PRESENTED BY: OIC-HEAD REVENUE EXECUTIVE ASSISTANT HUMAN RESOURCE MANAGEMENT SERVICE BUREAU OF INTERNAL REVENUE, DILIMAN, QUEZON CITY

Transcription

1 PRESENTED BY: MARIVIC A.GALBAN OIC-HEAD REVENUE EXECUTIVE ASSISTANT HUMAN RESOURCE MANAGEMENT SERVICE BUREAU OF INTERNAL REVENUE, DILIMAN, QUEZON CITY MAY 25,

2 How to achieve the vision Ways to raise additional investments Complementary economic reforms Sustainable borrowings Budget reforms Secure property rights Enhance competition Tax & customs administration reform Tax policy reform Improve food security Simplify regulations BY: MARIVIC A. GALBAN GACPA CONVENTION WATERFRONT CEBU CITY MAY 25,

3 Why tax policy reform is needed: A deficient tax system CAUSE Inflation Special treatment and exemptions Lack of informatio n (e.g., bank secrecy) EFFECT High tax rates Narrow tax base (only about half of the economy is taxed) OUTCOME Inequity Complexity Inefficiency MAY 25,

4 In summary, tax reform is needed to fund the ten-point socioeconomic agenda BY: MARIVIC A. GALBAN GACPA CONVENTION WATERFRONT CEBU CITY MAY 25,

5 It is crucial for the success of the golden age of infrastructure. MAY 25,

6 MAY 25,

7 What is the purpose of TRAIN? BY: MARIVIC A. GALBAN GACPA CONVENTION WATERFRONT CEBU CITY MAY 25, 2018

8 The purpose of TRAIN is to make our country s tax system BY: MARIVIC A. GALBAN GACPA CONVENTION WATERFRONT CEBU CITY MAY 25, 2018

9 The purpose of TRAIN is to make our country s tax system BY: MARIVIC A. GALBAN GACPA CONVENTION WATERFRONT CEBU CITY MAY 25, 2018

10 The purpose of TRAIN is to make our country s tax system BY: MARIVIC A. GALBAN GACPA CONVENTION WATERFRONT CEBU CITY MAY 25, 2018

11 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) RANGE OF TAXABLE INCOME (a) TAX DUE RATE = a + (b x c) OVER OVER NOT OVER NOT OVER 250,000 BASIC AMOUNT BASIC (a) ADDITIONAL (b) ADDITIONAL (b) OF EXCESS OVER (c) OF OVER (c) , , , % 250, , ,000-20% 250, , , , % 400, , ,000 30,000 25% 400, , ,000, , % 800, ,000 2,000, ,000 30% 800,000 2,000, ,000, , % 2,000, ,000, ,410, % 8,000, ,000,000 8,000, ,000 32% 2,000,000 8,000,000-2,410,000 35% 8,000,000 MAY 25,

12 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) OVER NOT OVER BASIC AMOUNT (a) ADDITIONAL RATE (b) OF EXCESS OVER (c) - 250, , , % 250, , ,000 22,500 20% 800,000 2,000, ,500 25% 2,000,000 8,000, ,500 30% 8,000,000-2,202,500 35% 400, ,000 2,000,000 8,000,000 MAY 25,

13 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: OVER RANGE OF TAXABLE INCOME NOT OVER - 250,00 0 BASIC AMOUNT (a) TAX DUE = a + (b x c) ADDITION AL RATE (b) OF EXCESS OVER (c) , ,000-20% 250, , ,000 30,000 25% 400, ,000 2,000, ,000 30% 800,000 2,000,00 0 8,000,00 0 8,000, ,000 32% 2,000,000-2,410,000 35% 8,000,000 Effective January 1, 2023 and onwards RANGE OF TAXABLE INCOME TAX DUE = a + (b x c) MAY 25, OVER NOT OVER BASIC AMOUNT (a) ADDITION AL RATE (b) OF EXCESS OVER (c) - 250, , ,000-15% 250, , ,000 22,500 20% 400, ,000 2,000, ,500 25% 800,000 2,000,00 0 8,000,00 0 8,000, ,500 30% 2,000,000-2,202,500 35% 8,000,000

14 INCOME TAX PROVISIONS Below P10,000 taxed at 5% Over P500,000 taxed at 32% 14 No counter provision Personal exemption P50,000 Additional exemption P25,000 per child not exceeding 4 13 th month and other benefits P82,000 Below P250,000 no tax Over 8M taxed at 35% OPTIONAL 8% gross revenue below 3M for self-employed & professionals to be taxed in lieu of 1) graduated income tax and 2)percentage tax No more personal and additional exemption 13 th month and other benefits P90, 000 BY: MARIVIC A. GALBAN GACPA CONVENTION WATERFRONT CEBU CITY MAY 25, 2018

15 INCOME TAX PROVISIONS Employees of RHQ, ROHQ, OBU & petroleum service contractors taxed at 15% Fringe benefit tax 32% none 1Q deadline April 15 2 nd installment July 15 preferential treatment shall not apply anymore fringe benefit tax 35% returns maximum of 4 pages 1Q deadline May 15 2 nd installment October 15 BY: MARIVIC A. GALBAN GACPA CONVENTION WATERFRONT CEBU CITY MAY 25, 2018

16 FINAL TAX PROVISIONS 16 PCSO & LOTTO winning exempt Interest income of foreign currency denominated units 7 ½ % Taxable above P10,000 15% whether recipient is individual or domestic corporation CGT on unlisted shares 5% of 1 st P100,000 net of capital gains realized and 10% in excess of P100,000 15% BY: MARIVIC A. GALBAN GACPA CONVENTION WATERFRONT CEBU CITY MAY 25, 2018

17 VALUE ADDED TAX PROVISIONS VAT TRESHOLD P1,919, SALE OF GOODS TO PEZA 0% 3M 12% with enhanced VAT refund system VAT exempt sale of residential lot not more than P1,919,300 P1.5M VAT exempt sale of residential house & lot not more than P3,199, m, by m VAT exempt - lease of residential unit P10T P15,000 BY: MARIVIC A. GALBAN GACPA CONVENTION WATERFRONT CEBU CITY MAY 25, 2018

18 VALUE ADDED TAX PROVISIONS Sale of medicine VAT exempt sale of drugs & medicine for DIABETES, HIGH 18 Asso. Dues, membership fees & other assessments & charges of homeowner s asso. & condominium corp,- Vatable Amortization of input on capital goods days refund upon complete document Inaction, appeal to CTA after 120 day monthly & quarterly VAT filing CHOLESTEROL AND HYPERTENSION effective Jan VAT exempt Repealed by days BIR officer maybe punished 2023 only quarterly filing BY: MARIVIC A. GALBAN GACPA CONVENTION WATERFRONT CEBU CITY MAY 25, 2018

19 PERCENTAGE TAX PROVISIONS COOPERATIVES are exempt from 3% gross 19 receipts tax Self-employed & professionals with gross receipts of P1,919, 500 and less subject to 3% STOCK TRANSACTION ON listed shares 0.50 of 1% Beginning January 2019, annual gross receipts not exceeding P500,000 shall not be exempt from 3% VETOED Jan. 1, 2019 if annual gross receipt not exceeding P500,000 exempt- VETOED 0.60 of 1% BY: MARIVIC A. GALBAN GACPA CONVENTION WATERFRONT CEBU CITY MAY 25, 2018

20 EXCISE TAX PROVISIONS P31.20 per pack with 4% increase annually 20 P32.50 JAN 2018 P35.00 JAN 2019 P37.50 JAN 2020 P40.00 JAN % ANNUAL INCREASE DIESEL P0.00 PER LITER P2.50 PER LITER 2018 P4.50 PER LITER 2019 P6.00 PER LITER 2020 UNLEADED & PREMIUM GASOLINE P4.35 P7.00 PER LITTER 2018 P9.00 PER LITER 2019 P10.00 PER LITER 2020 NONE MANDATORY MARKING OF ALL FUEL PRODUCTS 2% FOR UP TO P600T P12, % OVER P600T P112T + 40% OVER p1.1m P512T + 60% over 2.1M 4% 10% FOR OVER P600T-1M 20% OVER 1M-4M 50% FOR OVER 4M BY: MARIVIC A. GALBAN GACPA CONVENTION WATERFRONT CEBU CITY MAY 25, 2018

