WITHHOLDING TAX OBLIGATIONS

WITHHOLDING TAX AT SOURCE
(Revenue Regulations No. 2-98, as amended)

Presented by:
Ms. Susan D. Tusoy, cpa, mps Asst. Chief, Assessment Division RR 19- Davao City
Importance of Withholding Tax System

It is an effective tool in the collection of taxes for the following reasons: It encourages voluntary compliance; It reduces cost of collection effort; It prevents delinquencies and revenue loss; and It prevents dry spells in the fiscal condition of the government by providing revenues throughout the taxable year.
Types of Withholding Taxes

Withholding Tax on Compensation Expanded Withholding Tax Final Withholding Tax; and Withholding Tax on Government Money Payment
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
I. REGISTER
1901 SELF-EMPLOYED/PROFESSIONALS/TRUST
1903 CORPORATIONS / GOCC /PARTNERSHIP

1903 GOVERNMENT AGENCIES / LGUs
WHEN:
ON OR BEFORE COMMENCEMENT OF BUSINESS/ BEFORE PAYMENT OF ANY TAX DUE/ UPON FILING A RETURN 10 DAYS AFTER BECOMING AN EMPLOYER
( SEC 2.83.6 Rev. Regulations No. 2-98)
WHERE: RDO
II. WITHHOLD TAXES

TIME
COMPENSATION WHEN PAID / CONTRUCTIVELY PAID WHEN PAID / PAYABLE
TAX BASE
TAXABLE COMPENSATION INCOME GROSS PAYMENT (NET OF VAT) GROSS PAYMENT
EXPANDED GMP
(VAT PAYEE)
GMP
(NON VAT PAYEE)
WHEN PAID / PAYABLE WHEN PAID / PAYABLE
FINAL OTHER FINAL

FRINGE BENEFITS
GROSS PAYMENT GROSS UP MONETARY VALUE
WHEN PAID
III. WITHHOLING TAX REMITTANCE

TYPES FORM 1601-C MANUAL FILING/ PAYMENT 10th day of the ff month except for the month of December which is due on the Jan. 15 EFPS FILING
EFPS PAYMENT
15th day of the ff month except for the month of December which is due on the Jan. 20
COMPENSATION EXPANDED
1601-E
Staggered Filing (RR 26-2002)
BANKS
Real Property (Ordinary Asset) FINAL OTHER FINAL W/TAX ON VAT & PERCENTAGE FRINGE BENEFITS
1602
1606 10th day of the ff month 10th day of the ff month 10th day of the ff month 10th day of the month following the end of the qtr.
Not applicable
Staggered Filing (RR 26-2002) 10th day of the ff month
Not applicable
15th day of the ff month 10th day of the ff month 15th day of the month ff the end of the quarter
1601-F
1600 (ALPH ALIST) 1603
15th day of the month ff the end of the quarter
IV. WITHHOLDING TAX CERTIFICATES

TYPES FORM
TIME
COMPENSATION
2316
Jan 31 of the ff year For terminated employees - last payment of salary
EXPANDED
2304 (Exempt)
2307 (Taxable)
20 days ff. close of the quarter or upon demand
GOVT. MONEY PAYMENTS
2307 2306
For Non-VAT : 10th day of the ff month For VAT month : 10th day on the month ff
FINAL TAX
FRINGE BENEFITS
2306
2306
Jan. 31 of the following year

Jan. 31 of the following year
V. ANNUAL RETURNS
TYPE
COMPENSATION
FORM
1604 CF
DESCRIPTION
Alphalist of employees Less than 10 employees manual filing 10 employees or more - softcopy eFPS Filer - e-attach
TIME
Jan. 31 of the ff year
EXPANDED
1604E
Alphalist of payees
Less than 10 payees 10 payees or more eFPS Filer manual filing - softcopy - e-attach
March 1 of the ff year
DIFFERENCE: FINAL AND CREDITABLE WITHHOLDING TAX

FINAL CREDITABLE
the amount of income tax withheld by the withholding agent is constituted as a full & final payment liability rests with the payor as withholding agent payee is not required to file an ITR for the particular income
taxes withheld are intended to equal the tax due of the payee on the said income the income recipient is still required to file an income tax return
EXPANDED WITHHOLDING TAX
Persons Required to Deduct & withhold

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.
INCOME PAYMENTS SUBJEC TO EWT
DESCRIPTION
A. Professional fees, talent fees, etc., for services rendered by individuals
15% if gross income exceeds P720T 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 2) Professional entertainers 3) Professional athletes 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.
DESCRIPTION
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
Can also be filed by the income payor on behalf of the professionals/talents/directors whose services were being rendered exclusively to the aforesaid payor;
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 P720T, w/ever comes first.
INCOME PAYMENTS SUBJEC TO EWT B. Professional Fees, talent fees, etc., for services of taxable juridical persons
DESCRIPTION
15% if gross income exceeds P720T 10% if otherwise On the gross professional, promotional and talent fees or any other form of remuneration for the services rendered. On real properties 5% On personal properties - on gross rental or lease in excess of p10,000 annually Poles, satellites and transmission facilities 5% Billboards 5%
C. Rentals
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
F.Income distribution to the beneficiaries 15% on the income distributed to the beneficiaries of estates and trusts
DESCRIPTION
G. Gross payments to certain brokers and agents
10% on gross commissions or service fees
H.Income payments to partners of general professional partnerships
On income payments made to partners such as drawings, advances, sharings, allowances and stipends 15% if gross income exceeds P720T 10% if otherwise
INCOME PAYMENTS SUBJECT TO EWT I.
DESCRIPTION
Professional fees paid 15% if gross income exceeds P720T to medical 10% if otherwise practitioners 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 by HMOs to medical practitioners
It shall be the duty of the hosp./clinic/HMO to remit taxes withheld from professional fees The W/tax shall not apply if there is proof that no PF has in fact been charged in a form of sworn declaration The hosp shall inform the BIR about any medical practitioner who fails or refuses to execute the sworn declaration within ten days from occurrence.
DESCRIPTION
Hospitals and clinics shall submit the names and address of medical practitioners every 15th day after end of each quarter The hospitals and clinics shall be responsible for the accurate computation, timely remittance and issuance of withholding tax certificates 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 CWT in accordance with Sec. 2.57.5 of the regulation 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%
INCOME PAYMENTS SUBJEC TO EWT K. Additional income payments to govt. personnel from importers, shipping and airline companies L. Certain income payments made by credit card companies 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
DESCRIPTION
On gross additional payments to govt. personnel for overtime services as authorized by law 15%
1% on 1/2of the gross amounts paid
Supplier of goods 1% Supplier of services 2%
INCOME PAYMENTS SUBJEC TO EWT N. Income payments made by the govt. 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
DESCRIPTION
Supplier of goods 1% Supplier of services 2%
10% on gross commissions, rebates, discounts, and other similar considerations
DESCRIPTION
P. Tolling fees paid to refineries
5% on gross processing/tolling fees
Q. Payments made by 1% on gross payments pre-need companies to funeral parlor R. Payments to embalmers 1% on gross payment
S. Income payments to 1% suppliers of agricultural products
On Agricultural Products
23
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.
Illustration:
Number of Transactions One Year Purchase Amount
2009
P 90,000
Two
2010
320,000
One
2011
400,000
One
2012
90,000
Amount of EWT:
In 2009 In 2010 In 2011 In 2012
not subject P20,000 x 1% = P200.00 P100,000 x 2% = P1,000 not subject
On Agricultural Products
Agricultural Products in their original state
shall only include:

corn rice coffee coconut cassava fruits
copra sugar cane marine food
poultry and
livestocks
products vegetables palay
DESCRIPTION
T. Income payments on 10% on income payments purchases to minerals, mineral products and quarry resources as defined and discussed in Sec. 151 of the Tax Code
U. MERALCO payments
10% / 20%
V. Interest income on the 10% / 20% refund paid either through direct payment or application against customers billing by other electric distribution utilities.
FINAL WITHHOLDING TAX
Income Payments Subject to Final Withholding Tax:

Interest from any peso bank deposit, and yield or any other monetary benefit from deposit substitutes and from trust funds and similar arrangements 20% Royalties (except on books as well as other literary works and musical compositions 20%
Prizes (except prizes amounting to P10,000.00 or less ) 20% Winnings (except Philippines Charity Sweepstakes Winnings and lotto winnings ) - 20%

Royalties on books, as well as other literary works and musical compositions 10%
Interest income received by a resident individual taxpayer from a depository bank under the Foreign Currency Deposit System 7.5%

Cash and/or property dividends (received by individuals) - 10% Net capital gains from sale, barter, exchange of shares of stocks in a domestic (except through stock exchange ):
Not over P100,000.00 - 5% On any amount in excess of P100,000.00 10%

Interest income from long-term deposit or investment :
Four years to less than five years 5% Three years to less than four years 12% Less than three years 20%
On capital gains from sale, exchange, or other disposition of real property classified as capital assets - 6%
ON GOVERNMENT MONEY PAYMENTS

RMC 56-2009
Final Withholding VAT on Government Purchases

NIRC RA 9337
Contractors by the government or any of its political subdivisions, instrumentalities or agencies, including government-owned and controlled corporations (GOCCs)
3% on gross payment for the purchase of goods 6% on gross receipts for services by contractors 8.5% on government public works contractors
5% Final VAT
CREDITABLE
FINAL
VAT 5%
NATURE OF INCOME PAYMENT

Communication Services (Smart, PLDT, etc) Repairs and Maintenance of Govt. Facilities and Vehicles Transport of Goods, Merchandise, Cargo domestic air, sea & land (w/in the Phils)
INCOME % TAX TAX 2% 3%
2%
3%
5%
2%
3%
5%
domestic air, sea & land (Phils to foreign country) Intl. air & sea (Phils. To Foreign)
2%
none
none
2%
3%
none
CREDITABLE
FINAL
VAT

Transport of Passengers:
INCOME % TAX TAX
domestic air, & sea (w/in the Phils)
2%
none
5%
domestic land (w/in the Phils) Intl. air & sea (Phils. To Foreign)
2%
3%
none
2%
3%
none
Purchase of Supplies & Materials, including equipments
1%
3%
5%
CREDITABLE
FINAL VAT

Payment for Rental of Properties 1. Real Property 2. Cinematographic films 3. Personal Property (in excess of P10,000 except financial leasing) Payment for: a. Use or Lease of property or property rights to non-resident owner b. Services rendered by local insurance companies with respect to reinsurance premiums payable to non-residents
INCOME TAX
% TAX
5% 5% 5%
3% 3% 3%
5% 5% 5%
None
None
12%
None
None
12%
c. Other services rendered in the Phils. by non-residents
None
None
12%
CREDITABLE
FINAL
VAT

Payment to Water Distribution Utilities Manila Water Company, Inc. Maynilad Water Services, Inc. (MWSI)* *Income Tax Holiday up to Dec. 31, 2009 (BIR Ruling No. DA-278-2009)
INCOME TAX
% TAX
2% 2% none
None None none
5% 5% 5%
Other Water Utilities
2%
2%
5%
CREDITABLE
FINAL VAT 5%

Payment to Power Distribution Utilities Meralco, VECO, etc.
INCOME TAX 2%
% TAX None
Electric Coops
1. Registered with NEA 2. Registered with CDA a. Do not transact with non-members b. Transacting w/ members & non-mem b.1 With members b.2 With members and have an accumulated reserves and undivided net savings of not more than P10M b.3 With members and have an accumulated reserves and undivided net savings of more than P10M none none none none 5% 5% none none 5% none none 5%
none
none
5%
CREDITABLE
FINAL VAT

Payment to Cooperatives (other than Electric Cooperatives duly registered with CDA) SERVICES A. 1. With BIR issued exemption certificate 2. W/o BIR issued exemption certificate GOODS B. 1. With BIR exemption certificate 2. Without BIR exemption certificate Payment for Trainings and Seminars
INCOME TAX
% TAX
none 2%
none none
none 5%
none
1% 2%
none
none 3%
none
5% 5%
Purchase of Gasoline/Petroleum Products

For Services Rendered by Gasoline Stations
1%
2%
3%
3%
5%
5%
CREDITABLE
FINAL VAT

Payment of Insurance Premiums Non-Life
Life Payment for Purchase of Library Books Payment for Purchase of Other Library Materials Payment for Services of the contractors: Security, Janitorial, Maintenance of aircon, computers, elevators, etc.
INCOME TAX 2% 2% 1% 1%
% TAX 3% 5% none 3%
5% none None 5%
2%
3%
5%
Payment of Professional Services rendered by GPP

Payment of Professional Fee paid to Juridical Person
none
10% or 15%
3%
5%
3% 3%
5% 5%
Payment of Professional Fee paid to Individuals 10% or 15%
CREDITABLE
FINAL VAT 5%

Payment for Purchase of Other Goods
(for casual or single purchase of P10k & above)
INCOME TAX 1%
% TAX 3%
Payment for Purchase of Agricultural Products (except corn, coconut etc. per RR 6-2009) Payment of Commissions or Service Fees Paid to Customs, Insurance, Real Estate, Stock, Immigration and Commercial Brokers Payment for Purchase of Services other than those covered by other rates of withholding tax (RR 17-2003)
(for single or casual purchase or P10k & above)
1%
none
none
10%
3%
5%
2%
3%
5%
For Purchase of Land Classified as Ordinary Asset
1.5%, 3%, 5% or 6%
3%
5%
CREDITABLE
FINAL VAT 5% 5% 5% 5% 5%

For Land Improvements - goods -services For Buildings and Improvements Straight Contract (Labor & Materials)-Service Separate Invoice/Billing for Labor
INCOME TAX 1% 2% 2% 2%
% TAX 3% 3% 3% 3% 3%
Separate Invoice/Billing for Materials-goods 1%
For Furniture, Fixtures, and Equipment For Information Technology (IT) Equipment - Services - Goods
1%
1% 2%
3%
3% 3% 3%
5%
5% 5% none
Payment to Radio & TV Broadcasting Companies Whose Annual Gross Receipts do 2% not exceed P10M and who are Non-VAT reg. TP Payment to Agents of Foreign Insurance Companies Insurance Agents 2%
10%
none
CREDITABLE
FINAL VAT

