Professional Documents
Culture Documents
Individuals
• Resident citizens receiving income from sources within or outside the Philippines
o individuals deriving compensation income from 2 or more employers, concurrently or successively at anytime
during the taxable year
o employees deriving compensation income regardless of the amount, whether from a single or several employers
during the calendar year, the income tax of which has not been withheld correctly (i.e. tax due is not equal to the
tax withheld) resulting to collectible or refundable return
o employees whose monthly gross compensation income does not exceed P5,000 or the statutory minimum wage,
whichever is higher, and opted for non-withholding of tax on said income
o individuals deriving other non-business, non-professional related income in addition to compensation income not
otherwise subject to a final tax
o individuals receiving purely compensation income from a single employer, although the income of which has been
correctly withheld, but whose spouse is not entitled to substituted filing
• Citizens working abroad receiving income from sources within the Philippines
• Aliens, whether resident or not, receiving income from sources within the Philippines
• domestic corporations receiving income from sources within and outside the Philippines
Annual Income Tax For Individuals Earning Purely Compensation Income (Including Non-Business/Non-Profession Related
Income)
Tax Form
BIR Form 1700 - Annual Income Tax Return (For Individual Earning Purely Compensation Income Including Non-
Business/Non-Profession Related Income)
Documentary Requirements
Procedures
1. Fill-up BIR Form 1700 in triplicate.
2. If there is payment:
o 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.
o 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.
o 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 Refundable Returns and for tax returns with second installment:
o 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.
o Receive your copy of the duly stamped and validated form from the RDO/Tax Filing Center representative.
Deadline
On or before the 15th day of April of each year covering income for the preceding taxable year
Annual Income Tax For Self-Employed Individuals, Estates And Trusts (Including Those With Business And Compensation
Income)
Tax Form
BIR Form 1701 - Annual Income Tax Return (For Self-Employed Individuals, Estates and Trusts Including Those With
Business and Compensation Income)
Documentary Requirements
2. Certificate of Income Payments not Subjected to Withholding Tax (BIR Form 2304) if applicable
8. Account Information Form (AIF) and the Certificate of the independent CPA or Audited Financial Statements
except for taxpayers who opted for the Optional Standard Deduction (The CPA Certificate is required if the gross
quarterly sales, earnings, receipts or output exceed P 150,000.00)
Procedures
2. If there is payment:
o Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office where you are registered and
present the duly accomplished BIR Form 1701, together with the required attachments and your payment.
o 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 1701, together with the required attachments and your payment.
o 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 Refundable Returns and for those returns with second installment:
o Proceed to the Revenue District Office where you are registered or to any established Tax Filing Centers established
by the BIR and present the duly accomplished BIR Form 1701, together with the required attachments.
o Receive your copy of the duly stamped and validated form from the RDO/Tax Filing Center representative.
Deadline
Final Adjustment Return - On or before the 15th day of April of each year covering income for the preceding year
Account Information Form For Self-Employed Individuals, Estates And Trusts (Including Those With Mixed Income , I.E.,
Business And Compensation Income)
Tax Form
BIR Form 1701 AIF - Account Information Form For Self-Employed Individuals, Estates and Trusts (Including those with
Mixed Income, i.e., Business and Compensation Income)
NOTE: Pursuant to Revenue Memorandum Circular No. 6 – 2001, corporations, companies or persons whose gross
quarterly sales, earnings, receipts or output exceed P 150,000.00 may not accomplish this form. In lieu thereof,
they may file their annual income tax returns accompanied by balance sheets, profit and loss statement, schedules
listing income-producing properties and the corresponding income therefrom, and other relevant statements duly
certified by an independent CPA.
