withholding tax at source (revenue regulations no. 2-98, as amended) presented by: ms. susan d....

WITHHOLDING TAX AT SOURCE

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

Ms. Susan D. Tusoy, cpa, mpsAsst. 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. REGISTER1901 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 BASECOMPENSATION WHEN PAID /

CONTRUCTIVELY PAID

TAXABLE COMPENSATION INCOME

EXPANDED GMP (VAT PAYEE)

WHEN PAID / PAYABLE

GROSS PAYMENT(NET OF VAT)

GMP (NON VAT PAYEE)

WHEN PAID / PAYABLE GROSS PAYMENT

FINAL OTHER FINAL

WHEN PAID / PAYABLE GROSS PAYMENT

FRINGE BENEFITS WHEN PAID

GROSS –UP MONETARY VALUE

III. WITHHOLING TAX REMITTANCETYPES FORM MANUAL FILING/

PAYMENTEFPS FILING EFPS

PAYMENT

COMPEN-SATION

1601-C

10th day of the ff month except for the month of December which is due on the Jan. 15

Staggered Filing (RR 26-2002)

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

EXPANDED 1601-E

BANKS 1602

Real Property(Ordinary Asset)

1606 10th day of the ff month

Not applicable Not applicable

FINALOTHER FINAL

1601-F 10th day of the ff month

Staggered Filing (RR 26-2002)

15th day of the ff month

W/TAX ONVAT & PERCENTAGE

1600 (ALPHALIST)




FRINGE BENEFITS

1603 10th day of the month following the end of the qtr.

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

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 yearFor terminated employees - last payment of salary

EXPANDED 2304 (Exempt)

20 days ff. close of the quarteror upon demand

2307 (Taxable)

GOV’T. MONEY PAYMENTS

2307 For Non-VAT : 10th day of the ff month

2306 For VAT : 10th day on the month ff month

FINAL TAX 2306 Jan. 31 of the following year

FRINGE BENEFITS

2306 Jan. 31 of the following year

V. ANNUAL RETURNS

TYPE FORM DESCRIPTION TIME

COMPEN-SATION

1604 CF

Alphalist of employees

Less than 10 employees – manual filing10 employees or more - softcopyeFPS Filer - e-attach

Jan. 31 of the ff year

EXPANDED

1604E Alphalist of payees

Less than 10 payees – manual filing10 payees or more - softcopyeFPS Filer - 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

• taxes withheld are intended to equal the tax due of the payee on the said income

• liability rests with the payor as withholding agent

• the income recipient is still 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 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 profession2)Professional entertainers3)Professional athletes4)Directors and producers of movies, stage, etc.5)Insurance agents and adjusters6)Management and technical consultants7)Bookkeeping agents and agencies8)Other recipients of talent fees9)Fees of directors who are not employees of the company.


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.


DESCRIPTION

B. Professional Fees, talent fees, etc., for services of taxable juridical persons

C. Rentals

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%


DESCRIPTION

D. Cinematographic film rental and other payments

E.Income Payments to certain contractors

F.Income distribution to the beneficiaries

5% on gross payment

2% on gross payments of the ff:

- General engineering contractors - General building contractors - Specialty contractors - other contractors

15% on the income distributed to the beneficiaries of estates and trusts


DESCRIPTION

G. Gross payments to certain brokers and agents

H.Income payments to partners of general professional partnerships

10% on gross commissions or service fees

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

DESCRIPTION

I. Professional fees paid to medical practitioners

15% if gross income exceeds P720T 10% if otherwise

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.


