BIR - Invoicing Requirements
BIR - Invoicing Requirements
BIR - Invoicing Requirements
Description
Codal Reference
Monthly Remittance of Taxes Withheld on Compensation
Monthly Remittance Of Income Taxes Withheld (Expanded) [Except for Transactions Involving
Onerous Transfer of Real Property Classified as Ordinary Asset]
Monthly Remittance Of Value-Added Taxes And Other Percentage Taxes Withheld
Monthly Remittance Of Final Income Taxes Withheld
Remittance Return Of Percentage Tax On Winnings And Prizes Withheld By Race Track
Operators
Quarterly Remittance Of Final Income Taxes Withheld On Fringe Benefits Paid To Employees
Other Than Rank And File
Monthly Remittance Of Final Income Taxes Withheld On Interest Paid And Yield On Deposit
Substitutes, Trust, Etc.
Annual Information Return On Creditable Income Taxes Withheld (Expanded)/Income
Payments Exempt From Withholding Tax
Annual Information On Income Taxes Withheld On Compensation And Final Withholding Taxes
Related Revenue Issuances
Frequently Asked Questions
Description
-Withholding Tax on Compensation is the tax withheld from income payments to individuals arising from an employer-
employee relationship.
- Expanded Withholding Tax is a kind of withholding tax which is prescribed on certain income payments and is creditable
against the income tax due of the payee for the taxable quarter/year in which the particular income was earned.
- Final Withholding Tax is a kind of withholding tax which is prescribed on certain income payments and is not creditable
against the income tax due of the payee on other income subject to regular rates of tax for the taxable year. Income Tax
withheld constitutes the full and final payment of the Income Tax due from the payee on the particular income subjected to
final withholding tax.
-Withholding Tax on Government Money Payments (GMP) - Percentage Taxes - is the tax withheld by National Government
Agencies (NGAs) and instrumentalities, including government-owned and controlled corporations (GOCCs) and local
government units (LGUs), before making any payments to non-VAT registered taxpayers/suppliers/payees
-Withholding Tax on GMP - Value Added Taxes (GVAT) - is the tax withheld by National Government Agencies (NGAs)
and instrumentalities, including government-owned and controlled corporations (GOCCs) and local government units
(LGUs), before making any payments to VAT registered taxpayers/suppliers/payees on account of their purchases of goods
and services.
Codal Reference
Tax Form
BIR Form 1601-C : Monthly Remittance Return of Income Taxes Withheld on Compensation
Who Are Required To File
Every registered withholding agent on compensation, which includes, but not limited to the following:
1) Individuals engaged in business or practice of profession with employees subject to income tax
2) All Juridical persons (e.g.,Corporations, general partnerships, associations, etc.) whether or not engaged in business.
3) Government Agencies and Instrumentalities (e.g.,NGAs, GOCCs, etc.), including local government units (LGUs)
1) For amended return, proof of remittance and the return previously filed.
2) For those with advance payments, BIR Form No. 0605
3) For Private Sector, copy of the list of MWEs who received hazard pay submitted to the DOLE Regional/Provincial
Offices-Operations Division/Unit, for the return period March, June, September and December, if applicable.
4) For Public Sector, copy of Department of Budget and Management (DBM) circular/s or equivalent on MWEs allowed to
receive hazard pay, for the return period March, June, September and December, if applicable.
5) Tax Remittance Advices (TRAs) for National Government Agencies as required under DOF-DBM Joint Circular No. 1-
2000A.
Procedures
- Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office (RDO) where you are registered or
withholding agent is registered and present the duly accomplished BIR Form No 1601-C, together with the required
attachments, (if applicable) and your payment.
- In places where there are no AAB's, proceed to the Revenue Collection Officer or duly Authorized City or Municipal
Treasurer located within the Revenue District Office where you are registered or withholding agent is registered and
present the duly accomplished BIR Form No. 1601- C, together with the required attachments (if applicable) and your
payment.
- Receive your copy of the duly stamped and validated form from the teller of the AAB's/Revenue Collection Officer/duly
Authorized City or Municipal Treasurer.
