PAYMENT

11 Zip Code 13 Are there payees availing of tax relief under special law or international tax treaty? No If yes, specify Yes Com putation of Tax ATC TAX BASE TAX RATE TAX REQUIRED TO BE WITHHELD

14 Total Tax Required to be Withheld and Remitted 15 Less: Tax Remitted in Return Previously Filed, if this is an amended return 16 Tax Still Due/(Overremittance) 17 Add: Penalties Surcharge Interest 17A 17B 17C 18 Total Amount Still Due/(Overremittance) (Sum of Items 16 & 17D)

14 15 16 Compromise 17D 18

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 President/Vice President/Authorized Representative/Tax Agent (Signature Over Printed Name) 20 Treasurer/Asst. Treasurer/Authorized Representative (Signature Over Printed Name)

3 4 5 TOTAL P AMOUNT P

Title/Position of Signatory

Title/Position of Signatory

TIN of Tax Agent (if applicable) Part III Particulars 21 Cash/Bank Draw ee Bank/ Agency Num ber Details of Paym ent Date MM DD YYYY

Tax A gent A ccreditatio n No ./Date o f A ccreditatio n (if applicable)

Am ount
21

Stamp of Receiving Office and Date of Receipt

WITHHOLDING

1601-F
(To be filled up by the B IR)

MAP
FORMAT Annex B BIR REGISTERED NAME TRADE NAME ADDRESS TIN MONTHLY ALPHALIST OF WITHHOLDING TAXES (MAWT) RETURN PERIOD Seq TIN Registered Name Return Nature of income ATC Tax rate Tax base Tax no. (Alphalist) period payment Withheld 3 mm/yy 5 1 2 4 6 7 8 9 1 2

DLN: Republika ng Pilipinas Kagaw aran ng Pananalapi Kaw anihan ng Rentas Internas

PSIC:

AGENTS (PAYORS)

(Except for transactions involving onerous transfer April 2003 (ENCS) of real property classified as ordinary Fill in all applicable spaces. Mark all appropriate boxes w ith an X. 1 For the Month 2 Amended Return? 3 No. of Sheets Attached 4 Any Taxes Withheld? (MM / YYYY) Yes Yes No Part I Ba c k g r o u n d I n f o r m a t i o n 5 TIN 6 RDO Code 7 Line of Business 8 Withholding Agent's Name
(Last Name, First Name, M iddle Name fo r Individuals)/(Registered Name fo r No n-Individuals)

Monthly Remittance Return of Creditable Income Taxes Withheld (Expanded)

BIR Form No.

1601-E
No

Telephone Number

10 Registered Address 12 Category of Withholding Agent Private Government Part II NATURE OF INCOME PAYMENT

11 Zip Code 13 Are there payees availing of tax relief under special law or international tax treaty? No If yes, specify Yes Com putation of Tax ATC TAX BASE TAX RATE TAX REQUIRED TO BE WITHHELD

14 Total Tax Required to be Withheld and Remitted 15 Less: Tax Remitted in Return Previously Filed, if this is an amended return 16 Tax Still Due/(Overremittance) 17 Add: Penalties Surcharge Interest 17A 17B 17C 18 Total Amount Still Due/(Overremittance) (Sum of Items 16 & 17D)

14 15 16 Compromise 17D 18

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 President/Vice President/Authorized Representative/Tax Agent (Signature Over Printed Name) 20 Treasurer/Asst. Treasurer/Authorized Representative (Signature Over Printed Name)

3 4 5 TOTAL P AMOUNT P

Title/Position of Signatory

Title/Position of Signatory

TIN of Tax Agent (if applicable) Part III Particulars 21 Cash/Bank Draw ee Bank/ Agency Num ber Details of Paym ent Date MM DD YYYY

Tax A gent A ccreditatio n No ./Date o f A ccreditatio n (if applicable)

Am ount
21

Stamp of Receiving Office and Date of Receipt

BIR

1600
(To be filled up by the B IR)

MAP
FORMAT Annex B BIR REGISTERED NAME TRADE NAME ADDRESS TIN MONTHLY ALPHALIST OF WITHHOLDING TAXES (MAWT) RETURN PERIOD Seq TIN Registered Name Return Nature of income ATC Tax rate Tax base Tax no. (Alphalist) period payment Withheld 3 mm/yy 5 1 2 4 6 7 8 9 1 2 3 4 5 TOTAL P AMOUNT P
No

DLN: Republika ng Pilipinas Kagaw aran ng Pananalapi Kaw anihan ng Rentas Internas

PSIC:

(Except for transactions involving onerous transfer April 2003 (ENCS) of real property classified as ordinary Fill in all applicable spaces. Mark all appropriate boxes w ith an X. 1 For the Month 2 Amended Return? 3 No. of Sheets Attached 4 Any Taxes Withheld? (MM / YYYY) Yes Yes No Part I Ba c k g r o u n d I n f o r m a t i o n 5 TIN 6 RDO Code 7 Line of Business 8 Withholding Agent's Name
(Last Name, First Name, M iddle Name fo r Individuals)/(Registered Name fo r No n-Individuals)

Monthly Remittance Return of Creditable Income Taxes Withheld (Expanded)

BIR Form No.

