Lecture Wtax 02.25.11 Final

WITHHOLDING TAX
AT SOURCE
(Revenue Regulations No. 2-98, as amended)
Presented by:
Pagaduan & Donga

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 TAX BASE

COMPENSATION WHEN PAID / TAXABLE
CONTRUCTIVELY COMPENSATION
PAID INCOME
EXPANDED WHEN PAID / GROSS PAYMENT
GMP PAYABLE (NET OF VAT)
(VAT PAYEE)
GMP WHEN PAID /

PAYABLE GROSS PAYMENT
(NON VAT PAYEE)
FINAL WHEN PAID /

OTHER FINAL PAYABLE GROSS PAYMENT
FRINGE GROSS UP
BENEFITS WHEN PAID MONETARY VALUE
III. WITHHOLING TAX REMITTANCE
TYPES FORM MANUAL FILING/ EFPS FILING EFPS
PAYMENT PAYMENT
COMPEN- 1601-C 10th day of the ff 15th day of the ff
SATION month except for the month except for
month of December Staggered Filing the month of
EXPANDED 1601-E which is due on the (RR 26-2002) December which is
Jan. 15 due on the Jan. 20
BANKS 1602
Real Property 1606 10th day of the ff Not applicable Not applicable
(Ordinary Asset) month
FINAL 1601-F 10th day of the ff Staggered Filing 15th day of the ff
OTHER FINAL month (RR 26-2002) month
W/TAX ON 1600 10th day of the ff 10th day of the ff 10th day of the ff
VAT & (ALPH month month month
PERCENTAGE ALIST)
FRINGE 1603 10th day of the month 15th day of the 15th day of the
BENEFITS following the end of month ff the end month ff the end of
the qtr. of the quarter 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 20 days ff. close of the quarter
(Exempt) or upon demand
2307
(Taxable)
GOVT. MONEY 2307 For Non-VAT : 10th day of the ff month
PAYMENTS
2306 For VAT : 10th day on the month ff
month
FINAL TAX 2306 Jan. 31 of the following year
FRINGE 2306 Jan. 31 of the following year
BENEFITS
V. ANNUAL RETURNS
TYPE FORM DESCRIPTION TIME

COMPEN- 1604 CF Alphalist of employees Jan. 31 of
SATION the ff year
Less than 10 employees manual filing
10 employees or more - softcopy
eFPS Filer - e-attach
EXPANDED 1604E Alphalist of payees March 1
of the ff
Less than 10 payees manual filing year
10 payees or more - softcopy
eFPS Filer - e-attach
DIFFERENCE: FINAL & CREDITABLE
WITHHOLDING TAX
FINAL CREDITABLE
the amount of income tax taxes withheld are

withheld by the withholding intended to equal the tax due
agent is constituted as a full of the payee on the said
& final payment income
liability rests with the the income recipient is still

payor as withholding agent required to file an income tax
return
payee is not required to
file an ITR for the particular
income
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 DESCRIPTION
SUBJEC TO EWT
A. Professional fees, 15% if gross income exceeds P720T

talent fees, etc., for 10% if otherwise
services rendered
by individuals 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 DESCRIPTION
PAYMENTS
SUBJEC
TO EWT
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.
SUBJEC TO EWT
B. Professional Fees, 15% if gross income exceeds P720T

talent fees, etc., for
services of taxable 10% if otherwise
juridical persons On the gross professional, promotional
and talent fees or any other form of
remuneration for the services rendered.
C. Rentals 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%
SUBJEC TO EWT
D. Cinematographic 5% on gross payment

film rental and other
payments
E.Income Payments to
certain contractors 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
SUBJEC TO EWT
G. Gross payments to 10% on gross commissions or service fees

certain brokers and
agents
H.Income payments to On income payments made to partners such

partners of general as drawings, advances, sharings,
professional allowances and stipends
partnerships
15% if gross income exceeds P720T
10% if otherwise
SUBJECT TO EWT
I. 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.
SUBJEC TO EWT
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 Seller/transferor is exempt from CWT in accordance

total amount of with Sec. 2.57.5 of the regulation
consideration or its
equivalent paid to Seller/transferor is habitually engaged in the real
estate business:
seller/owner for the sale, Selling price is P500k of less - 1.5%
exchange, or transfer of SP <P500K but => P2M - 3.0%
real property classified ad SP <P2M - 5.0%
ordinary asset Seller/transferor is not habitually
engaged in the real estate business - 6.0%
SUBJEC TO EWT
K. Additional income On gross additional payments to govt. personnel

payments to govt. for overtime services as authorized by law -
personnel from importers, 15%
shipping and airline
companies
L. Certain income payments

made by credit card 1% on 1/2of the gross amounts paid
companies
M. Income payments made by

the top 20K private corp to Supplier of goods 1%
their local/resident supplier Supplier of services 2%
of goods/services other
than those covered by
other wtax rates
SUBJEC TO EWT
N. Income payments Supplier of goods 1%

made by the govt. to Supplier of services 2%
its local/resident
supplier of
goods/services other
than those covered by
other wtax rates
O. Commissions of 10% on gross commissions, rebates, discounts, and

independent and/or other similar considerations
exclusive sales
representatives, and
marketing agents and
companies
SUBJEC TO EWT
P. Tolling fees paid to 5% on gross processing/tolling fees

refineries
Q. Payments made by 1% on gross payments

pre-need companies
to funeral parlor
R. Payments to 1% on gross payment

embalmers
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 Year Purchase Amount