4. If there is no tax required to be remitted:
- Proceed to the Revenue District Office where you are registered or where the withholding agent is registered and
present the duly accomplished BIR Form 1601 C, together with the required attachments.
- Receive your copy of the duly stamped and validated form from the RDO representative
Deadline
Note: The staggered manner of filing is only allowed to taxpayers using the Electronic Filing and Payment System
(EFPS). Please refer to RR No. 26-2002 for the groupings of taxpayers based on the industry classification.
On or before the fifteenth (15th) day of the month following the month withholding was made, except for taxes withheld for
the month of December which shall be paid on or before January 20th of the succeeding year
Tax Rates
Monthly Remittance Of Income Taxes Withheld (Expanded) [Except for Transactions Involving
Onerous Transfer of Real Property Classified as Ordinary Asset]
Tax Form
BIR Form No. 1601-E : Monthly Remittance Return of Income Taxes Withheld (Expanded) [Except for Transactions
Involving Onerous Transfer of Real Property Classified as Ordinary Asset]
Every registered withholding agent on Expanded Withholding Tax, which may include, but not limited to the following:
Documentary Requirements
Procedures
- In places where there are no AAB's, proceed to the Revenue Collection Officer or duly Authorized City or Municipal
Treasurer located within the Revenue District Office where you are registered or taxpayer concerned is registered and
present the duly accomplished BIR Form 1601 E, together with the required attachments and your payment
- Receive your copy of the duly stamped and validated form from the teller of the AAB's/Revenue Collection Officer/duly
Authorized City or Municipal Treasurer.
Deadline
On or before the fifteenth (15th) day of the month following the month withholding was made, except for taxes withheld for
the month of December which shall be paid on or before January 20th of the succeeding year
On or before the tenth (10th) day of the month following the month the withholding was made, except for taxes withheld
for the month of December which shall be filed and paid on or before January 15 of the succeeding year
Tax Rates
Tax Form
BIR Form No. 1600 - Monthly Remittance Return of Value-Added Taxes and Other Percentage Taxes Withheld
1. All government offices, bureaus, agencies or instrumentalities, local government units, government owned and
controlled corporation on money payments made to private individuals, corporations, partnerships, associations and other
judicial/artificial entities as required under RA Nos. 1051, 7649, 8241, 8424 and 9337.
3. Payors of income to persons, natural or juridical, who opted to remit his/its VAT or percentage tax through the
withholding and remittance of the same by the withholding agent/payor which option is manifested by filing the “Notice of
Availment of the option to Pay the Tax through the Withholding Process”, copy furnished the withholding agent-payor and
the revenue district offices of both the payor and payee.
Documentary Requirements
1. Alphabetical list of payees indicating the following:
- Month and Year
- TIN of withholding agent
- Name of Withholding Agent
- TIN of Payee
- ATC
- Nature of Payment
- Name of Payee
- Amount of Payment
- Tax Rate
- Tax Required to be Withheld
Procedures
1. Read instructions indicated at the back of the tax return.
- In places where there are no AAB's, proceed to the Revenue Collection Officer or duly Authorized City or Municipal
Treasurer located within the Revenue District Office where you are registered or taxpayer concerned is registered and
present the duly accomplished BIR Form No. 1600, together with the required attachments and your payment.
- Receive your copy of the duly stamped and validated form from the teller of the AAB's /Revenue Collection Officer/duly
authorized City or Municipal Treasurer.
Deadline
On or before the tenth (10th) day of the month following the month the withholding was made, whether EFPS or manual
filing and payment.
Tax Rates
Tax Form
BIR Form 1601-F : Monthly Remittance Return of Final Income Taxes Withheld
Documentary Requirements
Procedures
1. Read instructions indicated in the tax return.
2. Accomplish BIR Form 1601-F in triplicate copies.
3. If there is tax required to be remitted:
- Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office where you are registered or
taxpayer concerned is registered and present the duly accomplished BIR Form No. 1601 F, together with the required
attachments and your payment.
- In places where there are no AAB, the return shall be filed and the tax paid with the Revenue Collection Officer or duly
Authorized City or Municipal Treasurer within the Revenue District Office where the withholding agent’s place of
business/office is located who will issue a Revenue Official Receipt (BIR Form No. 2524) therefor;
- Proceed to the Revenue District Office where you are required to register and present the duly accomplished BIR Form
1601-F, together with the required attachments.