DESCRIPTION

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

•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

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%


DESCRIPTION

K. Additional income payments to gov’t. 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

On gross additional payments to gov’t. 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%


DESCRIPTION

N. Income payments made by the gov’t. 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

Supplier of goods – 1%Supplier of services – 2%

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


DESCRIPTION

P. Tolling fees paid to refineries

Q. Payments made by pre-need companies to funeral parlor

R. Payments to embalmers

S. Income payments to suppliers of agricultural products

5% on gross processing/tolling fees

1% on gross payments

1% on gross payment

1%

On Agricultural ProductsOn Agricultural Products23

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

Year Purchase Amount

One 2009 P 90,000

Two 2010 320,000

One 2011 400,000

One 2012 90,000

Amount of EWT:

In 2009 - not subjectIn 2010 - P20,000 x 1% = P200.00In 2011 - P100,000 x 2% = P1,000In 2012 - not subject

On Agricultural ProductsOn Agricultural Products

Agricultural Products in their original state shall only include:


DESCRIPTION

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

U. MERALCO payments

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

10% on income payments

10% / 20%

10% / 20%

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%


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%


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%


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

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 GOVERNMENT MONEY PAYMENTS

RMC 56-2009

RA 9337 NIRC

3%on gross payment for

the purchase of goods6%

on gross receipts for services by contractors

8.5%on government public works contractors

5% Final VAT

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

Final Withholding VAT on Government Purchases

CREDITABLE FINAL

NATURE OF INCOME PAYMENT INCOME TAX

% TAX

VAT

Communication Services (Smart, PLDT, etc)2% 3% 5%

Repairs and Maintenance of Gov’t. Facilities and Vehicles

2% 3% 5%

Transport of Goods, Merchandise, Cargo

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

2% 3% 5%

domestic – air, sea & land (Phils to foreign country)

2% none none

Int’l. – air & sea (Phils. To Foreign) 2% 3% none

CREDITABLE FINAL


% TAX

VAT

Transport of Passengers:

domestic –air, & sea (w/in the Phils)

2% none 5%

domestic – land (w/in the Phils)2% 3% none

Int’l. – air & sea (Phils. To Foreign)2% 3% none

Purchase of Supplies & Materials, including equipments

1% 3% 5%

CREDITABLE FINAL


% TAX

VAT

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 except financial leasing)

5% 3% 5%

Payment for:

a. Use or Lease of property or property rights to non-resident owner

None None 12%

b. Services rendered by local insurance companies with respect to reinsurance premiums payable to non-residents

None None 12%

c. Other services rendered in the Phils. by non-residents None None 12%

CREDITABLE FINAL


% TAX

VAT

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, 2009 (BIR Ruling No. DA-278-2009)

none none 5%

Other Water Utilities 2% 2% 5%

CREDITABLE FINAL


% TAX

VAT

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 undivided net savings of not more than P10M

none none 5%

b.3 With members and have an accumulated reserves and undivided net savings of more than P10M

none none 5%

CREDITABLE FINAL


% TAX

VAT

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

VAT

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 Materials

1% 3% 5%

Payment for Services of the contractors: Security, Janitorial, Maintenance of aircon, computers, elevators, etc.

2% 3% 5%

Payment of Professional Services rendered by GPP

none 3% 5%

Payment of Professional Fee paid to Juridical Person

10% or 15% 3% 5%

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

3% 5%

CREDITABLE FINAL


% TAX

VAT

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

1% 3% 5%

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, Immigration and Commercial Brokers

10% 3% 5%

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)

2% 3% 5%

For Purchase of Land Classified as Ordinary Asset

1.5%, 3%, 5% or 6%

3% 5%

CREDITABLE FINAL


% TAX

VAT

For Land Improvements - goods -services

1%2%

3%3%

5%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 - Goods

1%2%

3%3%

5%5%

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

2% 3% none

Payment to Agents of Foreign Insurance Companies –Insurance Agents 2% 10% none

CREDITABLE FINAL


% TAX

VAT

Payment to Agents of Foreign Insurance Companies – Owner of the Property 2% 5% none

Payment for Sale, barter or exchange of stocksListed and traded through Local Stock Exchange

2%½ of 1% none

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%

2%2%2%

4%2%1%

NoneNonenone

CREDITABLE FINAL


% TAX

VAT

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

2%

2%2%

2%

5%

5%1%

0%

None

noneNone

none

CREDITABLE FINAL


% TAX

VAT

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

None 5%none

7%7%7%

NoneNoneNone

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 - 33,600.00Compute 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 Tax Base Tax Rate EWT