Documentary Requirements
None
Procedures
Deadline
Same deadline as BIR Form 1701 - On or before the 15th day of April of each year covering income for the preceding year
Quarterly Income Tax For Self-Employed Individuals, Estates And Trusts (Including Those With Mixed Income, I.E., Business
And Compensation Income)
Tax Form
BIR Form 1701Q - Quarterly Income Tax Return For Self-Employed Individuals, Estates and Trusts (Including those
with Mixed Income, i.e., Business and Compensation Income)
Documentary Requirements
Procedures
2. If there is payment:
o Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office where you registered and
present the duly accomplished BIR Form 1701 Q, together with the required attachments and your payment.
o 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 1701Q, together with the required attachments and your payment.
o 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 Refundable Returns and for those returns with second installment:
o 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 1701Q, together with the required attachments.
o Receive your copy of the duly stamped and validated form from the RDO/Tax Filing Center representative.
Deadlines
Tax Form
BIR Form 1702 - Annual Income Tax Return (For Corporations and Partnerships)
Documentary Requirements
1. Certificate of Income Payments not Subjected to Withholding Tax (BIR Form 2304) if applicable
6. Account Information Form (AIF) and the Certificate of the independent CPA /or Audited Financial Statements
except for taxpayers who opted for the Optional Standard Deduction. (The CPA Certificate is required if the gross
quarterly sales, earnings, receipts or output exceed P150,000.00)
Procedures
1. Fill-up BIR Form 1702 in triplicate.
2. If there is payment:
o Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office where you are registered and
present the duly accomplished BIR Form 1702, together with the required attachments and your payment.
o 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 1702 with the required attachments and your payments.
o 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.
o Proceed to the Revenue District Office where you are registered or to any Tax Filing Center established by BIR and
present the duly accomplished BIR Form 1702, together with the required attachments.
o Receive your copy of the duly stamped and validated form from the RDO/Tax Filing Center representative
Deadline
Final Adjustment Return - On or before the 15th day of the fourth month following the close of the taxpayer’s
taxable year
Tax Form
BIR Form 1702 AIF - Account Information Form (For Corporations and Partnerships)
NOTE: Pursuant to Revenue Memorandum Circular No. 6 – 2001, corporations, companies or persons whose gross
quarterly sales, earnings, receipts or output exceed P 150,000.00 may not accomplish this form. In lieu thereof,
they may file their annual income tax returns accompanied by balance sheets, profit and loss statement, schedules
listing income-producing properties and the corresponding income therefrom, and other relevant statements duly
certified by an independent CPA.
Documentary Requirements
None
Procedures
Deadline
Same deadline as BIR Form 1702 - On or before the 15th day of the fourth month following the close of the taxpayer’s
taxable year
Tax Form
BIR Form 1702 Q - Quarterly Income Tax Return (For Corporations and Partnerships)
Documentary Requirements
2. Certificate of Income Payments not Subjected to Withholding Tax (BIR Form 2304) if applicable
Procedures
2. If there is payment:
o Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office where you are registered and
present the duly accomplished BIR Form 1702 Q, together with the required attachments and your payment.
o 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 1702 Q.
o 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 Refundable Returns and for those returns with second installment:
o Proceed to the Revenue District Office where you are registered and present the duly accomplished BIR Form 1702
Q, together with the required attachments.
o Receive your copy of the duly stamped and validated form from the RDO representative.
Deadline
Corporate Quarterly Declaration - On or before the 60th day following the close of each of the quarters of the
taxable year
Tax Form
BIR Form 1704 - Improperly Accumulated Earnings Tax Return (For Corporations)
Documentary Requirements
1. Photocopy of Annual Income Tax Return (BIR Form 1702) and Audited Financial Statements or Account
Information Form of the covered taxable year duly received by the BIR; and
2. Sworn declaration as to dividends declared taken from the covered year's earnings and the corresponding tax
withheld, if any
Procedures
2. If there is payment:
o Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office where you are registered and
present the duly accomplished BIR Form 1704, together with the required attachments and your payment.
o 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 1704
o 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. If there is no payment:
o Proceed to the Revenue District Office where you are registered and present the duly accomplished BIR Form 1704,
together with the required attachments.
o Receive your copy of the duly stamped and validated form from the RDO representative
Deadline
Annual Income Information For Non Resident Citizens/OCWs and Seamen (For Foreign-Sourced Income)
Tax Form
BIR Form 1703 - Annual Income Information Return For Non Resident Citizens/OCWs and Seamen (For Foreign-Sourced Income)
Tax Rate
For Individuals Earning Purely Compensation Income and Individuals Engaged in Business and Practice of
Profession
Note: Effective January 1, 1999, the maximum rate shall be thirty-three percent (33%) and thirty-two percent (32%) on
January 1, 2000.
