1 Presented by: SUSAN DAJAO TUSOY, CPA, MPS Asst. Chief, Assessment Division RR 19-Davao City...

1

Presented by:

SUSAN DAJAO TUSOY, CPA, MPSAsst. Chief, Assessment Division

RR 19-Davao City

EXPANDED WITHHOLDING TAX (EWT)

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

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

2

Types of Withholding Taxes

• Withholding Tax on Compensation

• Expanded Withholding Tax

• Final Withholding Tax; and

• Withholding Tax on Government Money Payment

3

FINAL VS. CREDITABLE WITHHOLDING TAX

FINAL CREDITABLE

• the amount of income tax withheld by the withholding agent is constituted as a full & final payment

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

• liability rests with the payor as withholding agent

• the income recipient is still required to file an income tax return

• payee is not required to file an ITR for the particular income

4

Persons Required to Deduct & Withhold

5

Juridical persons, whether or not engaged in trade or business;

Individuals in connection with his trade or business, however, individual buyers of real properties are also constituted as withholding agents;

All government offices.

Designation of Government Officials as Withholding Agents (EO 651; RR 1-87;RR 10-97 and

RMO 14-98)6

All Heads of Offices (officials holding the highest position)

Provincial Governors and Treasurers City Mayors and Treasurers Municipal Mayors & Treasurers Brgy. Captains and Treasurers

Note: including their respective accountants

INCOME PAYMENTS SUBJECT TO EWT

DESCRIPTION

A. Professional fees, talent

fees, etc., for services rendered by individuals

15% if gross income exceeds P720,000 10% if otherwise On the gross professional, promotional and talent fees or any other form of remuneration for the services rendered.

1)Those engaged in the practice of profession – all profession requiring gov’t licensure examination and/or regulated by PRC, Supreme Court, etc.

2)Professional entertainers

3)Professional athletes

7


DESCRIPTION

4. Directors and producers of movies, stage, etc.

5. Insurance agents and adjusters

6. Management and technical consultants

7. Bookkeeping agents and agencies

8. Other recipients of talent fees

9. Fees of directors who are not employees of the company including per diems, allowances and any other form of income payments not subject to w/holding tax on compensation.

8

INCOME PAYMENTS

SUBJECT TO EWTDESCRIPTION

DISCLOSURE REQUIREMENT Every individual shall periodically disclose his gross income for the current year to the BIR by submitting a Notarized Sworn Declaration to the Collection Division of the Regional Office having jurisdiction of the income earner in (3) copies.

Should be filed on June 30 of each year or w/in 15 days after the end of the month the professional/talent/directors income reaches P720,000, whichever comes first.

9


DESCRIPTION

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

15% if gross income exceeds P720,000 10% if otherwise On the gross professional, promotional and talent fees or any other form of remuneration for the services rendered.

10


DESCRIPTION

C. Rentals

On real properties – 5%

On personal properties – 5% On gross rental or lease in excess of P10,000 annually

Poles, satellites and transmission facilities – 5%

Billboards – 5%

11


DESCRIPTION

D. Cinematographic film rental and other payments

E.Income Payments to certain contractors

5% on gross payment

2% on gross payments of the ff:

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

12

INCOME PAYMENTS SUBJEC TO EWT

DESCRIPTION

F.Income distribution to the beneficiaries

G. Gross payments to certain brokers and agents

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

10% on gross commissions or service fees

13


DESCRIPTION

H.Income payments to partners of general professional partnerships

On income payments made to partners such as drawings, advances, sharings, allowances and stipends etc.

15% if gross income exceeds P720,00010% if otherwise

14


DESCRIPTION

I. Professional fees paid to medical practitioners

15% if gross income exceeds P720,00010% if otherwise

1.On PF paid by hospitals or clinics, or paid directly to the medical practitioners by patients who were admitted and confined

2.PF paid to medical practitioners by HMOs and/or similar establishments

15


DESCRIPTION

a) It shall be the duty of the hospital/clinic/HMO to remit taxes withheld from professional fees

1) PF paid by HMOs to medical practitioners 2) PF paid by patients to medical practitioners thru the hospitals or clinics 3) PF paid by patients directly to medical practitioners where the 10% or 15% shall in turn be given by medical practitioners directly to the Accounting Office of the hospitals/ clinics

16


DESCRIPTION

b)Exception - The W/tax shall not apply if there is proof that no PF has in fact been charged provided that a sworn declaration is jointly executed by the medical practitioner, and the patient or the duly authorized representative in case the patient is a minor or incapacitated. The sworn declaration shall form part of the records of the hospital/clinic and shall be readily available upon BIR audit.

