COMPLIANCE GUIDE FOR LOCAL EMPLOYEES

I.

REGISTRATION

Processing of Application for Taxpayer Identification Number (TIN) of Local Employee Who may Avail : Taxpayers receiving purely compensation income either by the employee or thru his employer

What are the Documentary BIR Form 1902*; : Requirements Birth certificate of applicant or any valid ID that will show the applicant's complete name, birth date and signature; Birth certificates of declared dependents if any; Waiver of husband on his right to claim additional exemptions, if wife claims exemption; Marriage contract, if married. For employers using eREG System, the above requirements shall be required from their employees Where to Avail and File the 1) Revenue District Office (RDO) having jurisdiction over the place of : Return/Form office of the employer where such employee is expected to report for work. 2) For employees of large taxpayers and corporations included under the Taxpayer Account Management Program (TAMP), their employers shall be responsible to secure the employees' TIN through the use of e-REG System. 3) Employers, other than LT or TAMP corporations, may secure the TIN of their employees, either through e-REG System or through the RDO having jurisdiction over the employer. 4) Employee with concurrent multiple employment shall secure TIN at the RDO having jurisdiction over his principal/main Employer. Duration : 25 minutes

Procedure in Filing the Return Step 1 Taxpayer

RDO Activity Receive application form and verify taxpayers and employers existence in the ITS Check completeness of supporting documents Stamp received on the application and assign Data Locator Number (DLN) Encode and generate TIN

Submit duly accomplished BIR Form 1902, together with the required documents at the RDO having jurisdiction over the employer

Processing Time 5 minutes

Person Responsible Taxpayer Assistance Officer (TAO)

Fees NONE

5 minutes

TAO

5 minutes

TAO

7 minutes

Registration Officer TAO (releasing)

Receive TIN

Release TIN - indicate in taxpayers receiving copy of BIR Form 1902

3 minutes

*Form is available FREE OF CHARGE **Processing Time per Application Note: Processing of TIN shall be based on the completeness of the documents presented. II. TAXES TO BE PAID: Income Tax - a tax on all yearly profits arising from property. Profession, trades or offices or as a Tax on a persons income, emoluments, profits and the like. Withholding Tax on Compensation the tax withheld from individuals compensation income. Tax Forms : BIR Form 1700 - Annual Income Tax Return (For Individual Earning Purely Compensation Income Including Non-Business/Non-Profession Related Income) to be attached with BIR Form No. 2316 Certificate of Income Tax Withheld on Compensation (For those not covered by Substituted Filing) BIR Form 2316 - Certificate of Compensation Payment/ Tax Withheld for Compensation Payment With or Without Tax Withheld (For those qualified under the Substituted Filing Scheme) receiving purely

III. Filing of Return and Payment: 1. Fill-up BIR Form 1700 in triplicate. This form must be filed and the tax due thereon paid, if any, on or before April 15 of the year following the taxable year. 2. If there is payment: Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office where you are registered and present the duly accomplished BIR Form 1700, together with the required attachments and your payment. In places where there are no AABs, proceed to the Revenue Collection Officer or duly Authorized City or Municipal Treasurer located within the Revenue District Office where you are registered and present the duly accomplished BIR Form 1700, together with the required attachments and your payment. Receive your copy of the duly stamped and validated form from the teller of the AABs/Revenue Collection Officer/duly Authorized City or Municipal Treasurer. 3. For "No Payment" Returns including refundable returns, and for tax returns qualified for second installment: Proceed to the Revenue District Office where you are registered or to any Tax Filing Center established by the BIR and present the duly accomplished BIR Form 1700, together with the required attachments. Receive your copy of the duly stamped and validated form from the RDO/Tax Filing Center representative NOTE * Employees receiving compensation income but are covered by substituted filing are no longer required to file Form 1700. Their substitute ITR is BIR Form 2316 which must be given to them by their employers on or before January 31 of the year following the taxable year. Substituted Filing of Income Tax Returns (ITR) It is the manner by which declaration of income of individuals receiving purely compensation income from which the correct tax has been withheld by their employers. Instead of the filing of Individual Income Tax Return (BIR Form 1700), the employers Annual Information Return (BIR Form No. 1604-CF) duly- stamped received by the BIR may be considered as the substitute Income Tax Return (ITR) of the employee, inasmuch as the information provided therein are exactly the same information required to be provided in his Income Tax Return (BIR Form No. 1700). For the employees purpose, BIR Form 2316 becomes their substitute ITR. Those qualified to avail substituted filing are employees who satisfied the following conditions: a. Receiving purely compensation income regardless of amount; b. Working for only one employer in the Philippines for the calendar year ; c. Withholding tax has been withheld correctly by the employer (tax due equals tax withheld); d. The employer files the Annual Information Return (BIR Form No. 1604-CF); e. The employees spouse also complies with all conditions stated above. IV. PAYMENT OF TAXES The taxpayer who is a compensation earner may elect to pay in two equal installments, the first installment to be paid at the time the return is filed on or before April 15 of the year following the taxable year and the second, on or before July 15 of the same year.

