Professional Documents
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MARIVIC A.GALBAN
OIC-HEAD REVENUE EXECUTIVE ASSISTANT
HUMAN RESOURCE MANAGEMENT SERVICE
BUREAU OF INTERNAL REVENUE, DILIMAN, QUEZON CITY
1
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
How to achieve the vision
Ways to raise additional Complementary economic
investments reforms
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
2
Why tax policy reform is
needed: A deficient tax system
3
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
In summary, tax reform is needed to
fund the ten-point socioeconomic agenda
5
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
6
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
What is the purpose
of TRAIN?
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
The purpose of TRAIN is to make our
country’s tax system
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
The purpose of TRAIN is to make our
country’s tax system
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
The purpose of TRAIN is to make our
country’s tax system
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
SECTION 3. A. INCOME TAX RATES
ON INDIVIDUAL CITIZEN AND INDIVIDUAL RESIDENT ALIEN
Effective January 1, 2018 until December 31, 2022:
In general, the income tax on the individual’s taxable income shall be
computed based on the following schedules as provided under Sec. 24(A)(2)(a)
RANGE OF TAXABLE INCOME TAX DUE = a + (b x c)
BASIC AMOUNT ADDITIONAL OF EXCESS OVER
RANGE OF TAXABLE INCOME (a) TAX DUE
RATE= a + (b x c) (c)
OVER NOT OVER
(b)
BASIC ADDITIONAL OF OVER
OVER NOT OVER
(a) (b) (c)
- - -
- 250,000
250,000.00 - -
250,000.00
250,000 400,000.00
400,000 -- 20%
20% 250,000.00
250,000
400,000.00 800,000.00 30,000.00 25% 400,000.00
400,000 800,000 30,000 25% 400,000
800,000.00 2,000,000.00 130,000.00 30% 800,000.00
800,000
2,000,000.00 2,000,000
8,000,000.00 130,000
490,000.00 30%
32% 800,000
2,000,000.00
8,000,000.00 - 2,410,000.00 35% 8,000,000.00
2,000,000 8,000,000 490,000 32% 2,000,000
8,000,000 - 2,410,000 35% 8,000,000
11
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
SECTION 3. INCOME TAX RATES
ON INDIVIDUAL CITIZEN AND INDIVIDUAL RESIDENT ALIEN
Effective January 1, 2023 and onwards:
RANGE OF TAXABLE INCOME TAX DUE = a + (b x c)
- - -
250,000
250,000 400,000 - 250,000
15%
400,000 800,000 22,500 400,000
20%
800,000 2,000,000 102,500 800,000
25%
2,000,000 8,000,000 402,500 2,000,000
30%
8,000,000 - 2,202,500 8,000,000
35%
12
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
SECTION 3. INCOME TAX RATES ON INDIVIDUAL CITIZEN
AND INDIVIDUAL RESIDENT ALIEN
In general, the income tax on the individual’s taxable income shall be
computed based on the following schedules as provided under Sec. 24(A)(2)(a)
Effective January 1, 2018 until December 31, 2022: Effective January 1, 2023 and onwards
RANGE OF TAX DUE = a + (b x c) RANGE OF TAX DUE = a + (b x c)
TAXABLE TAXABLE INCOME
INCOME BASIC ADDITION OF EXCESS
BASIC ADDITION OF EXCESS
AMOUNT AL RATE OVER OVER
NOT AMOUNT AL RATE OVER
OVER NOT OVER (a) (b) (c)
(a) (b) (c) OVER
- - - - -
- 250,00 250,000
250,000 400,000 - 250,000
0 15%
250,000 400,000 - 250,000
20% 400,000 800,000 22,500 20% 400,000
400,000 800,000 30,000 25% 400,000
800,000 2,000,000 102,500 25% 800,000
800,000 2,000,000 130,000 30% 800,000
2,000,00 8,000,000 402,500 30% 2,000,000
2,000,00 8,000,000 490,000 32% 2,000,000 0
0
2,202,500
8,000,00 - 2,410,000
35% 8,000,000 8,000,00 - 35% 8,000,000
0 0
13
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
INCOME TAX PROVISIONS
• Below P10,000 taxed at 5% • Below P250,000 no tax
• Over
14
P500,000 taxed at 32% • Over 8M taxed at 35%
• No counter provision • OPTIONAL 8% gross revenue
below 3M for self-employed &
professionals to be taxed in lieu
of
• 1) graduated income tax and
2)percentage tax
• STOCK • 0.60 of 1%
TRANSACTION ON
listed shares 0.50 of
1%
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
EXCISE TAX PROVISIONS
• P31.20 per pack with 4% • P32.50 JAN 2018
increase annually • P35.00 JAN 2019
20 • P37.50 JAN 2020
• P40.00 JAN 2022
• 4% ANNUAL INCREASE
• DIESEL P0.00 PER LITER • P2.50 PER LITER 2018
• P4.50 PER LITER 2019
• P6.00 PER LITER 2020
• UNLEADED & PREMIUM • P7.00 PER LITTER 2018
GASOLINE P4.35 • P9.00 PER LITER 2019
• P10.00 PER LITER 2020
• NONE • MANDATORY MARKING OF
ALL FUEL PRODUCTS
• 2% FOR UP TO P600T • 4%
• P12,000 + 20% OVER P600T • 10% FOR OVER P600T-1M
• P112T + 40% OVER p1.1M • 20% OVER 1M-4M
• P512T + 60% over 2.1M • 50% FOR OVER 4M
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
EXCISE TAX PROVISIONS
• COSMETIC • COSMETIC
PROCEDURES FOR
21
PROCEDURES FOR
AESTHETIC REASONS AESTHETIC REASONS
- NONE – 5%
• SWEETENED • P6.00 PER LITER USING
CALORIC & NON-
BEVERAGES - CALORIC SWEETENERS
NONE • P12.00 PER LITER USING
HIGH-FRUCTUSE CORN
SYRUP
• P10 PER METRIC • 100% INCREASE IN
TON OF COAL RATE FOR OTHER
MINERALS
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
DOCUMENTARY STAMP TAX PROVISIONS
• VARIOUS • 100% INCREASE IN
22
TRANSACTIONS RATE
SUBJECT TO • EXCEPT DST ON
DIFFERENT RATES LOANS FROM P1 TO
P1.50 PER P200
• NO INCREASE IN SALE
OF REAL PROPERTY
AND INSURANCE
POLICIES
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
COMPLIANCE
23 REQUIREMENTS
• P600,000 • 3 MILLION
THRESHOLD FOR
KEEPING OF
BOOKS OF
ACCOUNTS FOR
ALL ENTITIES
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
ADMINISTRATIVE PROVISIONS
• P25 SALE REQUIRED TO • P100 SALE REQUIRED
ISSUE
24 OFFICIAL TO ISSUE OFFICIAL
RECEIPT/INVOICE RECEIPT/INVOICE
• ELECTRONIC SALES REPORTING – • ENHANCED ELECTRONIC POS
NONE EXCEPT THE QUARTERLY REPORTING BY THOSE IN EXPORT
SLSP and eSALES OF GOODS & SERVICES & LARGE
TAXPAYERS WITHIN 5 YEARS
FROM ENACTMENT OF TRAIN
• MONTHLY FILING OF WITHHOLDING TAX • QUARTERLY FILING OF WITHHOLDING TAX
AND PERCENTAGE TAX / VAT EXCEPT COMPENSATION &
VAT/PERCENTAGE
• PENALTY FOR FAILURE TO TRANSMIT SALES • 1/10 OF 1% OF THE ANNUAL NET INCOME
DATE IN CRM/POS TO BIR – FOR THE 2ND YEAR PRECEDING THE
ADMINISTRATIVE PENALTY CURRENT TAXABLE YEAR FOR EACH DAY OF
VIOLATION OR P10,000 WHICHEVER IS
HIGHER & PERMANENT CLOSURE IF
VIOLATION EXCEEDS 180DAYS
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
Individuals Earning
PURELY COMPENSATION INCOME.