Transactions
One 2009 P 90,000
Two 2010 320,000
One 2011 400,000
One 2012 90,000

Amount of EWT:
In 2009 - not subject

In 2010 - P20,000 x 1% = P200.00
In 2011 - P100,000 x 2% = P1,000
In 2012 - not subject
On Agricultural Products
Agricultural Products in their original state

shall only include:
corn copra poultry and

rice sugar cane livestocks
coffee marine food
coconut products
cassava vegetables
fruits palay
SUBJEC TO EWT
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%
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%
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%
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 3%
on gross payment for
government or any of the purchase of goods
its political 6% 5%
subdivisions, on gross receipts for
instrumentalities or
services by contractors Final VAT
8.5%
agencies, including on government public
government-owned works contractors
and controlled
corporations (GOCCs)
CREDITABLE FINAL
NATURE OF INCOME PAYMENT INCOME %

TAX TAX
VAT
2% 3% 5%
Communication Services (Smart, PLDT, etc)
Repairs and Maintenance of Govt. Facilities 2% 3% 5%

and Vehicles
Transport of Goods, Merchandise, Cargo

2% 3% 5%
domestic air, sea & land (w/in the Phils)
domestic air, sea & land (Phils to foreign 2% none none

country)
Intl. air & sea (Phils. To Foreign) 2% 3% none

CREDITABLE FINAL
NATURE OF INCOME PAYMENT INCOME % VAT
TAX TAX
Transport of Passengers:
2% none 5%
domestic air, & sea (w/in the Phils)
2% 3% none
domestic land (w/in the Phils)
2% 3% none
Intl. air & sea (Phils. To Foreign)
Purchase of Supplies & Materials, including 1% 3% 5%

equipments
CREDITABLE FINAL

TAX TAX
Payment for Rental of Properties

1. Real Property 5% 3% 5%
2. Cinematographic films 5% 3% 5%
3. Personal Property (in excess of P10,000 5% 3% 5%
except financial leasing)
Payment for:
a. Use or Lease of property or property None None 12%
rights to non-resident owner
b. Services rendered by local insurance

companies with respect to
reinsurance premiums payable to None None 12%
non-residents
c. Other services rendered in the Phils. by

non-residents None None 12%
CREDITABLE FINAL

TAX TAX
Payment to Water Distribution Utilities
Manila Water Company, Inc. 2% None 5%
Maynilad Water Services, Inc. (MWSI)* 2% None 5%
*Income Tax Holiday up to Dec. 31, none none 5%

2009 (BIR Ruling No. DA-278-2009)
Other Water Utilities 2% 2% 5%

CREDITABLE FINAL

TAX TAX
Payment to Power Distribution Utilities 2% None 5%
Meralco, VECO, etc.
Electric Coops
1. Registered with NEA none none 5%
2. Registered with CDA
a. Do not transact with non-members none none 5%
b. Transacting w/ members & non-mem
b.1 With members none none 5%
b.2 With members and have an
accumulated reserves and none none 5%
undivided net savings of not
more than P10M
b.3 With members and have an

accumulated reserves and none none 5%
undivided net savings of
more than P10M
CREDITABLE FINAL
TAX TAX
Payment to Cooperatives (other than Electric

Cooperatives duly registered with CDA)
SERVICES
A. 1. With BIR issued exemption certificate - none none none
2. W/o BIR issued exemption certificate 2% none 5%
GOODS
B. 1. With BIR exemption certificate none none none
2. Without BIR exemption certificate 1% none 5%
Payment for Trainings and Seminars 2% 3% 5%

Purchase of Gasoline/Petroleum Products 1% 3% 5%
For Services Rendered by Gasoline Stations 2% 3% 5%

CREDITABLE FINAL
TAX TAX
Payment of Insurance Premiums

Non-Life 2% 3% 5%
Life 2% 5% none
Payment for Purchase of Library Books 1% none None
Payment for Purchase of Other Library 1% 3% 5%
Materials
Payment for Services of the contractors:
Security, Janitorial, Maintenance of aircon, 2% 3% 5%
computers, elevators, etc.
Payment of Professional Services rendered by none 3% 5%
GPP
Payment of Professional Fee paid to Juridical 10% or
Person 15% 3% 5%
Payment of Professional Fee paid to Individuals 10% or 3% 5%
15%
CREDITABLE FINAL

TAX TAX
Payment for Purchase of Other Goods 1% 3% 5%
(for casual or single purchase of P10k & above)
Payment for Purchase of Agricultural Products