17


DESCRIPTION

The hospital/clinic shall inform the BIR about any medical practitioner who fails or refuses to execute the sworn declaration within ten days from occurrence.

18


DESCRIPTION

c. Hospitals and clinics shall submit the names and address of medical practitioners every 15th day after end of each quarter to the Collection Division using the prescribed format (Annex A of RR 3-99):

i) Medical practitioners whose PF was paid by patients directly to the hospital/clinic

19


DESCRIPTION

ii) Medical practitioners whose PF was paid to them directly by the patients and the 10%/15% WT was not given by such practitioner to the Accounting Office of the hosp./clinic

iii) Medical practitioners whose PF was paid to them directly by the patients but the 10%/15% WT was not given by such practitioner to the Accounting Office of the hosp./clinic

20


DESCRIPTION

iv) Medical Practitioner who did not charge any PF from their patients.

d) The term medical practitioner shall include medical technologists, allied health workers (e.g., occupational therapists, physical therapists, speech therapists, nurses, etc.) and other medical practitioners who are not under an employer-employee relationship with the hosp. or clinic.

21


DESCRIPTION

e) The hospitals /clinics/HMO shall be responsible for the accurate computation, timely remittance and issuance of withholding tax certificates every 20th day following close of the taxable quarter or upon request of the payee.

The hospital/clinic/HMO shall include in their Alphalist of Payees Subject to Expanded Wtax (BIR Form 1604E) the above income recipients.

22

INCOME PAYMENTS SUBJECT TO EWT DESCRIPTION

J.Gross selling price or total amount of consideration or its equivalent paid to seller/owner for the sale, exchange, or transfer of real property classified ad ordinary asset

Seller/transferor is exempt from creditable withholding tax in accordance with Sec. 2.57.5 of the regulation - exempt

Seller/transferor is habitually engaged in the real estate business:

Selling price is P500k of less - 1.5%SP <P500K but => P2M - 3.0%SP <P2M - 5.0%

Seller/transferor is not habitually engaged in the real estate business - 6.0%

23


DESCRIPTION

K. Additional income payments to gov’t. personnel from importers, shipping and airline companies

L. Certain income payments made by credit card companies

On gross additional payments to gov’t. personnel for overtime services as authorized by law - 15%

1% on ½ of the gross amounts paid

24


DESCRIPTION

M.Income payments made by the top 20K private corp . to their local/ resident supplier of goods/services other than those covered by other wtax rates

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

Withholding tax on Agricultural Purchases in their original state shall apply only on excess of the cumulative amount of P300,000 within the same taxable year.

25

On Agricultural Products On Agricultural Products (RR 6-2009)(RR 6-2009)26

For purchases involving agricultural products in their original state, the tax required to be withheld shall only apply to purchases in excess of the cumulative amount of P300,000.00 within the same taxable year.

On Agricultural ProductsOn Agricultural Products27

Agricultural Products in their original state shall only include:

Illustration:28

Number of Transactions

Year Purchase Amount

One 2009 P 90,000

Two 2010 320,000

One 2011 400,000

One 2012 90,000

Amount of EWT:29

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


DESCRIPTION

N. Income payments made by the gov’t. to its local/resident supplier of goods/services other than those covered by other wtax rates

O. Commissions of independent and/or exclusive sales representatives, and marketing agents and companies

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

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

30


DESCRIPTION

P. Tolling fees paid to refineries

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

R. Payments to embalmers

5% on gross processing/tolling fees

1% on gross payments

1% on gross payment

31


DESCRIPTION

S. Income payments to suppliers of agricultural products

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

1% (suspended until further notice pursuant to RR 3-2004)

10% on income payments

32


DESCRIPTION

U. MERALCO payments

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

10% / 20%

33


DESCRIPTION

W. Income payments made by the top 5,000 individual taxpayers to their local/resident supplier of goods/services other than those covered by other w/tax rates

Individuals engaged in trade or business including non resident aliens engaged in trade or business in the Philippines.