Note: When the tax due exceeds P2,000.00, the taxpayer may elect to pay in two equal installments, the first installment to
be paid at the time the return is filed and the second installment on or before July 15 of the same year at the Authorized
Agent Bank (AAB) within the jurisdiction of the Revenue District Office (RDO) where the taxpayer is registered.
*Beginning on the 4th year immediately following the year in which such corporation commenced its business operations,
when the minimum corporate income tax is greater than the tax computed using the normal income tax.
Passive Income
1. Interest on any peso bank deposit 20%
2. Royalties (except on books as well as literary & musical composition - 10%) 20%
3. Prizes (except prizes amounting to P10,000 or less -5%) 20%
4. Winnings (except from PCSO and lotto) 20%
5. Interest Income of Foreign Currency Deposit 7.5%
6. Interest from long-term deposit
Holding Period
- Four (4) years to less than five (5) years 5%
- Three (3) years to less than four (4) years 12%
- Less than three (3) years 20%
7. Cash and/or Property Dividends
Beginning January 1, 1998 6%
Beginning January 1, 1999 8%
Beginning January 1, 2000 & thereafter 10%
8. On capital gains presumed to have been realized from sale, exchange or other disposition of real property (capital
6%
asset)
9. On capital gains for shares of stock not traded in the stock exchange
- Not over P100,000 5%
- Any amount in excess of P100,000 10%
*Cash and/or Property Dividends, Share in the distributable net income of the partnership, Interest on any bank deposits,
Royalties (except on books as well as literary works and musical composition), Prizes (except prizes amounting to P10,000 or
less), Winnings
Sections 23-59, 67-73 and 74-77 of the National Internal Revenue Code
1) What is income?
Income means all wealth, which flows into the taxpayer other than as a mere return of capital.
Taxable income means the pertinent items of gross income specified in the Tax Code less the deductions and/or personal and
additional exemptions, if any, authorized for such types of income, by the Tax Code or other special laws.
• Compensation for services, in whatever form paid, including but not limited to fees, salaries, wages, commissions and
similar item
• Gross income derived from the conduct of trade or business or the exercise of profession
• Gains derived from dealings in property
• Interest
• Rents
• Royalties
• Dividends
• Annuities
• Prizes and winnings
• Pensions
• Partner's distributive share from the net income of the general professional partnerships
• Life insurance
• Amount received by insured as return of premium
• Gifts, bequests and devises
• Compensation for injuries or sickness
• Income exempt under treaty
• Retirement benefits, pensions, gratuities, etc.
• Miscellaneous items
• income derived by foreign government
• income derived by the government or its political subdivision
• prizes and awards in sport competition
• prizes and awards which met the conditions set in the Tax Code
• 13th month pay and other benefits
• GSIS, SSS, Medicare and other contributions
• gain from the sale of bonds, debentures or other certificate of indebtedness
• gain from redemption of shares in mutual fund
6) What are the allowable deductions from gross income?
Except for taxpayers earning compensation income arising from personal services rendered under an employer-employee
relationships where the only deduction up to a maximum limit of P 2,400 per year per family is the premium payment on health
and/or hospitalization insurance, a taxpayer may opt to avail any of the following allowable deductions from gross income:
• Optional Standard Deduction - an amount not exceeding 10% of the gross income; or
• Itemized Deductions which include the following:
• Expenses
• Interest
• Taxes
• Losses
• Bad Debts
• Depreciation
• Depletion of Oil and Gas Wells and Mines
• Charitable Contributions and Other Contributions
• Research and Development
• Pension Trusts
In addition, individuals who are either earning compensation income, engaged in business or deriving income from the practice of
profession are entitled to personal and additional exemptions as follows:
Personal Exemptions:
For single individual or married individual judicially decreed as legally separated with no qualified dependents………………………………………
…...P 20,000.00
For head of family………………………………….....P 25,000.00
For each married individual *……………………... .P 32,000.00
Note: In case of married individuals where only one of the spouses is deriving gross income, only such spouse will be allowed to
claim the personal exemption.