(except corn, coconut etc. per RR 6-2009) 1% none none
Payment of Commissions or Service Fees Paid

to Customs, Insurance, Real Estate, Stock, 10% 3% 5%
Immigration and Commercial Brokers
Payment for Purchase of Services other than

those covered by other rates of withholding 2% 3% 5%
tax (RR 17-2003)
(for single or casual purchase or P10k & above)
For Purchase of Land Classified as Ordinary 1.5%,
Asset 3%, 5% 3% 5%
or 6%
CREDITABLE FINAL
NATURE OF INCOME PAYMENT INCOME

TAX
%
TAX
VAT
For Land Improvements - goods 1% 3% 5%

-services 2% 3% 5%
For Buildings and Improvements
Straight Contract (Labor & Materials)-Service 2% 3% 5%
Separate Invoice/Billing for Materials-goods 1% 3% 5%
Separate Invoice/Billing for Labor 2% 3% 5%
For Furniture, Fixtures, and Equipment 1% 3% 5%
For Information Technology (IT) Equipment
- Services 1% 3% 5%
- Goods 2% 3% 5%
Payment to Radio & TV Broadcasting
Companies Whose Annual Gross Receipts do 2% 3% none
not exceed P10M and who are Non-VAT reg. TP
Payment to Agents of Foreign Insurance
Companies Insurance Agents 2% 10% none
CREDITABLE FINAL

TAX TAX
Payment to Agents of Foreign Insurance

Companies Owner of the Property 2% 5% none
Payment for Sale, barter or exchange of stocks of

Listed and traded through Local Stock 2% 1% none
Exchange
Payment for shares of stock sold or exchanged

through initial and secondary public offering
-not over 2% 2% 4% None
-over 25% but not exceeding 33 1/3% 2% 2% None
- Over 33 1/3% 2% 1% none
CREDITABLE FINAL

TAX TAX
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
2% 5% None
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% 5% none
2% 1% None
2. On dividends and equity shares and net income
of subsidiaries 2% 0% none
CREDITABLE FINAL

TAX TAX
3. On the following payments treated as gross

income under Sec. 32 of the Tax Code:
-Royalties None 7% None

-Rental of Property 5% 7% None
-Profits for exchange and all other items none 7% None
treated as gross income
4. On the net trading gains within the taxable

year on foreign currency, debt securities,
derivatives, and other similar financial None 7% None
instruments
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 GMP
Price Tax Base Tax Rate EWT % Tax
Rice 50,000.00 50,000.00 EWT 1% 500.00 None
Const. 44,800.00 44,800.00 EWT 1% 448.00

Materials GMP 3% 1,344.00
Repair of 22,400.00 22,400.00 EWT 2% 448.00

Aircon GMP 3% 672.00
Untis
Rental of 33,600.00 33,600.00 EWT 5% 1,680.00

Equipments GMP 3% 1,008.00
Answer VAT Supplier
Invoice GMP
Price Tax Base Tax Rate EWT VAT
Rice 50,000.00 50,000.00 EWT 1% 500.00 None
Const. EWT 1% 400.00

Materials 44,800.00 40,000.00 GMP 5% 2,000.00
Repair of
Aircon 22,400.00 20,000.00 EWT 2% 400.00
Untis GMP 5% 1,000.00
Rental of
Equipments 33,600.00 30,000.00 EWT 5% 1,500.00
GMP 5% 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
Compensation Income Defined
Compensation means all

remuneration for services
performed by an employee for his
employer under an employee-
employer 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 assigned to danger or strife-torn
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.
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, shall result to automatic
disallowance of expense on the part of the
employer.
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 Applicable Daily Wage Rate (ADR) x 261 days
12 months
Rate (EMR) =
Where 261 days 247- ordinary working days

11- regular holidays
3- Special days
261- 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
12 months
Rate (EMR) =

3- Special days

in NCR
12 months
P 9,964
3. For those who do not work but are
considered paid on rest days, special days
and regular holidays
12 months
Rate (EMR) =

52 Sunday/Rest days
3- Special days

in NCR
12 months
P 11,619
4. For those who are required to work
everyday including Sundays or rest day,
special days & regular holidays:
12 months
Rate (EMR) =
Where 392.5 days 299 - ordinary working days

22 - regular holidays
67.6 - 52 rest days x 130%
3.9 - Special days
392.5 - Total number of days/year

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.
-13thmonth 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 P 12,000.00
Less : compensation level(line A-2 column 5) 10,000.00
Excess 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%) 1,400.00
Withholding tax for Jan. 2011 P 2,108.33

Applicable Wtax Table
Monthly 1 2 3 4 5 6 7 8
Exemption 0.00 0.00 41.67 208.33 1,875 4,166.67 10,416.67

Status 0% over +5% +10% +15%
over over
A. Table for employees without qualified dependent
0.0 0 833 2,500 5,833 11,667 20,833 41,667

1. Z 1
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 12,191.63
Total P14,299.66
Gross Income P149,000.00
Exemption Single 50,000.00
Taxable Income P 99,000.00
Tax due P 14,300.00