Withholding tax on Agricultural Purchases in their original state shall apply only on excess of the cumulative amount of P300,000 within the same taxable year.

Supplier of goods – 1%

Supplier of services – 2%

34

UPDATE ON EXPANDED

WITHHOLDING TAX REGULATIONS

RMC 38-2011 and RMC 49-2011

35

RMC 38-2011 (on EWT)36

PAYMENTS OF PHIC TO: medical practitioners are subject to 10% or 15% EWT

Hospitals/clinics for medical services (facility fee) provided to PHIC members are subject to 2% Expanded Withholding Tax

Illustration 37

Patient A was confined in Hospital X, a PHIC-accredited hospital. Patient A, being a PHIC member, accomplished PHIC Form and submitted the same to Hospital X. Upon settlement of the bills, he only paid an amount net of PHIC benefits. Based on the hospital bills, the patient’s PHIC benefits include the following:

Professional Fees - P 4,000

Facility Fee - 10,000

Total - P14,000

Q1

38

How much should be the tax to be withheld by PHIC?

Q1

39

Answer:

Withholding on Professional Fees* (P4,000 x 15%**) Php 600.00

Withholding on Facility Fees (P10,000 x 2%) 200.00

Total Php 800.00 *Non-VAT Registered Taxpayer** On the assumption that the medical practitioner did not submit a sworn declaration of his gross income.

Q240

Will the total amount of P14,000 be

reflected in the Official Receipt (OR)

to be issued by Hospital X?

Q241

Answer:

No. Hospital X shall issue the OR only for the amount pertaining to the facility fee, which is P10,000. With respect to the PF of P4,000, the concerned medical practitioner shall issue the OR.

Q342

What amount should be reflected in the

Certificate of Income and Tax Withheld that

will be issued by PHIC?

Q343

Answer: PHIC to issue Form 2307 in the following manner:

In name of Hospital X

In the name of the Med. Prac.

Income Payment

P 10,000.00 P 4,000.00

Withholding Tax

200.00 600.00

RMC 49-201144

I. COVERED UNDER THE NEW PHILHEALTH CASE RATE

PROGRAM

PHIC to pay the entire rate case amount directly to hospital/clinic/facility

PHIC to withhold 2% on the entire case rate payment

RMC 49-201145

The hospital/clinic/facility shall withhold 10% or 15% EWT on its payment to medical practitioner Government Hospitals shall withhold taxes on Gov’t.

Money Payments

• 5% for VAT-Reg. Medical Practitioners• 3% for Non-VAT Registered Medical Practitioners

RMC 49-201146

II. NOT COVERED UNDER THE NEW PHILHEALTH

CASE RATE PROGRAM PHIC to pay

PF directly to the medical practitioner Facility Fee to the hospital/clinic

PHIC to withhold 10% or 15% EWT on its payment to medical practitioner 2% on Facility Fee for hospital/clinic 5% VAT Withholding on its payment to VAT Reg. Medical

Practitioner or 3% Percentage Tax Withholding on Non-

VAT Registered Medical Practitioner

Using the same illustration, the proper withholding shall be as follows:

47

NOT COVERED BY PHIC CASE RATE PROGRAM

PHIC shall withhold 10%/15% EWT on PF

If Medical Prac. is VAT Reg.(P4,000/112%) x 15%*=P 535.71

If Medical Prac. is Non-VAT Reg.P4,000 x 15% * = P600.00

PHIC shall withhold 2% from Facility Fee

P10,000 x 2% =P200.00

PHIC shall also withhold 5% VAT or 3% Percentage Tax for Non-VAT Medical Practitioner on PF only

If Medical Prac. is VAT Reg.(P4,000/112%) x 5%=P178.57

If Medical Prac. is Non-VAT Reg. P4,000 x 3% = P120.00

*on the assumption that medical practitioner did not submit sworn declaration of income

Illustration # 248

Patient A was confined in Hospital X, a PHIC-accredited hospital for Dengue II (Dengue Fever and DHF Grades III & IV). Patient A, being a PHIC member, accomplished PHIC Form and submitted the same to Hospital X. Upon settlement of his hospital bills, he only paid an amount net of his PHIC benefits. Based on PhilHealth Circulars Nos. 011-2011, 011-A-2011 and 011-B-2011, Dengue is covered under the Case Rate Program; and pursuant to the aforementioned PhilHealth Circulars, the entire case rate shall be paid to the concerned facility provider.