Payment to Agents of Foreign Insurance Companies Owner of the Property
INCOME TAX
% TAX
2%
5%
none
Payment for Sale, barter or exchange of stocks Listed and traded through Local Stock 2% Exchange Payment for shares of stock sold or exchanged through initial and secondary public offering -not over 2% -over 25% but not exceeding 33 1/3% - Over 33 1/3%
of 1%
none
2% 2% 2%
4% 2% 1%
None None none
CREDITABLE
FINAL VAT

Payment to Banks and Non-Bank Financial Intermediaries performing quasi-banking functions (Sec. 121 of RA 8424 as amended by RA
9337)
1.On interests, commissions and discounts from lending activities as well as income from financial leasing, on the basis of remaining maturities of instruments from which such receipts are derived: - Maturity period is 5 years or less - Maturity period is more than 5 years 2. On dividends and equity shares and net income of subsidiaries
INCOME TAX
% TAX
2% 2% 2% 2%
5% 5% 1% 0%
None none None none
CREDITABLE
FINAL

3. On the following payments treated as gross income under Sec. 32 of the Tax Code: -Royalties -Rental of Property -Profits for exchange and all other items treated as gross income
INCOME TAX
% TAX
VAT
None 5% none
7% 7% 7%
None None None
4. On the net trading gains within the taxable year on foreign currency, debt securities, derivatives, and other similar financial instruments
None
7%
None
Illustration
The Office of the Provincial Capitol of Davao del Sur
purchased the following goods and services for the month of Feb. 2011. Invoice Price
Rice P50,000.00 Construction Materials 44,800.00 Repair of Aircon Units 22,400.00 Rental of equipments 33,600.00 Compute for the withholding tax on government money payments assuming the seller is: a) Non-VAT registered b) VAT taxpayer
Answer Non VAT Supplier

Invoice Price Rice Const. Materials Repair of Aircon Untis 50,000.00 44,800.00 Tax Base 50,000.00 44,800.00 Tax Rate EWT 1% EWT 1% GMP 3% EWT 2% GMP 3% EWT 500.00 448.00 1,344.00 448.00 672.00 GMP % Tax None
22,400.00
22,400.00
Rental of 33,600.00 Equipments
33,600.00
EWT 5% GMP 3%
1,680.00 1,008.00
Answer VAT Supplier

Invoice Price Rice Const. Materials Repair of Aircon Untis 50,000.00 44,800.00 Tax Base 50,000.00 40,000.00 Tax Rate EWT 1% EWT 1% GMP 5% EWT 500.00 400.00 2,000.00 GMP VAT None
22,400.00
20,000.00
EWT 2% GMP 5%
400.00 1,000.00
Rental of Equipments 33,600.00
30,000.00
EWT 5% GMP 5%
1,500.00 1,500.00
FRINGE BENEFITS TAX (FBT)
fringe
benefit means any goods, service or other benefit furnished or granted in cash or in kind by an employer to an individual employee (except rank and file employees), such as, but not limited to the following:
(1) Housing; (2)Expense Account; (3)Vehicle of any kind; (4)Household personnel; (5)Interest on loan at less than market rate ; (6)Membership fees, dues and other expenses borne by the employer for the employee in social and athletic clubs/similar organizations; (7)Expenses for foreign travel;
Fringe Benefit (Cont.)

(8) Holiday and vacation expenses; (9) Educational assistance to the employee or his dependents; (10) Life or health insurance and other non-life insurance premiums
Fringe Benefits Granted to the Employee (Except Rank and File Employee) 32% on the grossed-up monetary value of fringe benefits granted or furnished by the employer to his employees.
Exception:
if the fringe benefits are required by the nature of or necessary to the trade, business or profession of the employer, or where such fringe benefit is for the convenience and advantage of the employer shall not be subject to the fringe benefits tax.
WITHHOLDING TAX ON COMPENSATION

(Revenue Regulations No. 2-98, as amended)
Presented by:
Sheila Joy C. Benedicto Revenue Officer RDO 113-West Davao
Compensation Income Defined

Compensation means all remuneration for services performed by an employee for his employer under an employeeemployer relationship unless exempted by the Code.
Exemptions from withholding tax on compensation

1. Remunerations received as an incident of employment (retirement/separation)
2. Remuneration paid for agricultural labor 3. Remuneration for domestic services 4. Remuneration for casual labor not in the course of an employers trade or business
Exemptions (cont)
5. Compensation for services by a citizen or
resident of the Philippines to a Foreign Government or an International Organization; 6. Damages 7. Life Insurance 8. Amount Received by the Insured as a Return of Premium
Exemptions (cont)
9. Compensation for Injuries or sickness 10. Income Exempt Under Treaty 11. GSIS, SSS, Medicare and other contributions (HDMF and Union Dues)
Exemptions (cont)
12. Thirteenth(13th) Month Pay and Other Benefits not exceeding P 30,000 Other Benefits such as Christmas bonus Productivity Loyalty Award Gifts in cash or in kind Other benefits of similar nature Excess over the prescribed ceiling of the de minimis benefits
DE MINIMIS BENEFITS
a.) Monetized unused vacation leave credits of employees not exceeding 10 days during the year the monetized value of leave credits paid to government officials and employees b.) Medical cash allowance to dependents Not exceeding P750/employee/semester or P125/month
DE MINIMIS BENEFITS
c) Rice subsidy of P1,500 or 1 sack of 50 kg rice per month amounting to not more than P 1,500. d.) Uniform and clothing allowance not exceeding P4,000/ annum e.) Actual yearly medical benefits not exceeding P10,000 per annum f.) Laundry allowance not exceeding P 300.00 /month
DE MINIMIS BENEFITS
g.) Employees achievement awards in the form of tangible personal property other than cash or gift certificate with annual value not exceeding P10,000 under established written plan h.) gifts given during Christmas and major anniversary celebrations P5,000/annum/employee
DE MINIMIS BENEFITS
i.) Flowers, fruits, books or similar items j.) daily meal allowance for overtime not to exceed 25% of basic min. wage.
DE MINIMIS Rules
DE MINIMIS BENEFITS conforming to the
ceiling shall not be considered in determining the P 30,000 the excess over the respective ceilings shall be considered as part of the other benefits and the employee receiving it will be subject to tax only on the excess over the P30,000.
Exemptions (cont)
(13) Compensation income of MWEs who work
in the private sector and being paid the
Statutory Minimum Wage applicable to
the place where he is assigned.
The following compensation received by minimum wage earners shall likewise be exempt from income tax: holiday pay overtime pay night shift differential pay hazard pay
Take note!
An employee who receives additional compensation other than SMW, holiday pay, overtime, hazard pay, and night shift differential pay such as: Commissions Honoraria Fringe benefits Taxable allowances And other taxable income shall not enjoy the privilege of being a WME.
Take Note!
MWEs
receiving other income from business or practice of profession, except income subject to Final Tax, shall be subject to Income Tax on their entire income SMW, Holiday pay, overtime pay, night shift differential pay, and hazard pay shall still be exempt from WT
Hazard Pay
the amount paid by the employer to MWEs
Actually
areas Disease-infested places Distressed or isolated stations and camps which exposed them to great danger or contagion or peril to life
Any hazard pay paid to MWEs which does not satisfy the above criteria is deemed subject to IT and consequently to WT.
assigned to danger or strife-torn
Hazardous Employment
The employer shall attach to BIR Form
1601C for the months of March, June, Sept., and Dec. A copy of the List submitted to the nearest DOLE Regional/Provincial Office showing the names of the MWEs who received the hazard pay; period of employment; amount of hazard pay per month; and Justification of payment of hazard pay
Caution
Any reduction or diminution of wages for
purposes of exemption from Income Tax shall constitute misrepresentation and
therefore, employer.
shall
result
to
automatic
disallowance of expense on the part of the
Exemptions (cont)
(14) Compensation income of employees in the
public sector with compensation income of not more than the SMW in the non-agricultural sector, as fixed by RTWPB/NWPC, applicable
to the place where he is assigned.
SMW in the public sector