Tax Table
But not Of excess

Over over Amount rate over
Not over 10,000.00 5%
10,000.00 30,000.00 P500 + 10% 10,000.00
30,000.00 70,000.00 2,500 + 15% 30,000.00
70,000.00 140,000.00 8,500 + 20% 70,000.00
140,000.00 250,000.00 22,500 + 25% 140,000.00
250,000.00 500,000.00 50,000 + 30% 250,000.00
500,000.00 over 125,000 + 32% 500,000.00
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.. 2,000
Hazard Pay. 1,000
Overtime 5,000
Night shift differential 2,000
Computation:
Statutory Minimum Wage P 7,460.00

Gross Benefits
Hazard pay P 1,000.00
Overtime 5,000.00
Night Shift Differential 2,000.00 8,000.00
Sub-total P 15,460.00
Taxable compensation
commission* P 10,000.00
Transportation* 2,000.00 12,000.00
Total Taxable Compensation Income P 27,460.00
Regular compensation P 7,460.00

Less: Compensation Level (B-1 col3) 7,083.00
Excess P 377.00
Add: Supplementary compensation(8,000+12,000) 20,000.00
Total P 20,377.00
Continuation..
Tax on P7,083 (Line B1, col. 3) P 41.67

Tax on excess (P20,377 x 10%) 2,037.70
Withholding tax January 2011 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 Of excess

Over over Amount rate over
Not over 10,000.00 5%
10,000.00 30,000.00 P500 + 10% 10,000.00
30,000.00 70,000.00 2,500 + 15% 30,000.00
70,000.00 140,000.00 8,500 + 20% 70,000.00
140,000.00 250,000.00 22,500 + 25% 140,000.00
250,000.00 500,000.00 50,000 + 30% 250,000.00
500,000.00 over 125,000 + 32% 500,000.00
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 P 45,000.00
Overtime Pay for Nov. 5,000.00
Thirteenth Month Pay 45,000.00
Other Benefits 12,000.00
Withholding Tax 98,082.00
COMPUTATION:` Received Non-
For the Year Taxable Taxable

Basic Salary (P45K x
12) 540,000.00 540,000.00
Overtime (Nov.) 5,000.00 5,000.00

13th Month Pay 45,000.00 30,000.00 15,000.00
Other Benefits 12,000.00 12,000.00
Totals 602,000.00 30,000.00 572,000.00
Total Gross Compensation 572,000.00
Less:Personal exemption 50,000.00

Additional exemption (2 x P25k) 50,000.00 100,000.00
Net Taxable Compensation 472,000.00
Tax Due (using the Income Tax Table) 116,600.00

Less: Tax Withheld from previous months(Jan-Nov) 98,082.27
Tax to be collected in Dec 2010 18,517.73

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 50,000
Married 50,000
Qualified dependent child 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
The 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
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
Responsible for withholding and
remittance of correct amount of tax
Employee
Responsible for submission of 1902 / 2305
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
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.
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
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
Requirement for List of Payees

Lessthan 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
A B C
Compensation Income-net 200,000 200,000 200,000
Less: Exemption (single) 50,000 50,000 50,000
Taxable Income 150,000 150,000 150,000
Tax Due 25,000 25,000 25,000
Less: Tax Withheld Jan- 25,000 22,500 27,000
Nov 0__
EVEN 2,500
PAYABLE (2,000)
REFUNDABLE
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 10-
2008) 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) P 90,000.00
Add Compensation to be received on June 18,000.00
Gross compensation (Jan. to June 2010) P108,000.00
Less Personal Exemption 50,000.00
Net Taxable Compensation P 58,000.00
Tax Due P 6,700.00*
Less Tax Withheld from Jan. to May 15,208.75
To be refunded to Ms. Jally Vi (P 8,508.75)

*Tax on P30,000 - P 2,500
Tax on excess (P28,000 x 15%) 4,200
Tax on P83,000.00 P 6,700
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) P159,500.00

Add: Dec. compensation 14,500.00
Gross Compensation P174,000.00
Less: Personal/additional exemption 100,000.00
Total Compensation P 74,000.00
Tax due P 9,300.00

Less: Tax Withheld 8,158.00
Collectible W/tax for Dec. salary P 1,142.00
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 xxx
Taxable Compensation Income xxxx
====
Tax Due xxx
Tax Withheld (Jan. Nov. OR termination date) xxx
Collectible: Tax due > tax withheld Collect before payment of last wage
Refund: Tax due < tax withheld Refund on or before Jan. 25th of the
year /last payment of wage
Break even: Tax due = tax withheld Do not withhold for Dec. salary
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) Employees terminated before December 31;
(2) Employees whose compensation income are exempt from
withholding tax but subject to income tax;
(3) Employees whose compensation income are exempt from
withholding tax and not subject to income tax (minimum wage
earners);
(4) 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 TIN Registered name Return Return ATC Nature of income AMOUNT Tax rate Tax
no. Inclu- (Alphalist) period Period 5 payment Tax base 8 Withheld
ding 6 7 9
1 branch 3 From To
code Mm/dd/yy Mm/dd/y
2 4a y
4b
1
TOTAL P
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 ofincome 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. 1601-
E, 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 Registered Name Return ATC Nature of income AMOUNT Tax rate Tax Withheld
Seq Inclu- (Alphalist) period 5 payment Tax base 8 9
ding
no. 3 mm/yy 6 7
branch
1 code 4
2
1
2
3
4
5
TOTAL P
AMOUNT
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 - hard copy
10 or more payees - 3.5 diskette
EFPS regardless of the - e-attach