GMP % Tax

Rice 50,000.00 50,000.00 EWT 1% 500.00 None

Const. Materials

44,800.00 44,800.00 EWT – 1%GMP – 3%

448.001,344.00

Repair of Aircon Untis

22,400.00 22,400.00 EWT – 2%GMP – 3%

448.00 672.00

Rental of Equipments

33,600.00 33,600.00 EWT – 5%GMP – 3%

1,680.001,008.00

Answer – VAT Supplier

Invoice Price

Tax Base Tax Rate EWT

GMP VAT

Rice 50,000.00 50,000.00 EWT 1% 500.00 None

Const. Materials 44,800.00 40,000.00

EWT – 1%GMP – 5%

400.00 2,000.00

Repair of Aircon Untis

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. BenedictoRevenue Officer

RDO 113-West Davao

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 employer’s 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. Damages7. Life Insurance8. Amount Received by the Insured as a

Return of Premium


9. Compensation for Injuries or sickness10. Income Exempt Under Treaty11. 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 BENEFITSc) 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

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

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.


(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 payovertime paynight shift differential

payhazard 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 MWEsActually assigned to danger or strife-torn

areasDisease-infested placesDistressed 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.


(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) =

Applicable Daily Wage Rate (ADR) x 261 days 12 months

Where 261 days 247- ordinary working days 11- regular holidays 3- Special days261- Total number of days/year

Example: P 382.00 MWE in NCR

Equivalent Monthy Rate= P 382.00 x 261 days 12 monthsP 8,308

2. For those who do not work and are not considered paid on Sundays or rest day



Where 313 days 299- ordinary working days 11- regular holidays 3- Special days313- Total number of days/year



3. For those who do not work but are considered paid on rest days, special days and regular holidays



Where 365 days 299- ordinary working days 11- regular holidays 52 – Sunday/Rest days 3- Special days365- Total number of days/year



4. For those who are required to work everyday including Sundays or rest day, special days & regular holidays:



Where 392.5 days 299 - ordinary working days 22 - regular holidays 67.6 - 52 rest days x 130% 3.9 - Special days392.5 - Total number of days/year


Equivalent Monthy Rate= P 382.00 x 392.5 days 12 monthsP 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).

(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

Sec. 2.79. (B) Computation of Withholding tax

Use of WTax TableFour 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

(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 allowancesSupplementary compensation – commission, overtime pay, taxable retirement pay, taxable bonus and other taxable benefits

Steps to determine the amount of tax to be withheld

(4)Use the appropriate tables (5) Fix the compensation level using

the regular compensation income.(6) Compute the withholding tax due.

Steps……..

(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.

Illustration

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

Let’s 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 excessOver 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 7,460.00Gross Benefits

Hazard pay P 1,000.00Overtime 5,000.00Night Shift Differential 2,000.00 8,000.00

Sub-total P 15,460.00Taxable compensation

commission* P 10,000.00Transportation* 2,000.00

12,000.00Total Taxable Compensation Income P 27,460.00

Regular compensation P 7,460.00Less: Compensation Level (B-1 col3) 7,083.00Excess P 377.00Add: Supplementary compensation(8,000+12,000) 20,000.00Total 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 excessOver 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 Employer’s and Employee’s Information

PERSONAL AND ADDITIONAL EXEMPTION

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 deductibilityCompensation 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 employer’s 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 employee’s 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

e.) Medical Certificate of qualified dependent child, if physically/mentally incapacitated;

f.) Court decision of legal adoption of children

g.) Death certificate

Additional requisites (cont….)

Failure to Register / Update

Failure to file 1902The employer shall withhold under

zero exemptionFailure 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

EmployerResponsible for withholding and

remittance of correct amount of taxEmployee

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 employer’s

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

employer’s 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 ReturnDue date: Jan. 31 of the succeeding yearEmployers 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 PayeesLess than ten (10) payees

Manually prepared alphalistWith ten(10) or more payees

Manually prepared alphalist + softcopyIn diskette/cd/or email: [email protected]

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 OFYEAR -END ADJUSTMENT

Compensation Income-net

Less: Exemption (single)

Taxable IncomeTax DueLess: Tax Withheld Jan-

NovEVENPAYABLEREFUNDABLE

A B C200,000 200,000 200,000 50,000 50,000

50,000150,000 150,000

150,000 25,000 25,000 25,000 25,000 22,500 27,000 0__ 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


4. Deduct the amount of premium payments on health and/or hospitalization insurance on employees Present proof of premium payments (orig’l. 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.