- Receive your copy of the duly stamped and validated form from the RDO representative.
Deadlines
Note: The staggered manner of filing is only allowed to taxpayers using the Electronic Filing and Payment System
(EFPS). Please refer to RR No. 26-2002 for the groupings of taxpayers based on the industry classification.
On or before the fifteenth (15th) day of the month following the month withholding was made, except for taxes withheld for
the month of December which shall be paid on or before January 20th of the succeeding year
On or before the tenth (10th) day of the month following the month the withholding was made, except for taxes withheld
for the month of December which shall be filed and paid on or before January 15 of the succeeding year
Tax Rates
Remittance Return Of Percentage Tax On Winnings And Prizes Withheld By Race Track Operators
Tax Form
BIR Form 1600-WP : Remittance Return of Percentage Tax on Winnings and Prizes Withheld by Race Track Operators
Documentary Requirements
1. Alphalist of Payees indicating the following:
- Tax Year and Month
- TIN of withholding agent
- Name of Withholding Agent
- TIN of Payee
- Name of Payee
- ATC
- Nature of Payment
- Amount of Payment
- Tax Rate
- Tax Required to be Withheld
Procedures
1. Accomplish BIR Form 1600-WP in triplicate copies.
- Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office where you are registered or taxpayer
concerned is registered and present the duly accomplished BIR Form No. 1600-WP, together with the required attachments
and your payment.
- In places where there are no AAB, proceed to the Revenue Collection Officer or duly Authorized City or Municipal
Treasurer located within the Revenue District Office where you are registered or taxpayer concerned is registered and
present the duly accomplished BIR Form No. 1600-WP, together with the required attachments and your payment
- Receive your copy of the duly stamped and validated form from the teller of the AAB's/Revenue Collection Officer/duly
Authorized City or Municipal Treasurer.
- Receive your copy of the duly stamped and validated form from the RDO representative
Deadline
Within twenty (20) days from the date the tax was deducted and withheld
Tax Rates
Quarterly Remittance Of Final Income Taxes Withheld On Fringe Benefits Paid To Employees
Other Than Rank And File
Tax Form
BIR Form No. 1603 - Quarterly Remittance Return of Final Income Taxes Withheld on Fringe Benefits Paid to Employees
Other than Rank and File
Documentary Requirements
Return previously filed and proof of tax payments , if amended return
Procedures
1. Read instructions indicated in the tax return.
- Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office where you are registered or taxpayer
concerned is registered and present the duly accomplished BIR Form No. 1603, together with the required attachments
and your payment.
- In places where there are no AAB, proceed to the Revenue Collection Officer or duly Authorized City or Municipal
Treasurer located within the Revenue District Office where you are registered or taxpayer concerned is registered and
present the duly accomplished BIR Form No. 1603, together with the required attachments and your payment.
- Receive your copy of the duly stamped and validated form from the teller of the AAB's/Revenue Collection Officer/duly
Authorized City or Municipal Treasurer.
- Proceed to the Revenue District Office where you are registered or taxpayer concerned is registered and present the duly
accomplished BIR Form No. 1603, together with the required attachments.
- Receive your copy of the duly stamped and validated form from the RDO representative
Deadline
Filing and Payment Via EFPS
On or before the fifteenth (15th) day of the month following the end of the calendar quarter in which the fringe benefits
were granted to the recipient.
Monthly Remittance Of Final Income Taxes Withheld On Interest Paid And Yield On Deposit
Substitutes, Trust, Etc.
Tax Form
BIR Form 1602 - Monthly Remittance Return of Final Income Taxes Withheld on Interest Paid and Yield on Deposit
Substitutes/Trust/Etc.
Banks, non-bank financial intermediaries, finance corporations, investment and trust companies and other institutions
required to withhold final income tax on interest paid/accrued on deposit and yield or any other monetary benefit from
deposits substitutes and from trust fund and similar arrangements.
Documentary Requirements
Return previously filed and proof of tax payments, if amended return
- Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office where you are registered or taxpayer
concerned is registered and present the duly accomplished BIR Form No. 1602, together with the required attachments
and your payment.