The determination of the SMW in the public
sector shall likewise adopt the same procedures and consideration as those of the private sector, except:
In
case of hazardous employment the employer shall attach to BIR Form 1601C for the months of March, June, Sept., and Dec. a copy of DBM Circular/s, or equivalent, as to who are allowed to receive hazard pay.
SMW in the public sector
The basic salary of MWEs in the public
sector shall be equated to the SMW in the non-agricultural sector applicable to the place where he/she is assigned.
computation of wages
The basis of the computation of the minimum
wage rates prescribed by law shall be the normal working hours not more than 8 hours a day.
The computation of wages shall be in accordance
with the Collective Bargaining Agreement (CBA), if any or the provisions of the Labor Code as implemented
FACTOR OR NUMBER OF WORKING/PAID DAYS IN A YEAR
1. For those who do not work and are not considered paid on Saturdays and Sundays or rest day
Equivalent Monthly Rate (EMR) =
Where 261 days
Applicable Daily Wage Rate (ADR) x 261 days 12 months
247113261-
ordinary working days regular holidays Special days Total number of days/year
Example: P 382.00 MWE in NCR Equivalent Monthy Rate= P 382.00 x 261 days 12 months P 8,308
2. For those who do not work and are not considered paid on Sundays or rest day
Where 313 days
299113313-
ordinary working days regular holidays Special days Total number of days/year
Example: P 382.00 MWE in NCR Equivalent Monthy Rate= P 382.00 x 313 days 12 months P 9,964
3. For those who do not work but are considered paid on rest days, special days and regular holidays
Where 365 days
299- ordinary working days 11- regular holidays 52 Sunday/Rest days 3- Special days 365- Total number of days/year
Example: P 382.00 MWE in NCR

Equivalent Monthy Rate= P 382.00 x 365 days 12 months P 11,619
4. For those who are required to work everyday including Sundays or rest day, special days & regular holidays:
Where 392.5 days
299 22 67.6 3.9 392.5 -
ordinary working days regular holidays 52 rest days x 130% - Special days Total number of days/year
Example: P 382.00 MWE in NCR

Equivalent Monthy Rate= P 382.00 x 392.5 days 12 months P 12,495
Salient Features
Sec. 22 Definition
statutory minimum wage shall refer to the rate

fixed by the Regional Tripartite Wage and
Productivity Board, as defined by the Bureau of

Labor and Employment Statistics (BLES) of the Department of Labor and Employment (DOLE).
Sec. 2.79. (B) Computation of

Withholding tax
(1) Withholding tax table
(a) Old table (effective January 1, 2006) - January 1 to July 5, 2008 (b) Revised Transitory Withholding tax Table - July 6 to December 31, 2008 (c) Revised Withholding tax Table - January 1, 2009 & beyond
Use of WTax Table

Four Tables for monthly, semi-monthly, weekly, and daily Each tax table is groups into Tables A and B

A for employees with no QDC B for employees with QDC
1st column exemption status

2nd column amount of exemption in pesos Columns 1 to 8 reflect the portion of the amount of taxes Z for zero exemption S single ME married employee Numerals 1 to 4 represents the number of dependents
Steps to determine the amount of tax to be withheld

1. Determine the total monetary and non-
monetary compensation.
-13th
month pay -Productivity incentives -Christmas Bonus -other benefits -GSIS/SSS etc
2. Segregate the taxable from non-taxable
compensation income paid to an employee for the payroll period.

-P30,000
ceiling -non-taxable retirement benefits / separation pay
Steps to determine the amount of tax to be withheld

(3.)Segregate the taxable compensation income
determined in step 3 into regular taxable compensation income and supplementary compensation. Regular compensation basic salary, fixed allowances for representation, transportation and other allowances Supplementary compensation commission, overtime pay, taxable retirement pay, taxable bonus and other taxable benefits
Steps..
(4) Use the appropriate tables
(5) Fix the compensation level using the regular compensation income. (6) Compute the withholding tax due.
Illustration
(1) Mr. Sy, single with no dependent receives
P12,000(net of SSS/GSIS, PHIC, HDMF employee share

only) as monthly regular compensation and P5,000
as supplementary compensation for January, 2011 or

a total of P17,000. Compute for the Withholding tax for Jan. 2011.
Computation
Computation: Regular compensation Less : compensation level(line A-2 column 5) Excess P 12,000.00 10,000.00 2,000.00
Add: Supplementary compensation
5,000.00
7,000.00
Tax on P10,000
708.33
Tax on excess (P7,000 x 20%)

Withholding tax for Jan. 2011
1,400.00
P 2,108.33
Applicable Wtax Table

Monthly
Exemption Status
1
0.00 0% over
2
0.00 +5%
3
41.67 +10% over
4
208.33 +15% over
6
1,875
7
4,166.67
8
10,416.67
A. Table for employees without qualified dependent 1. Z

0.0
833
2,500
5,833
11,667
20,833
41,667
15,833
25,000
45,833
Lets Check:
Withholding tax Jan. 2011 = P 2,108.33
Withholding Tax (Feb.- Dec.11) 1,108.33 x 11

Total Gross Income Exemption Single Taxable Income
12,191.63
P14,299.66 P149,000.00 50,000.00 P 99,000.00
Tax due
P 14,300.00
Tax Table
But not over
10,000.00 30,000.00 70,000.00
Over Not over 10,000.00 30,000.00
Amount rate 5% P500 + 10% 2,500 + 15% 8,500 + 20% 22,500 + 25% 50,000 + 30% 125,000 + 32%
Of excess over
10,000.00 30,000.00 70,000.00 140,000.00 250,000.00 500,000.00
70,000.00 140,000.00 140,000.00 250,000.00 250,000.00 500,000.00 500,000.00 over
Illustration:
(2) For the month of January 2011, Mrs. A, married with one qualified
dependent child, with basic salary equivalent to the SMW, receives P