Additional Exemptions
• For each qualified dependent, an P 8,000 additional exemption can be claimed but only up to 4 qualified dependents
• The additional exemption can be claimed by the following:
• The husband who is deemed the head of the family unless he explicitly waives his right in favor of his wife
• The spouse who has custody of the child or children in case of legally separated spouses. Provided, that the total amount of
additional exemptions that may be claimed by both shall not exceed the maximum additional exemptions allowed by the Tax
Code.
• The individuals considered as Head of the Family supporting a qualified dependent
The maximum amount of P 2,400 premium payments on health and/or hospitalization insurance can be claimed if:
• Individuals
o resident citizens receiving income from sources within or outside the Philippines
o individuals deriving compensation income from 2 or more employers, concurrently or successively at anytime
during the taxable year
o employees deriving compensation income regardless of the amount, whether from a single or several employers
during the calendar year, the income tax of which has not been withheld correctly (i.e. tax due is not equal to the
tax withheld) resulting to collectible or refundable return
o employees whose monthly gross compensation income does not exceed P5,000 or the statutory minimum wage,
whichever is higher, and opted for non-withholding of tax on said income
o individuals deriving pother non-business, non-professional related income in addition to compensation income not
otherwise subject to a final tax
o individuals receiving purely compensation income from a single employer, although the income of which has been
correctly withheld, but whose spouse is not entitled to substituted filing
o non-resident citizens receiving income from sources within the Philippines
o citizens working abroad receiving income from sources within the Philippines
o aliens, whether resident or not, receiving income from sources within the Philippines
• An individual whose gross income does not exceed his total personal and additional exemptions
• An individual whose compensation income derived from one employer does not exceed P 60,000 and the income tax on
which has been correctly withheld
• An individual whose income has been subjected to final withholding tax (alien employee as well as Filipino employee
occupying the same position as that of the alien employee of regional headquarters and regional operating headquarters of
multinational companies, petroleum service contractors and sub-contractors and offshore-banking units, non-resident aliens
not engaged in trade or business)
• Those who are qualified under “substituted filing”. However, substituted filing applies only if all of the following requirements
are present
• the employee received purely compensation income (regardless of amount) during the taxable year
• the employee received the income from only one employer in the Philippines during the taxable year
• the amount of tax due from the employee at the end of the year equals the amount of tax withheld by the employer
• the employee’s spouse also complies with all 3 conditions stated above
• the employer files the annual information return (BIR Form No. 1604-CF)
• the employer issues BIR Form No. 2316 (Oct 2002 ENCS version ) to each employee.
a) A citizen of the Philippines who establishes to the satisfaction of the Commissioner the fact of his physical presence
abroad with a definite intention to reside therein
b) A citizen of the Philippines who leaves the Philippines during the taxable year to reside abroad, either as an immigrant or
for employment on a permanent basis
c) A citizen of the Philippines who works and derives income from abroad and whose employment thereat requires him to be
physically present abroad most of the time during the taxable year
d) A citizen who has been previously considered as a non-resident citizen and who arrives in the Philippines at any time
during the year to reside permanently in the Philippines will likewise be treated as a non-resident citizen during the taxable
year in which he arrives in the Philippines, with respect to his income derived from sources abroad until the date of his
arrival in the Philippines.
An individual citizen of the Philippines who is working and deriving income from abroad as an overseas contract worker is
taxable only on income from sources within the Philippines; Provided, that a seaman who is a citizen of the Philippines and
who receives compensation for services rendered abroad as a member of the complement of a vessel engaged exclusively in
international trade will be treated as an overseas contract worker.
NOTE: A Filipino employed as Philippine Embassy/Consulate service personnel of the Philippine Embassy/consulate is not treated as a
non-resident citizen, hence his income is taxable.
10) What are the procedures in filing Income Tax returns (ITRs)?