- In places where there are no AAB, proceed to the Revenue Collection Officer or duly Authorized City or Municipal
Treasurer within the Revenue District Office where the withholding agent’s place of business/office is located and present
the duly accomplished BIR Form No. 1602, together with the required attachments and your payment who will issue a
Revenue Official Receipt (BIR Form No. 2524) therefor.
- Receive your copy of the duly stamped and validated form from the teller of the AAB's/Revenue Collection Officer/duly
Authorized City or Municipal Treasurer.
- Proceed to the Revenue District Office where you are registered or taxpayer concerned is registered and present the duly
accomplished BIR Form No. 1602, together with the required attachments.
Deadline
Filing Via EFPS
On or before the fifteenth (15th) day of the month following the month withholding was made
On or before the fifteenth (15th) day of the month following the month withholding was made, except for taxes withheld for
the month of December which shall be paid on or before January 20th of the succeeding year
On or before the tenth (10th) day of the month following the month the withholding was made, except for taxes withheld
for the month of December which shall be filed and paid on or before January 15 of the succeeding year.
Tax Rates
Annual Information Return On Creditable Income Taxes Withheld (Expanded)/Income Payments
Exempt From Withholding Tax
Tax Form
BIR Form No. 1604- E : Annual Information Return of Creditable Income Taxes Withheld (Expanded)/Income Payments
Exempt from Withholding Tax
Documentary Requirements
Procedures
Deadline
On or before March 1 of the year following the calendar year in which the income payments subjected to expanded
withholding taxes or exempt from withholding tax were paid.
Annual Information On Income Taxes Withheld On Compensation And Final Withholding Taxes
Tax Form
BIR Form No. 1604-CF : Annual Information Return of Income Taxes Withheld on Compensation and Final Withholding
Taxes.
Documentary Requirements
1. Accomplish BIR Form No. 1604-CF in triplicate copies and attach the necessary schedules in prescribed form (hard and
soft copy)
2. Proceed to the Revenue District Office where you are registered and present the duly accomplished BIR Form No. 1604-
CF, together with the required attachments.
3. Receive your copy of the duly stamped and validated form from the RDO representative.
Deadline
On or before January 31 following the calendar year in which the compensation payment and other income payments
subjected to final withholding taxes were paid or accrued.
RR No. 2-98, RR No. 3-98, RR No. 8-98, RR No. 12-98, RR No. 3-99, RR No. 8-2000, RR No. 10-2000, RR No. 6-2001, RR
No. 12-2001, RR No. 9-2001, RR No. 3-2002, RR No. 4-2002, RR No. 14-2002, RR No. 19-2002, RR No. 26-2002, RR No.
14-2003, RR No. 16-2003, RR No. 17-2003, RR No. 30-2003, RR 1-2004, RR 3-2004, RR No. 5-2004, RR 1-2006, RR 2-
2006, RR 4-2006, RR 4-2007, RR 8-2005, RR 4-2008, RR 5-2008, RR 6-2008, RR 7-2008, RR 14-2008, RR No. 10-2008,
RR 1-2009, RR 2-2009, RR 3-2009, RR 5-2009, RR 6-2009, RR 8-2009, RR 10-2009
There are two main classifications or types of withholding tax. These are:
2) What is compensation?
It means any remuneration received for services performed by an employee from his employer under an employee-
employer relationship.
a) Regular compensation - includes basic salary, fixed allowances for representation, transportation and others paid to an
employee
b) Supplemental compensation - includes payments to an employee in addition to the regular compensation such as but
not limited to the following:
- Overtime Pay
- Fees, including director's fees
- Commission
- Profit Sharing
- Monetized Vacation and Sick Leave
- Fringe benefits received by rank & file employees
- Hazard Pay
- Taxable 13th month pay and other benefits
- Other remunerations received from an employee-employer
relationship
13. Compensation Income of Minimum Wage Earners (MWEs) with respect to their Statutory Minimum Wage (SMW) as
fixed by Regional Tripartite Wage and Productivity Board (RTWPB)/National Wage and Productivity Commission (NWPC),
including overtime pay, holiday pay, night shift differential and hazard pay, applicable to the place where he/she is
assigned.