7,460.00 (P 286/day x 313 days/ 12) as statutory monthly minimum wage plus other compensation such as: Commission.. . P 10,000 Transportation allowance.. Hazard Pay. 2,000 1,000
Overtime
Night shift differential
5,000
2,000
Computation:
Statutory Minimum Wage Gross Benefits Hazard pay Overtime Night Shift Differential Sub-total Taxable compensation commission* Transportation* Total Taxable Compensation Income P 7,460.00
P 1,000.00 5,000.00 2,000.00

P 10,000.00 2,000.00
8,000.00 P 15,460.00
12,000.00 P 27,460.00
7,460.00 7,083.00 377.00 20,000.00 20,377.00
Regular compensation P Less: Compensation Level (B-1 col3) Excess P Add: Supplementary compensation(8,000+12,000) Total P
Continuation..
Tax on P7,083 (Line B1, col. 3) Tax on excess (P20,377 x 10%) Withholding tax January 2011
41.67 2,037.70 P 2,079.37
*An employee who receives compensation other than SMW, OT, NS differential, HPay shall no longer enjoy the privilege of being a minimum wage earner, and his entire earnings are no longer considered exempt.
Tax Table
But not over
10,000.00 30,000.00 70,000.00
Over Not over 10,000.00 30,000.00
Amount rate 5% P500 + 10% 2,500 + 15% 8,500 + 20% 22,500 + 25% 50,000 + 30% 125,000 + 32%
Of excess over
10,000.00 30,000.00 70,000.00 140,000.00 250,000.00 500,000.00
70,000.00 140,000.00 140,000.00 250,000.00 250,000.00 500,000.00 500,000.00 over
ILLUSTRATIVE PROBLEM
For taxable year 2010, WTD Service Company employed Mr. J, married with two qualified dependent children. He received the following compensation for the year:
Basic Monthly Salary Overtime Pay for Nov. Thirteenth Month Pay Other Benefits Withholding Tax
P 45,000.00 5,000.00 45,000.00 12,000.00 98,082.00
COMPUTATION:`
Received For the Year
NonTaxable Taxable 540,000.00 5,000.00 30,000.00 30,000.00 15,000.00 12,000.00 572,000.00 572,000.00
Basic Salary (P45K x 12) Overtime (Nov.) 13th Month Pay Other Benefits Totals Total Gross Compensation
540,000.00 5,000.00 45,000.00 12,000.00 602,000.00
Less:Personal exemption
Additional exemption (2 x P25k) Net Taxable Compensation Tax Due (using the Income Tax Table)
50,000.00
50,000.00 100,000.00 472,000.00 116,600.00 98,082.27 18,517.73
Less: Tax Withheld from previous months(Jan-Nov) Tax to be collected in Dec 2010
Right to claim WT exemption

An employee receiving compensation
income shall be entitled to w/tax exemptions, provided he/she must file 1902 Application for registration 2305 Cert.of Update of Exemption and of Employers and Employees Information
PERSONAL AND ADDITIONAL EXEMPTION
Single Married Qualified dependent child
50,000 50,000 25,000
On exemptions
Every employer should ascertain whether or not a
child being claimed is a qualified dependent If TP should have additional exemption during the taxable year, he may claim the corresponding additional exemption in full for such year If the TP dies during the taxable year, the estate may claim the full exemptions as if he died at the close of the year
On exemptions
TP may still claim full exemptions during
the taxable year on the following cases: Spouse or any of the dependent dies Any of such dependents marries Becomes 21 y.o. Becomes gainfully employed As if it occurred at the close of such year
Requirement for deductibility

Compensation where no income taxes were
withheld shall be allowed as deduction when form 2316 is issued to the employees; Alphabetical list of employees whose compensation are exempt from withholding tax but subject to income tax shall be submitted together with the form 1604-CF; If with previous/successive employers BIR form 2316 and/or ITR filed
Registration
Use BIR Form 1902 for new employees Submit to the employer within10 days from date of employment Use BIR Form 2305 in case of change/s of
information data in previously submitted 1902

Submit to the employer within 10 days after the following changes Status Personal and additional exemption Employment or working status of the spouse Multiple employment status Amount of compensation income
Registration
The employer shall review the exemptions of the
employees The employer shall transmit all copies after accomplishing the employers portion to the RDO where the employer is registered within thirty (30) days following its receipt from the employee Registration of employees shall be at the RDO having jurisdiction over the employees place of assignment In case of multiple employment, it shall be at the RDO where the main employer is registered
Additional requisites (cont.)

a) Marriage contract b.) Birth certificate of each qualified dependent (child(ren) certified by the Local Civil Registry Office/National Statistics Office/equivalent document issued by government office
Additional requisites (cont..)

c. Certificate of employment of husband if he is
working abroad; d. Sworn Declaration and Waiver of Right to Claim Exemptions of Qualified Dependent Chil(dren) by the husband in case wife is claiming the additional exemption
Additional requisites (cont.)
e.) Medical Certificate of qualified dependent child, if physically/mentally incapacitated; f.) Court decision of legal adoption of children g.) Death certificate
Failure to Register / Update

Failure to file 1902
employer shall withhold under zero exemption Failure to file 2305 The employer shall withhold based on the reported exemption existing prior to the change of such status Any refund/under-withholding shall be covered by the penalties prescribed under Sec. 80 of the Code
The
Waiver
H is the proper claimant of dependent
children W shall claim full additional exemption

H is unemployed H is non-resident citizen deriving income from foreign sources H waives his right
In case H waives his right to claim the
additional exemption
Shall accomplish Sworn declaration and waiver of Right to Claim Exemptions of Qualified Dependent Children
Liability for Tax

Employer
for withholding and remittance of correct amount of tax Employee Responsible for submission of 1902 / 2305
Responsible
Statements and Returns

BIR Form 2316 Employer shall furnish the employees NLT Jan. 31 Failure to furnish shall be a ground for mandatory audit upon verified complaint of the payee It shall include the fringe benefits given to rank & file employees Employers of MWEs are still required to issue BIR Form 2316 (June 2008 Encs version) It shall indicate the health &/or hosp. insurance, if any The amount of SMW, OT, Holiday pay, Night diff, and hazard pay shall be indicated Among others

Form 2316 cont.
It shall be signed by both the employers authorized representative and the employee Shall contain a written declaration that it is made under the penalties of perjury Shall contain a certification that the employers filing of BIR Form 1604-CF shall be considered as substituted filing The employer shall retain the duly signed 2316 for a period of three (3) years.