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) P159,500.00Add: Dec. compensation 14,500.00Gross Compensation P174,000.00Less: Personal/additional exemption 100,000.00

Total Compensation P 74,000.00

Tax due P 9,300.00Less: Tax Withheld 8,158.00

Collectible W/tax for Dec. salary P 1,142.00

Gross Compensation Income (present + previous employer) P xxxLess: Non-taxable/Exempt Compensation Income

a.) 13th month pay and other benefits 30,000b.) Other non-taxable benefits incl. de-minimis xxc.) SSS, GSIS,PHIC, HDMF& Union Dues (employees share only) xx

xxx

Less: a.) Personal and additional exemption xxb.) Health /Hospitalization premium payment (if applicable) xx

xxxTaxable Compensation Income xxxx

====Tax Due xxxTax 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

Annualized Withholding Tax

Seminar on Annualized Withholding Tax (Year-End Adjustment) and Substituted Filing (BI R Form 1700) TMD

SF 200 Slide 9

Annual Information Return (BIR Form 1604CF / 1604-E) Including the Alphabetical List of Employees and Income Recipient

• Manual submission – 3 copies of 1604CF / 1604E + alphalist of employees and income payees.

2. Diskette Submission – ten (10) or more number of employees or payees who are recipient of income payments subject to creditable

and final withholding tax, are required to submit 3.5 inch floppy diskusing any of the following options:

1. Excel Format Provided under Revenue Regulation No. 7 – 2000with technical specification with validation module prescribed byBIR.

2. Own extract program that shall meet the requirements specified inRR 7 – 2000 with validation module prescribed by BIR.

3. Data Entry Module using Visual Fox Pro.

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

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

Seminar on Annualized Withholding Tax (Year-End Adjustment) and Substituted Filing (BI R Form 1700) TMD

SF 200 Slide 2

Receiving purely compensation income regardless of amount;

Working for only one employer in the Philippines for the calendar year;

Income tax has been withheld correctly by the employer (tax dueequals tax withheld);

The employee’s spouse also complies with all the three conditionsstated above, and

Employer filed to BIR the Annual Information Returns on IncomeTaxes Withheld (BIR Form 1604-CF).

Note: All of the above requisites must be present. The Annual Information Returnof Income Taxes Withheld on Compensation and Final Withholding Taxes(BIR Form No. 1604-CF) filed by their respective employers duly stamped“Received”, shall be tantamount to the substituted filing of income taxreturns by said employees.

1.

2.

3.

5.

Individuals qualified for substituted filingand must not file BIR Form No. 1700

4.

Seminar on Annualized Withholding Tax (Year-End Adjustment) and Substituted Fi ling (BIR Form 1700) TMD

SF 200 Slide 8

Proof of financial capacity for purposes of loan, creditcard, or other applications;

Proof of payment of tax or for availing tax credit inthe employee’s home country;

Securing travel tax exemption, when necessary; and

Other purposes with various government agencies.

Uses of BIR Form 2316

WHERE TO FILE:

BIR (Collection Division of the Regional Office havingjurisdiction over the taxpayers principal place ofbusiness/Large Taxpayers Collection Division for largetaxpayers in Metro Manila/LTDO for large taxpayersoutside Metro-Manila)

IN 3 COPIESOriginal - BIR Collection DivisionDuplicate - BIR Withholding Tax DivisionTriplicate - taxpayer’s copy

(copy furnished all payors)

MANDATORY ATTACHMENTS :