14. Compensation Income of employees in the public sector if the same is equivalent to or not more than the SMW in the
non-agricultural sector, as fixed by RTWPB/NWPC, including overtime pay, holiday pay, night shift differential and hazard
pay, applicable to the place where he/she is assigned.
-These are facilities and privileges of relatively small value and are offered or furnished by the employer to his employees
merely as means of promoting their health, goodwill, contentment or efficiency. The following shall be considered "De
Minimis" benefits not subject to income tax, hence not subject to withholding tax on compensation income of both
managerial and rank and file employees:
Monetized unused vacation leave credits of private employees not exceeding ten (10) days during the year;
Monetized value of vacation and sick leave credits paid to government officials and employees.
v Medical cash allowance to dependents of employees, not exceeding P750.00 per employee per semester or P125.00
per month;
Rice subsidy of P1,500 or one (1) sack of 50 kg. rice per month amounting to not more than P1,500;
Actual medical assistance, e.g. medical allowance to cover medical and healthcare needs, annual medical/executive
check-up, maternity assistance, and routine consultations, not exceeding P10,000 per annum;
Employees achievement awards, e.g., for lenght 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;
Gifts given during Christmas and major anniversary celebration not exceeding P5,000.00 per employee per
annum;
Daily meal allowance for overtime work and night/graveyard shift not exceeding twenty-five percent (25%) of the
basic minimum wage on a per region basis;
Substituted Filing of ITR is the manner by which declaration of income of individuals receiving purely compensation income
which have been withheld by their employers the correct tax due, is no longer required.Instead of the filing of Individual
Income Tax Return (BIF Form 1700) , the employer’s annual information return (BIR Form No. 1604-CF) duly stamped
received by the BIR may be considered as the “substitute” Income Tax Return (ITR) of the employee, inasmuch as the
information provided therein are exactly the same information required to be provided in his income tax return (BIR Form
No. 1700).
b. Working for only one employer in the Philippines for the calendar year;
c. Withholding tax has been withheld correctly by the employer (tax due equals tax withheld);
d. The employee’s spouse also complies with all three (3) conditions stated above.
e. The employer files the annual information return (BIR Form No. 1604-CF)
- Those individually engaged in the practice of profession or callings such as lawyers,certified public accountants, doctors
of medicine, architecs, engineers and all other professionals who have undergone licensure examinations regulated by the
Professional Regulations Commission, Supreme Court, etc.
- Professional entertainers such as but not limited to actors and actresses, singers, lyricist, composers and emcees
- Professional athletes including basketball players, pelotaris and jockeys
- Directors and producers involved in movies, stage, radio, television and musical productions
- Insurance agents and insurance adjusters
- Management and technical consultants
- Bookkeeping agents and agencies
- Other recipient of talent fees
- 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
b) Professional fees, talent fees, etc for services of taxable juridical persons
c) Rentals:
-Rental of billboards
d) Cinematographic film rentals and other payments
e) Income payments to certain contractors
- General engineering contractors
- General building contractors
- Specialty contractors
- Other contractors like:
1. Filling, demolition and salvage work contractors and operators of mine drilling apparatus
2. Operators of dockyards
3. Persons engaged in the installation of water system, and gas or electric light, heat or power
4. Operators of stevedoring, warehousing or forwarding establishments
5. Transportation Contractors
6. 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
7. Advertising agencies, exclusive of payments to media
8. Messengerial, janitorial, security, private detective, credit and/or collection agencies and other business agencies
9. Independent producers of television, radio and stage performances or shows
10. Independent producers of "jingles"
11. Labor recruiting agencies and/or “labor-only” contractors
12. Persons engaged in the installation of elevators, central air conditioning units, computer machines and other
equipment and machineries and the maintenance services thereon
13. Persons engaged in the sale of computer services, computer programmers, software developer/designer, etc.
14. Persons engaged in landscaping services
15. Persons engaged in the collection and disposal of garbage
16. TV and radio station operators on sale of TV and radio airtime, and
17. TV and radio blocktimers on sale of TV and radio commercial spots
f) Income distribution to the beneficiaries of estates and trusts
g) Gross commission or service fees of customs, insurance, stock, real estate, immigration and commercial brokers and
fees of agents of professional entertainers
h) Income payments to partners of general professional partnerships
i) Payments made to medical practitioners
j) Gross selling price or total amount of consideration or its equivalent paid to the seller/owner for the sale, exchange or
transfer of real property classified as ordinary asset
k) Additional income payments to government personnel from importers, shipping and airline companies or their agents
l) Certain income payments made by credit card companies
m) Income payments made by the top 20,000 private corporations to their purchase of goods and services from their
local/resident suppliers other than those covered by other rates of withholding
n) Income payments by government offices on their purchase of goods and services, from local/resident suppliers other
than those covered by other rates of withholding
o) Commission, rebates, discounts and other similar considerations paid/granted to independent and exclusive distributors,
medical/technical and sales representatives and marketing agents and sub-agents of multi level marketing companies.
p) Tolling fees paid to refineries
q) Payments made by pre-need companies to funeral parlors
r) Payments made to embalmers by funeral parlors
s) Income payments made to suppliers of agricultural products (suspension not yet lifted)
t) Income payments on purchases of mineral, mineral products and quarry resources
u) On gross amount of refund given by MERALCO to customers with active contracts as classified by MERALCO;
v) Interest income on the refund paid through direct payment or application against customers' billing by other electric
Distribution Utilities in accordance with the rules embodied in ERC Resolution No. 8 series of 2008 dated June 4, 2008
governing the refund of meter deposits which was approved and adopted by ERC in compliance with the mandate of Article
8 of the Magna Carta for Residential Electricity Consumers and Article 3.4.2 of DSOAR exempting all electricity consumers,
whether residential or non-residential from the payment of meter deposit.
w) Income payments made by the top 5,000 individual taxpayers to their purchase of goods and services from their
local/resident suppliers other than those covered by other rates of withholding
x) Income payments made by political parties and candidates of local and national elections of all their campaign
expenditures, and income payments made by individuals or juridical persons for their purchases of goods and services
intended to be given as campaign contribution to political parties and candidates
10) Aside from the required withholding of income tax by government agencies and instrumentalities on their payments to
their suppliers of goods and services, what other tax types must be withheld by them.
A withholding agent is any person or entity who is required to deduct and remit the taxes withheld to the government.
12) What are the duties and obligations of the withholding agent?
The following are the duties and obligations of the withholding agent:
a) To Register - withholding agent is required to register within ten (10) days after acquiring such status with the Revenue
District office having jurisdiction over the place where the business is located
b) To Deduct and Withhold - withholding agent is required to deduct tax from all money payments subject to withholding
tax
c) To Remit the Tax Withheld - withholding agent is required to remit tax withheld at the time prescribed by law and
regulations
d) To File Annual Return - withholding agent is required to file the corresponding Annual Information Return at the time
prescribed by law and regulations
e) To Issue Withholding Tax Certificates - withholding agent shall furnish Withholding Tax Certificates to recipient of
income payments subject to withholding
Top twenty thousand (20,000) private corporations shall include a corporate taxpayer who has been determined and
notified by the Bureau of Internal Revenue (BIR) as having satisfied any of the following criteria:
a) Classified and duly notified by the Commissioner as a large taxpayer under Revenue Regulation No. 1-98, as amended,
or belonging to the top five thousand (5,000) private corporations under RR12-94, or to the top ten thousand (10,000)
private corporations under RR 17-2003, unless previously de-classified as such or had already ceased business operations
(automatic inclusion);
b) VAT payment or payable whichever is higher, of at least P100,000 for the preceding year;
c) Annual income tax due of at least P200,000 for the preceding year;
d) Total percentage tax paid of at least P100,000 for the preceding year;
g) Total excise tax payment of at least P100,000 for the preceding year.
a) In addition to the above responsibilities of a withholding agent, Top 20,000 private corporations shall withhold the one
percent (1%) creditable expanded withholding tax on the purchase of goods and two percent (2%) on the purchase of
services (other than those covered by other withholding tax rates) from local suppliers where it regularly makes purchases.