1601-E

Telephone Number

10 Registered Address 12 Category of Withholding Agent Private Government Part II NATURE OF INCOME PAYMENT

11 Zip Code 13 Are there payees availing of tax relief under special law or international tax treaty? No If yes, specify Yes Com putation of Tax ATC TAX BASE TAX RATE TAX REQUIRED TO BE WITHHELD

14 Total Tax Required to be Withheld and Remitted 15 Less: Tax Remitted in Return Previously Filed, if this is an amended return 16 Tax Still Due/(Overremittance) 17 Add: Penalties Surcharge Interest 17A 17B 17C 18 Total Amount Still Due/(Overremittance) (Sum of Items 16 & 17D)

14 15 16 Compromise 17D 18

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 President/Vice President/Authorized Representative/Tax Agent (Signature Over Printed Name) 20 Treasurer/Asst. Treasurer/Authorized Representative (Signature Over Printed Name)

Title/Position of Signatory

Title/Position of Signatory

TIN of Tax Agent (if applicable) Part III Particulars 21 Cash/Bank Draw ee Bank/ Agency Num ber Details of Paym ent Date MM DD YYYY

Tax A gent A ccreditatio n No ./Date o f A ccreditatio n (if applicable)

Am ount
21

Stamp of Receiving Office and Date of Receipt

MAP ATTACHMENT BY
WITHHOLDING AGENT (PAYOR)
JAN FEB MAR APR

FOR MANUAL/ E-FILERS

1601-E 1601-F 1600 *

With existing Monthly Alphabetical List

MAPs shall start JAN 2006 To be remitted FEB 10th

Required Format in the Submission/

attachment of SAWT/ MAP


The SAWT/MAP shall be submitted/attached to the return and shall contain all the required information in the prescribed electronic format using any of the following: Option 1 Microsoft Excel Format; Option 2 Taxpayers own extract program; or Option 3 Data Entry Module developed by the BIR that will be available upon request / downloadable from the BIRs web site at http://www.bir.gov.ph with the corresponding job aid to be provided by the BIR.

Required Format in the Submission/ attachment of SAWT/ MAP

For those who will choose option 1 or 2, they are required to use a validation module of the BIR which can either be downloaded from the BIR-web or made available in diskette form upon request. Only readable diskettes/CD shall be considered as duly filed or attached to the required return. The RDO/LTS/LTDO shall upload the contents of all the diskettes received within thirty (30) days from receipt of the return.

RETENTION OF THE HARD COPY OF THE CERTIFICATES OF TAX WITHHELD


It shall always be retained within the period

prescribed in the law for the preservation of books of accounts and accounting records and presentation of said hard copy may be requested during audit to prove the tax credits arising from withholding taxes which are being claimed in the tax returns filed.

PENALTY PROVISION
a person who fails to file, keep or supply a statement, list,

or information required herein on the date prescribed therefor shall pay, upon notice and demand by the CIR, an administrative penalty of One Thousand Pesos (P1,000) for each such failure, unless it is satisfactorily shown that such failure is due to reasonable causes and not due to willful neglect.

For this purpose, the failure to supply the required

information shall constitute a single act or omission punishable thereof. However, the aggregate amount to be imposed for all such failures during the year shall not

exceed Twenty Five Thousand Pesos (P25,000).

PENALTY PROVISION
In addition to the imposition of administrative penalty,

willful failure by such person to keep any record and to supply the correct and accurate information at the time required herein, shall be subject to the criminal penalty under the relevant provisions of the Tax Code of 1997, upon conviction of the offender.

The imposition of any of the penalties under the Tax Code

of 1997 and the compromise of the criminal penalty on such violations, notwithstanding, shall not in any

manner relieve the violating taxpayer from the obligation to submit the required documents

PENALTY PROVISION
Finally, the corresponding administrative penalty shall be

imposed on every violation of the provisions of these Regulations, upon due notice and demand by the CIR. second offense - A subpoena duces tecum for the submission of the required documents shall be issued on the. third offense shall set the motion for a criminal prosecution of the offender. compromised, the submission of the unsubmitted lists should always form part of the obligation of the taxpayer to be embodied in the compromise agreement.

In cases where a violation hereof is allowed to be

The end