25
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
TAXABLE COMPENSATION
INCOME
GROSS COMPENSATION INCOME
Less: Non-taxable income/benefits such as but not
limited to:
¾ 13th mo. pay and other benefits (P90,000)
¾ de minimis benefits, and
26
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
MINIMUM WAGE EARNERS (MWE)
shall be exempt from income tax on
STATUTORY MINIMUM WAGE INCLUDING:
1. Holiday pay,
2. Hazard pay
3. Overtime pay,
4. Night shift differential pay
earned by the aforementioned MWE shall likewise be
covered by the above exemption.
27
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
Husband and wife computation
y Husband and wife shall compute their individual
income tax SEPARATELY based on their respective
taxable income;
28
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
PROFESSIONAL –
y Person formally certified by a professional body
belonging to a specific profession by virtue of
having completed a required examination or
course of studies and/or practice, whose
competence can usually be measured against an
established set of standards;
29
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
PROFESSIONAL –
It includes but is not limited to
y lawyers, engineers, architects, CPAs,
y professional entertainers,
y professional athletes, directors, producers,
y insurance agents, insurance adjusters,
y management and technical consultants,
y bookkeeping agents, and other recipients of
professional, promotional and talent fees.
30
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
VAT Threshold
refers to the ceiling set to determine VAT
registrable taxpayers, currently set at
P3,000,000;
same threshold to be used to determine the
income tax liability of self- employed and/or
professionals under 8% option
under Sections 24(A)(2)(b) and 24(A)(2)(c)(2) of the Tax Code, as amended.
31
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
Taxpayer subject to the
GRADUATED INCOME TAX RATE
(20% to 35%)
Taxpayer subject to the GRADUATED INCOME TAX RATES
y either selected this as the income tax regime, or
y failed to signify chosen intention or
y failed to qualify to be taxed at the 8% income tax rate
32
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
NON--VAT REGISTERED Taxpayer
subject to the
GRADUATED INCOME TAX RATE
INCOME
TAX
1701
1Q 1701Q 2Q 1701Q 3Q1701Q Graduated
Graduated Graduated Graduated income tax
income tax income tax income tax
BUSINESS
TAX
1Q 2Q 4Q 2551Q
2551Q
3Q 2551Q 3% percentage tax
2551Q 3% percentage tax 3% percentage tax
3% percentage tax
33
33
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
VAT REGISTERED Taxpayer
subject to the
GRADUATED INCOME TAX RATE
INCOME
TAX
1Q 1701
1701Q
Graduated
2Q 1701Q 3Q 1701Q Graduated
Graduated Graduated income tax
income tax
income tax income tax
BUSINESS
TAX
4Q 2550Q
1Q 2550Q 2Q 2550Q 3Q 2550Q
VAT
VAT VAT VAT
34
34
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
(C ) INCOME TAX RATES FOR SELF-EMPLOYED INDIVIDUALS EARNING
INCOME PURELY FROM
SELF-EMPLOYMENT OR PRACTICE OF PROFESSION.
provided in Section 109 (BB) of the Tax Code, as amended, shall have the
option to avail of :
35
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
CHOICES:
(PURELY Self-Employment/Practice of Profession)
in lieu of:
a) GRADUATED INCOME TAX RATES under Section 24(A)(2)(a) and
b) PERCENTAGE TAX under Section 116.
36
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
Taxpayer shall be considered as having availed of the
GRADUATED income tax rates
37
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
SIGNIFIES in the
1st Quarter income tax return
1Q 1701
Q FINAL ITR
2Q 1701Q 3Q
SIGNIFIED 1701
8% 8%
8% 8%
38
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
1701Q
GRADUATED RATE ITEMIZED OSD
8% INCOME TAX
39
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
SECTION 3. INCOME TAX RATES ON INDIVIDUAL CITIZEN
AND INDIVIDUAL RESIDENT ALIEN
VAT-registered taxpayer,
regardless of the gross sales/
receipts can no longer avail of
the 8% option.
40
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
Taxpayers who are subject to Other
Percentage Taxes
under Title V of the Tax Code, as amended
41
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
Taxpayers who cannot avail of
the 8% income tax rate:
42
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
Not a VAT--registered
person
GROSS SALES X 3% = PERCENTAGE TAX DUE
1,000,000 X 3% = P3,000
PERCENTAGE TAX DUE
43
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
Taxpayers who did not qualify for the 8%
income tax rate
1. shall be subject to the graduated
INCOME TAX RATE, and
44
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
Taxpayer’s source of income is
PURELY FROM SELF-EMPLOYMENT,
thus she is entitled to the amount
allowed as deduction of P250,000
under Sec. 24(A)(2)(b) of the Tax Code, as
amended.
45
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
Optional Taxation for individuals in
business/practice of profession
* In lieu of 1) graduated income tax and
2) percentage tax under Sec 116
8% income tax*
On gross sales/receipt
GROSS SALES /
RECEIPT and other non- And other non-operating income
operating income in excess of P250,000
3M and or
below 20% to 35%
Self-employed
/ Professionals GRADUATED income tax
GROSS SALES /
RECEIPT and other 20% to 35%
non-operating income
above 3M GRADUATED
income tax
46
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
j. MIXED INCOME EARNER
An individual earning
COMPENSATION + INCOME FROM BUSINESS
47
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
MIXED INCOME EARNERS
* In lieu of 1) graduated income tax and
2) percentage tax under Sec 116
8% income tax*
On gross sales/receipt
3M and And other non-operating income
in excess of P250,000
BUSINESS/ below or
PRACTICE OF 20% to 35%
PROFESSION
GRADUATED income
tax
above
20% to 35%
3M
COMPENSATION GRADUATED
income tax
48
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
49
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
50
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
Registration of EMPLOYER as
Withholding Agent
-is any person or entity who is
in control of the payment
subject to withholding tax and
therefore is required to deduct
and remit the taxes withheld to the
government.