Dengue II (Dengue Fever and DHF Grades III & IV) –P16,000

RMC 49-201149

FOR THOSE COVERED UNDER THE RATE CASE PROGRAM, PHIC SHALL WITHHOLD THE FOLLOWING ON ITS ENTIRE PAYMENT TO HOSPITAL/CLINIC/ FACILITY: 2% EWT on the entire amount P16,000 x 2%

On Gov’t. Money Payments None (being exempt from VAT pursuant to Sec. 109(G) of the Tax Code of 1997)

Assume Hospital X paid P4,800 PF to the Medical Practitioner

50

COVERED BY PHIC CASE RATE PROGRAM

PHIC shall NOT withhold 10%/15% EWT on PF

If Hospital X is a non-government hospital

10%/15% Expanded Withholding Tax

For VAT-Reg. Medical Practitioner(P4,800/112%) x 15%* = P642.85

For NON-VAT-Reg. Medical Practitioner P4,800 x 15%* = P 720.00

Withholding on Gov’t. Money Payment None (being a non-government

hospital)


Assume the Hospital X paid P4,800 PF to the Medical Practitioner

51

COVERED BY PHIC CASE RATE PROGRAM

PHIC shall NOT withhold 10%/15% EWT on PF

If Hospital X is a government hospital

10%/15% Expanded Withholding Tax

For VAT-Reg. Medical Practitioner(P4,800/112%) x 15%* = P642.85

For NON-VAT-Reg. Medical Practitioner P4,800 x 15%* = P 720.00

Withholding on Gov’t. Money Payment

For VAT-Reg. Medical Practitioner(P4,800/112%) x 5% = P214.29

For NON-VAT-Reg. Medical Practitioner P4,800 x 3% = P 144.00


RMC 21-200552

Sourcing, Pooling and Distribution of PhilHealth Common Fund

PF for services rendered by salaried public health providers may be retained by health care institution for distribution among health personnel Shall not be subject to 10% EWT by PHIC

RMC 21-200553

The public health institution upon the distribution of their personnel shall be responsible for: Withholding the corresponding tax on compensation Include in Form 2316 Include in Form 1604CF

For disbursements other than distribution to personnel Shall withhold appropriate taxes as provided under RR

2-98, as amended

54

VAT TREATMENT OF THE PAYMENT FOR

SECURITY SERVICES (RMC 39-2007)

I. BACKGROUND55

INCOME TAX:

Cash basis or Accrual basis may be adopted as accounting method for reporting of income

The timing of the imposition of the tax depends on the accounting method employed.

56

VALUE-ADDED TAX:

Seller of Services, including security agencies, have to be taxed solely on the Cash Basis.

Cash Basis – upon actual or constructive receipt of income

VALUE-ADDED TAX:

Gross Receipts – must constitute

the gross income of the taxpayer

when received or earned.

If amount received does not form

part of gross income, the same

cannot be part of gross receipts

subject to VAT.

57

58

Do the salaries of security guards form part of the taxable gross receipts of a security agency?

Prior to RMC 39-2007: Salaries of the security guards are actually the

liability of the agency, hence, includible in its gross receipts for business tax purposes.

BIR Ruling Nos. 69-02,049-85 and 271-81

59RMC 39-2007:

Liability of the security agencies for the prescribed increases in the wage rates of workers are explicitly required to be borne by the principal or clients of the service contractor pursuant to Sec 6 of RA 6727 (The Wage Rationalization Act)

60

RMC 39-2007:

Sec 1, Rule XIV of the 1994 Revised Rules and Regulations implementing RA 5487 provided that the monies received by the agency from its clients as an amount reserved for the remuneration of the guard or detective must be segregated.

61RMC 39-2007:

Security Agency has no control or dominion over the portion of the payment received from its client which is intended or earmarked as salaries of the guards.