21 EXCISE TAX PROVISIONS COSMETIC 21 PROCEDURES FOR AESTHETIC REASONS - NONE SWEETENED BEVERAGES - NONE P10 PER METRIC TON OF COAL COSMETIC PROCEDURES FOR AESTHETIC REASONS 5% P6.00 PER LITER USING CALORIC & NON- CALORIC SWEETENERS P12.00 PER LITER USING HIGH-FRUCTUSE CORN SYRUP 100% INCREASE IN RATE FOR OTHER MINERALS BY: MARIVIC A. GALBAN GACPA CONVENTION WATERFRONT CEBU CITY MAY 25, 2018

22 DOCUMENTARY STAMP TAX PROVISIONS VARIOUS 22 TRANSACTIONS SUBJECT TO DIFFERENT RATES 100% INCREASE IN RATE EXCEPT DST ON 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

23 23 COMPLIANCE REQUIREMENTS P600,000 THRESHOLD FOR KEEPING OF BOOKS OF ACCOUNTS FOR ALL ENTITIES 3 MILLION BY: MARIVIC A. GALBAN GACPA CONVENTION WATERFRONT CEBU CITY MAY 25, 2018

24 ADMINISTRATIVE PROVISIONS P25 SALE REQUIRED TO ISSUE 24 OFFICIAL RECEIPT/INVOICE ELECTRONIC SALES REPORTING NONE EXCEPT THE QUARTERLY SLSP and esales MONTHLY FILING OF WITHHOLDING TAX AND PERCENTAGE TAX / VAT P100 SALE REQUIRED TO ISSUE OFFICIAL RECEIPT/INVOICE ENHANCED ELECTRONIC POS REPORTING BY THOSE IN EXPORT OF GOODS & SERVICES & LARGE TAXPAYERS WITHIN 5 YEARS FROM ENACTMENT OF TRAIN QUARTERLY FILING OF WITHHOLDING TAX EXCEPT COMPENSATION & VAT/PERCENTAGE DEFICIENCY INTEREST DOUBLE THE LEGAL INTEREST RATE PER ANNUM PENALTY FOR FAILURE TO TRANSMIT SALES DATE IN CRM/POS TO BIR ADMINISTRATIVE PENALTY 1/10 OF 1% OF THE ANNUAL NET INCOME FOR THE 2 ND YEAR PRECEDING THE 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

25 Individuals Earning PURELY COMPENSATION INCOME. PURELY COMPENSATION income shall be taxed based on the GRADUATED INCOME TAX RATES MAY 25,

26 TAXABLE COMPENSATION INCOME GROSS COMPENSATION INCOME Less: Non-taxable income/benefits such as but not limited to: 13 th mo. pay and other benefits (P90,000) de minimis benefits, and employee s share in the SSS, GSIS, PHIC, HDMF mandatory contributions and union dues TAXABLE INCOME FOR COMPENSATION MAY 25,

27 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. MAY 25,

28 Husband and wife computation Husband and wife shall compute their individual income tax SEPARATELY based on their respective taxable income; if any income cannot be definitely attributed to or identified as income exclusively earned or realized by either of the spouses, the same shall be divided equally between the spouses for the purpose of determining their respective taxable income. MAY 25,

29 PROFESSIONAL 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; one who engages in some art or sport for money, as a means of livelihood, rather than as a hobby. MAY 25,

30 PROFESSIONAL It includes but is not limited to lawyers, engineers, architects, CPAs, professional entertainers, professional athletes, directors, producers, insurance agents, insurance adjusters, management and technical consultants, bookkeeping agents, and other recipients of professional, promotional and talent fees. MAY 25,

31 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. MAY 25,

32 Taxpayer subject to the GRADUATED INCOME TAX RATE (20% to 35%) Taxpayer subject to the GRADUATED INCOME TAX RATES either selected this as the income tax regime, or failed to signify chosen intention or failed to qualify to be taxed at the 8% income tax rate is also subject to the applicable BUSINESS TAX, if any. GRADUATED INCOME TAX + GRADUATED INCOME TAX + VAT PERCENTAGE TAX MAY 25,

33 NON-VAT REGISTERED Taxpayer subject to the GRADUATED INCOME TAX RATE 1Q 1701Q Graduated income tax 2Q 1701Q Graduated income tax 3Q1701Q Graduated income tax 1701 Graduated income tax INCOME TAX BUSINESS TAX 1Q 2551Q 3% percentage tax 2Q 2551Q 3% percentage tax 3Q 2551Q 3% percentage tax 4Q 2551Q 3% percentage tax 33 MAY 25,

34 VAT REGISTERED Taxpayer subject to the GRADUATED INCOME TAX RATE 1Q 1701Q Graduated income tax 2Q 1701Q Graduated income tax 3Q 1701Q Graduated income tax 1701 Graduated income tax INCOME TAX 1Q 2550Q VAT 2Q 2550Q VAT 3Q 2550Q VAT 4Q 2550Q VAT BUSINESS TAX 34 MAY 25,

35 (C ) INCOME TAX RATES FOR SELF-EMPLOYED INDIVIDUALS EARNING INCOME PURELY FROM SELF-EMPLOYMENT OR PRACTICE OF PROFESSION. PURELY SELF-EMPLOYED INDIVIDUALS AND/OR PROFESSIONALS whose gross sales/receipts and other non-operating income does not exceed the VAT threshold P3,000,000 as provided in Section 109 (BB) of the Tax Code, as amended, shall have the option to avail of : MAY 25,

36 CHOICES: (PURELY Self-Employment/Practice of Profession) 1. The GRADUATED RATES under Section 24(A)(2)(a) of the Tax Code, as amended; (20% to 35%) 2. The 8% tax if 3M BELOW GROSS SALES/ RECEIPTS and OTHER NON-OPERATING INCOME in excess of P250,000 in lieu of: a) GRADUATED INCOME TAX RATES under Section 24(A)(2)(a) and b) PERCENTAGE TAX under Section 116. OR MAY 25,

37 Taxpayer shall be considered as having availed of the GRADUATED income tax rates UNLESS THE TAXPAYER SIGNIFIES in the A. 1 st Quarter PERCENTAGE TAX RETURN (due April 25) AND/OR B. 1 st Quarter INCOME TAX RETURN (due May 15) Or C. INITIAL QUARTER RETURN of the taxable year after the commencement of a NEW BUSINESS /practice of profession of the taxable year, the intention to elect the 8% income tax rate and such election shall be IRREVOCABLE MAY 25,

38 SIGNIFIES in the 1 st Quarter income tax return 1Q 1701 Q SIGNIFIED 8% 2Q 1701Q 8% 3Q 8% FINAL ITR % IRREVOCABLE FOR THE TAXABLE YEAR MAY 25,

39 1701Q GRADUATED RATE ITEMIZED OSD 8% INCOME TAX MAY 25,

40 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. MAY 25,

41 Taxpayers who are subject to Other Percentage Taxes under Title V of the Tax Code, as amended Taxpayers who are subject to Other Percentage Taxes under Title V of the Tax Code, as amended, except those subject under Section 116 of the same Title, HAVE NO OPTION TO AVAIL OF THE 8% INCOME TAX RATE UNDER THE LAW. e.g. cockpits 18% night/day clubs 18% MAY 25,

42 Taxpayers who cannot avail of the 8% income tax rate: 1. Those subject to Other Percentage Taxes under Title V of the Tax Code, as amended, except those subject under Section 116 of the same Title 2. Partners of a General Professional Partnership (GPP) since their distributive share from GPP is already net of cost and expenses. MAY 25,

43 Not a VAT-registered person GROSS SALES X 3% = PERCENTAGE TAX DUE GROSS QUARTERLY SALES (example: Jan. 300,000 + Feb. 300,000 + March 400,000) 1,000,000 X 3% = P3,000 PERCENTAGE TAX DUE MAY 25,

44 Taxpayers who did not qualify for the 8% income tax rate 1. shall be subject to the graduated INCOME TAX RATE, and 2. shall also be subject to the applicable BUSINESS TAX/ES, if any. MAY 25,

45 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. MAY 25,

46 Optional Taxation for individuals in business/practice of profession * In lieu of 1) graduated income tax and 2) percentage tax under Sec 116 Self-employed / Professionals GROSS SALES / RECEIPT and other nonoperating income 3M and below GROSS SALES / RECEIPT and other non-operating income above 3M or 8% income tax* On gross sales/receipt And other non-operating income in excess of P250,000 20% to 35% GRADUATED income tax 20% to 35% GRADUATED income tax MAY 25,