1.SUMMARY ALPHALIST OF WITHHOLDING AGENTS OF INCOME PAYMENTS SUBJECTED TO TAX WITHHELD AT SOURCE (SAWT) TO TAX RETURNS WITH CLAIMED TAX CREDITS DUE TO CREDITABLE TAX WITHHELD AT SOURCE

2. MONTHLY ALPHALIST OF PAYEES (MAP) WHOSE INCOME RECEIVED HAVE BEEN SUBJECTED TO WITHHOLDING TAX IN THE WITHHOLDING TAX REMITTANCE RETURN FILED BY THE WITHHOLDING AGENT/PAYOR OF INCOME PAYMENTS

REVENUE REGULATIONS NO. 2-2006

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

FORMATAnnex “A”

BIR REGISTERED NAME TRADE NAME

ADDRESSTIN

SUMMARY ALPHALIST OF WITHHOLDING AGENTS OF INCOME PAYMENTS SUBJECTED TO WITHHOLDING TAX AT SOURCE (SAWT)From _______________ to _________________

Seq no.1

TINInclu-ding

branch code

2

Registered name (Alphalist)

3

Return period From

Mm/dd/yy

4a

Return Period

ToMm/dd/

yy

4b

ATC5

Nature of income payment

6

AMOUNTTax base

7

Tax rate8

Tax Withheld

9

1

2

3

4

5

TOTAL AMOUNT

P

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. 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 NAMEADDRESS

TINMONTHLY ALPHALIST OF PAYEES (MAP)

RETURN PERIOD (mm/yyyy)

Seq no.1

TINInclu-ding

branch code

2

Registered Name(Alphalist)

3

Return periodmm/yy

4

ATC5

Nature of income payment

6

AMOUNTTax base

7

Tax rate8

Tax Withheld9

1

2

3

4

5

TOTAL AMOUNT

P

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. 1701QBIR Form No. 1701BIR Form No. 1700 BIR Form No. 1702QBIR Form No. 1702BIR Form No. 2550QBIR Form No. 2550MBIR Form No. 2551M BIR Form No. 2553

For the Period 1From To

( M M / DD / YYYY ) ( M M / DD / YYYY )

Part I P a y e e I n f o r m a t i o n

2 Taxpayer 2 2A Zip 3 Payee's Name (Last Name, F irst Name, M iddle Name for Individuals)(Registered Name for Non-Individuals)

Identif ication No. Code

Registered Address 4A Foreign

Address

Part II Summary List of Payors

A m o u n t o f I n c o m e P a y m e n t sLast Name, First Name, Middle Name for Individuals A T C 1st Month 2nd Month 3rd Month Tax WithheldRegistered Name for Non-Individuals of the Quarter of the Quarter of the Quarter Total For the Quarter

P P P P P

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

Payor's Name

TOTAL:

Payor'sTIN

Republika ng PilipinasKagaw aran ng Pananalapi Kaw anihan ng Rentas Internas

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

2307/2316

(To be filled up by the BIR)DLN: PSIC:

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 No Yes NoPart I B a c k g r o u n d I n f o r m a t i o n5 TIN 6 RDO Code 7 Line of Business

8 Withholding Agent's Name (Last Name, First Name, M iddle Name for Individuals)/(Registered Name for Non-Individuals) 9 Telephone Number

10 Registered Address 11 Zip Code

12 Category of Withholding Agent 13 Are there payees availing of tax relief under special law or international tax treaty?Private Government Yes No If yes, specify

Part II Computation of Tax

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

16 Tax Still Due/(Overremittance) 1617 Add: Penalties Surcharge Interest

17A 17B 17C 17D18 Total Amount Still Due/(Overremittance) (Sum of Items 16 & 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 20

Part III Stamp of Receiving Drawee Bank/ Date Office and

Particulars Agency Number MM DD YYYY Amount Date of Receipt21 Cash/Bank 21

Details of Payment

Treasurer/Asst. Treasurer/Authorized Representative

Compromise

President/Vice President/Authorized Representative/Tax Agent

Tax Agent Accreditation No./Date of Accreditation (if applicable)

(Signature Over Printed Name)

Title/Position of Signatory



TIN of Tax Agent (if applicable)

NATURE OF INCOME PAYMENT TAXRATE

TAX REQUIREDA T C TAX BASE TO BE WITHHELD

April 2003 (ENCS)

Monthly Remittance Returnof Creditable Income Taxes

Withheld (Expanded)

BIR Form No.