Form 2316 continued
The applicable box for MWEs shall be indicated (under the enhanced form). This serves as proof of financial capacity for purposes of loans, etc In case of successive employment during the taxable year, an extra copy of BIR Form 2316 shall be furnished to his new employer

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

Requirement for List of Payees
Less
than ten (10) payees Manually prepared alphalist With ten(10) or more payees Manually prepared alphalist + softcopy In diskette/cd/or email: esubmission@bir.gov.ph
Transitory Provision
5. For those who shall register for the 1st time, BIR Form 1902 shall be submitted to the RDO either to his principal/head office of employment/ place of business or place of residence of the employee-taxpayer at the option of the latter
BASIC CONCEPT OF YEAR -END ADJUSTMENT

Compensation Income-net Less: Exemption (single) Taxable Income Tax Due Less: Tax Withheld JanNov EVEN PAYABLE REFUNDABLE
A 200,000 50,000 150,000 25,000 25,000 0__ B C 200,000 200,000 50,000 50,000 150,000 150,000 25,000 25,000 22,500 27,000 2,500 (2,000)
Annualized Computation
To be used when the employer-
employee relationship is terminated before the end of the calendar year; When computing for the year-end adjustment
Steps in the annualized computation

1. Determine the taxable regular and supplementary compensation 2. If the employee has previous employment during the year, add the taxable regular and supplementary compensation paid to the present employer 3. Deduct the personal and additional exemptions of the employee

4.
Deduct the amount of premium payments on health and/or hospitalization insurance on employees
Present proof of premium payments (origl. OR) Deductible amount shall not exceed P2,400 or P200/month Aggregate family income shall not exceed P250,000 Form 2316 or Cert. of Gross Income (Annex E of RR 102008) to prove the aggregate income of the nuclear family
Note: the spouse claiming the additional exemptions for the QDC shall be the same spouse to claim the deductions for premium payments.

5. Compute the amount of tax 6. Determine the deficiency or excess
if Tax due > W/tax, the employer shall pay difference Is a matter of settlement between the employer and employee If tax due < w/tax, the employer shall refund not later than Jan.25
Illustrative problem # 1
Ms. Jally Vi, single with a qualified dependent brother receives P18,000 (net of SSS, PHIC and Pag-ibig contributions of P1,000/mo.) as monthly regular compensation starting January 1, 2010. On June 1, 2010, he filed his resignation effective June 30, 2010 and was not reemployed for the rest of the year. 13th month pay and other benefits received amounted to P 10,000. The tax withheld from January to May was P15,208.75.
Answer
Total Compensation (Jan. 1 May 31, 2010) Add Compensation to be received on June Gross compensation (Jan. to June 2010) Less Personal Exemption Net Taxable Compensation Tax Due Less Tax Withheld from Jan. to May P 90,000.00 18,000.00 P108,000.00 50,000.00 P 58,000.00 P 6,700.00* 15,208.75
To be refunded to Ms. Jally Vi

*Tax on P30,000 Tax on excess (P28,000 x 15%) Tax on P83,000.00 P 2,500 4,200 P 6,700
(P
8,508.75)
Illustrative Problem # 2
Mr. Jacob, married with 2 qualified dependent
children received P14,500 monthly compensation (net of SSS, Philhealth, HDMF employees contributions). Taxes withheld from Jan. to Nov. were P8,158.00.
Computation:
Total Compensation (Jan - Nov)
Add: Dec. compensation Gross Compensation Less: Personal/additional exemption
Total Compensation
P159,500.00 14,500.00 P174,000.00 100,000.00 P 74,000.00

P 9,300.00 8,158.00 P 1,142.00
Tax due
Less: Tax Withheld
Collectible W/tax for Dec. salary
Annualized Withholding Tax

Gross Compensation Income (present + previous employer) P xxx Less: Non-taxable/Exempt Compensation Income a.) 13th month pay and other benefits 30,000 b.) Other non-taxable benefits incl. de-minimis xx c.) SSS, GSIS,PHIC, HDMF& Union Dues (employees share only) xx xxx Less: a.) Personal and additional exemption xx b.) Health /Hospitalization premium payment (if applicable) xx Taxable Compensation Income Tax Due Tax Withheld (Jan. Nov. OR termination date) Collectible: Tax due > tax withheld Refund: Tax due < tax withheld xxx xxx xxx xxxx ====
Collect before payment of last wage Refund on or before Jan. 25th of the year /last payment of wage Do not withhold for Dec. salary
Break even: Tax due = tax withheld
Annual Information Return of Income taxes withheld on compensation and final withholding taxes
(Form 1604-CF version June 2008)
The alphabetical list of employees separate listing of
the ff.:
(1) (2)
(3)
(4)
Employees terminated before December 31; Employees whose compensation income are exempt from withholding tax but subject to income tax; Employees whose compensation income are exempt from withholding tax and not subject to income tax (minimum wage earners); Employees as of December 31 without previous employment during the year;
Annual Information Return of Income taxes withheld on compensation and final withholding taxes
(Form 1604-CF version June 2008)
(5) Employees as of December 31 with previous employment; (6) Employees who received fringe benefits subjected to fringe benefit tax; and (7) Alien employees subject to final tax
REVENUE REGULATIONS NO. 2-2006

M A N D ATO RY AT TA C H M E N T S :
1 . S U M M A RY A L P H A L I S T O F W I T H H O L D I N G
A G E N T S O F I N C O M E PAY M E N T S S U B J E C T E D TO TA X W I T H H E L D AT S O U R C E ( S AW T ) TO TA X R E T U R N S W I T H C L A I M E D TA X C R E D I T S D U E TO C R E D I TA B L E TA X W I T H H E L D AT SOURCE 2 . M O N T H LY A L P H A L I S T O F PAY E E S ( M A P ) W H O S E I N C O M E R E C E I V E D H AV E B E E N S U B J E C T E D TO W I T H H O L D I N G TA X I N T H E W I T H H O L D I N G TA X R E M I T TA N C E R E T U R N F I L E D B Y T H E W I T H H O L D I N G A G E N T / PAY O R O F I N C O M E PAY M E N T S
SAWT- defined
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 - defined
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
FORMAT Annex A BIR REGISTERED NAME TRADE NAME ADDRESS TIN SUMMARY ALPHALIST OF WITHHOLDING AGENTS OF INCOME PAYMENTS SUBJECTED TO WITHHOLDING TAX AT SOURCE (SAWT) From _______________ to _________________
Seq no. 1
TIN
Including branch code
Registered name (Alphalist) 3
Return period From

Mm/dd/yy
Return Period To
Mm/dd/y y
ATC 5
Nature of income payment 6
AMOUNT Tax base 7
Tax rate 8
Tax Withheld 9
2
1
4a
4b
2
TOTAL AMOUNT
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
Monthly Alphalist of Payees(MAP)

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. 1601E, 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 NAME ADDRESS TIN MONTHLY ALPHALIST OF PAYEES (MAP) RETURN PERIOD (mm/yyyy) TIN Seq no. 1 1 2 3 4 5 TOTAL AMOUNT P
Including branch code
Registered Name (Alphalist) 3
Return period mm/yy 4
ATC 5
Nature of income payment 6
AMOUNT Tax base 7
Tax rate 8
Tax Withheld 9
I 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
SAWT/MAP
Below 10 payees 10 or more payees EFPS regardless of the number of income payees/ income recipient - hard copy - 3.5 diskette - e-attach
Returns required to be filed with SAWT &