47 j. MIXED INCOME EARNER An individual earning COMPENSATION + INCOME FROM BUSINESS COMPENSATION + PRACTICE OF PROFESSION COMPENSATION + OTHER SOURCES ASIDE FROM EMPLOYMENT MAY 25,

48 MIXED INCOME EARNERS * In lieu of 1) graduated income tax and 2) percentage tax under Sec 116 8% income tax* BUSINESS/ PRACTICE OF PROFESSION 3M and below above 3M or On gross sales/receipt And other non-operating income in excess of P250,000 20% to 35% GRADUATED income tax 20% to 35% COMPENSATION GRADUATED income tax MAY 25,

49 MAY 25,

50 MAY 25,

51 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. -A Withholding agent can be an individual, a corporation, a financial institution or a government agency. MAY 25,

52 Duties & Obligations of a Withholding Agent To register To deduct and withhold To remit the tax withheld To file withholding tax returns To issue withholding tax certificate MAY 25,

53 REGISTRATION AS WITHHOLDING AGENT BY THE EMPLOYER BIR Form No SELF-EMPLOYED/PROFESSIONALS/TRUST BIR Form No CORPORATIONS / GOCC /PARTNERSHIP BIR Form No AUTHORITY TO PRINT BIR Form No PERMIT TO USE CASH REGISTER/Point of Sale (POS) BIR Form No CAS & components BIR Form No GOVERNMENT AGENCIES / LGUs BIR Form No EMPLOYEES / OCW / NON-RESIDENT CITIZEN BIR Form No REGISTRATION INFORMATION UPDATE UPDATE REGISTRATION CANCELLING REGISTRATION REPLACEMENT OF LOST TIN CARD/CERTIFICATE WHEN: ON OR BEFORE COMMENCEMENT OF BUSINESS/ BEFORE PAYMENT OF ANY TAX DUE/ UPON FILING A RETURN 10 DAYS AFTER BECOMING AN EMPLOYER ( SEC Rev. Regulations No. 2-98, as amended) WHERE: Revenue District Office Expected Document to be received by the employer: Certificate of Registration (COR) MAY 25,

54 REGISTRATION of all EMPLOYEES ALL EMPLOYEES MUST fill-up: Upon Employment - BIR FORM NO Application for Registration MAY 25,

55 PRESCRIBING POLICIES, GUIDELINES AND PROCEDURES ON THE REGISTRATION OF EMPLOYEES (BIR FORM NO. 1902) MAY 25,

56 OBJECTIVES Clarify the procedures on the registration of employees; Prescribe policies and guidelines in the issuances of TIN of employees using the ereg System MAY 25,

57 SECURE TIN OF EMPLOYEES via ereg by employers only 1. Access ereg 2. ONLINE ENROLLMENT by authorized representative of the EMPLOYER 3. Validation by RDO on enrollment details of employer and representative 4. Receive confirming APPROVAL / disapproval with PASSWORD to use ereg 5. Access ereg with the password ed by BIR MAY 25,

58 MAY 25,

59 MAY 25,

60 MAY 25,

61 HOW TO COMPUTE WITHHOLDING TAXES ON COMPENSATION INCOME / SALARIES / WAGES MAY 25,

62 Compensation defined Compensation or Wages - means all remuneration for services performed by an employee for his employer under an employeeemployer relationship unless exempted by the NIRC and pertinent laws. MAY 25,

63 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; MAY 25,

64 DE MINIMIS BENEFITS cmedical cash allowance to dependents of employees not exceeding P1500 per employee per semester or P250 per month; d. Rice subsidy of P2,000 or one (1) sack of 50-kg. rice per month amounting to not more than P2,000; MAY 25,

65 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; MAY 25,

66 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; MAY 25,

67 De minimis benefits i. Gifts given during Christmas and major anniversary celebrations not exceeding P5,000 per annum; j. Daily meal allowance for overtime work and night/graveyard shift not exceeding 25% of the basic minimum wage on a per region basis MAY 25,

68 Revenue Regulations DE MINIMIS BENEFITS Sec (A)(3) of RR 2-98, as amended 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 Section 2.33 (c) of RR 3-98, as amended C) Fringe benefits not subject to FBT MAY 25,

69 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. MAY 25,

70 13 t h month + 0ther benefits 13 th month = 1 month salary + other benefits P90,000 MAY 25,

71 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. Thus, the official and employees of the barangays are employees of the Government and shall be subjected to WITHHOLDING TAX, if applicable, pursuant to Section 79(A) of the Tax Code as implemented by Section 2.79(A) of RR 2-98, as amended MAY 25,

72 TAX REFUND on purely compensation income EMPLOYER shall: Ensure correct computation of TAX WITHHELD = TAX DUE scenario. Refund excess withholding tax to employees, if any PENALTY: Equal to the total amount of refund not refunded to employees Reminder: Non-processing of TAX REFUND for taxpayers receiving purely compensation income by the RDOs. MAY 25,

73 HOW TO COMPUTE AND WITHHOLD TAXES ON COMPENSATION INCOME USING THE PRESCRIBED WITHHOLDING TAX TABLE MAY 25,

74 REVISED WITHHOLDING TAX TABLE Effective January 1, 2018 to December 31, 2022 DAILY Compensation Range Prescribed Withholding Tax 685 and below ,096-2,191 2, ,479-21,917 21,918 and above % over % over P1, % over 2,192 1, % over 5,479 6, % over 21,918 WEEKLY Compensation Range Prescribed Withholding Tax 4,808 and below 4,808-7,691 7,692-15,384 15,385-38, % over 4, % over 7,692 2, % over 15,385 38, ,845 9, % over 38, ,846 and above 46, % over 153,846 SEMI-MONTHLY Compensat ion Range Prescribed Withholding Tax 10,417 AND BELOW 10,417-16,666 16,667-33,332 33,333-83, % over 10,417 1, % over 16,667 5, % over 33,333 83, ,332 20, % over 83, ,333 and , ,833.3 GACPA CONVENTION WATERFRONT +30% over CEBU CITY BY: MARIVIC A. GALBAN +25% over 33, % over MAY 25, above 180, % over 333,333 MONTHLY Compensat ion Range Prescribed Withholding Tax 20,83 3 AND BELOW 33,332 66, % over 20,833 2,500 20,833-33,333-66, ,666 66, , ,666 40, , ,667 and above + 35%

75 MAY 25,

76 RMC Steps in the Use of the Withholding Tax Table 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"). MAY 25,

77 Steps to Determine the amount of tax to be Withheld Step 1. Determine monetary and non-monetary compensation paid to an employee for the payroll period segregating; gross benefits (e.g. 13 th month pay, productivity incentives, Christmas bonus and other benefits) employees contribution (e.g. SSS, GSIS, HDMF, PHIC, and Union Dues MAY 25,

78 Steps to Determine the amount of tax to be Withheld Segregate the taxable from the non-taxable compensation paid to the employee for the payroll period Note: RATA & PERA granted to public officers and employees under General Appropriations Act shall not be subject to income tax and consequently to withholding tax. MAY 25,

79 RMC Steps in the Use of the Withholding Tax Table Step 2. Use the appropriate table in Annex "A" for the applicable payroll period. Monthly. Semi-monthly Weekly Daily MAY 25,

80 RMC 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 Compensation Range Prescribed Withholding Tax 20,833 AND BELOW % over 20,833 20,833-33,332 33,333-66,666 2, % over 33,333 66, ,666 10, % over 66, , ,666 40, % over 166, ,667 and above 200, % over 666,667 MAY 25,

81 RMC Steps in the Use of the Withholding Tax Table Step 4. Compute the withholding tax due by adding the tax predetermined in the compensation range indicated on the column used and the tax on the excess of the total compensation over the minimum of the compensation range. MAY 25,

82 Steps to Determine the amount of tax to be Withheld. Compute the withholding tax due by adding the tax predetermined in the compensation level indicated the column, to the tax on the excess of the total regular and supplementary compensation over the compensation level, which is computed by multiplying the excess by the rate of the same column/ compensation level. MAY 25,