(Except for transactions involving onerous transfer of real property classified as ordinary

1601-ERepublika ng PilipinasKagaw aran ng PananalapiKaw anihan ng Rentas Internas

1700













19 20



Details of Payment


Compromise










April 2003 (ENCS)


Withheld (Expanded)

BIR Form No.



1701/Q













19 20



Details of Payment


Compromise










April 2003 (ENCS)


Withheld (Expanded)

BIR Form No.



1702/Q













19 20



Details of Payment


Compromise










April 2003 (ENCS)


Withheld (Expanded)

BIR Form No.



2550M/Q 2551M/2553

FORMAT

Annex “B”

BIR REGISTERED NAMETRADE NAME

ADDRESSTIN

MONTHLY ALPHALIST OF WITHHOLDING TAXES (MAWT)RETURN PERIOD

Seqno.

1

TIN

2


3

Returnperiodmm/yy

4

Nature of incomepayment

5

ATC

6

Tax rate

7

Tax base

8

TaxWithheld

91

2

345

TOTALAMOUNT

P P

SAWT

FORMAT

Annex “B”


ADDRESSTIN


Seqno.

1

TIN

2


3

Returnperiodmm/yy

4


5

ATC

6

Tax rate

7

Tax base

8

TaxWithheld

91

2

345

TOTALAMOUNT

P P

SAWT

FORMAT

Annex “B”


ADDRESSTIN


Seqno.

1

TIN

2


3

Returnperiodmm/yy

4


5

ATC

6

Tax rate

7

Tax base

8

TaxWithheld

91

2

345

TOTALAMOUNT

P P

SAWT

FORMAT

Annex “B”


ADDRESSTIN


Seqno.

1

TIN

2


3

Returnperiodmm/yy

4


5

ATC

6

Tax rate

7

Tax base

8

TaxWithheld

91

2

345

TOTALAMOUNT

P P

SAWT

INCOME RECIPIENTS(PAYEES)

DLN:

1 For the Year 1 2 For the Period

( YYYY ) From (MM/DD) To (MM/DD)Part I Employee Information Part IVDetails of C ompensation Income and Tax Withheld from Present Employer

3 Taxpayer 3 Amount Identif ication No. A. Non-Taxable/Exempt Compensation Income4 Employee's Name (Last Name, First Name, Middle Name) 5 RDO Code 25 13th Month Pay and 25

Other Benefits26 SSS, GSIS, PHIC & Pag-ibig 26

6 Registered Address 6A Zip Code Contributions, & Union dues27 Salaries & Other Forms of 27 Compensation

6B Local Home Address 6C Zip Code 28 Total Non-Taxable/Exempt 28 Compensation Income

6D Foreign Address 6E Zip Code B. Taxable Compensation Income

7 Date of Birth (MM/DD/YYYY) 8 Telephone Number 29 Basic Salary 29

9 Exemption Status 30 Representation 30 Single Head of the Family Married

9A Is the w ife claiming the additional exemption for qualif ied dependent children?

Yes No 31 Transportation 31

10 Name of Qualif ied Dependent Children 11 Date of Birth (M M /DD/YYYY)

32 Cost of Living Allow ance 32

33 Fixed Housing Allow ance 3334 Others (Specify)

12 Other Dependent (to be accomplished if taxpayer is head of the family) 34A 34A

Name of Dependent Relationship 34B 34B

Part II Employer Information (Present) SUPPLEMENTARY13 Taxpayer 13 35 Commission 35 Identif ication No.