To file withholding
tax returns
To issue withholding
tax certificate
52
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
REGISTRATION AS WITHHOLDING
AGENT BY THE EMPLOYER
BIR Form No. 1901 SELF-EMPLOYED/PROFESSIONALS/TRUST
BIR Form No. 1903 CORPORATIONS / GOCC /PARTNERSHIP
BIR Form No. 1906 AUTHORITY TO PRINT
BIR Form No. 1907 PERMIT TO USE CASH REGISTER/Point of Sale (POS)
BIR Form No. 1900 CAS & components
54
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
PRESCRIBING POLICIES, GUIDELINES
AND PROCEDURES ON THE
REGISTRATION OF
EMPLOYEES
(BIR FORM NO. 1902)
55
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
OBJECTIVES
y Clarify the procedures on the
registration of employees;
62
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
DE MINIMIS BENEFITS
a. Monetized unused vacation leave
credits of private employees not
exceeding 10 days during the
year;
b. Monetized value of vacation and
sick leave credits paid to
government officials &
employees;
63
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
DE MINIMIS BENEFITS
cMedical cash allowance to
dependents of employees not
exceeding P1500 per employee per
semester or P250 per month;
64
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
De minimis benefits
e. Uniforms and clothing allowance not
exceeding P6,000 per annum;
f. Actual medical assistance
e.g. medical allowance and healthcare needs,
annual medical/ executive check-up,
maternity assistance, and
routine consultations,
not exceeding P10,000 per annum;
g. Laundry allowance not exceeding P300 per
month;
65
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
De minimis benefits
h. Employees achievement awards,
e.g. length of service, or
safety achievement,
which must be in the form of a tangible personal
property other than cash or gift certificate, with an
annual monetary value not exceeding
P10,000 received by the employee under an
established written plan which does not
discriminate in favor of highly paid employees;
66
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
De minimis benefits
i. Gifts given during Christmas and major
anniversary celebrations not exceeding P5,000 per
annum;
67
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
Revenue Regulations 1-2015
DE MINIMIS BENEFITS Sec 2.78.1 (A)(3) of RR
2-98, as amended
y K) Benefits received by an employee by virtue of
Collective Bargaining Agreement (CBA) and
productivity incentive scheme provided that the total
annual monetary value received from both combined
do not exceed P10,000 per employee
per taxable year
68
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
y All other benefits given by
employers which are not included
in the above enumeration shall not
be considered as “de minimis”
benefits, and hence, shall be
subject to income tax as
well as withholding tax on
compensation income.
69
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
13th month + 0ther
benefits
13th month = 1 month salary
+ other benefits
P90,000
70
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
Term “EMPLOYEE”
An individual performing services under an
employer-employee relationship. The
term covers all employees including officers and
employees, whether elected or appointed,
of the Government of the Philippines, or any political
subdivision thereof or any agency or instrumentality.
WEEKLY 1 2 3 4 5 6
Compensation 4,808 38,462-
Range
and below
4,808-7,691 7,692-15,384 15,385- 153,846
38,461 153,845 and above
Prescribed 0.00 0.00
Withholding Tax +20% over 4,808
576.92 2,500.00 9,423.08 46,346.15
+25% over 7,692 +30% over 15,385 + 32% over 38,462 + 35% over 153,846
SEMI-MONTHLY
1 2 3 4 5 6
Compensat 10,417 33,333- 83,333-
10,417-16,666 16,667-33,332 333,333 and
ion Range AND BELOW
83,332 333,332 above
Prescribed 0.00 0.00 1,256.00 5,418.89 20,416.67 180,416.57
Withholding Tax +20% over 10,417 +25% over 16,667 +30% over + 32% over + 35% over
33,333 83,333 333,333
MONTHLY 1 2 3 4 5 6
Compensat 20,83 66,667- 166,667 - 666,667 and
ion Range 20,833- 33,333- above
3 AND 166,666 666,666
BELOW 33,332 66,666
Prescribed 0.00 0.00
Withholding Tax +20% over 20,833
10,833.33 40,833.33 200,833.3
2,500+30% over 32% overMAY 25, 3
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT
+25% over 33,333
66,667
CEBU+ CITY
166,667
74
2018
+ 35%
75
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
RMC 1-2018
Steps in the
Use of the Withholding Tax Table
y ln general, every employer paying compensation to
its employee/s shall DEDUCT AND WITHHOLD
from such compensation a tax determined in
accordance with the prescribed Revised
Withholding Tax Tables, version 2 (Annex "A").
76
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
Steps to Determine the amount of tax
to be Withheld
78
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
RMC 1-2018
Steps in the
Use of the Withholding Tax Table
• Monthly
• Semi-monthly
• Weekly
• Daily
.
79
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
RMC 1-2018
Steps in the
Use of the Withholding Tax Table
Step 3. Determine the compensation
range of the employee and apply the
applicable tax rates prescribed thereon.
MONTHLY 1 2 3 4 5 6
Compensation 20,833 66,667- 166,667 - 666,667 and
AND
20,833-33,332 33,333-66,666 above
Range 166,666 666,666
BELOW
Prescribed 0.00 0.00 2,500 10,833.33 40,833.33 200,833.33
Withholding +20% over 20,833 +25% over 33,333 +30% over + 32% over 166,667 + 35% over 666,667
Tax 66,667
80
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
RMC 1-2018
Steps in the
Use of the Withholding Tax Table
81
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
Steps to Determine the amount of tax
to be Withheld
82
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
An employee receiving semi--monthly
Example 3:
88
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
Version 6
89
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
PROCEDURES FOR ALPHALIST DATA ENTRY V6.0
A. PROCEDURES TO INSTALL, IMPORT AND
UPDATE DATABASE
I. INSTALL
1. Go to www.bir.gov.ph
2. Go to Downloadables
3. Download the Alphalist v6 Setup
4. Install the downloaded Alphalist v6 Setup
5. Enter the Company Taxpayer Information
90
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
91
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
92
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
Employees Withholding Statement of Compensation
and Withholding Tax
BIR Form 2316
per Sec 2.83.1 of RR 2-98, as amended
DUPLICATE COPY
for the BIR
transmitted on or
before February 28
BIR FORM
2316 TRIPLICATE COPY
for EMPLOYER
ORIGINAL COPY - (to be retained for
EMPLOYEE 10 years)
EMPLOYER
Issued BIR Form 2316
To ALL EMPLOYEES
Not later than
JANUARY 31
BIR
94
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
95
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
Uses of BIR Form 2316
(Substituted Filing of ITR)
y Proof of financial capacity for loan, credit
card and other applications
y Proof of payment of tax or for availing tax
credit in the employee’s home country
y Securing travel tax exemption, when
necessary
y Other purposes with various government
agencies such as school scholarship
96
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
1. AN INDIVIDUAL EARNING PURELY
COMPENSATION INCOME WHOSE TAXABLE
INCOME DOES NOT EXCEED P250,000;
• the Certificate of Withholding filed by the respective
Employers, duly stamped “Received” by the Bureau, shall be
tantamount to the SUBSTITUTED FILING of income tax
returns by said employees;
2. An individual whose income tax has been correctly
withheld by his employer, provided, that such
individual HAS ONLY ONE EMPLOYER for the
taxable year –
• the Certificate of Withholding filed by the respective Employers,
duly stamped “Received” by the Bureau, shall be tantamount to the
SUBSTITUTED FILING of income tax returns by said employees;
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
97
3. An individual whose sole income has been
subjected to final withholding tax; and
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
98
Multiple employers
All individuals deriving compensation
income, regardless of the amount,
FROM TWO (2) OR MORE
y CONCURRENT OR
y SUCCESSIVE EMPLOYERS
NON-
LICENSED
LICENSED
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
100
NON-LICENSEDPROFESSIONAL
RMC 69-2017
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
102
1.BACKGROUND
y Government agencies, including GOCCs, have been authorized in
previous executive issuances and general appropriations acts to
enter into contracts with government entities,
private firms or individuals, and non-government organizations
for services related incidental to their respective functions and
weather on part-time or full-
operations,
time basis.