83 Example 3: An employee receiving semi-monthly compensation in the amount of P15,500, net of mandatory contributions. By using the semi- monthly withholding tax table, the withholding tax beginning January 2018 is computed by referring to compensation range under column 2 which shows a predetermined tax of P0.00 on P10, plus 20% of the excess of Compensation Range (Minimum) amounting to P5, (P15,500 - P10,417.00) which is P1, As such, the withholding tax to be withheld by the employer shall be P1, Total taxable compensation 15,500 Less: Compensation Range 2 (Minimum) 10,417 Excess 5,083 Withholding tax shall be computed as follows: Predetermined Tax on P10, Add: Tax on the excess (P5,083 x 20%) 1, Total daily withholding tax 1, SEMI MONTHLY Compensation Range Prescribed Withholding Tax 10,417 AND BELOW 16, % over 10,417 33,332 1, % over 16,667 10,417-16,667-33,333-83,332 5, % over 33,333 83, ,332 20, % over 83, ,333 and MAY 25, above 180, % over 333,333

84 MAY 25,

85 MAY 25,

86 MAY 25,

87 MAY 25,

88 Employer may use of Exceptional Computation a. Cumulative Average Method b. Annualized Withholding Tax Method MAY 25,

89 Version 6 MAY 25,

90 PROCEDURES FOR ALPHALIST DATA ENTRY V6.0 A. PROCEDURES TO INSTALL, IMPORT AND UPDATE DATABASE I. INSTALL 1. Go to 2. Go to Downloadables 3. Download the Alphalist v6 Setup 4. Install the downloaded Alphalist v6 Setup 5. Enter the Company Taxpayer Information MAY 25,

91 MAY 25,

92 MAY 25,

93 Employees Withholding Statement of Compensation and Withholding Tax BIR Form 2316 per Sec of RR 2-98, as amended BIR FORM 2316 ORIGINAL COPY - EMPLOYEE DUPLICATE COPY for the BIR transmitted on or before February 28 TRIPLICATE COPY for EMPLOYER (to be retained for 10 years) EMPLOYER Issued BIR Form 2316 To ALL EMPLOYEES Not later than JANUARY 31 Alphalist of employees submitted to BIR thru esubmission@bir.gov.ph MAY 25,

94 BIR FORM 2316 DUPLICATE COPY -EMPLOYEE CERTIFIED LIST OF EMPLOYEES QUALIFIED FOR SUBSTITUTED FILING OF ANNUAL INCOME TAX RETURN (ITR) On or before Feb 28 BIR MAY 25,

95 MAY 25,

96 Uses of BIR Form 2316 (Substituted Filing of ITR) Proof of financial capacity for loan, credit card and other applications Proof of payment of tax or for availing tax credit in the employee s home country Securing travel tax exemption, when necessary Other purposes with various government agencies such as school scholarship MAY 25,

97 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 incometaxreturnsbysaidemployees; MAY 25,

98 3. An individual whose sole income has been subjected to final withholding tax; and 4. A minimum wage earner as defined in these regulations. 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; MAY 25,

99 Multiple employers All individuals deriving compensation income, regardless of the amount, FROM TWO (2) OR MORE CONCURRENT OR SUCCESSIVE EMPLOYERS at any time during the taxable year, are not qualified for substituted filing. REQUIRED TO FILE A RETURN. MAY 25,

100 PROFESSIONAL (RMC LICENSED NON- LICENSED MAY 25,

101 NON-LICENSEDPROFESSIONAL RMC Refer to those individuals who are not identified under Sec (A)(1) of RR 2-98, as amended, and who are not registered with and regulated by: PROFESSIONAL REGULATIONS COMMISSION (PRC) SUPREME COURT (SC) INTEGRATED BAR OF THE PHIL. (IBP) MARINA CAAP Etc. who render service or labor-only for a fee or under a contract of service MAY 25,

102 JOB ORDER June 15, 2017 CIVIL SERVICE COMMISSION (CSC) COMMISSION ON AUDIT (COA) DEPARTMENT OF BUDGET AND MANAGEMENT (DBM) MAY 25,

103 1.BACKGROUND 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 operations, weather on part-time or fulltime basis. Agencies have used this provision as basis for directly hiring individual workers on contract of service or job order to perform specific jobs or to supplement their current manpower. MAY 25,

104 1.BACKGROUND CSC MC No. 40, s 1998, prescribed the policies and guidelines regarding Contracts of Services (COS) and Job Order (JO s) 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. MAY 25,

105 1.BACKGROUND 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. THIS SITUATION GAVE RISE TO THE FOLLOWING ISSUES: a) lack of social protection for the workers and inequality in benefits, and b) obscure accountability of JO/COS workers due to lack of employee-employer relationship with the hiring agency. In view of the foregoing, there is a need to clarify the guidelines on availing of the services of COS and Job Order workers. MAY 25,

106 2. POLICY STATEMENT 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. MAY 25,

107 3. PURPOSE This Joint Circular is issued to prescribed the rules and regulations governing Contact of Service and Job Order workers in the government. MAY 25,

108 4. COVERAGE This Joint Circular covers all: National Government Agencies, Government Owned or Controlled Corporations with original charters, State Universities and Colleges and Constitutional bodies, which avail of the services of Contract of service and Job Order workers. MAY 25,

109 5.1 Contract of Service refers to the engagement of the service and of an individual private firm, other government agency, nongovernment agency or international organization as CONSULTANT, LEARNING SERVICE PROVIDER OR TECHNICAL EXPERT to undertake special project or job within a specific period. MAY 25,

110 5.2 Contractor of Service PROVIDER 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. MAY 25,

111 5.3 INSTITUTIONAL CONTRACT 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 janitorial, security, CONSULTANCY, and OTHER SUPPORT SERVICES. MAY 25,

112 5.4 JOB ORDER refers to piece work (pakyaw) or intermittent or emergency jobs such as cleaning of debris on the roads, canals, waterways etc. after natural/man-made disasters/occurrences and other manual/trades and crafts services such as carpentry for a specific piece of work. MAY 25,

113 5.5 Support services may include janitorial security, driving, data encoding, equipment and grounds maintenance and other services that support the day to day operations of the agency. MAY 25,

114 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: Institutional Contact of Service covers lump sum work or services to perform janitorial, security, consultancy, and other support functions for a maximum period of one (1) year subject to the provisions of R.A No and pertinent budgeting, accounting rules and regulations. MAY 25,

115 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) MAY 25,

116 6.1 INSTITUTIONAL Contract of Service Workers hired through institutional contract of service shall remain to be employees of the contractor of service provider 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 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. MAY 25,

117 6.2INDIVIDUAL Contract of Service Government agencies may enter into contract of service with individuals as consultants/contractors subject to the following guidelines: 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 Engaging the services of Individual contractor shall be subject to pertinent provisions of R.A no and its implementing guidelines, as applicable and the existing budgeting, accounting and auditing rules and regulations. MAY 25,

118 6.3 Job Order Government agencies may hire job order workers subject to the following conditions: The services of a job order worker is either paid to an agreed contract amount for the piece of work or on a daily wage basis Contracting the services of job order workers shall be subject to pertinent budgeting, accounting and auditing rules and regulations. MAY 25,

119 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. 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. MAY 25,

120 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. MAY 25,

121 7. Limitations 7.3 Contract of service and job order workers should not be designated to positions exercising control or supervision regular and career employee. over 7.4 The services of the contact of service and job order workers are not covered by Civil Service Law and rules thus, not credible as government service. They do not enjoy the benefits enjoyed by government employees, such as leave, PERA, RATA and thirteenth month pay. MAY 25,

122 8. PAYMENT OF SERVICES under Individual Contract of Service Individuals hired through contract of service shall be paid the prevailing market rates, subject to the provisions of R.A 9184 and its implementing rules and Regulations. The payment of services shall be charged against the Maintenance and other Operating expenses (MOOE) in the approved agency budget. Individuals hired through contract of service have the OPTION TO ENROLL THEMSELVES IN SOCIAL BENEFIT PROGRAMS thru the SSS, 122 BY: MARIVIC A. GALBAN GACPA CONVENTION WATERFRONT CEBU CITY MAY 25, 2018

123 8. PAYMENT OF SERVICE under Job Order Individuals hired through job order shall be paid wages equivalent to the DAILY WAGE/ SALARY of comparable positions in government a premium of up to 20% of such wage/salary. The payment of services shall be charged against the Maintenance and Operating Expenses in the approved agency budget. MAY 25,