• For “with payment” ITRs (BIR Form Nos. 1700 / 1701 / 1701Q / 1702 / 1702Q / 1704)
File the return in triplicate (two copies for the BIR and one copy for the taxpayer) with the Authorized Agent Bank (AAB) of
the place where taxpayer is registered or required to be registered. In places where there are no AABs, the return will be
filed directly with the Revenue Collection Officer or duly Authorized Treasurer of the city or municipality in which such person
has his legal residence or principal place of business in the Philippines, or if there is none, filing of the return will be at the
Office of the Commissioner.
• For “no payment” ITRs -- refundable, breakeven, exempt and no operation/transaction, including returns to be paid on 2nd
installment, withholding tax returns (WTRs) covered by Tax Remittance Advice (TRA) and returns paid through a Tax Debit
Memo(TDM)/Credit Memo (CM)
File the return with the concerned Revenue District Office (RDO) where the taxpayer is registered. However, no payment
returns filed late shall not be accepted by the RDO but instead shall be filed with an Authorized Agent Bank (AAB) or
Collection Officer/Deputized Municipal Treasurer (in places where there are no AABs), for payment of necessary penalties.
Description
-Withholding Tax on Compensation is the tax withheld from income payments to individuals receiving purely compensation income arising
from an employer-employee relationship.
- Expanded Withholding Tax is a kind of withholding tax which is prescribed only for certain payors and is creditable against the income tax
due of the payee for the taxable quarter/year.
- Final Withholding Tax is a kind of withholding tax which is prescribed only for certain payors and is not creditable against the income tax due
of the payee for the taxable year. Income Tax withheld constitutes the full and final payment of the Income Tax due from the payee on the
said income.
- Withholding Tax on Government Money Payments (GMP) is a tax withheld by government bureaus, offices and instrumentalities, including
government-owned or-controlled corporations and local government units, before making any payments to private individuals, corporations,
partnerships and/or associations.
-Withholding Tax on GMP Percentage Taxes - is the tax withheld by government bureaus, offices and instrumentalities, including government-
owned or -controlled corporations and local government units, before making any payments to private individuals, corporations, partnerships
and/or associations from non-VAT taxpayers
-Withholding Tax on GMP VAT Taxes - is the tax withheld by government bureaus, offices and instrumentalities, including government-owned
or -controlled corporations and local government units, before making any payments to private individuals, corporations, partnerships and/or
associations who are VAT registered.
RR No. 2-98, RR No. 8-98, RR No. 12-98, RR No. 3-99, RR No. 8-2000, RR No. 10-2000, RR No. 9-2001, RR No. 3-2002, RR No. 4-2002, RR
No. 14-2002, RR No. 19-2002, RR No. 26-2002, RR No. 14-2003, RR No. 16-2003, RR No. 17-2003, RR No. 30-2003, RR No. 5-2004
Codal Reference
Tax Form
BIR Form 1601 C - Monthly Remittance Return of Income Taxes Withheld on Compensation
Documentary Requirements
Return previously filed and proof of tax payments, if amended return
Procedures
1. Fill-up BIR Form 1601 C in triplicate copies.
2. If there is tax required to be remitted:
- Proceed to the nearest Authorized Agents Banks (AAB's) of the Revenue District Office where you are required to register and present the
duly accomplished BIR Form 1601 C, together with the required attachments and your payment.
- In places where there are no AAB's, proceed to the Revenue Collection Officer or duly Authorized City or Municipal Treasurer located within
the Revenue District Office where you are required to register and present the duly accomplished BIR Form 1601 C, together with the
required attachments and your payment
- Receive your copy of the duly stamped and validated form from the teller of the AAB's/Revenue Collection Officer/duly Authorized City or
Municipal Treasurer.