Certificate of Creditable Tax Withheld at Source
BIR Form No. 1701Q
BIR Form No. 1701

BIR Form No. 1700 BIR Form No. 1702Q BIR Form No. 1702 BIR Form No. 2550Q BIR Form No. 2550M BIR Form No. 2551M BIR Form No. 2553
1700
(To be filled up by the B IR)
2316
DLN:
Republika ng Pilipinas Kagaw aran ng Pananalapi
Kawanihan ng Rentas Internas

1 For the Year 1 ( YYYY ) Part I Em ployee Inform ation 3 Taxpayer 3 Identification No. 4 Employee's Name (Last Name, First Name, Middle Name)
Certificate of Compensation Payment/Tax Withheld
BIR Form No.
For Compensation Payment With or Without Tax Withheld

DLN: Republika ng Pilipinas Kagaw aran ng Pananalapi Kaw anihan ng Rentas Internas PSIC:
2316
October 2002 (ENCS)
(Except for transactions involving onerous transfer April 2003 (ENCS) of real property classified as ordinary 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 Yes No Part I Ba c k g r o u n d I n f o r m a t i o n 5 TIN 6 RDO Code 7 Line of Business 8 Withholding Agent's Name
(Last Name, First Name, M iddle Name fo r Individuals)/(Registered Name fo r No n-Individuals)
Monthly Remittance Return of Creditable Income Taxes Withheld (Expanded)
BIR Form No.
1601-E
No
6 Registered Address 6B Local Home Address 6D Foreign Address 7 Date of Birth (MM/DD/YYYY)
2 For the Period From (MM/DD) To (MM/DD) D et ails o f C o mp ensat io n Inco me and T ax W it hheld f r o m Pr esent Part IV Amount A. Non-Taxable/Exem pt Com pensation Incom e 5 RDO Code 25 13th Month Pay and 25 Other Benefits 26 SSS, GSIS, PHIC & Pag-ibig 26 Contributions, & Union dues 27 Salaries & Other Forms of 27 Compensation 6C Zip Code 28 Total Non-Taxable/Exempt 28 Compensation Income 6A Zip Code 6E Zip Code B. Taxable Com pensation Incom e REGULAR 29 Basic Salary 29 30
Emp lo yer
Telephone Number
10 Registered Address 12 Category of Withholding Agent Private Government Part II NATURE OF INCOME PAYMENT
11 Zip Code 13 Are there payees availing of tax relief under special law or international tax treaty? No If yes, specify Yes Com putation of Tax ATC TAX BASE TAX RATE TAX REQUIRED TO BE WITHHELD
8 Telephone Number
FORMAT Annex B
9 Exemption Status 30 Representation Single Head of the Family Married 9A Is the w ife claiming the additional exemption for qualified dependent children? 31 Transportation Yes No 10 Name of Qualified Dependent Children 11 Date o f B irth (M M /DD/YYYY) 32 Cost of Living Allow ance 33 Fixed Housing Allow ance 34 Others (Specify) 12 Other Dependent (to be accomplished if taxpayer is head of the family) 3 4 A Date o f B irth Name of Dependent Relationship
(M M /DD/YYYY 34B
31
32 33
34A
SAW T
BIR REGISTERED NAME TRADE NAME ADDRESS TIN Registered Name (Alphalist) 3 Return period mm/yy 4 Nature of income payment 5 ATC Tax rate Tax base Tax Withheld 9 6 7 8 TOTAL P AMOUNT P
34B
Part II Em ployer Inform ation (Present) 13 13 Taxpayer Identification No. 14 Employer's Name
SUPPLEMENTARY 35 Commission 36 Profit Sharing 37 Fees Including Director's Fees 38 Taxable 13th Month Pay and Other Benefits 39 Hazard Pay 40 Others (Specify)
40A 40B
35 36 37 38 39
15 Registered Address
15A Zip code
MONTHLY ALPHALIST OF WITHHOLDING TAXES (MAWT) RETURN PERIOD Seq TIN no. 1 1 2 3 4 5 2
main employer secondary employer Part III Em ployer Inform ation (Previous)-1 16 Taxpayer 16 Identification No. 17 Employer's Name
40A 40B
14 Total Tax Required to be Withheld and Remitted 15 Less: Tax Remitted in Return Previously Filed, if this is an amended return 16 Tax Still Due/(Overremittance) 17 Add: Penalties Surcharge Interest 17A 17B 17C 18 Total Amount Still Due/(Overremittance) (Sum of Items 16 & 17D)
14 15 16 Compromise 17D 18
Em ployer Inform ation (Previous)-2 19 19 Taxpayer Identification No. 20 Employer's Name
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 President/Vice President/Authorized Representative/Tax Agent (Signature Over Printed Name) 20 Treasurer/Asst. Treasurer/Authorized Representative (Signature Over Printed Name)
Em ployer Inform ation (Previous)-3 22 22 Taxpayer Identification No. 23 Employer's Name 24 Registered Address
41 Total Taxable Compensation 41 Income Sum m ary 42 42 Taxable Compensation Income from Present Employer 43 Add: Taxable Compensation 43 from Previous Employer (s) 44 Gross Taxable 44 Compensation Income 45 Less: Total Exemptions 45 21A Zip code 46 Less: Premium Paid on Health and/or Hospital 46 Insurance (If applicable) 47 Taxable 47 Compensation Income 48 Tax Due 48 49 Amount of Taxes Withheld 49A Present Employer 49A 18A Zip code 24A Zip code 49B Previous Employer(s) 49B 50 Total Amount of Taxes 50 Withheld
Title/Position of Signatory
I declare, under the penalties o f perjury, that this certificate has been made in go o d faith, verified by us, and to the best o f o ur kno wledge and belief, is true and co rrect
TIN of Tax Agent (if applicable) Part III Particulars 21 Cash/Bank Draw ee Bank/ Agency Num ber Details of Paym ent Date MM DD YYYY
Tax A gent A ccreditatio n No ./Date o f A ccreditatio n (if applicable)
Am ount
21
Stamp of Receiving Office and Date of Receipt
1701/Q
DLN: Republika ng Pilipinas Kagaw aran ng Pananalapi Kaw anihan ng Rentas Internas
PSIC:
BIR Form No.
1601-E
No
2307/2316
Republika ng Pilipinas Kaw anihan ng Rentas Internas Kagaw aran ng Pananalapi For the Period From 1 To
( M M / DD / YYYY ) ( M M / DD / YYYY )
SAWT
FORMAT Annex B BIR REGISTERED NAME TRADE NAME ADDRESS TIN MONTHLY ALPHALIST OF WITHHOLDING TAXES (MAWT) RETURN PERIOD Seq TIN no. 1 1 2 3 4 5 2 Registered Name (Alphalist) 3 Return period mm/yy 4 Nature of income payment 5 ATC Tax rate Tax base Tax Withheld 9
Telephone Number
Summary List of Creditable Withholding Tax at Source (2307) Received
Part I P a y e e I n f o r m a t i o n 2 Taxpayer 2 Identification No. Registered Address Part II Sum m ary List of Payors Payor's TIN Payor's Nam e Last Name, First Name, Middle Name for Individuals Registered Name for Non-Individuals ATC
2A Zip Code
Payee's Name (Last Name, First Name, M iddle Name fo r Individuals)(Registered Name fo r No n-Individuals)
4A Foreign Address Am ount of Incom e Paym e nts 2nd Month 3rd Month of the Quarter of the Quarter
1st Month of the Quarter
Total
Tax Withheld For the Quarter
TOTAL P AMOUNT
TOTAL: P
Note: The taxpayer/filer attest to the accuracy of the information entered herein.
INCOME 1702/Q RECIPIENTS