124 9. Monitoring The COA shall monitor the compliance of agencies with the provisions of this Joint Circular. MAY 25,

125 11. Transitory Provisions 11.1 Agencies may RENEW the individual contracts of existing Contact Service or Job Order workers until December 31, Thereafter, hiring of Contract of Service and job Order workers shall be in accordance with the provisions of this Joint Circular. As far practicable and to ensure protection of the existing Contact of service or job Order workers, the institutional contract to be entered into by government agencies with a contractor or service provider shall include a provision which will state that the existing qualified Contract of Service or Job Order workers hired by the agency shall be GIVEN PRIORITY in the hiring by the contactor or service provider. MAY 25,

126 11. Transitory Provisions 11.2 Existing Contract of service or job Order workers shall be given priority in the appointment by the agency to its vacant positions provided that these workers meet appropriate eligibility and other qualification requirements for the positions subject to existing Civil Service law and rules. MAY 25,

127 11. Transitory Provisions 11.3 In accordance with Section 90 of the General Provisions of the FY 2017 General Appropriate Act, government agencies shall review their functions systems and procedures, organizational structure and staffing to determine the appropriate manpower compliment for their programs/ activities/projects. Creation of permanent positions may be considered for regular functions, while hiring of casual of contractual personnel may be considered for projects and activities that are temporary in nature, subject to approval of the oversight agencies concerned and to existing budgeting and accounting rules and regulations. MAY 25,

128 12. Sanctions 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. MAY 25,

129 13. Resolution of Issues Issues and concerns that may arise in the implementation of these rules and regulations shall be resolved by the CSC, COA and DBM, as appropriate. MAY 25,

130 LONE PAYOR (1 SOURCE OF INCOME) OPTION to avail of: SUBSTITUTED PERCENTAGE TAX RETURN (ONE PAYOR) SUBSTITUTED VAT RETURN (0NE PAYOR) MAY 25,

131 RR Amending RR No. 2-98, as amended, in order to simplify the collection of tax, through withholding at the source, on sales of goods or services subject to the 3% percentage tax under Section 116 of the Code, and/or to the value-added tax (VAT) under Sections 106 and 108 of the same Code. SUBSTITUTED PERCENTAGE TAX RETURN (ONE PAYOR) SUBSTITUTED VAT RETURN (0NE PAYOR) MAY 25,

132 SUBSTITUTED PERCENTAGE TAX (ONE PAYOR) 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. The list shall show the name, address and birthdate of consultants and shall be accompanied by any identification issued by the government body and the NOTICE OF AVAILMENT OF THE SUBSTITUTED FILING OF PERCENTAGE TAX RETURN. MAY 25,

133 SUBSTITUTED PERCENTAGE TAX (ONE PAYOR) 2. The consultant shall have the OPTION to file return if the 3% percentage tax based on gross receipt of the payee has been subjected to withholding tax by the LONE PAYOR. The BIR Form 1600 duly filed by the payor shall serve as the SUBSTITUTED RETURN of the payee with the lone payor provided that BIR Form 2306 duly executed by both payor and payee is attached to the filed BIR Form The filing of percentage tax return (BIR Form 2551Q) is NO LONGER REQUIRED. MAY 25,

134 SUBSTITUTED PERCENTAGE TAX (ONE PAYOR) 3. Payees with LONE PAYOR shall be EXEMPTED from the obligation of ISSUING REGISTERED NON-VAT RECEIPTS covering their receipt of payments. The Certificate of Final Tax Withheld at Source (BIR Form 2306) issued to the payee shall SERVE AS THE SUBSTITUTED OFFICIAL RECEIPT. MAY 25,

135 (E) Regular Percentage Tax Return If the payee has more than one payors On the other hand, if the payee has more than one payors, the percentage tax withheld and remitted by the payor under BIR Form No shall be treated as creditable tax by the payee when he files BIR Form No. 2551Q. MAY 25,

136 NOTICE OF AVAILMENT OF THE OPTION TO PAY THE TAX THROUGH THE WITHHOLDING PROCESS (RR ) NOTICE OF CANCELLATION OF AVAILMENT OF THE OPTION TO PAY THE TAX THROUGH THE WITHHOLDING PROCESS (RR )

137 NOTICE OF AVAILMENT OF THE SUBSTITUTED FILING OF PERCENTAGE TAX RETURN (RR ) NOTICE OF AVAILMENT OF THE SUBSTITUTED FILING OF VAT RETURN

138 SWORN DECLARATION AND WAIVER OF THE PRIVELEDGE TO CLAIM INPUT TAX UNDER SEC. 110 OF THE TAX CODE NOTICE OF CANCELLATION OF AVAILMENT OF THE SUBSTITUTED FILING OF PERCENTAGE / VAT RETURN

139 REGISTRATION AND COMPLIANCE OF PROFESSIONALS BIR FORM 1901 Copy of CONTRACT OF SERVICE ANY GOVERNMENT ISSUED ID

140 REGISTRATION BIR Form No 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 Income Tax MAY 25,

141 INDIVIDUAL JOB ORDER OR SERVICE CONTRACT AGREEMENT WITH GOVERNMENT P500 ANNUAL REG FEE (ARF) COR PERCENTAGE / VAT BOOKKEEPING INVOICING 1701 ITR 1701Q 2551Q (PT) 2550M / 2550Q (VAT) EWT GROSS INCOME below 3M GROSS INCOME 3M above BUSINESS TAX (GMP) PERCENTAGE TAX VAT PROFESSIONAL (license & nonlicense)& with gross receipt of * * P250,000 below (LONE PAYOR) Non-license professional with gross receipt above P250,000 (LONE PAYOR) * * * 2% or 10% ** 10% 3 % 5% or 12% License PROFESSIONAL with gross receipt above P250,000 (LONE PAYOR) * * * 5% or 10% ** 10% 3 % 5% or 12% * * 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 MAY 25,

142 INDIVIDUAL JOB ORDER OR SERVICE CONTRACT AGREEMENT WITH GOVERNMENT P500 ANNUAL REG FEE (ARF) COR PERCENTAGE / VAT INVOICING BOOKKEEPING 1701 ITR 1701Q 2551Q (PT) 2550M / 2550Q (VAT) EWT GROSS INCOME below 3M GROSS INCOME 3M above BUSINESS TAX (GMP) PERCENTAGE TAX VAT Non-license professional (MULTIPLE PAYOR) 2% or 10% ** 3% 10% 5% License PROFESSIONAL (MULTIPLE PAYOR) 5% or 10% ** 3% 10% 5% * 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 MAY 25,