A. MODES OF PAYMENT 1. Over the Counter Cash Payments- maximum amount allowed per tax payment shall not exceed ten thousand pesos (P10,000.00) 2. Bank Debit System is allowed only if the taxpayer has a bank account with the AABank, provided said AAB is within the jurisdiction of the BIR Revenue District Office (RDO)/Large Taxpayer District Office (LTDO) where the tax payment is due and payable

3. Checks the taxpayer shall indicate in the space provided for PAY TO THE ORDER OF the Following data: Presenting/ collecting bank or the bank where the payment is to be coursed; For the Account Of (FAO) BUREAU OF INTERNAL REVENUE as payee; and Under the ACCOUNT NAME the Taxpayer Identification Number (TIN)

SAMPLE CHECK FORMAT ( where the drawee bank &presenting bank are different from each other)
ACCOUNT No. 000-249-15522-6 ACCOUNT NAME JUANA DELA CRUZ TIN: 012-345-678-000 LANDBANK BATASAN FAO BUREAU OF INTERNAL REVENUE_______ Check No. 0765695 September 13, 2011 R/T No. 01028

PAY TO THE ORDER OF

P 1,000,000.00__________

PESOS RCBC
RIZAL COMMERCIAL BANKING CORPORATION A VOC Company LEGASPI VILLAGE BRANCH SALCEDO ST., LEGASPI VIL. MAKATI

ONE MILLION ONLY_____________________________________________________

______________________________ (Signed)

076569501028007=:000249155226 SAMPLE CHECK FORMAT ( drawn and presented to the same bank)
ACCOUNT No. 000-249-15522-6 ACCOUNT NAME JUANA DELA CRUZ TIN: 012-345-678-000 RCBC Legaspi Village FAO BUREAU OF INTERNAL REVENUE_______ Check No. 0765695 September 13, 2011 R/T No. 01028

PAY TO THE ORDER OF

P 1,000,000.00__________

PESOS RCBC
RIZAL COMMERCIAL BANKING CORPORATION A VOC Company LEGASPI VILLAGE BRANCH SALCEDO ST., LEGASPI VIL. MAKATI

ONE MILLION ONLY_____________________________________________________

______________________________ (Signed)

076569501028007=:000249155226

The following checks are not acceptable as check payments for internal revenue taxes: 1) Accommodation checks- checks issued or drawn by the party other than the taxpayer making the payment; 2) Second endorsed checks checks issued to the taxpayer as payee who indorses the same as payment for taxes; 3) Stale Checks checks dated for more than six (6) months prior to the presentation to the AAB; 4) Postdated Checks- checks dated a day or several days after the presentation to the AAB. 5) Unsigned Checks- checks with no signature of the drawer; and 6) Checks with alterations or erasures. B. Where to pay: I. If there is tax to be paid: 1. Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office where the registered taxpayer concerned is registered and present the duly accomplished BIR Form together with the required attachments

AUTHORIZED AGENT BANKS

Allied Banking Corporation Bank of Commerce Bank of the Philippine Islands* China Banking Corporation* Citibank, N.A.* Chinatrust Corporation* Deutsche Bank* Development Bank of the Philippines* Eastwest Banking Corporation Hongkong& Shanghai Banking Corp.* Landbank of the Philippines* *eFPS AAB Metropolitan Bank & Trust Company* Philippine Bank of Communications* Philippine National Bank* Philippine Veterans Bank Philtrust Company* Rizal Commercial Banking Corporation* Security Bank* Standard Chartered Bank* Union Bank of the Philippines* United Coconut Planters Bank*

2.