y Agencies have used this provision as basis for directly
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
103
1.BACKGROUND
y CSC MC No. 40, s 1998, prescribed the policies
and guidelines regarding
y Contracts of Services (COS) and
y Job Order (JO’s)
y entered into by all government agencies on both
individual and institutional basis. Said CSC policy
Service Law, rules, and regulations; and that
services rendered thereunder are
not considered as
government service.
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
104
1.BACKGROUND
y However, the proliferations of individual Job Order and
Contact of Service workers in the government and their
involvement even in the performance of regular agency
functions have been observed.
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
105
2. POLICY STATEMENT
y Government agencies are
authorized to ENTER INTO
SERVICE CONTRACTS with other
government agencies, private
firms, non-government agencies or
individuals for services related or
incidental to their respective
functions and operations weather
on a part-time or full time basis.
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
106
3. PURPOSE
yThis Joint Circular is issued to
prescribed the rules and
regulations governing
yContact of Service and
yJob Order
workers in the government.
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
107
4. COVERAGE
This Joint Circular covers
all:
y National Government Agencies ,
y Government –Owned or Controlled
Corporations with original charters,
y State Universities and Colleges and
Constitutional bodies,
y which avail of the services of Contract of
service and Job Order workers.
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
108
5.1 Contract of Service
y refers to the engagement of the
service and of an individual private
firm, other government agency, non-
government agency or international
organization as
y CONSULTANT,
y LEARNING SERVICE
PROVIDER OR
y TECHNICAL EXPERT
to undertake special project or
job within a specific period.
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
109
5.2 Contractor of Service
PROVIDER
y refers to an individual, a government
agency, private or non-government
entity, duly registered and
recognized by authorized
government agencies to provide
consultancy service in their
respective field of expertise.
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
110
5.3 INSTITUTIONAL
CONTRACT
y refers to the agreement between
the government agency and
contactor or service provider
duly-registered and recognized by
authorized government agencies to
provide services such as
y janitorial,
y security,
y CONSULTANCY, and
y OTHER SUPPORT SERVICES.
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
111
5.4 JOB ORDER
y refers to piece work (pakyaw) or
intermittent or emergency
jobs such as
y cleaning of debris on the roads, canals,
waterways etc. after natural/man-made
disasters/occurrences and
y other manual/trades and crafts services
such as carpentry for a specific piece of
work.
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
112
5.5 Support services
may include
y janitorial security,
y driving,
y data encoding,
y equipment and grounds maintenance
and
y other services
that support the day to day
operations of the agency.
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
113
6.1 INSTITUTIONAL
Contract of Service
As a general rule, government agencies may
avail of outsourced services through
institutional Contract of Service, subject to the
following conditions:
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
114
6.1 INSTITUTIONAL
Contract of Service
The contractor or service provider should
meet the following requirement:
a) Duly registered with the DOLE
b) Duly registered with the BIR;
c) For sole proprietorship, duly registered with the SEC;
and
d) Must be an active employer registered with the following
agencies:
1) Social Security System (SSS)
2) Home Development Mutual Fund (PAG-IBIG Fund), and
3) Philippine Health Insurance Corporations (PHILHEALTH)
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
115
6.1 INSTITUTIONAL
Contract of Service
6.1.2 Workers hired through institutional contract of service shall
remain to be employees of the contractor of service
provider.
6.13 The discipline of workers under institutional contract of
service shall be the responsibility of the contractor of
service provider. The head of the procuring entity may
report to the contractor of service provider any misconduct or
wrong doing of the said worker/s.
6.1.4 The contractor of service provider shall be responsible for
providing the workers with compensation and benefits
compliant with existing labor law including the necessary
social security and other benefits mandated by law in
addition to direct compensation as payment for their services.
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
116
6.2 INDIVIDUAL
Contract of Service
Government agencies may enter into contract
of service with individuals as consultants/contractors
subject to the following guidelines:
6.2.1 The term of contract between the agency and the individual
contractor shall be for a maximum period of one
(1) year, renewal at the option of the Head
of the procuring entity, but in no case shall exceed
the term of the latter.
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
117
6.3 Job Order
Government agencies may hire job order
workers subject to the following conditions:
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
118
7. Limitations
7.1 Hiring under contract of service shall be
limited to CONSULTANTS, LEARNING
SERVICE PROVIDERS, AND/OR OTHER
TECHNICAL EXPERTS to undertake special
project or job within a specific period.
y the project or job is not part of the regular functions of
the agency or the expertise is not available in
the agency, or it is impractical or more
expensive for the government agency to
directly undertake the service provided by the individual
institutional contractor.
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
119
7. Limitations
7.2 Hiring of Job Order workers shall be
LIMITED TO EMERGENCY OR
INTERMITTENT WORK, such as clearing
of debris on the roads, canal, waterways, etc.
after natural/man-made disasters/
occurrences, other trades and crafts and
manual tasks such as carpentry, plumbing,
painting, electrical, and the like which are
not part of the regular
functions of the agency.
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
120
7. Limitations
7.3 Contract of service and job order workers
should not be designated to positions
exercising control or supervision over
regular and career employee.
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
123
9. Monitoring
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
124
11. Transitory Provisions
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
127
12. Sanctions
y Heads of agencies and/or responsible
officers found to violate the provisions of
these rules and regulations may be
charged before the proper
administrative bodies (Office of the
ombudsman, Office of the President or
Civil Service Commission) for violation of
existing Civil Service law and rules and
serious nature or conduct prejudicial to
the best interest of the service.
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
128
13. Resolution of Issues
yIssues and concerns that may
arise in the implementation of
these rules and regulations shall
be resolved by the CSC, COA
and DBM, as appropriate.
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
129
LONE PAYOR
(1 SOURCE OF INCOME)
OPTION to avail of:
y SUBSTITUTED PERCENTAGE TAX
RETURN
(ONE PAYOR)
131
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
SUBSTITUTED PERCENTAGE TAX
(ONE PAYOR)
y The payor (e.g.HOR) shall submit the LIST
OF CONSULTANTS as basis for the
issuance of TIN by the RDO where payor is
registered.