number of income payees/
income recipient
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 DLN:
2316
SAW
BIR Form No.
Republika ng Pilipinas
Certificate of Compensation
Kagaw aran ng Pananalapi
Kawanihan ng Rentas Internas
For Compensation Payment With or Without Tax Withheld
Payment/Tax Withheld 2316
October 2002 (ENCS)
(To be filled up by the B IR) 1 For the Year 1 2 For the Period
DLN: PSIC: ( YYYY ) From (MM/DD) To (MM/DD)
Part I Em ployee Inform ation Part IVD et ails o f C o mp ensat io n Inco me and T ax W it hheld f r o m Pr esent Emp lo yer
Republika ng Pilipinas Monthly Remittance Return BIR Form No. 3 Taxpayer 3 Amount
Identification No. A. Non-Taxable/Exem pt Com pensation Incom e
of Creditable Income Taxes
Kaw anihan ng Rentas Internas
(Except for transactions involving onerous transfer
Withheld (Expanded) April 2003 (ENCS)
1601-E 4 Employee's Name (Last Name, First Name, Middle Name) 5 RDO Code 25 13th Month Pay and
Other Benefits
25
of real property classified as ordinary 26 SSS, GSIS, PHIC & Pag-ibig 26

Fill in all applicable spaces. Mark all appropriate boxes w ith an X. 6 Registered Address 6A Zip Code Contributions, & Union dues
1 For the Month 2 Amended Return? 3 No. of Sheets Attached 4 Any Taxes Withheld? 27 Salaries & Other Forms of 27
(MM / YYYY) Yes No Compensation
Yes No
Part I Ba c k g r o u n d I n f o r m a t i o n 6B Local Home Address 6C Zip Code 28 Total Non-Taxable/Exempt 28
5 TIN 6 RDO Code 7 Line of Business Compensation Income
T
6D Foreign Address 6E Zip Code B. Taxable Com pensation Incom e
8 Withholding Agent's Name (Last Name, First Name, M iddle Name fo r Individuals)/(Registered Name fo r No n-Individuals) 9 Telephone Number
REGULAR
7 Date of Birth (MM/DD/YYYY) 8 Telephone Number 29 Basic Salary 29
10 Registered Address 11 Zip Code
FORMAT
12 Category of Withholding Agent 13 Are there payees availing of tax relief under special law or international tax treaty? 9 Exemption Status 30 Representation 30
Private Government Yes No If yes, specify Single Head of the Family Married
Part II
NATURE OF INCOME PAYMENT
Com putation of Tax
ATC TAX BASE
TAX TAX REQUIRED
9A Is the w ife claiming the additional exemption for qualified dependent children?
Yes No 31 Transportation 31
Annex B
RATE TO BE WITHHELD
10 Name of Qualified Dependent Children 11 Date o f B irth (M M /DD/YYYY)
32 Cost of Living Allow ance 32

BIR REGISTERED NAME
33 Fixed Housing Allow ance 33
34 Others (Specify) TRADE NAME
12 Other Dependent (to be accomplished if taxpayer is head of the family) 3 4 A 34A
Name of Dependent Relationship
Date o f B irth
(M M /DD/YYYY
ADDRESS
34B 34B
Part II Em ployer Inform ation (Present) SUPPLEMENTARY

TIN
13 Taxpayer 13 35 Commission 35
Identification No.
14 Employer's Name 36 Profit Sharing 36
37 Fees Including Director's
Fees
37 MONTHLY ALPHALIST OF WITHHOLDING TAXES (MAWT)
15 Registered Address 15A Zip code 38 Taxable 13th Month Pay
and Other Benefits
38 RETURN PERIOD
39 Hazard Pay 39
main employer secondary employer 40 Others (Specify)
Part III
16 Taxpayer
Em ployer Inform ation (Previous)-1
16 40A 40A
Seq TIN Registered Name Return Nature of income ATC Tax rate Tax base Tax
Identification No.
17 Employer's Name 40B 40B
no. (Alphalist) period payment Withheld
41 Total Taxable Compensation 41 3 mm/yy 5
18 Registered Address 18A Zip code Income
Sum m ary 1 2 4 6 7 8 9
42 Taxable Compensation Income42
19 Taxpayer
19
from Present Employer
43 Add: Taxable Compensation 43
1
14 Total Tax Required to be Withheld and Remitted 14
15 Less: Tax Remitted in Return Previously Filed, if this is an amended return 15 Identification No. from Previous Employer (s)
16 Tax Still Due/(Overremittance) 16
20 Employer's Name 44 Gross Taxable
Compensation Income
44 2
17 Add: Penalties Surcharge Interest Compromise 45 Less: Total Exemptions 45
17A 17B
18 Total Amount Still Due/(Overremittance) (Sum of Items 16 & 17D)
17C 17D
18
21 Registered Address 21A Zip code 46 Less: Premium Paid on
Health and/or Hospital 46
3
Insurance (If applicable)
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.
22
47 Taxable 47 4
22 Taxpayer Compensation Income
19 20
Identification No.
23 Employer's Name
48 Tax Due
49 Amount of Taxes Withheld
48
5
President/Vice President/Authorized Representative/Tax Agent Treasurer/Asst. Treasurer/Authorized Representative 49A Present Employer 49A
(Signature Over Printed Name) (Signature Over Printed Name) TOTAL P P
24 Registered Address 24A Zip code 49B Previous Employer(s) 49B
Title/Position of Signatory Title/Position of Signatory