Deadline
Filing Via EFPS
except for taxes withheld for the month of December which shall be filed on or before January 20th of the succeeding year
Manual Filing
On or before the tenth (10th) day of the month following the month the withholding was made, except for taxes withheld for the month of
December which shall be filed on or before January 15 of the succeeding year
Tax Rates
Monthly Remittance Of Income Taxes Withheld (Expanded) [Except for Transactions Involving Onerous Transfer of Real
Property Classified as Ordinary Asset]
Tax Form
BIR Form 1601 E - Monthly Remittance Return of Income Taxes Withheld (Expanded) [Except for Transactions Involving Onerous Transfer of
Real Property Classified as Ordinary Asset]
Documentary Requirements
Return previously filed and proof of tax, if amended return
Procedures
1. Fill-up BIR Form 1601E in triplicate copies.
Deadline
Filing Via EFPS
except for taxes withheld for the month of December which shall be filed on or before January 20th of the succeeding year
Manual Filing
On or before the tenth (10th) day of the month following the month the withholding was made, except for taxes withheld for the month of
December which shall be filed on or before January 15 of the succeeding year
Tax Rates
Tax Form
BIR Form 1601 F - Monthly Remittance Return of Final Income Taxes Withheld
Documentary Requirements
Return previously filed and proof of tax, if amended return
Procedures
1. Fill-up BIR Form 1601 F in triplicate copies.
2. If there is tax required to be remitted:
- Proceed to the nearest Authorized Agents Banks (AAB's) of the Revenue District Office where you are required to register and present the
duly accomplished BIR Form 1601 F, together with the required attachments and your payment.
- In places where there are no AAB's, proceed to the Revenue Collection Officer or duly Authorized City or Municipal Treasurer located within
the Revenue District Office where you are required to register and present the duly accomplished BIR Form 1601 F, together with the required
attachments and your payment.
- Receive your copy of the duly stamped and validated form from the teller of the AAB's/Revenue Collection Officer/duly Authorized City or
Municipal Treasurer.
3. If there is no tax required to be remitted:
- Proceed to the Revenue District Office where you are required to register and present the duly accomplished BIR Form 1601 F, together with
the required attachments.
- Receive your copy of the duly stamped and validated form from the RDO representative.
Deadlines
On or before the tenth (10th) day of the month following the month the withholding was made, except for taxes withheld for the month of
December which shall be filed on or before January 15 of the succeeding year
Tax Rates
Monthly Remittance Of Final Income Taxes Withheld On Interest Paid And Yield On Deposit Substitutes, Trust, Etc.
Tax Form
BIR Form 1602 - Monthly Remittance Return of Final Income Taxes Withheld on Interest Paid and Yield on Deposit Substitutes/Trust/Etc.
Documentary Requirements
Return previously filed and proof of tax payments, if amended return
Procedures
1. Fill-up BIR Form 1602 in triplicate copies.
Deadline
Filing Via EFPS
except for taxes withheld for the month of December which shall be filed on or before January 15 of the succeeding year
Manual Filing
On or before the tenth (10th) day of the month following the month the withholding was made, except for taxes withheld for the month of
December which shall be filed on or before January 15 of the succeeding year
Tax Rates
Remittance Of Final Income Taxes Withheld On Fringe Benefits Paid To Employees Other Than Rank And File
Tax Form
BIR Form 1603 - Quarterly Remittance Return of Final Income Taxes Withheld on Fringe Benefits Paid to Employees Other than Rank and File
Documentary Requirements
Return previously filed and proof of tax payments , if amended return
Procedures
1. Fill-up BIR Form 1603 in triplicate copies.
Deadline
Filing Via EFPS
On or before the fifteenth (15th) day of the month following the end of the calendar quarter in which the fringe benefits were granted to the
recipient.
Manual Filing
On or before the tenth (10th) day of the month following the end of the calendar quarter in which the fringe benefits were granted to the
recipient.