134
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
“(E) Regular Percentage Tax Return
If the payee has more than one payors
135
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
NOTICE OF AVAILMENT OF THE
NOTICE OF CANCELLATION OF
OPTION TO PAY THE TAX THROUGH THE AVAILMENT OF THE
WITHHOLDING PROCESS (RR 14-2003) OPTION TO PAY THE TAX THROUGH THE
WITHHOLDING PROCESS (RR 14-2003)
NOTICE OF AVAILMENT OF THE
SUBSTITUTED FILING OF NOTICE OF AVAILMENT OF THE
PERCENTAGE TAX RETURN
(RR 14-2003) SUBSTITUTED FILING OF VAT RETURN
SWORN DECLARATION AND NOTICE OF CANCELLATION OF
WAIVER OF THE PRIVELEDGE TO CLAIM INPUT
AVAILMENT OF THE SUBSTITUTED FILING
TAX
UNDER SEC. 110 OF THE TAX CODE OF PERCENTAGE / VAT RETURN
REGISTRATION AND COMPLIANCE OF
PROFESSIONALS
Copy of ANY
BIR FORM
CONTRACT GOVERNMENT
1901
OF SERVICE ISSUED ID
REGISTRATION
BIR Form No. 1901 SELF-EMPLOYED/PROFESSIONALS/TRUST
ATTACH: (Payor consolidates and files for those availing SUBSTITUTED FILING.
Tabulates Detailed Summary):
• Job Order/MOA duly certified by the agency,
• Birth Certificate, etc.
• Substituted Percentage Tax Return
1. Notice of availment of SUBSTITUTED PERCENTAGE TAX
Or
• Substituted VAT Tax Return
1. Notice of availment of SUBSTITUTED VAT
2. Waiver of Input Tax
REGISTER tax types:
1. Annual Registration Fee (ARF) P500 every Jan 31
using BIR Form 0605
2. IncomeGACPA
Tax CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018 140
BY: MARIVIC A. GALBAN
REG FEE (ARF)
P500 ANNUAL
COR
PERCENTAGE / VAT
BOOKKEEPING
INVOICING
1701 ITR
1701Q
2550M / 2550Q (VAT)
2551Q (PT)
BUSINESS
INDIVIDUAL EWT TAX
(GMP)
JOB ORDER
below 3M
INCOME
GROSS
INCOME
GROSS
TAX
PERCENTAGE
VAT
3M
OR
above
WITH GOVERNMENT
PROFESSIONAL (license & non-
license)& with gross receipt of * *
P250,000 below (LONE PAYOR)
Non-license professional with 2% 3 5%
gross receipt above P250,000 * * * or 10% %
or
12%
10%
(LONE PAYOR) **
License PROFESSIONAL 5% 5%
or or
with gross receipt above P250,000 10% 10% 3 12
*
%
(LONE PAYOR) * * * ** %
* May avail of SUBSTITUTED FILING of percentage tax /VAT return & SUBSTITUTED OFFICIAL RECEIPT
** 5% EWT with SWORN & COR; 10% without SWORN & COR;
10% EWT for VAT registered or gross of 3M above
Opted for 8% income tax for 3M below: No creditable PERCENTAGE TAX & not required to
file 2551Q; file 1701Q & 1701 with no FS
141
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
REG FEE (ARF)
P500 ANNUAL
COR
PERCENTAGE / VAT
BOOKKEEPING
INVOICING
1701 ITR
1701Q
2550M / 2550Q (VAT)
2551Q (PT)
BUSINESS
INDIVIDUAL EWT TAX
(GMP)
JOB ORDER
below 3M
INCOME
GROSS
INCOME
GROSS
TAX
PERCENTAGE
VAT
3M
OR
above
WITH GOVERNMENT
Non-license 2% 3%
professional or
10% 5%
10%
(MULTIPLE PAYOR) **
License 5% 3%
PROFESSIONAL or
10% 5%
10%
(MULTIPLE PAYOR)
**
* May avail of SUBSTITUTED FILING of percentage tax /VAT return & SUBSTITUTED OFFICIAL RECEIPT
** 5% EWT with SWORN & COR; 10% without SWORN & COR;
10% EWT for VAT registered or gross of 3M
above
Opted for 8% income tax for 3M below: No creditable PERCENTAGE TAX & not
required to file 2551Q; file 1701Q & 1701 with no FS
142
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
EXPANDED WITHHOLDING TAX
143
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
PAYEE /
INCOME RECIPIENT
SAWT
FORMAT
Annex “B”
Seq TIN Registered Name Return Nature of income ATC Tax rate Tax base Tax
no. (Alphalist) period payment Withheld
3 mm/yy 5
1 2 4 6 7 8 9
1
2
3
4
5
TOTAL P P
AMOUNT
CERTIFICATES
BIR
DLN:
BIR Form No.
Republika ng Pilipinas
Certificate of Compensation
Kagaw aran ng Pananalapi
Kawanihan ng Rentas Internas
For Comp ensation Pay ment With or Without Tax Withheld
Payment/Tax Withheld 2316
October 2002 (ENCS)
1 For the Year 1 2 For the Period
( YYYY ) From (MM/DD) To (MM/DD)
Part I Em ploye e Inform ation Part IVD et ai l s o f C o mp ensat i o n I nco me and T ax W i t hhel d f r o m P r esent E mp l o
3 Taxpayer 3 Amount
Identif ication No. A. Non-Taxable /Exe m pt Com pe ns ation Incom e
DLN:
4 Employee's Name (Last Name, First Name, Middle Name) 5 RDO Code 25 13th Month Pay and 25
BIR Form No. Other Benef its
Republika ng Pilipinas
Certificate of Compensation 26 SSS, GSIS, PHIC & Pag-ibig 26
2316
ALPHALIST
Kagaw aran ng Pananalapi
Kawanihan ng Rentas Internas 6 Registered Address 6A Zip Code
Contributions, & Union dues
Payment/Tax Withheld 27 Salaries & Other Forms of
Compensation
27
For Comp ensation Pay ment With or Without Tax Withheld October 2002 (ENCS)
6B Local Home Address 6C Zip Code 28 Total Non-Taxable/Exempt 28
1 For the Year 1 2 For the Period Compensation Income
( YYYY ) From (MM/DD) To (MM/DD)
Part I Em ploye e Inform ation Part IV
6D Foreign Address D et ai l s o f C o mp ensat i o n I nco me and T ax W i t hhel
6E Zip Code d f r o m P r esent E mp l o
B. Taxable Com pe ns ation Incom e
3 Taxpayer 3 Amount
Identif ication No. A. Non-Taxable /Exe m pt Com pe ns ation Incom e REGULAR
4 Employee's Name (Last Name, First Name, Middle Name) 75 Date
RDOof Birth 25
Code (MM/DD/YYYY) 8 Telephone 25 Number 29 Basic Salary 29
13th Month Pay and
Other Benef its
26 SSS, GSIS, PHIC & Pag-ibig 26
9 Exemption Status 30 Representation 30
6 Registered Address 6A Zip Code
Single Contributions,
Head of&the Union dues
Family Married
27 Salaries & Other Forms of 27
9A Is the w if e claiming the additional exemption f or qualif ied dependent children?