14 Employer's Name 36 Profit Sharing 3637 Fees Including Director's 37

Fees

15 Registered Address 15A Zip code 38 Taxable 13th Month Pay 38and Other Benefits

39 Hazard Pay 39

main employer secondary employer 40 Others (Specify)

Part III Employer Information (Previous)-116 Taxpayer 16 40A 40A

Identif ication No.17 Employer's Name 40B 40B

41 Total Taxable Compensation 4118 Registered Address 18A Zip code Income

Summary42 Taxable Compensation Income42

Employer Information (Previous)-2 from Present Employer19 Taxpayer 19 43 Add: Taxable Compensation 43 Identif ication No. from Previous Employer (s)20 Employer's Name 44 Gross Taxable 44

Compensation Income45 Less: Total Exemptions 45

21 Registered Address 21A Zip code 46 Less: Premium Paid onHealth and/or Hospital 46Insurance (If applicable)

Employer Information (Previous)-3 47 Taxable 4722 Taxpayer 22 Identif ication No. 48 Tax Due 4823 Employer's Name

49A Present Employer 49A

24 Registered Address 24A Zip code 49B Previous Employer(s) 49B50 Total Amount of Taxes 50

WithheldI declare, under the penalties of perjury, that this certificate has been made in good faith, verified by us, and to the best of our knowledge and belief, is true and correct

Republika ng PilipinasKagaw aran ng PananalapiKawanihan ng Rentas Internas 2316Certificate of Compensation

Payment/Tax WithheldFor Compensation Payment With or Without Tax Withheld October 2002 (ENCS)

BIR Form No.

Compensation Income

49 Amount of Taxes Withheld

Date of Birth (M M /DD/YYYY

REGULAR

2316







Address



P P P P P


Payor's Name

TOTAL:

Payor'sTIN



2307







Address



P P P P P


Payor's Name

TOTAL:

Payor'sTIN



2307

BIR

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 copyDuplicate copy of return with attached MAP - BIR copyTriplicate copy of return with attached MAP - taxpayer’s file

copy













19 20



Details of Payment


Compromise










April 2003 (ENCS)


Withheld (Expanded)

BIR Form No.



1601-E




8 Withholding Agent's Name (Last Name, First Name, Middle Name for Individuals)/(Registered Name for Non-Individuals) 9 Telephone Number




14 Total Tax Required to be Withheld and Remitted 1415 Less: Tax Remitted in Return Previously Filed, if this is an amended return 1516 Tax Still Due/(Overremittance) 1617 Add: Penalties Surcharge Interest



19 20



Details of Payment


Compromise










April 2003 (ENCS)


Withheld (Expanded)

BIR Form No.



1601-F













19 20



Details of Payment


Compromise










April 2003 (ENCS)


Withheld (Expanded)

BIR Form No.



1600

FORMAT

Annex “B”


ADDRESSTIN


Seqno.

1

TIN

2


3

Returnperiodmm/yy

4


5

ATC

6

Tax rate

7

Tax base

8

TaxWithheld

91

2

345

TOTALAMOUNT

P P

MAP

FORMAT

Annex “B”


ADDRESSTIN


Seqno.

1

TIN

2


3

Returnperiodmm/yy

4


5

ATC

6

Tax rate

7

Tax base

8

TaxWithheld

91

2

345

TOTALAMOUNT

P P

MAP

FORMAT

Annex “B”


ADDRESSTIN


Seqno.

1

TIN

2


3

Returnperiodmm/yy

4


5

ATC

6

Tax rate

7

Tax base

8

TaxWithheld

91

2

345

TOTALAMOUNT

P P

MAP

BIR

WITHHOLDING AGENTS(PAYORS)

JAN FEB MAR APR

1601-E 1601-F 1600 *

MAP ATTACHMENT BYWITHHOLDING AGENT (PAYOR)

FOR MANUAL/E-FILERS

MAPs shall start JAN 2006To be remitted FEB 10th

With existing MonthlyAlphabetical 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 Taxpayer’s own extract

program; orOption 3 Data Entry Module developed

by the BIR that will be available upon request / downloadable from the BIR’s web site at http://www.bir.gov.ph with the corresponding job aid to be provided by the BIR.

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.

Required Format in the Submission/ attachment of SAWT/ MAP

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

withholding tax at source (revenue regulations no. 2-98, as amended) presented by: ms. susan d....

Documents