Tax Rates
Remittance Of Percentage Tax On Winnings And Prizes Withheld By Race Track Operators
Tax Form
BIR Form 1600 WP - Remittance Return of Percentage Tax on Winnings and Prizes Withheld by Race Track Operators
Documentary Requirements
1. Alphalist of Payees indicating the following:
- Month
- TIN of withholding agent
- Name of Withholding Agent
- TIN of Payee
- Name of Payee
- ATC
- Nature of Payment
- Amount of Payment
- Tax Rate
- Tax Required to be Withheld
Procedures
1. Fill-up BIR Form 1600 WP in triplicate copies.
Deadline
Within twenty (20) days from the date the tax was deducted and withheld
Tax Rates
Tax Form
BIR Form1600 - Monthly Remittance Return of Value-Added Taxes and Other Percentage Taxes Withheld
Documentary Requirements
1. Alphabetical list of payees indicating the following:
- Month
- TIN of withholding agent
- Name of Withholding Agent
- TIN of Payee
- ATC
- Nature of Payment
- Name of Payee
- Amount of Payment
- Tax Rate
- Tax Required to be Withheld
Procedures
1. Fill-up BIR Form 1600 in triplicate copies.
Deadline
On or before the tenth (10th) day of the month following the month the withholding was made
Annual Information On Income Taxes Withheld On Compensation And Final Withholding Taxes
Tax Form
BIR Form 1604 CF - Annual Information Return of Income Taxes Withheld on Compensation and Final Withholding Taxes
Documentary Requirements
1. Alphalist of Employees as of December 31 With no Previous Employer within the year
4. Alphalist of Employees Whose Compensation Income Are Exempt from Withholding Tax But Subject to Income Tax
5. Alphalist of Employees other than Rank and File Who Were Given Fringe Benefits During the Year
7. Return previously filed and proof of tax payment for amended return
Note: Above alpahalist are to be submitted in Diskette format when total number of payees exceed 10 (RR 3-2002)
Procedures
1. Fill-up BIR Form 1604 CF in triplicate copies.
2. Proceed to the Revenue District Office where you are required to register and present the duly accomplished BIR Form 1604 CF, together
with the required attachments.
3. Receive your copy of the duly stamped and validated form from the RDO representative.
Deadline
On or before January 31 of the year following the calendar year in which the compensation payment and other income payments subjected to
final withholding taxes were paid or accrued.
Annual Information On Creditable Income Taxes Withheld (Expanded)/Income Payments Exempt From Withholding Tax
Tax Form
BIR Form 1604 E - Annual Information Return of Creditable Income Taxes Withheld (Expanded)/Income Payments Exempt from Withholding
Tax
Documentary Requirements
1. Alphalist of Payees subjected to Expanded Withholding Tax
2. Alphalist of Other Payees Whose Income Payments Are Exempt form Withholding Tax but subject to Income Tax
3. Return previously filed and proof of tax payment for amended return
Note: Above alpahalist are to be submitted in diskette format when total number of payees exceed 10 (RR 3- 2002).
Procedures
1. Fill-up BIR Form 1604 E in triplicate copies.
2. Proceed to the Revenue District Office where you are required to register and present the duly accomplished BIR Form 1604 E, together
with the required attachments.
3. Receive your copy of the duly stamped and validated form from the RDO representative
Deadline
On or before March 1 of the year following the calendar year in which the income payments subjected to expanded withholding taxes or
exempt from withholding tax were paid.
2) What is compensation?
It means any remuneration received for services performed by an employee from his employer under an employee-employer relationship.
- Regular compensation - includes basic salary, fixed allowances for representation, transportation and others paid to an employee
- Supplemental compensation - includes payments to an employee in addition to the regular compensation such as but not limited to the
following:
- Overtime Pay
- Fees, including director's fees
- Commission
- Profit Sharing
- Monetized Vacation and Sick Leave
- Fringe benefits received by rank & file employees
- Hazard Pay
- Taxable 13th month pay and other benefits
- Other remunerations received from an employee-employer
relationship
Any employee whose total compensation income does not exceed the statutory minimum wage of Five Thousand (P 5,000.00) Pesos a month
or Sixty Thousand (P 60,000.00) Pesos a year is not subject to Withholding Tax on Compensation.
NOTE: Employee whose total annual compensation does not exceed P 60,000 shall be given two options with which to pay his income tax due
as follows:
- His compensation income shall be subjected to withholding tax, but he shall not be required to file the income return prescribed in Section
51 of the Code (filing of an individual return) except when covered by any of the situations enumerated in Sec. 2.83.4 of Revenue Regulations
No. 2-98, or
- His compensation income shall not be subject to withholding tax but he shall file his annual income tax return and pay the tax due thereon,
annually.