50 Total Amount of Taxes
Withheld
50 AMOUNT
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) Tax A gent A ccreditatio n No ./Date o f A ccreditatio n (if applicable)
Part III Details of Paym ent Stamp of Receiving
Draw ee Bank/ Date Office and
Particulars Agency Num ber MM DD YYYY Am ount Date of Receipt
21 Cash/Bank 21
1701/Q (To be filled up by the B IR)

DLN:
Monthly Remittance Return
Withheld (Expanded)
PSIC:
BIR Form No.
1601-E
2307/2316 FORMAT
SAWT
(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?
Annex B
3 No. of Sheets Attached 4 Any Taxes Withheld?
(MM / YYYY) Yes No 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
Summary List of Creditable Withholding Tax at Source (2307) Received BIR REGISTERED NAME
For the Period 1
TRADE NAME
12 Category of Withholding Agent
Private Government
13 Are there payees availing of tax relief under special law or international tax treaty?
Yes No If yes, specify
From
( M M / DD / YYYY )
To
( M M / DD / YYYY ) ADDRESS
Part I P a y e e I n f o r m a t i o n
Part II
Com putation of Tax
ATC TAX BASE
TAX TAX REQUIRED 2 Taxpayer 2 2A Zip 3 Payee's Name (Last Name, First Name, M iddle Name fo r Individuals)(Registered Name fo r No n-Individuals) TIN
RATE TO BE WITHHELD Identification No. Code
Registered Address 4A Foreign

Address MONTHLY ALPHALIST OF WITHHOLDING TAXES (MAWT)
Part II Sum m ary List of Payors
Payor's Nam e Am ount of Incom e Paym e nts RETURN PERIOD
Payor's Last Name, First Name, Middle Name for Individuals ATC 1st Month 2nd Month 3rd Month Tax Withheld
TIN Registered Name for Non-Individuals of the Quarter of the Quarter of the Quarter Total For the Quarter
3 mm/yy 5
1 2 4 6 7 8 9
1
2
3
4
5
15 Less: Tax Remitted in Return Previously Filed, if this is an amended return 15 TOTAL P P
17 Add: Penalties Surcharge Interest Compromise AMOUNT
17A 17B 17C 17D
18 Total Amount Still Due/(Overremittance) (Sum of Items 16 & 17D) 18
19 20
President/Vice President/Authorized Representative/Tax Agent Treasurer/Asst. Treasurer/Authorized Representative
(Signature Over Printed Name) (Signature Over Printed Name)
TOTAL: P P P P P
Note: The taxpayer/filer attest to the accuracy of the information entered herein.
INCOME
21 Cash/Bank 21
1702/Q 2307 SAWT

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

1601-E
1 For the Month 2 Amended Return? 3 No. of Sheets Attached 4 Any Taxes Withheld? Republika ng Pilipinas
Summary List of Creditable Withholding Tax at Source (2307) Received
(MM / YYYY) Yes No Yes No Kagaw aran ng Pananalapi
Part I
5 TIN
Ba c k g r o u n d I n f o r m a t i o n
6 RDO Code 7 Line of Business For the Period 1
FORMAT
From To
8 Withholding Agent's Name (Last Name, First Name, M iddle Name fo r Individuals)/(Registered Name fo r No n-Individuals) 9 Telephone Number ( M M / DD / YYYY ) ( M M / DD / YYYY )