Compensation
DLN:
6B Local Home Address 6C Zip Code Yes
28 Total Non-Taxable/Exempt No 28 31 Transportation 31
BIR Form No. Compensation Income
Republika ng Pilipinas 10 Name of Qualif ied Dependent Children 11 Date o f B irth (M M /DD/YYYY)
Certificate of Compensation
Kagaw aran ng Pananalapi
Kawanihan ng Rentas Internas
For Comp ensation Pay ment With or Without Tax Withheld
6D Foreign Address
Payment/Tax Withheld
7 Date of Birth (MM/DD/YYYY)
2316 6E Zip Code
33
1 For the Year
Part I
( YYYY )
1
9 Exemption
From
Part IVD et ai Status
(MM/DD) To (MM/DD)
12 Other Dependent (to be accomplished if taxpayer
l s o f C o mp ensat i o n I nco me and T ax W i t hhel d f r o m P r esent E mp l o 30 Representation 30
34 Others (Specif y)
is head of the f amily) 3 4 A 34A
FORMAT
Date o f B irth
3 Taxpayer 3 Single Head of the Family AmountMarried Name of Dependent Relationship
(M M /DD/YYYY
Identif ication No. 9AA. Non-Taxable
Is the w if e claiming/Exethe
m pt Com peexemption
additional ns ation Incom e ied dependent children?
f or qualif 34B 34B
4 Employee's Name (Last Name, First Name, Middle Name) 5 RDO Code 25 13th Month Pay and Yes 25 31 Transportation
No Em ploye r Inform ation (Pre31
Other Benef its
10 Name of Qualif ied Dependent Children
26 SSS, GSIS, PHIC & Pag-ibig 26
11 Date o f B irth 13
Part II
(M MTaxpayer
/DD/YYYY)
Identif ication No.
13
s e nt) SUPPLEMENTARY
35 Commission 35 Annex “B”
6 Registered Address 6A Zip Code Contributions, & Union dues 14 Employer's Name 32 Cost of Living Allow ance 32 36 Prof it Sharing 36
27 Salaries & Other Forms of 27
Compensation 37 Fees Including Director's 37
33 Fixed Housing Allow ance 33 Fees
6B Local Home Address 6C Zip Code
28 Total Non-Taxable/Exempt
Compensation Income
28
34A
Identif ication No.
20 Employer's Name
40A 40A
f rom Previous Employer (s)
44 Gross Taxable
Compensation Income
44 RETURN PERIOD
Date o f B irth17 Employer's Name 40B 40B 45 Less: Total Exemptions 45
Name of Dependent Relationship
(M M /DD/YYYY 21 Registered Address 21A Zip code 46 Less: Premium Paid on
34B 34B
41 Total Taxable Compensation 41 Health and/or Hospital 46
Part II
13 Taxpayer
Identif ication No.
Em ploye r Inform ation (Pre s e nt)
13
SUPPLEMENTARY
18 Registered
35 Commission
Address
35
18A Zip code Income
Em ploye r Inform ation (Pre
22
Sumvious
m ary)-3
Insurance (If applicable)
47 Taxable
Compensation Income
47 Seq TIN Registered Name Return Nature of income ATC Tax rate Tax base Tax
22 Taxpayer 42 Taxable Compensation Incom42
14 Employer's Name 36 Prof it Sharing
19 37
Em ploye r Inform36
Fees Including Director's
Taxpayer 19
ation (Pre vious )-2
37
Identif ication No.
23 Employer's Name
f rom Present Employer
43 Add: Taxable Compensation 43
48 Tax Due
49 Amount of Taxes Withheld
48
no. (Alphalist) period payment Withheld
Fees 49A Present Employer 49A
15 Registered Address 15A Zip code20 38
Identif ication No.
TaxableName
Employer's 13th Month Pay
and Other Benef its
38
f rom Previous Employer (s)
44 Gross Taxable
24 Registered Address
Compensation Income
44 24A Zip code 49B Previous Employer(s) 49B 3 mm/yy 5
39 Hazard Pay 39 50 Total Amount of Taxes 50
main employer secondary employer 21 40 Others (Specif
Registered Address y) 21A Zip code
45 Less: Total Exemptions
I declare,46 Less:
under Premium
the penalties o f Paid
Health and/or Hospital
45 Withheld
onthat this certificate has been made in go o d faith, verified by us, and to the best o f o ur kno wledge and belief, is true and co rrect
perjury,
46
1 2 4 6 7 8 9
Part III Em ploye r Inform ation (Pre vious )-1
16 Taxpayer
Identif ication No.
16 40A 40A
Em ploye r Inform ation (Pre vious )-3
22
Insurance (If applicable)
47 Taxable
Compensation Income
47 1
22 Taxpayer
17 Employer's Name 4 0B
Identif ication No. 40B 48 Tax Due 48
I declare, under the penalties o f perjury, that this certificate has been made in go o d faith, verified by us, and to the best o f o ur kno wledge and belief, is true and co rrect
3
19 43 Add: Taxable Compensation 43
19 Taxpayer
Identif ication No.
20 Employer's Name
f rom Previous Employer (s)
44 Gross Taxable 44
4
Compensation Income
PAYOR /
BY: MARIVIC A. GALBAN GACPAWITHHOLDING
CONVENTIONG– AGENT 144
WATERFRONT CEBU CITY MAY 25, 2018
BIR RECONCILIATION
FORMAT
SAWT FORMAT
ALPHA
Annex “B”
Annex “B” BIR REGISTERED NAME
TRADE NAME
BIR REGISTERED NAME ADDRESS
TRADE NAME TIN
ADDRESS
TIN MONTHLY ALPHALIST OF WITHHOLDING TAXES (MAWT)
RETURN PERIOD
MONTHLY ALPHALIST OF WITHHOLDING TAXES (MAWT)
RETURN PERIOD Seq TIN Registered Name Return Nature of income ATC Tax rate Tax base Tax
no. (Alphalist) period payment Withheld
Seq TIN Registered Name Return Nature of income ATC Tax rate Tax base Tax 3 mm/yy 5
no. (Alphalist) period payment Withheld 1 2 4 6 7 8 9
3 mm/yy 5 1
1 2 4 6 7 8 9
1 2
2 3
4
3
5
BIR
4
TOTAL P P
5 AMOUNT
TOTAL P P
AMOUNT
146
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
Sample Only XYZ CORPORATION
U305/3F Visayas Avenue, Quezon City “Annex C.3”
SALES INVOICE
Sold to: _________________________________ Date: ______________
TIN: _________________________________ Terms: ______________
Address: _________________________________ OSCA/PWD ID No.: ______________
_________________________________ SC/PWD Signature: ______________
Business Style: _________________________________
OFFICIAL RECEIPTS
Sold to: _______________________________ Date: ______________
TIN: _______________________________ Terms: ________________
Address: _______________________________ OSCA/PWD ID No.: ____________
_______________________________ SC/PWD Signature: ______________
Business Style: _______________________________
Total Sales
Less: SC/PWD-Discount
_______________________________
Cashier/Authorized Representative
10 Bklts (3x) 1001-1500
BIR Authority to Print No. 3AU000805222
Date Issued : 07-30-13: Valid until 07-29-2018
JDC PRINTING SERVICES, INC. Printer’s Accreditation No.