Only receipts which a taxpayer is free to enjoy at his option is taxed to him as his income. (Corliss v Bowers, 281 U.S. 376)

II. INCOME TAX TREATMENT OF THE PAYMENTS MADE TO SECURITY AGENCY:

62

1. On the Part of the Security Agency: Agency Fee (amount net of VAT) – part of gross

income subject to income tax

Security Guards’ Salaries – LIABILITY

If the Contract does not provide for a breakdown of the amount payable to the Security Agency, the entire amount representing the Contract Price will be taxed as income to the Agency, which must form part of its gross receipts.

63Illustration:

Assume that Vigilant Security Agency, Inc. was contracted by Tanzo Jewelry Corp., to provide security services to the latter’s store. The contract price on a monthly basis is P18,000.00 broken down into: Security Guards’ Salaries of P14,179.08 and Agency Fee of P3,820.92 (inclusive of VAT)

64Journal Entries:

Debit: Cash 17,931.77 Prepaid Income Tax (2% EWT on agency fee) 68.23

Credit: Service Income (agency fee) 3,411.54

Output Tax (on agency fee) 409.38

Due to Security Guards 14,179.08

65

Journal Entries:

Upon Payment of the Security Guards’ Salaries:

Debit: Due to Security Guard 14,179.08 Credit: Cash

12,617.11 Withholding Tax Payable

1,541.97

The Security Agency who is the trustee of the funds segregated and earmarked as salaries of the security guards is the withholding agent for purposes of the withholding tax on compensation.

2. On the Part of the Client or User of Security Services:

66

Journal Entries:

Debit: Security Services-Agency Fee 3,411.54 Security Services-SG Salaries 14,179.08 Input Tax (only on Agency Fee) 409.38

Credit: Cash 17,931.77

WHT Payable(2% EWT on agency fee)

68.23

VAT TREATMENT OF THE PAYMENTS FOR SECURITY SERVICES:

67

1.On the Part of the Security Agency: 12% Output Tax shall be based on the

Agency Fee which in turn will be the Input Tax of its Client.

Salaries of the Security Guards will not form part of the its gross receipts subject to VAT but shall be recognized as a LIABILITY of the security agency.

VAT TREATMENT OF THE PAYMENTS

FOR SECURITY SERVICES:68

2. On the Part of the Client:

Input Tax credit is based on the Agency Fee paid by the Client.

VAT official receipt must be issued to the Client.

VAT TREATMENT OF THE PAYMENTS FOR SECURITY SERVICES:

69

2. On the Part of the Client: The Client can not claim Input

Tax Credit on the salary portion of the Security Services Expense because it pertains to service Exempt from VAT pursuant to Sec 109 (I) of the NIRC-Services rendered by individual pursuant to employee-employer relationship

MANNER OF ISSUING RECEIPT FOR THE ENTIRE CONTRACT PRICE:

70

On the Agency Fee:

VAT Official Receipt must be issued pursuant to Sec 113 of the NIRC as implemented by Sec. 4.113-1 of RR 16-2005.

The receipt should cover only the amount of Agency Fee paid with the indication that such amount received includes the VAT. The VAT must be shown as a separate item in the VAT Official Receipt.

MANNER OF ISSUING RECEIPT FOR THE ENTIRE CONTRACT PRICE:

71

On the Security Guards’ Salaries:

Must be covered by a Non-VAT Acknowledgement Receipt.

Duly Notarized Certification of the Expanded Withholding Taxes (see ANNEX A of this RMC) must also be submitted.

WITHHOLDING TAX COMPLIANCE:

72

On the Agency Fees:

The Client is constituted as the withholding agent of the EWT

(following the rule on RR 2-98, as amended by RR 30-03).


73


The Security Agency shall be the one responsible for the Withholding of Tax on Compensation.

While it is the Client who claims the payment as an expense, it is the Security Agency who physically controls the payment of salaries of the Security Guards.


74


Security Agency must Furnish its Client, on or before January 31 of the year following the year of withholding, a Notarized Certification (see Annex A) indicating the names of the guards employed by the Client, their respective TINS, the amount of their salaries and the amount of tax withheld from each.


75


The Certification together with the Non-VAT Acknowledgement Receipt must be kept on file by the Client as substantiation for the claim of the expense.