2 Taxpayer 2 2A Zip 3 Payee's Name (Last Name, First Name, M iddle Name fo r Individuals)(Registered Name fo r No n-Individuals) Annex B
Identification No. Code
12 Category of Withholding Agent 13 Are there payees availing of tax relief under special law or international tax treaty?
Private Government No If yes, specify Registered Address 4A Foreign
Part II
Yes
Com putation of Tax
Address BIR REGISTERED NAME
TAX TAX REQUIRED Part II Sum m ary List of Payors
NATURE OF INCOME PAYMENT ATC TAX BASE
RATE TO BE WITHHELD
Payor's Nam e Am ount of Incom e Paym e nts
TRADE NAME
Payor's
TIN
Last Name, First Name, Middle Name for Individuals
Registered Name for Non-Individuals
ATC 1st Month
of the Quarter
2nd Month
of the Quarter
3rd Month
of the Quarter Total
Tax Withheld
For the Quarter ADDRESS
TIN
MONTHLY ALPHALIST OF WITHHOLDING TAXES (MAWT)
(PAYEES)
RETURN PERIOD
3 mm/yy 5
1 2 4 6 7 8 9
1
2
BIR
3
15 Less: Tax Remitted in Return Previously Filed, if this is an amended return
16 Tax Still Due/(Overremittance)
15
16 4
17 Add: Penalties Surcharge Interest
17A 17B 17C
Compromise
17D 5
TOTAL P P
TOTAL: P P P P P AMOUNT
19 20 Note: The taxpayer/filer attest to the accuracy of the information entered herein.
2550M/Q
21 Cash/Bank 21
2551M/2553 SAWT
DLN:
Part I
5 TIN
8
(Except f or transactions involving onerous transf er
of real property classif ied as ordinary
(MM / YYYY)
Withholding Agent's Name
10 Registered Address
Withheld (Expanded)
1 For the Month 2 Amended Return?
Yes No
3 No. of Sheets Attached
Ba c k g r o u n d I n f o r m a t i o n
6 RDO Code 7 Line of Business
April 2003 (ENCS)
4 Any Taxes Withheld?

Yes
(Last Name, First Name, M iddle Name fo r Individuals)/(Registered Name fo r No n-Individuals)

PSIC:
BIR Form No.
1601-E
11
Telephone Number
Zip Code
No
For the Period 1

2307
Summary List of Creditable Withholding Tax at Source (2307) Received
FORMAT
Annex B
12 Category of Withholding Agent 13 Are there payees availing of tax relief under special law or international tax treaty? From To
Private Government No If yes, specif y
Part II
Yes
Com putation of Tax
( M M / DD /
YYYY ) ( M M / DD / YYYY )
BIR REGISTERED NAME
TAX TAX REQUIRED 2 Taxpayer 2 2A Zip 3 Payee's Name (Last Name, First Name, M iddle Name fo r Individuals)(Registered Name fo r No n-Individuals)
NATURE OF INCOM E PAYM ENT ATC TAX BASE
RATE TO BE WITHHELD Identification No. Code TRADE NAME
Registered Address 4A Foreign ADDRESS
Address
Part II Sum m ary List of Payors TIN
Payor's Nam e Am ount of Incom e Paym e nts
Payor's Last Name, First Name, Middle Name for Individuals ATC 1st Month 2nd Month 3rd Month Tax Withheld
TIN Registered Name for Non-Individuals of the Quarter of the Quarter of the Quarter Total For the Quarter
RETURN PERIOD
3 mm/yy 5
1 2 4 6 7 8 9
1
2
3
15
16 4
17 Add: Penalties Surcharge Interest
17A 17B 17C
Compromise
17D 5
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 ,
TOTAL P P
is true and correct, pursuant to the provisions of the National Internal Revenue Code, as amended, and the regulations issued under authority thereof .
AMOUNT
19 20
TOTAL: P P P P P
Note: The taxpayer/filer attest to the accuracy of the information entered herein.
Part III De tails of Paym e nt Stamp of Receiving
Draw e e Bank / Date Of f ice and
Particulars Age ncy Num be r MM DD YYYY Am ount Date of Receipt
21 Cash/Bank 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 Monthly Remittance Return of

Creditable Income Taxes Withheld
(Expanded Withholding tax)
BIR Form No. 1601-F Monthly Remittance Return of
Final Taxes Withheld
BIR Form No. 1600 Monthly Remittance Return of
Value Added Tax and Other Percentage Taxes
(Under RAs 1051, 4649, 8241 and
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 MAP
DLN: PSIC:

1601-E FORMAT
Annex B
1 For the Month 2 Amended Return? 3 No. of Sheets Attached 4 Any Taxes Withheld?

BIR REGISTERED NAME
Private Government
Yes No If yes, specify
TRADE NAME
Part II
Com putation of Tax
ATC TAX BASE
TAX TAX REQUIRED
ADDRESS
RATE TO BE WITHHELD
TIN

RETURN PERIOD
3 mm/yy 5
1 2 4 6 7 8 9
1
2
15
16
3
17 Add: Penalties
17A
Surcharge
17B
Interest
17C
Compromise
17D 4
5
19
President/Vice President/Authorized Representative/Tax Agent
20
Treasurer/Asst. Treasurer/Authorized Representative
TOTAL P P
AMOUNT
21 Cash/Bank 21
1601-F MAP
WITHHOLDING (To be filled up by the B IR)
DLN:
Withheld (Expanded)
PSIC:
BIR Form No.
1601-E
April 2003 (ENCS)
FORMAT
Annex B
BIR REGISTERED NAME
AGENTS
8 Withholding Agent's Name (Last Name, First Name, M iddle Name fo r Individuals)/(Registered Name fo r No n-Individuals) Telephone Number
9
11 Zip Code
TRADE NAME
Private Government
No If yes, specify
ADDRESS
Yes
Part II
Com putation of Tax
ATC TAX BASE
TAX TAX REQUIRED
TIN
RATE TO BE WITHHELD