143 EXPANDED WITHHOLDING TAX MAY 25,

144 DLN: Republika ng Pilipinas Kagaw aran ng Pananalapi For Compensation Payment With or Without Tax Withheld DLN: Republika ng Pilipinas Kagaw aran ng Pananalapi DLN: BIR Form No. Republika ng Pilipinas Kagaw aran ng Pananalapi For Compensation Payment With or Without Tax Withheld October 2002 (ENCS) 1 For the Year 1 2 For the Period ( YYYY ) From (MM/DD) To (MM/DD) Part I Employee Information Part IVDetails of Compensation Income and Tax Withheld from Present Emplo 3 Taxpayer 3 Amount Identification No. A. Non-Taxable/Exempt Compensation Income 4 Employee's Name (Last Name, First Name, Middle Name) 5 RDO Code 25 13th Month Pay and 25 BIR Form No. Other Benefits 26 SSS, GSIS, PHIC & Pag-ibig 26 6 Registered Address 6A Zip Code Contributions, & Union dues 27 Salaries & Other Forms of 27 Compensation For Compensation Payment 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 Employee Information 6D Foreign Address Part IVDetails of Compensation Income and Tax 6E Withheld Zip Code from Present B. Taxable EmploCompensation Income 3 Taxpayer 3 Amount Identification No. A. Non-Taxable/Exempt Compensation Income REGULAR 4 Employee's Name (Last Name, First Name, Middle Name) 75 Date RDO of Code Birth 25 (MM/DD/YYYY) 8 Telephone Number 29 Basic Salary 29 13th Month Pay and 25 Other Benefits 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 Family dues Married 27 Salaries & Other Forms of 27 9A Is the w ife claiming Compensation the additional exemption for qualified dependent children? 6B Local Home Address 6C Zip Code 28 Total Non-Taxable/Exempt Yes No Transportation 31 BIR Form No. 10 Name of Qualified Compensation Dependent Children Income 11 Date of Birth (M M /DD/YYYY) 6D Foreign Address 6E Zip Code B. Taxable Compensation Income 32 Cost of Living Allow ance 32 REGULAR October 2002 (ENCS) 7 Date of Birth (MM/DD/YYYY) 8 Telephone Number 29 Basic Salary Fixed Housing Allow ance Others (Specify) 1 For the Year 1 2 For the Period ( YYYY ) From (MM/DD) To (MM/DD) 12 Other Dependent (to be accomplished if taxpayer is head of the family) 34A 34A Part I Employee Information 9 Exemption Part IVDetails Status of Compensation Income and Tax Withheld from Present Emplo 30 Representation 30 Date o f B irth 3 Taxpayer 3 Single Head of the Family Amount Married Name of Dependent Relationship (M M /DD/YYYY Identification No. 9A A. Is the Non-Taxable/Exempt w ife claiming the additional Compensation exemption Income for qualified dependent children? 34B 34B 4 Employee's Name (Last Name, First Name, Middle Name) 5 RDO Code 25 13th Month Pay andyes 25 No Part II 31 Transportation Employer Information (Present) 31 SUPPLEMENTARY Other Benefits 10 Name of Qualified Dependent Children 11 Date of Birth 13 (M M Taxpayer /DD/YYYY) Commission SSS, GSIS, PHIC & Pag-ibig 26 Identification No. 6 Registered Address 6A Zip Code Contributions, & Union dues 14 Employer's Name 32 Cost of Living Allow ance Profit Sharing Salaries & Other Forms of 27 Compensation 37 Fees Including Director's Fixed Housing Allow ance 33 Fees 6B Local Home Address 6C Zip Code 28 Total Non-Taxable/Exempt 28 Compensation Income 15 Registered Address 34 Others (Specify) 15A Zip code 38 Taxable 13th Month Pay Other Dependent (to be accomplished if taxpayer is head of the family) 34A 34A and Other Benefits 6D Foreign Address 6E Zip Code B. Taxable Compensation Income Date o f B irth 39 Hazard Pay 39 Name of Dependent Relationship (M M /DD/YYYY REGULAR main employer secondary employer 40 Others (Specify) 34B 34B 7 Date of Birth (MM/DD/YYYY) 8 Telephone Number 29 Basic Salary 29 Part III Employer Information (Previous)-1 Part II Employer Information (Present) 16 Taxpayer SUPPLEMENTARY 16 40A 40A 13 Taxpayer Commission 35 Identification No. Identification No. 9 Exemption Status 30 Representation Employer's Name 40B 40B Single Head of the Family Married 14 Employer's Name 36 Profit Sharing 36 9A Is the w ife claiming the additional exemption for qualified dependent children? 37 Fees Including Director's 37 Fees 41 Total Taxable Compensation 41 Yes No 31 Transportation Registered Address 18A Zip code 15 Registered Address 15A Zip code 38 Taxable 13th Month Pay 38 Income 10 Name of Qualified Dependent Children 11 Date of Birth (M M /DD/YYYY) and Other Benefits Summary 39 Hazard Pay Taxable Compensation Incom42 32 Cost main of Living employer Allow ance 32secondary employer 40Employer Others (Specify) Information (Previous)-2 from Present Employer 19 Taxpayer Add: Taxable Compensation 43 Part III Employer Information (Previous)-1 33 Fixed Housing Allow ance 33 Identification No. from Previous Employer (s) Taxpayer Others (Specify) 16 40A 40A 20 Employer's Name 44 Gross Taxable Other Dependent (to be accomplished if taxpayer is head of the family) Identification 34A No. 34A Compensation Income Date o f B irth 17 Employer's Name 40B 40B Name of Dependent Relationship 45 Less: Total Exemptions 45 (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 Employer Information (Present) 18 Registered SUPPLEMENTARY Address 18A Zip code Insurance (If applicable) Income 13 Taxpayer Commission 35 Employer Information (Previous)-3 Summary 47 Taxable 47 Identification No. 22 Taxpayer Taxable Compensation Incom42 Compensation Income 14 Employer's Name 36 Profit Sharing Identification No. 48 Tax Due 48 Employer Information 36 (Previous)-2 from Present Employer 23 Employer's Name 49 Amount of Taxes Withheld Taxpayer Fees Including Director's Add: Taxable Compensation 43 Fees 49A Present Employer 49A Identification No. from Previous Employer (s) 15 Registered Address 15A Zip code20 38 Employer's Taxable Name 13th Month Pay Registered Address 44 Gross Taxable 44 24A Zip code 49B Previous Employer(s) 49B and Other Benefits Compensation Income 39 Hazard Pay Total Amount of Taxes Less: Total Exemptions 45 Withheld main employer secondary employer Registered Others (Specify) Address 21A Zip code I declare, 46 under Less: the penalties Premium of Paid perjury, onthat this certificate has been made in good faith, verified by us, and to the best of our knowledge and belief, is true and correct Part III Employer Information (Previous)-1 Health and/or Hospital 46 Insurance (If applicable) 16 Taxpayer 16 40A 40A Employer Information (Previous)-3 47 Taxable 47 Identification No. 22 Taxpayer 22 Compensation Income 17 Employer's Name 40B Identification No. 40B 48 Tax Due Employer's Name 49 Amount of Taxes Withheld 41 Total Taxable Compensation 41 49A Present Employer 49A 18 Registered Address 18A Zip code Income Employer Information (Previous)-2 19 Taxpayer Add: Taxable Compensation 43 Identification No. from Previous Employer (s) 20 Employer's Name 44 Gross Taxable 44 Compensation Income 45 Less: Total Exemptions Registered Address 21A Zip code 46 Less: Premium Paid on 24 Registered Address Summary 24A Zip code 49B Previous Employer(s) 49B 42 Taxable Compensation Incom42 50 Total Amount of Taxes 50 Withheld from Present Employer I declare, under the penalties of perjury, that this certificate has been made in good faith, verified by us, and to the best of our knowledge and belief, is true and correct Health and/or Hospital 46 Insurance (If applicable) Employer Information (Previous)-3 47 Taxable Taxpayer 22 Compensation Income Identification No. 48 Tax Due Employer's Name 49 Amount of Taxes Withheld 49A Present Employer 49A 24 Registered Address 24A Zip code 49B Previous Employer(s) 49B 50 Total Amount of Taxes 50 Withheld I declare, under the penalties of perjury, that this certificate has been made in good faith, verified by us, and to the best of our knowledge and belief, is true and correct PAYEE / INCOME RECIPIENT SAWT FORMAT Annex B BIR REGISTERED NAME TRADE NAME ADDRESS TIN 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 3 mm/yy TOTAL P P AMOUNT CERTIFICATES Certificate of Compensation Kawanihan ng Rentas Internas Payment/Tax Withheld 2316 Certificate of Compensation Kawanihan ng Rentas Internas Payment/Tax Withheld 2316 Certificate of Compensation Kawanihan ng Rentas Internas Payment/Tax Withheld 2316 ALPHALIST FORMAT Annex B BIR REGISTERED NAME TRADE NAME ADDRESS TIN 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 3 mm/yy TOTAL P P AMOUNT BIR PAYOR / WITHHOLDING AGENT MAY 25,

145 BIR RECONCILIATION FORMAT SAWT ALPHA FORMAT Annex B Annex B BIR REGISTERED NAME TRADE NAME ADDRESS TIN 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 3 mm/yy TOTAL P P AMOUNT BIR BIR REGISTERED NAME TRADE NAME ADDRESS TIN 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 3 mm/yy TOTAL P P AMOUNT UNDER DECLARATION OF INCOME OVER STATEMENT OF CREDITS UNDER/ NON-REMITTANCE OF TAXES WITHHELD LATE/ NON-ISSUANCE OF CERTIFICATES MAY 25,

146 SALES INVOICE (SI) / CASH INVOICE (CI) Sale of GOODS or properties OFFICIAL RECEIPT (OR) Sale of SERVICES or lease of goods or properties MAY 25,