Bgy. 123, Quezon City P08051200
TIN: 123-456-789-0000 Date Issued: 08-01-12
“THIS DOCUMENT IS NOT VALID FOR CLAIM OF INPUT TAXES” No. 1001
THIS INVOICE SHALL BE VALID FOR FIVE (5) YEARS FROM THE DATE OF ATP. 148
BY: MARIVIC A. GALBAN GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
C O M P U T A T I O N
(V
VAT registered payee -CONTRACTOR)
NEW BILLING REQUIREMENT
VAT SEPARATELY BILLED
GROSS P100,000
ADD: 12% VAT 12,000
GROSS BILLING P112,000
less: EWT 2% x 100,000 2,000
NET AMOUNT DUE P110,000
149
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
C O M P U T A T I O N
(VAT registered payee- government contractor)
GROSS (exclusive of VAT) P100,000
Add: 12%VAT 12,000
Gross billing P112,000
less: a. EWT 2% x 100,000 2,000 2307 1601EQ
QAP
b. FVAT 5% x 100,000 5,000 2306 1600
NET AMOUNT DUE P105,000 ALPHA
GOVERNMENT
MONEY
PAYMENTS ( 3%)
151
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
5% FINAL VAT
152
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
RR 2-2015
y Amending RR 2-2006 and 11-2013 with respect to
the submission
of copies of BIR
Form 2307 and 2316
y That SAWT submitted under RR 1-2014 using
Data Entry and validation module of
the BIR. On the other hand, in lieu of the
submission of hard copies of 2307 as an
attachment to SAWT, the following procedures
must be observed:
153
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
BIR Form Nos. 2307 or 2316
1. SCAN the original copies of BIR Form 2307
through a scanning machine or device;
2 Store the soft copies using pdf file format with
filenames ALPHABETICALLY ARRANGED in DVD-R.
The filename shall contain the ff: info separated by an
underline:
a. BIR registered name of the taxpayer-payor
b. TIN including branch code
c. Taxable period
Example: Bonifacio Mfg.Corp_131885220000_09312014
However, if several BIR Form 2307 same payor, same taxable period, indicate at the end
the series no.
Bonifacio Mfg.Corp_131885250000_09312014_1
Bonifacio Mfg.Corp_131885250000_09312014_2 SEVERAL TRANS.
Bonifacio Mfg.Corp_131885250000_09312014_3 IN A MONTH
154
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
BIR FORM NO. 2307
SWORN
155
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
BIR FORM NO. 2316
SWORN
156
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
BIR Form Nos. 2307 and 2316
y 4. Submit the DVD-R to the BIR where
registered, together with a Notarized SWORN
Certification Annex C, duly signed by the
authorized representative of the TP certifying that the
soft copies of the said form are the complete and
exact copies of the original thereof.
157
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
Taxpayers covered by the
amendatory provisions
yMandatory for LTS
y Any NON-LTS may, at its/his/her OPTION
comply with the said requirements
y Provided, further, that non-LTS shall NO
LONGER BE ALLOWED TO SUBMIT
IN HARD COPIES thereafter once the said TP
opted to comply with the requirements prescribed by
these Regulations
158
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
“SECTION 2.57.2. Income Payments Subject to
Creditable Withholding Tax.
(A)Income Payments to a CITIZEN OR TO A RESIDENT ALIEN Individual:
161
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
AFFIDAVIT-DECLARATION THAT NO PROFESSIONAL FEE
HAS BEEN CHARGED BY MEDICAL PRACTITIONER
162
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
MEDICAL PRACTITIONERS
shall likewise include
y medical technologists,
y allied health workers (e.g., occupational therapists, physical
therapists, speech therapists, nurses, etc.)
y other medical practitioners
who are not under an employer-employee relationship
with the hospital or clinic, or HMO and other similar
establishments
163
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
2. Professional ENTERTAINERS
actors, actresses, singers, lyricist,
composers, emcees
3. Profession ATHLETES
basketball players, pelotaries and jockeys
164
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
5. Insurance agents & insurance adjusters
6. Management & technical CONSULTANTS
7. Bookkeeping agents & agencies
8. Other recipient of talent fees
9. Fees of DIRECTORS who are not employees of the
company paying such fees, whose duties are confined to
attendance at and participation in the meetings of the board of
directors;
165
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
It shall include not only fees, but also:
per diems allowances other form of income payment
not subject to withholding tax on compensation.
166
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
“INCOME PAYEE’S SWORN DECLARATION OF GROSS RECEIPTS/SALES
(For Self-Employed and/or Engaged in the Practice of Profession with
SEVERAL INCOME PAYORS)
167
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
“INCOME PAYEE’S SWORN DECLARATION OF GROSS RECEIPTS/SALES
(For Self-Employed and/or Engaged in the Practice of Profession with
SEVERAL INCOME PAYORS)
169
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
Not exceed 3M + non--VAT
SEVERAL INCOME PAYORS
170
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
INCOME PAYEE’S SWORN DECLARATION OF GROSS RECEIPTS/SALES
(For Self-Employed and/or Engaged in the Practice of Profession with
LONE INCOME PAYOR)
171
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
INCOME PAYEE’S SWORN DECLARATION OF GROSS RECEIPTS/SALES
(For Self-Employed and/or Engaged in the Practice of Profession with
LONE INCOME PAYOR)
173
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
INCOME PAYEE’S SWORN DECLARATION OF GROSS RECEIPTS /SALES
(For Non-Individual Taxpayer with Several Income Payors)
174
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
INCOME PAYORS /withholding agents shall
subsequently execute a sworn declaration (Annex “C”)
176
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
C. RENTAL 5%
1. Real properties & personal. – On
gross rental for the continued use or
possession of real property used in business
which the payor or obligor has not taken or
is not taking title, or in which he has no
equity
177
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
C. Income Payment to Certain
(E)
Contractors 2%
1. GENERAL ENGINEERING CONTRACTORS
2. GENERAL BUILDING CONTRACTORS
3. SPECIALTY CONTRACTORS
178
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
(4) Other contractors – 2%
(f) Printers, bookbinders, lithographers and publishers except
those principally engaged in the publication or printing of
any newspaper, magazine, review or bulletin which appears
at regular intervals, with fixed prices for subscription and
sale;
(g) Messengerial, janitorial, private detective and/or security
services, credit and/or collection agencies and other
business agencies;
179
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
TOP withholding agents
shall include the following:
180
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
(J) Income Payments made by a GOVERNMENT OFFICE,
national or local, including barangays, or their attached agencies or
bodies, and government-owned or controlled corporations to its
local/resident supplier of goods/services, other than those covered by
other rates of withholding tax. [formerly under letter (N)]
2% PURCHASE OF SERVICES
* GOCCs shall withhold in their
capacity as government.