RETURN PERIOD
3 mm/yy 5
1 2 4 6 7 8 9
1
(PAYORS)
2
14 Total Tax Required to be Withheld and Remitted
14
15
16
3
17 Add: Penalties
17A
Surcharge
17B
Interest
17C
Compromise
17D
4
5
19 20 TOTAL P P
BIR
AMOUNT
21 Cash/Bank 21
1600 MAP
DLN: PSIC: FORMAT
1601-E
Annex B
8 Withholding Agent's Name (Last Name, First Name, M iddle Name fo r Individuals)/(Registered Name fo r No n-Individuals) 9 Telephone Number BIR REGISTERED NAME
12 Category of Withholding Agent 13 Are there payees availing of tax relief under special law or international tax treaty?
11 Zip Code
TRADE NAME
Part II
Private Government Yes No If yes, specify
Com putation of Tax
TAX TAX REQUIRED
ADDRESS
NATURE OF INCOME PAYMENT ATC TAX BASE
RATE TO BE WITHHELD
TIN

RETURN PERIOD
3 mm/yy 5
1 2 4 6 7 8 9
14 Total Tax Required to be Withheld and Remitted
14
15
1
17 Add: Penalties
17A
Surcharge
17B
Interest
18 Total Amount Still Due/(Overremittance) (Sum of Items 16 & 17D)

17C
Compromise
17D
18
2
19 20
3
4
5
Part III
Particulars
Draw ee Bank/
Agency Num ber
Details of Paym ent
MM
Date
DD YYYY Am ount
Stamp of Receiving
Office and
Date of Receipt
TOTAL P P
21 Cash/Bank 21
AMOUNT
MAP ATTACHMENT BY
WITHHOLDING AGENT (PAYOR)
JAN FEB MAR APR
FOR 1601-E
MANUAL/ 1601-F
E-FILERS 1600 *
MAPs shall start JAN 2006

With existing Monthly
To be remitted FEB 10th
Alphabetical List
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.
In cases where a violation hereof is allowed to be

compromised, the submission of the unsubmitted lists
should always form part of the obligation of the taxpayer to
be embodied in the compromise agreement.
The end

Lecture Wtax 02.25.11 Final

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Lecture Wtax 02.25.11 Final

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WITHHOLDING TAX

Pagaduan & Donga

Withholding Tax on Compensation

Expanded Withholding Tax

Final Withholding Tax; and

Withholding Tax on Government

To deduct and withhold

To remit the tax withheld

1903 CORPORATIONS / GOCC /PARTNERSHIP

1903 GOVERNMENT AGENCIES / LGUs

WHEN: ON OR BEFORE COMMENCEMENT OF BUSINESS/

TIME TAX BASE

GMP WHEN PAID /

FINAL WHEN PAID /

COMPENSATION 2316 Jan 31 of the ff year

TYPE FORM DESCRIPTION TIME

the amount of income tax taxes withheld are

liability rests with the the income recipient is still

Juridical persons, whether or not engaged in

A. Professional fees, 15% if gross income exceeds P720T

Every individual shall periodically disclose his

Can also be filed by the income payor on behalf of the

Should be filed on June 30 of each year or w/in 15 days

B. Professional Fees, 15% if gross income exceeds P720T

C. Rentals On real properties 5%

On personal properties - on gross rental

Poles, satellites and transmission

D. Cinematographic 5% on gross payment

- General engineering contractors

G. Gross payments to 10% on gross commissions or service fees

H.Income payments to On income payments made to partners such

2. PF paid by HMOs to medical practitioners

It shall be the duty of the hosp./clinic/HMO to remit

The W/tax shall not apply if there is proof that no PF

The hosp shall inform the BIR about any medical

Hospitals and clinics shall submit the names and

The hospitals and clinics shall be responsible for the

J. Gross selling price or Seller/transferor is exempt from CWT in accordance

K. Additional income On gross additional payments to govt. personnel

L. Certain income payments

M. Income payments made by

N. Income payments Supplier of goods 1%

O. Commissions of 10% on gross commissions, rebates, discounts, and

P. Tolling fees paid to 5% on gross processing/tolling fees

Q. Payments made by 1% on gross payments

R. Payments to 1% on gross payment

For purchases involving agricultural

Number of Year Purchase Amount

One 2009 P 90,000

Two 2010 320,000

One 2011 400,000

One 2012 90,000

In 2009 - not subject

Agricultural Products in their original state

corn copra poultry and

T. Income payments on 10% on income payments

U. MERALCO payments 10% / 20%

V. Interest income on the 10% / 20%

Interest from any peso bank deposit, and yield or any

Winnings (except Philippines Charity Sweepstakes

Royalties on books, as well as other literary works and musical

Interest income received by a resident individual taxpayer

Cash and/or property dividends (received by