147 Sample Only XYZ CORPORATION U305/3F Visayas Avenue, Quezon City VAT Reg. TIN: SALES INVOICE Annex C.3 Sold to: Date: TIN: Address: Business Style: Terms: OSCA/PWD ID No.: SC/PWD Signature: QUANTITY UNIT ARTICLES UNIT PRICE AMOUNT VATable Sales VAT-Exempt Sales Zero Rated Sales VAT Amount Total Sales (VAT Inclusive) Less: VAT Amount: Net of VAT Less: SC/PWD Discount Amount Due Add: VAT TOTAL AMOUNT DUE 10 Bklts (3x) BIR Authority to Print No. 3AU Date Issued : : Valid until JDC PRINTING SERVICES, INC. Bgy. 123, Quezon City TIN: Cashier/Authorized Representative Printer s Accreditation No. P Date Issued: THIS INVOICE SHALL BE VALID FOR FIVE (5) YEARS FROM THE DATE OF ATP. No MAY 25,

148 Sample Only EZG CORPORATION U115 G/F SM North Edsa, Quezon City NON-VAT Reg. TIN: OFFICIAL RECEIPTS Annex C.4 Sold to: Date: TIN: Address: Business Style: Terms: OSCA/PWD ID No.: SC/PWD Signature: QUANTITY UNIT ARTICLES UNIT PRICE AMOUNT Total Sales Less: SC/PWD-Discount TOTAL AMOUNT DUE 10 Bklts (3x) BIR Authority to Print No. 3AU Date Issued : : Valid until JDC PRINTING SERVICES, INC. Bgy. 123, Quezon City TIN: THIS DOCUMENT IS NOT VALID FOR CLAIM OF INPUT TAXES Cashier/Authorized Representative Printer s Accreditation No. P Date Issued: No GACPA THIS INVOICE CONVENTION SHALL BE VALID FOR FIVE WATERFRONT (5) YEARS FROM THE DATE CEBU OF ATP. CITY BY: MARIVIC A. GALBAN MAY 25,

149 C O M P U T A T I O N (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 MAY 25,

150 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, EQ QAP b. FVAT 5% x 100,000 5, NET AMOUNT DUE P105,000 ALPHA (NON-VAT registered payee- government contractor) GROSS billing P100,000 less:a. EWT 2% x 100,000 2,000 b. GMP 3% x 100,000 3,000 NET AMOUNT DUE P 95, EQ QAP ALPHA MAY 25,

151 EXPANDED WITHHOLDING TAX GOVERNMENT MONEY PAYMENTS ( 3%) MAY 25,

152 5% FINAL VAT MAY 25,

153 RR Amending RR and with respect to the submission of copies of BIR Form 2307 and 2316 That SAWT submitted under RR 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: MAY 25,

154 BIR Form Nos or 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_ _ However, if several BIR Form 2307 same payor, same taxable period, indicate at the end the series no. Bonifacio Mfg.Corp_ _ _1 Bonifacio Mfg.Corp_ _ _2 Bonifacio Mfg.Corp_ _ _3 SEVERAL TRANS. IN A MONTH MAY 25,

155 BIR FORM NO SWORN MAY 25,

156 BIR FORM NO SWORN MAY 25,

157 BIR Form Nos and 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. MAY 25,

158 Taxpayers covered by the amendatory provisions Mandatory for LTS Any NON-LTS may, at its/his/her OPTION comply with the said requirements 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 MAY 25,

159 SECTION Income Payments Subject to Creditable Withholding Tax. (A)Income Payments to a CITIZEN OR TO A RESIDENT ALIEN Individual: (A)PROFESSIONAL FEES, talent fees, etc. for services rendered On the gross professional, promotional, and talent fees or any other form of remuneration for the services rendered by the following: Individual payee: If gross income for the current year not exceed 3M - 5% more than 3M - 10% Non-individual payee: not exceed 720,000 10% exceeds 720,000-15% MAY 25,

160 (1) Those individually engaged in the practice of profession or callings; LAWYERS DOCTORS OF MEDICINE ARCHITECTS MARINE SURVEYORS PROFESSIONAL APPRAISERS ACTUARIES CPAS DENTIST ENGINEERS DOCTORS OF VETERINARY CONNOISSEURS OF TOBACCO INTERIOR DECORATORS DESIGNERS REAL ESTATE SERVICE PRACTITIONER all other profession requiring government licensure examination regulated by the Professional Regulations Commission (PRC), Supreme Court, etc. For professional fees paid to medical practitioners (includes doctors of medicine, doctors of veterinary science and dentists) by hospitals and clinics or paid directly by health maintenance organizations (HMOs) and/or similar establishments [formerly under letter (I)]: MAY 25,

161 PF directly from patients who were admitted and confined in hospitals/clinics PF in the total medical bill of the patient which shall be payable directly to the hospital or clinic. Hospitals and clinics shall SUBMIT THE LIST containing the names and addresses of the MEDICAL PRACTITIONERS in the following classifications, every 15th day after the end of each calendar quarter MAY 25,

162 AFFIDAVIT-DECLARATION THAT NO PROFESSIONAL FEE HAS BEEN CHARGED BY MEDICAL PRACTITIONER MAY 25,

163 MEDICAL PRACTITIONERS shall likewise include medical technologists, allied health workers (e.g., occupational therapists, physical therapists, speech therapists, nurses, etc.) other medical practitioners who are not under an employer-employee relationship with the hospital or clinic, or HMO and other similar establishments MAY 25,

164 2. Professional ENTERTAINERS actors, actresses, singers, lyricist, composers, emcees 3. Profession ATHLETES basketball players, pelotaries and jockeys 4. All Directors & PRODUCERS involved in movies, stage, radio, television & musical productions MAY 25,

165 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; MAY 25,

166 It shall include not only fees, but also: per diems allowances other form of income payment not subject to withholding tax on compensation. In the case of professional entertainers, athletes, & all recipients of talent fees, it shall also include the amount paid for the of advertisements or sales promotions: use of their names or pictures in print, broadcast or other media or use for public appearances for purposes of advertisements or sales proportion. MAY 25,

167 INCOME PAYEE S SWORN DECLARATION OF GROSS RECEIPTS/SALES (For Self-Employed and/or Engaged in the Practice of Profession with SEVERAL INCOME PAYORS) MAY 25,

168 INCOME PAYEE S SWORN DECLARATION OF GROSS RECEIPTS/SALES (For Self-Employed and/or Engaged in the Practice of Profession with SEVERAL INCOME PAYORS) SWORN (Annex B1 ), + Certificate of Registration (COR), MAY 25,

169 INCOME PAYEE S SWORN DECLARATION OF GROSS RECEIPTS/SALES (For Self-Employed and/or Engaged in the Practice of Profession with Several Income Payors) MAY 25,

170 Not exceed 3M + non-vat SEVERAL INCOME PAYORS GRADUATED INCOME TAX RATES Section 24(A)(2)(a) of the Tax Code, as amended, based on the taxable income. creditable withholding tax (5% with sworn; 10%); subject to percentage tax (File 2551Q) and will file the required percentage tax returns or subject to withholding percentage tax (3%), in case of government money payments 8% income tax rate Section 24(A)(2)(b) of the Tax Code, as amended, based on gross receipts/sales and other non-operating income In lieu of: graduated income tax rates and Percentage Tax under Section 116 of the Tax Code, as amended; only the CREDITABLE INCOME WITHHOLDING TAX based on the prescribed rate shall be made (5% with sworn; 10%); MAY 25,

171 INCOME PAYEE S SWORN DECLARATION OF GROSS RECEIPTS/SALES (For Self-Employed and/or Engaged in the Practice of Profession with LONE INCOME PAYOR) MAY 25,

172 INCOME PAYEE S SWORN DECLARATION OF GROSS RECEIPTS/SALES (For Self-Employed and/or Engaged in the Practice of Profession with LONE INCOME PAYOR) SWORN (Annex B2 ), + Certificate of Registration (COR), MAY 25,

173 INCOME PAYEE S SWORN DECLARATION OF GROSS RECEIPTS/SALES (For Self-Employed and/or Engaged in the Practice of Profession with LONE Income Payors) MAY 25,

174 INCOME PAYEE S SWORN DECLARATION OF GROSS RECEIPTS /SALES (For Non-Individual Taxpayer with Several Income Payors) MAY 25,