76

ON MANDATORY ATTACHMENTS

(RR 2-2006)

MANDATORY ATTACHMENTS :

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

77

REVENUE REGULATIONS NO. 2-2006

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

78

REVENUE REGULATIONS NO. 2-2006

SAWT- defined79

a consolidated Summary alphalist of withholding agents from whom income was earned or received and subjected to withholding tax

S- Summary

A- Alphalist of withholding agents

W- subjected to Withholding

T- Tax

SAWT - defined80

to be submitted by the payee-recipient of income as attachment to its duly filed return for a given period

which Summary List contains a summary of information showing, among others, total amounts of income/gross sales/gross receipts and

claimed tax credits taken from all Certificates of Creditable Withholding Tax at Source

(BIR Form Nos. 2307/2304/2306/2316) issued by the payors of income payment

FORMATAnnex “A”

BIR REGISTERED NAME TRADE NAME

ADDRESSTIN

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

Seq no.1

TINInclu-ding

branch code

2

Registered name (Alphalist)

3

Return period From

Mm/dd/yy

4a

Return Period

ToMm/dd/

yy

4b

ATC5

Nature of income payment

6

AMOUNTTax base

7

Tax rate8

Tax Withheld

9

1

2

3

4

5

TOTAL AMOUNT

P

I declare under the penalties of perjury, that this certificate has been made in good faith, verified by me, and to the best of my knowledge and belief, is true and correct pursuant to the provisions of the NIRC, and the regulations issued under the authority thereof ; that the information contained herein completely reflects a summary of information on all Certificates of Creditable Withholding Tax at Source (BIR Form No. 2307/2304/2306/2316) issued by the payor; that, the income payments has been declared part of the gross income/receipt in the our Income Tax/ VAT/ Percentage Tax Returns where the taxable income was earned or received; that, the information appearing herein is consistent with the information contained in the Certificate of Tax Withheld at Source and that, inconsistent information shall result to denial of the claims for refund/tax credit.

_ _________________________

Signature over printed name

Taxpayer/Authorized representative

Attachments to BIR Form Nos. 1700, 1701Q, 1701, 1702Q, 1702, 2550M, 2550Q, 2551M, 2553 81

Monthly Alphalist of Payees(MAP)

82

is a consolidated alphalist of income earners from whom taxes have been withheld by the payor of income for a given return period and in whose behalf, the taxes were remitted.

It contains a summary of information on taxes withheld and remitted through the monthly remittance returns (BIR Form Nos. 1601-E, 1601-F, 1600) showing , among others, total amounts of income/gross sales/gross receipts and

taxes withheld and remitted.

FORMAT

Annex “B” BIR REGISTERED NAME

TRADE NAMEADDRESS

TINMONTHLY ALPHALIST OF PAYEES (MAP)

RETURN PERIOD (mm/yyyy)

Seq no.1

TINInclu-ding

branch code

2

Registered Name(Alphalist)

3

Return periodmm/yy

4

ATC5

Nature of income payment

6

AMOUNTTax base

7

Tax rate8

Tax Withheld9

1

2

3

4

5

TOTAL AMOUNT

PI declare under the penalties of perjury, that this has been made in good faith, verified by me, and to the best of my knowledge and belief, is true and correct pursuant to the provisions of the NIRC, and the regulations issued under the authority thereof; that the information contained herein completely reflects all income payments with the corresponding taxes withheld from payees are duly remitted to the BIR and proper Certificates of Creditable Withholding Tax at Source (BIR Form Nos. 2304/2307/2306/2316) have been issued to payees; that, the information appearing herein shall be consistent with the total amount remitted and that, inconsistent information shall result to denial of the claims for expenses.

__________________________

Signature over printed name

Taxpayer/Authorized representative

Attachments to BIR Form Nos. 1601-E, 1601-F, 1600 83

SAWT/MAP84

Below 10 payees - hard copy

10 or more payees - 3.5 diskette

EFPS regardless of the - e-attach

number of income payees/

income recipient

Returns required to be filed with SAWT & Certificate of Creditable Tax Withheld at

Source85

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

For the Period 1From To

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

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

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

Identif ication No. Code

Registered Address 4A Foreign

Address

Part II Summary List of Payors

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

P P P P P

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

Payor's Name

TOTAL:

Payor'sTIN

Republika ng PilipinasKagaw aran ng Pananalapi Kaw anihan ng Rentas Internas

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

2307/2316

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

Fill in all applicable spaces. Mark all appropriate boxes w ith an “X”.1 For the Month 2 Amended Return? 3 No. of Sheets Attached 4 Any Taxes Withheld?