In places where there are no AAB, proceed to the Revenue Collection Officer or Duly-Authorized City or Municipal Treasurer within the Revenue District Office where the registered taxpayer concerned is registered and present the duly accomplished BIR Form, together with the required attachments.

3.

Electronic Payment a) eFiling and ePayment can also be made with the BIRs Electronic Filing and Payment System (eFPS) in accordance with the provisions of existing applicable revenue issuances b) G-Cashfor payments not exceeding Ten Thousand Pesos (P10,000.00) c) Efficient Service Machines (ESM) of the Lanbank of the Philippines selected branches

Branch

Bank Code 086-011

Address

Revenue Region / District Office No. RDO No. 13-Tuguegarao, Cagayan RDO 52-Paranaque

Tuguegarao

Natl. Hiway San Gabriel, Tuguegarao RDO Paranaque, GRAM Center Bldg., Dr. A. Santos cor. Schilling St., Brgy. San Dionisio, Paranaque City QSGC Progress, 13 East Avenue, QC Palacio del Gobernador Bldg., Aduana, Intramuros Along Samson Rd., Caloocan G/F The Atrium Makati, Makati Ave., Makati City Concordia 684 Rizal Ext., Malabon ENV Bldg., 1039 Quirino Hi-way, Novaliches, QC Shaw Blvd. cor. San Clemente, Mandaluyong City Manila East Arcade Road, Taytay Rizal Bonifacio, Canlalay, Bian, Laguna

Baclaran

086-025

East Avenue Intramuros

086-058 086-027

RDO 39-South, QC RDO 33 Intramuros

Caloocan Makati Tellering Booth Malabon Novaliches

086-060 086-296

RDO 27-Caloocan RR 8 Makati

086-070 086-135

RDO 26 Malabon-Navotas RDO 28 Novaliches

Mandaluyong

086-057

RDO 41 Mandaluyong

Taytay

086-246

RDO 46- Cainta-Taytay

Bian

086-185

RDO 57 San Pedro, Laguna RDO 56 Clamba, Laguna

Calamba

086-051

Brgy. Real, National Road., Calamba, Laguna Corner Iznart& Solis Sts., Iloilo Jones Avenue, P. del Rosario, Cebu City MEPZ Admin. Bldg., National Hi-way, Pajo, Lapu-lapu, Mandaue

Iloilo Cebu

086-002 086-014

RDO 74 Iloilo City RR 13 Cebu

Lapu-lapu

086-112

RDO 80 Mandaue City

d) China Bank E-Z Pay Kiosks

BRANCH Makati Main

ADDRESS G/F CBC Bldg., Paseo de RoxascorVillar St., Makati City CBC Bldg., Acacia Ave., Madrigal Bus. Park, Ayala-Alabang, Muntinlupa City CBC Bldg., 680 Banawe Ave., Sta. Mesa Heights, Quezon City CBC Bldg., 167 Rizal Ave., Ext., Grace Park, Caloocan City 308 J.P. Rizal St., Sta. Elena, Marikina City

REVENUE DISTRICT OFFICE RDO 50 South Makati

AyalaAlabang Banawe

RDO 53B Muntinlupa City

RDO 38 North Quezon City

Caloocan

RDO 27 Caloocan

Marikina

RDO 45 Marikina

II.

If there is no tax to be paid: 1. Proceed to the Revenue District Office where the registered taxpayer concerned is registered and present the duly accomplished BIR Form, together with the required attachments. (Note: Under Revenue Regulations No. 19-2011, employees qualified for substituted filing may opt to file BIR Form 1700).

Prepared by: Taxpayer Information and Education Division

February 14, 2012