However, casual purchase of goods shall not be subject to withholding tax unless the amount of purchase at any one time
involves P10,000 or more, in which case, it shall then be required to withhold the tax. The same rule apply to
local/resident supplier of services other than those covered by separate rates of withholding tax. Provided, however, that
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 within the same taxable year. For this purpose, agricultural
products in their original state shall only include corn, coconut, copra, palay, rice cassava, sugar cane, coffee, fruits,
vegetables, marine food products, poultry and livestocks.
b) Taxes withheld shall be remitted using BIR Form 1601-E on a monthly basis thru the use of the Electronic Filing and
Payment System (EFPS) on the dates prescribed for e-filers. Filing shall be done on a staggered basis provided under RR
26-2002 and payment shall be made every 15th day following the end of the month for Jan-Nov and Jan. 20 of the
following year for the month of December.
c) Certificate of Creditable Tax Withheld at Source (BIR Form No. 2307) shall be issued to the payees within twenty (20)
days following the close of such payees’ taxable quarter or upon demand of the payees;
d) A list of regular supplier of goods and/or services shall be submitted on a semestral basis to the RDO/LTS/LTDO having
jurisdiction over the principal place of business in hard copy if below ten payees or soft-copy for those with ten (10) or
more payees per semester while e-submission regardless of the number of payees for those under Electronic Filing and
Payment System (EFPS). Deadline for submission of the list is not later than July 31 and January 31 of each year.
However, initial list of regular suppliers should be submitted within fifteen (15) days from actual receipt hereof.
Top 5,000 Individual Taxpayers shall refer to individual taxpayers engaged in trade or business or exercise of profession
who have been determined and notified by the Bureau of Internal Revenue (BIR) as having satisfied any of the following
criteria:
a) VAT payment or payable whichever is higher, of at least P100,000 for the preceding year;
b) Annual income tax due of at least P200,000 for the preceding year;
c) Total percentage tax paid of at least P100,000 for the preceding year;
f) Total excise tax payment of at least P100,000 for the preceding year.
a) In addition to the obligations of a withholding agent, Top 5,000 Individual Taxpayers shall withhold the one percent
(1%) creditable expanded withholding on the purchase of goods and two percent (2%) on the purchase of services (other
than those covered by other withholding tax rates) from local suppliers where it regularly makes purchases. However,
casual purchase of goods shall not be subject to withholding tax unless the amount of purchase at any one time involves
P10,000 or more, in which case, it shall then be required to withhold the tax. The same rule apply to local/resident supplier
of services other than those covered by separate rates of withholding tax. Provided, however, that 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 within the same taxable year. For this purpose, agricultural products in their original state
shall only include corn, coconut, copra, palay, rice cassava, sugar cane, coffee, fruits, vegetables, marine food products,
poultry and livestocks.
b) Taxes withheld shall be remitted under BIR Form 1601-E on a monthly basis thru the Electronic Filing and Payment
System (EFPS) facility within the prescribed period.
c) Certificate of Creditable Tax Withheld at Source (BIR Form No. 2307) shall be issued to the payees within twenty (20)
days following the close of such payees’ taxable quarter or upon demand of the payees;
d) A list of regular supplier of goods and/or services shall be submitted on a semestral basis to the RDO/LTS/LTDO having
jurisdiction over the principal place of business in hard copy if below ten payees or soft-copy for those with ten (10) or
more payees per semester while e-submission regardless of the number of payees for those under Electronic Filing and
Payment System (EFPS). Deadline for submission of the list is not later than July 31 and January 31 of each year.
However, initial list of regular suppliers should be submitted within fifteen (15) days from actual receipt hereof.
15. WHO ARE THE RESPONSIBLE OFFICIALS IN THE GOVERNMENT OFFICES CHARGED WITH THE DUTY TO DEDUCT,
WITHHOLD AND REMIT WITHHOLDING TAXES?
The following officials are duty bound to deduct, withhold and remit taxes:
a) For Office of the Provincial Government-province- the Chief Accountant, Provincial Treasurer and the Governor;
b) For Office of the City Government-cities- the Chief Accountant, City Treasurer and the City Mayor;
c) For Office of the Municipal Government-municipalities- the Chief Accountant, Municipal Treasurer and the Mayor;