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

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

10 Registered Address 11 Zip Code

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

Part II Computation of Tax

14 Total Tax Required to be Withheld and Remitted 14

15 Less: Tax Remitted in Return Previously Filed, if this is an amended return 15

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

17A 17B 17C 17D18 Total Amount Still Due/(Overremittance) (Sum of Items 16 & 17D) 18

I declare, under the penalties of perjury, that this return has been made in good faith, verified by me, and to the best of my know ledge, and belief, is true and correct, pursuant to the provisions of the National Internal Revenue Code, as amended, and the regulations issued under authority thereof.

19 20

Part III Stamp of Receiving Drawee Bank/ Date Office and

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

Details of Payment

Treasurer/Asst. Treasurer/Authorized Representative

Compromise

President/Vice President/Authorized Representative/Tax Agent

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

(Signature Over Printed Name)

Title/Position of Signatory



TIN of Tax Agent (if applicable)

NATURE OF INCOME PAYMENT TAXRATE

TAX REQUIREDA T C TAX BASE TO BE WITHHELD

April 2003 (ENCS)

Monthly Remittance Returnof Creditable Income Taxes

Withheld (Expanded)

BIR Form No.

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

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

1700













19 20



Details of Payment


Compromise










April 2003 (ENCS)


Withheld (Expanded)

BIR Form No.



1701/Q













19 20



Details of Payment


Compromise










April 2003 (ENCS)


Withheld (Expanded)

BIR Form No.



1702/Q













19 20



Details of Payment


Compromise










April 2003 (ENCS)


Withheld (Expanded)

BIR Form No.



2550M/Q 2551M/2553

FORMAT

Annex “B”

BIR REGISTERED NAMETRADE NAME

ADDRESSTIN

MONTHLY ALPHALIST OF WITHHOLDING TAXES (MAWT)RETURN PERIOD

Seqno.

1

TIN

2


3

Returnperiodmm/yy

4

Nature of incomepayment

5

ATC

6

Tax rate

7

Tax base

8

TaxWithheld

91

2

345

TOTALAMOUNT

P P

SAWT

FORMAT

Annex “B”


ADDRESSTIN


Seqno.

1

TIN

2


3

Returnperiodmm/yy

4


5

ATC

6

Tax rate

7

Tax base

8

TaxWithheld

91

2

345

TOTALAMOUNT

P P

SAWT

FORMAT

Annex “B”


ADDRESSTIN


Seqno.

1

TIN

2


3

Returnperiodmm/yy

4


5

ATC

6

Tax rate

7

Tax base

8

TaxWithheld

91

2

345

TOTALAMOUNT

P P

SAWT

FORMAT

Annex “B”


ADDRESSTIN


Seqno.

1

TIN

2


3

Returnperiodmm/yy

4


5

ATC

6

Tax rate

7

Tax base

8

TaxWithheld

91

2

345

TOTALAMOUNT

P P

SAWT

INCOME RECIPIENTS(PAYEES)

DLN:

1 For the Year 1 2 For the Period

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

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

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

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

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

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

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

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

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

Yes No 31 Transportation 31

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

32 Cost of Living Allow ance 32

33 Fixed Housing Allow ance 3334 Others (Specify)

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

Name of Dependent Relationship 34B 34B

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

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

Fees

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

39 Hazard Pay 39

main employer secondary employer 40 Others (Specify)

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

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

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

Summary42 Taxable Compensation Income42

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

Compensation Income45 Less: Total Exemptions 45

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

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

49A Present Employer 49A

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

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

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

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

BIR Form No.