175 INCOME PAYORS /withholding agents shall subsequently execute a sworn declaration (Annex C ) together with the LIST OF PAYEES & NUMBER OF PAYEES who have: A. submitted the income payees sworn declarations (Annexes B-1, B-2 and B-3 ) B. with the accompanying copies of their COR. SUBMIT: WHERE: WHEN: (1) Original copy for the BIR; and (2) Duplicate copy for lone payor/withholding agent BIR office where registered on or before January 31 of each year or 15 days following the month when a new income recipient has submitted the payee s sworn declaration. MAY 25,

176 INCOME PAYOR/WITHHOLDING AGENT S SWORN DECLARATION ANNEX C MAY 25,

177 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 MAY 25,

178 C. (E) Income Payment to Certain Contractors 2% 1. GENERAL ENGINEERING CONTRACTORS 2. GENERAL BUILDING CONTRACTORS 3. SPECIALTY CONTRACTORS 4. OTHER CONTRACTORS And/or Laboronly contractors MAY 25,

179 (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; (h) Advertising agencies, exclusive of gross payments to media; (i) Independent producers of television, radio and stage performances or shows; (j) Independent producers of jingles ; MAY 25,

180 TOP withholding agents shall include the following: a. Classified and duly notified by the Commissioner as either any of the following unless previously de-classified as such or had already ceased business operations: (1) LARGE TAXPAYER under RR 1-98, as amended; (2) Top 20,000 private corporations under RR No ; or (3) Top 5,000 individuals under RR No ; b. Taxpayers identified and included as Medium Taxpayers, and Taxpayer Account Management Program (TAMP) MAY 25,

181 (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)] to its local/resident supplier of goods and local/resident supplier of services other than those covered by other rates of withholding tax 1% PURCHASE OF GOODS 2% PURCHASE OF SERVICES * GOCCs shall withhold in their capacity as government. MAY 25,

182 (N) Income payments made to suppliers of AGRICULTURAL PRODUCTS [formerly under letter (S)] Income payments made to AGRICULTURAL SUPPLIERS such as those, but not limited to, payments made by hotels, restaurants, hotels, restaurants, resorts, caterers, food processors, canneries, supermarkets, livestock, poultry, fish and marine product dealers, hardwares, factories, furniture shops, and all other establishments, in excess of the cumulative amount of 300, within the same taxable year. - 1% AGRICULTURAL SUPPLIERS refers to suppliers/sellers of agricultural, forest and marine food and non-food products, livestock and poultry of a kind generally used as, or yielding or producing of foods for human consumption; and breeding stock and genetic materials therefor. 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. MAY 25,

183 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)] Income payments on purchases of minerals, mineral products, and quarry resources such as but not limited to silver, gold, marble, granite, gravel, sand, boulders and other materials/products. 5% However, BSP is required to withhold 1% of gross payments made, and remit the same to the Government. (P) MERALCO Payments on the following [formerly under letter (U)]: (Q) Interest income on the refund paid either through direct payment or application against customers billings by other electric Distribution Utilities (DUs) in accordance with the rules embodied in ERC Resolution No. 8, Series of 2008, dated June 4, 2008, governing the refund of meter deposits [formerly under letter (V)] - xxx MAY 25,

184 (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 , 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 % MAY 25,

185 Any income subject to INCOME TAX may be subject to WITHHOLDING TAX; However, INCOME EXEMPT from income tax is consequently EXEMPT FROM WITHHOLDING TAX. Further, income not subject to withholding tax does not necessarily mean that it is not subject to income tax. MAY 25,

186 SECTION Returns and Payment of Taxes Withheld at Source BIR Form No. 1601EQ for creditable withholding tax BIR Form No. 1602Q for final tax on interest on bank deposits BIR Form No. 1603Q for final tax withheld on fringe benefits, BIR Form No. 1601FQ for all other final withholding taxes) Not later than the last day of the month following the close of the quarter during which the withholding was made. QUARTERLY Alphabetical List of Payees (QAP) NAME OF INCOME PAYEES, Taxpayer Identification Number (TIN), AMOUNT OF INCOME PAID SEGREGATED PER MONTH WITH TOTAL FOR THE QUARTER (ALL INCOME PAYMENTS prescribed as subject to withholding tax under these regulations, whether actually subjected to withholding tax or not subjected due to exemption), and TOTAL AMOUNT OF TAXES WITHHELD, if any. MAY 25,

187 MAY 25,

188 Considering that taxes withheld by the withholding agents are HELD IN TRUST FOR THE GOVERNMENT and its availability is an imperious necessity to ensure sufficient cash inflow to the National Treasury, withholding agents shall file BIR Monthly Remittance Form (BIR Form No. 0619E and/or 0619F) every tenth (10th) day of the following month when the withholding is made, regardless of the amount withheld. For withholding agents using EFPS facility, the due date is on the 15th day of the following month. Withholding agents with zero remittance are still required to use and file the same form. MAY 25,

189 MAY 25,

190 1 st mo 2 nd mo MAY 25,

191 MAY 25,

192 1 st mo 2 nd mo MAY 25,

193 TAX ADVISORY 4/24/18 Alphabetical List of Payees (QAP) ln line with the submission of the Quarterly Alphabetical List of Payees (QAP) that shall accompany the Quarterly Remittance Return of Creditable Income Taxes Withheld (Expanded) BIR Form No EQ] Quarterly Remittance Return of Final Income Taxes Withheld (BIR Form No FQ), please be informed that the Alphalist Data Entry and Validation module Version 6.0 is now available for use. This can be downloaded from the Bureau's website at as follows: MAY 25,

194 QAP ALPHALIST DATA ENTRY MODULE VER 6 1. CLICK on the "Downloadables" button at the lower left side of the web page; 2. SCROLL DOWN to search the section showing the "Alphalist Data Entry and Validation Module Version 6.0 (ver)"; and 3. Follow the instructions stated on the said section to install the module. MAY 25,

195 QAP SUBMISSION The QAP shall be submitted either 1. through the esubmission facility of the Bureau or 2. through the dedicated 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 , as amended MAY 25,

196 Tax advisory MAY 25,

197 REGISTRATION COR Thus, the concerned taxpayers need not visit their respective RDO to UPDATE THEIR REGISTRATION and replace their Certificate of Registration (COR) A separate advisory shall be issued for taxpayers under LTS & Region 8 - Makati to the new form types. MAY 25,

198 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, TIME: within 20 days from the close of the quarter upon request of the payee, the payor must furnish such statement, simultaneously with the income payment FORM: BIR Form No for creditable withholding tax SHOWING: BIR Form No for final withholding tax monthly income payments made, quarterly total, and amount of taxes withheld. MAY 25,

199 MAY 25,

200 1. BIR Form Nos EQ/1601-FQ A. Manual Return 4. Remittance of the tax due thereon, if any, shall be made thru: a. Manual Payment Authorized Agent Bank (AAB) located within the territorial jurisdiction of the Revenue District Office (RDO) where the taxpayer is registered 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 MAY 25,

201 SYSTEM DOWN RETURN NOT AVAILABLE IN efps MAY 25, 2018

202 (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 on or before March 1 of the following year in which payments were made; and 2. (BIR Form 1604F) Annual Information Return on Final Income Taxes Withheld including the corresponding Annual Alphabetical List of Payees On or before January 31 of the following year in which payments were made. MAY 25,

203 When and Where to File and Pay For Electronic e-filed and e-paid on or before the DEADLINE MAY 25,

204 DOWNLOADABLES Dropbox : MAY 25,

205 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 MAY 25,

206 Penalties for Non-Compliance LATE FILING Non-withholding Under withholding Under remittance Failure to refund excess taxes withheld on compensation overwithholding overremittance MAY 25,

207 OFFICERS & EMPLOYEES REQUIRED TO DEDUCT & WITHHOLD BARANGAY BARANGAY TREASURER BARANGAY CAPTAIN MUNICIPALITIES / CITIES MUNICIPAL /CITY TREASURER CHIEF ACCOUNTANT MAYOR PROVINCES PROVINCIAL TREASURER CHIEF ACCOUNTANT GOVERNOR DEPARTMENTS BUREAUS GOCCS OTHER GOVT OFFICES CHIEF ACCOUNTANT HEAD OF OFFICE (Official holding the highest position such as Secretary, Regional Director, etc.) MAY 25,

208 MAY 25,