When the employee has opted to have his compensation income subjected to Withholding tax so as to be relieved of the obligation of filing an
annual Income Tax return and paying his tax due on a lump sum basis, he shall execute a waiver in a prescribed BIR Form of his
exemption(s) from withholding, which shall constitute the authority for the employers to apply the withholding tax table provided under
Revenue Regulations No. 2-98.
A withholding agent is any person or entity who is required to deduct and remit the taxes withheld to the government.
10) What are the duties and obligations of the withholding agent?
The following are the duties and obligations of the withholding agent:
a) To Register - withholding agent is required to register within ten (10) days after acquiring such status with the Revenue District office
having jurisdiction where the business is located
b) To Deduct and Withhold - withholding agent is required to deduct tax from all money payments subject to withholding tax
c) To Remit the Tax Withheld - withholding agent is required to remit tax withheld at the time prescribed by law and regulations
d) To File Annual Return - withholding agent is required to file the corresponding Annual Information Return at the time prescribed by law and
regulations
e) To Issue Withholding Tax Certificates - withholding agent shall furnish Withholding Tax Certificates to recipient of income payments subject
to withholding
a) For BIR Form 1600 - Monthly Remittance of Value-Added Tax and Other Percentage Tax
- All government offices, bureaus, agencies or instrumentalities, local government units, government owned and controlled corporation on
money payments made to private individual, corporations, partnerships, association and other judicial/artificial entities required under RA
Nos. 1051, 7649, 8241 and 8424
- Payors to non-residents receiving income subject to Value-Added Tax
b) For BIR Form 1600WP - Remittance Return of Percentage Tax on Winnings and Prizes Withheld by Racetrack Operators
- Operators of race tracks
c) For BIR Form 1601C- Monthly Remittance Return of Income Tax Withheld on Compensation
- Every withholding agent/payor who is either an individual or non-individual required to deduct and withhold taxes on compensation paid to
employees
d) For BIR Form 1601E - Monthly Remittance Return of Creditable Income Taxes Withheld (Expanded)
- Every withholding agent/payor who is either an individual or non-individual required to deduct and withhold taxes on income payments
subject to Expanded/Creditable Withholding Taxes
e) For BIR Form 1601 F - Monthly Return of Final Income Taxes Withheld
- Every withholding agent/payor who is either an individual or non-individual required to deduct and withhold taxes on income payments
subject to Final Withholding Taxes
f) For BIR Form 1602 -Monthly Remittance Return of Final Income Taxes Withheld (On Interest Paid on Deposits and Yield on Deposit
Substitutes/Trusts/Etc.)
- Banks, non-bank financial intermediaries, finance corporations, investment and trust companies and similar institutions
g) For BIR Form 1603 - Quarterly Remittance Return of Final Income Taxes Withheld (On Fringe Benefits Paid to Employees Other than Rank
and File)
- Every withholding agent/payor who is either an individual or non-individual required to deduct and withhold taxes on fringe benefits
furnished to employees other than rank and file subject to Final Withholding Tax
h) For BIR Form 1604CF - Annual Information Return of Income Taxes Withheld on Compensation and Final Withholding Tax
- Every withholding agent/payor who is either an individual or non-individual required to deduct and withhold taxes on compensation paid to
employees
- Every withholding agent/payor who is either an individual or non-individual required to deduct and withhold taxes on income payments
subject to Final Withholding Taxes
i) For BIR Form 1604E - Annual Information Return of Creditable Income Taxes Withheld (Expanded) Income Payments Exempt from
Withholding Tax
- Every withholding agent/payor who is either an individual or non-individual required to deduct and withhold taxes on income payments
subject to Expanded/Creditable Withholding Taxes
j) For BIR Form 1606 - Withholding Tax Remittance Return (For Onerous Transfer of Real Property Other than Capital Assets (Including
Taxable and Exempt)
- Every withholding agent/buyer on the sale, transfer or exchange of real property classified as ordinary assets. One return should be filed for
every property (including portion of a property) purchased.