Compensation Income

49 Amount of Taxes Withheld

Date of Birth (M M /DD/YYYY

REGULAR

2316







Address



P P P P P


Payor's Name

TOTAL:

Payor'sTIN



2307







Address



P P P P P


Payor's Name

TOTAL:

Payor'sTIN



2307

BIR

Note: Transactions beg. Jan. 1, 2006 – 1702Q/1701Q – WITH SAWT 2005 Annual ITR (calendar Jan-Dec) DUE APRIL 15, 2006 –NO SAWT

86

Returns required to be filed with MAP

87

BIR Form No. 1601-EBIR Form No. 1601-F BIR Form No. 1600

The return with the attached MAP shall be filed in three (3) copies to be distributed as follows:

Original copy of return with attached MAP - BIR copy Duplicate copy of return with attached MAP - BIR copy

Triplicate copy of return with attached MAP - taxpayer’s file copy













19 20



Details of Payment


Compromise










April 2003 (ENCS)


Withheld (Expanded)

BIR Form No.



1601-E




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




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



19 20



Details of Payment


Compromise










April 2003 (ENCS)


Withheld (Expanded)

BIR Form No.



1601-F













19 20



Details of Payment


Compromise










April 2003 (ENCS)


Withheld (Expanded)

BIR Form No.



1600

FORMAT

Annex “B”


ADDRESSTIN


Seqno.

1

TIN

2


3

Returnperiodmm/yy

4


5

ATC

6

Tax rate

7

Tax base

8

TaxWithheld

91

2

345

TOTALAMOUNT

P P

MAP

FORMAT

Annex “B”


ADDRESSTIN


Seqno.

1

TIN

2


3

Returnperiodmm/yy

4


5

ATC

6

Tax rate

7

Tax base

8

TaxWithheld

91

2

345

TOTALAMOUNT

P P

MAP

FORMAT

Annex “B”


ADDRESSTIN


Seqno.

1

TIN

2


3

Returnperiodmm/yy

4


5

ATC

6

Tax rate

7

Tax base

8

TaxWithheld

91

2

345

TOTALAMOUNT

P P

MAP

BIR

WITHHOLDING AGENTS(PAYORS)

88

89

Option 1 - Microsoft Excel Format;

Option 2 - Taxpayer’s own extract program; or

Option 3 - Data Entry Module developed by the BIR

90

For option 1 or 2 required to use a validation module of the BIR

Only readable diskettes/CD shall be considered as duly filed or attached to the required return.

Required Format in the Submission/ attachment of SAWT/ MAP

RETENTION OF THE HARD COPY OF THE CERTIFICATES OF TAX WITHHELD

91

It shall always be retained within the period prescribed in the law for the preservation of books of accounts and accounting records

presentation of said hard copy may be requested during audit to prove the tax credits arising from withholding taxes which are being claimed in the tax returns filed.

Statements and Returns92

BIR Form 1604CF – Annual Info Return

Due date: Jan. 31 of the succeeding year

Employers with centralized accounting system, or those mandated to consolidate remittances (large taxpayers), shall prepare alphalist on a regional basis or per branch office, due to the identification of SMW per region where the employee is assigned, which shall be submitted to the BIR where the head office is registered

Statements and Returns93

Requirement for List of Payees

Less than ten (10) payees

Manually prepared alphalist

With ten(10) or more payees

Manually prepared alphalist + softcopyIn diskette/cd/or email:

[email protected]

IV. WITHHOLDING TAX CERTIFICATES

TYPES FORM TIME

COMPENSATION 2316 Jan 31 of the ff yearFor terminated employees - last payment of salary

EXPANDED 2304 (Exempt)

20 days ff. close of the quarteror upon demand

2307 (Taxable)

GOV’T. MONEY PAYMENTS

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

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

FINAL TAX 2306 Jan. 31 of the following year

FRINGE BENEFITS

2306 Jan. 31 of the following year

94

V. ANNUAL RETURNS

TYPE FORM DESCRIPTION TIME

COMPEN-SATION

1604 CF

Alphalist of employees

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

Jan. 31 of the ff year

EXPANDED

1604E Alphalist of payees

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

March 1 of the ff year

95

96

The End

1 Presented by: SUSAN DAJAO TUSOY, CPA, MPS Asst. Chief, Assessment Division RR 19-Davao City...

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Transcript of 1 Presented by: SUSAN DAJAO TUSOY, CPA, MPS Asst. Chief, Assessment Division RR 19-Davao City...