181
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
(N) Income payments made to suppliers of
AGRICULTURAL PRODUCTS [formerly under letter (S)] –
“LIVESTOCK” shall include cow, bull and calf, pig, sheep, goat and other animals
similar thereto.
“POULTRY” shall include fowl, duck, goose, turkey and other animals similar thereto.
MARINE PRODUCTS” shall include fish and crustacean such as but not limited to,
eel, trout, lobster, shrimp, prawn, oyster, mussel and clam, shell and other aquatic
products.
182
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
O)Income payments on PURCHASES OF MINERALS,
MINERAL PRODUCTS AND QUARRY RESOURCES
as defined and discussed in Section 151 of the Tax Code
[formerly under letter (T)]
183
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
(R) Income payments made by POLITICAL PARTIES
AND CANDIDATES of local and national elections on
all their PURCHASE OF GOODS AND SERVICES related
to campaign expenditures, and income payments made by individuals
or juridical persons for their purchases of goods and services intended
to be given as campaign contributions to political parties and candidates
[formerly under letter (X)] – 5%
(S) INTEREST INCOME derived from any other debt instruments
not within the coverage of ‘deposit substitutes’ and Revenue
Regulations 14-2012, unless otherwise provided by law or regulations
[formerly under letter (Y)] – 20%
(T) Income payments to Real Estate Investment
Trust (REIT) [formerly under letter (Z)] – Income payments made to corporate
taxpayers duly registered with the LTS Regular LT Audit Division as REIT for
purposes of availing the incentive provisions of Republic Act No. 9856,
otherwise known as “The Real Estate Investment Trust Act of 2009”, as implemented
by RR 13-2011 - 1%
184
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
y Any income subject to INCOME TAX
may be subject to WITHHOLDING TAX;
185
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
Returns and Payment of Taxes
“SECTION 2.58.
Withheld at Source
BIR Form No. 1601EQ for creditable withholding tax Not later than the
last day of the
BIR Form No. 1602Q for final tax on interest on bank month following
deposits
the close of the
BIR Form No. 1603Q for final tax withheld on fringe benefits, quarter during
which the
BIR Form No. 1601FQ for all other final withholding taxes) withholding was
made.
Withholding agents with zero remittance are still required to use and file
the same form.
188
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
189
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
1st mo 2nd mo
190
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
191
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
1st mo 2nd mo
192
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
TAX ADVISORY 4/24/18
194
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
QAP SUBMISSION
The QAP shall be submitted either
1. through the eSubmission facility
(esubmission@bir.gov.ph) of the
Bureau or
2. through the dedicated email account of the RDO
having jurisdiction over the withholding agent's
registered address.
This is required to be submitted on or before the last
day of the month following the close of the
quarter as an "ATTACHMENT" to the quarterly
withholding tax returns prescribed under Revenue
Regulations No. 11-2018, as amended
195
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
Tax advisory
196
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
REGISTRATION COR
y Thus, the concerned taxpayers need not visit
their respective RDO to UPDATE THEIR
REGISTRATION and replace their Certificate of
Registration (COR)
197
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
B) Withholding Tax Statement for
Taxes Withheld
Every payor required to deduct and withhold taxes under this subsection
shall furnish each payee, a withholding tax statement,
IN TRIPLICATE,
y TIME: within 20 days from the close of the quarter
y upon request of the payee, the payor must furnish such statement,
simultaneously with the income payment
y FORM: BIR Form No. 2307 for creditable withholding tax
BIR Form No. 2306 for final withholding tax
SHOWING:
y monthly income payments made,
y quarterly total, and
y amount of taxes withheld.
198
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
199
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
1. BIR Form Nos. 1601-EQ/1601-FQ
A. Manual Return
4. Remittance of the tax due thereon, if any, shall be made
thru:
a. Manual Payment
y Authorized Agent Bank (AAB) located within the territorial jurisdiction
of the Revenue District Office (RDO) where the taxpayer is registered
y In places where there are no AABs, the return shall be filed and the tax
due shall be paid with the concerned Revenue Collection Officer
(RCO), thru the MRCOS facility, under the jurisdiction of the RDO.
b. Online Payment
1. Thru GCash Mobile Payment
2. Landbank of the Philippines (LBP) Linkbiz Portal, for taxpayers
who have ATM account with LBP and/or holders of Bancnet ATM/Debit
Card
3. DBP Tax Online, for holders of VISA/Master Credit Card and/or
Bancnet ATM/Debit
200
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
SYSTEM DOWN
RETURN NOT AVAILABLE IN efps
201
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
(C) ANNUAL Alphabetical Information Return and
Annual List of Payees for income tax withheld at source
The withholding agent is required to file with the concerned office of the
LTS/RR/RDO where the withholding agent is registered, the following:
1. (BIR FORM NO. 1604E)
Annual Information Return of Creditable Taxes Withheld (Expanded)
/Income Payments Exempt from Withholding Tax including the
corresponding Annual Alphabetical List of Payees –
y on or before March 1 of the following year in which payments were
made; and
202
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
When and Where
to File and Pay
For Electronic
• e-filed and e-paid on or before the DEADLINE
http://www.bir.gov.ph.
203
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
DOWNLOADABLES
1.1. www.knowyourtaxes.ph
1.2. www.dof.gov.ph
1.3. Dropbox : http://goo.gl/UCr8XS
1.4. www.bir.gov.ph
204
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
Step 1.
DOWNLOAD, INSTALL and RUN
eBIRForms Package version
Step 2.
FILL-UP directly by encoding data in tax return
Step 3.
Click VALIDATE after accomplishing tax return.
If there are changes to make, click EDIT button.
Make sure to validate after every changes made.
Step 4.
Click SUBMIT / FINAL COPY
205
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
Penalties for Non-Compliance
•LATE FILING
Non-withholding
Under withholding
Under remittance
Failure to refund excess taxes
withheld on compensation
• overwithholding
• overremittance
206
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
OFFICERS & EMPLOYEES
REQUIRED TO DEDUCT & WITHHOLD
BARANGAY BARANGAY BARANGAY
TREASURER CAPTAIN
207
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
208
GACPA CONVENTION – WATERFRONT CEBU CITY MAY 25, 2018
BY: MARIVIC A. GALBAN
Presented by
y:
MARIVIC A. GALBAN
Email:
il: marivic.galban@bir.gov.ph
marivic.galbanwtd@yahoo.com
Queries? –
VISIT THE NEAREST BIR REGIONAL OFFICES OR REVENUE DISTRICT OFFICES