TIN of Tax Agent (if applicable)
Part III
Particulars 21 Cash/Bank
Draw ee Bank/ Agency
Num ber
Details of Paym ent Date MM DD YYYY
Am ount
21
DLN:
PSIC:
Republika ng Pilipinas Kagaw aran ng Pananalapi Kaw anihan ng Rentas Internas
BIR Form No.
1601-E
2307
SAWT
FORMAT Annex B BIR REGISTERED NAME TRADE NAME ADDRESS TIN MONTHLY ALPHALIST OF WITHHOLDING TAXES (MAWT) RETURN PERIOD Seq TIN no. 1 1 2 3 4 5 2 Registered Name (Alphalist) 3 Return period mm/yy 4 Nature of income payment 5 ATC Tax rate Tax base Tax Withheld 9
Total Tax Withheld For the Quarter
No
Telephone Number
11 Zip Code
2A Zip Code
12 Category of Withholding Agent Private Government Part II
13 Are there payees availing of tax relief under special law or international tax treaty? No If yes, specify Yes Com putation of Tax ATC TAX BASE TAX RATE
TAX REQUIRED TO BE WITHHELD
(PAYEES)
TOTAL: P
TOTAL P AMOUNT
2550M/Q 2551M/2553
Am ount
21
BIR
PSIC:
(Except f or transactions involving onerous transf er April 2003 (ENCS) of real property classif ied as ordinary 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 Yes No Part I Ba c k g r o u n d I n f o r m a t i o n 5 TIN 6 RDO Code 7 Line of Business 8 Withholding Agent's Name
BIR Form No.
1601-E
No
2307
SAWT
FORMAT Annex B BIR REGISTERED NAME TRADE NAME ADDRESS TIN MONTHLY ALPHALIST OF WITHHOLDING TAXES (MAWT) RETURN PERIOD Seq TIN no. 1 1 2 3 4 5 TOTAL P AMOUNT P 2 Registered Name (Alphalist) 3 Return period mm/yy 4 Nature of income payment 5 ATC Tax rate Tax base Tax Withheld 9
Total Tax Withheld For the Quarter
9 11
Telephone Number Zip Code
13 Are there payees availing of tax relief under special law or international tax treaty? No If yes, specif y Yes Com putation of Tax ATC TAX BASE TAX RATE TAX REQUIRED TO BE WITHHELD
2A Zip Code
I declare, under the penalties of perjury, that this return has been made in good f aith, verif ied 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 President/Vice President/Authorized Representative/Tax Agent (Signature Over Printed Name) 20 Treasurer/Asst. Treasurer/Authorized Representative (Signature Over Printed Name)
TOTAL: P
Stamp of Receiving Of f ice and Date of Receipt
TIN of Tax Agent (if applicable) Part III Particulars 21 Cash/Bank Draw e e Bank / Age ncy Num be r De tails of Paym e nt Date MM DD YYYY
Am ount
21
Note: Transactions beg. Jan. 1, 2006 1702Q/1701Q WITH SAWT
2005 Annual ITR
(calendar Jan-Dec) DUE APRIL 15, 2006
NO SAWT
Returns required to be filed with MAP

BIR Form No. 1601-E
Creditable (Expanded
Monthly Remittance Return of Income Taxes Withheld Withholding tax) Monthly Remittance Return of Withheld Monthly Remittance Return of Tax and Other Percentage Taxes (Under RAs 1051, 4649, 8241 and
BIR Form No. 1601-F

Final Taxes
BIR Form No. 1600

Value Added
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 - taxpayers file copy
1601-E
MAP
FORMAT Annex B BIR REGISTERED NAME TRADE NAME ADDRESS TIN MONTHLY ALPHALIST OF WITHHOLDING TAXES (MAWT) RETURN PERIOD Seq TIN no. 1 1 2 2 Registered Name (Alphalist) 3 Return Nature of income ATC Tax rate Tax base Tax period payment Withheld mm/yy 5 4 6 7 8 9
DLN:
PSIC: Republika ng Pilipinas Kagaw aran ng Pananalapi Kaw anihan ng Rentas Internas BIR Form No.
April 2003 (ENCS) of real property classified as ordinary 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 Yes No Part I Ba c k g r o u n d I n f o r m a t i o n 5 TIN 6 RDO Code 7 Line of Business 8 Withholding Agent's Name
Monthly Remittance Return of Creditable Income Taxes Withheld (Expanded) (Except for transactions involving onerous transfer
1601-E
No
Telephone Number
3 4 5 TOTAL P AMOUNT P
Am ount
21
WITHHOLDING
1601-F
MAP
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 5 1 2 4 6 7 8 9 1 2
PSIC:
AGENTS (PAYORS)
BIR Form No.
1601-E
No
Telephone Number
3 4 5 TOTAL P AMOUNT P
Am ount
21
BIR
1600
MAP
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 5 1 2 4 6 7 8 9 1 2 3 4 5 TOTAL P AMOUNT P
No
PSIC:
BIR Form No.
1601-E
Telephone Number
Am ount
21
MAP ATTACHMENT BY
WITHHOLDING AGENT (PAYOR)
JAN FEB MAR APR
FOR MANUAL/ E-FILERS
1601-E 1601-F 1600 *
With existing Monthly Alphabetical List
MAPs shall start JAN 2006 To be remitted FEB 10th
Required Format in the Submission/
attachment of SAWT/ MAP

The SAWT/MAP shall be submitted/attached to the return and shall contain all the required information in the prescribed electronic format using any of the following: Option 1 Microsoft Excel Format; Option 2 Taxpayers own extract program; or Option 3 Data Entry Module developed by the BIR that will be available upon request / downloadable from the BIRs web site at http://www.bir.gov.ph with the corresponding job aid to be provided by the BIR.
Required Format in the Submission/ attachment of SAWT/ MAP
For those who will choose option 1 or 2, they are required to use a validation module of the BIR which can either be downloaded from the BIR-web or made available in diskette form upon request. Only readable diskettes/CD shall be considered as duly filed or attached to the required return. The RDO/LTS/LTDO shall upload the contents of all the diskettes received within thirty (30) days from receipt of the return.
RETENTION OF THE HARD COPY OF THE CERTIFICATES OF TAX WITHHELD

It shall always be retained within the period
prescribed in the law for the preservation of books of accounts and accounting records and 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.
PENALTY PROVISION
a person who fails to file, keep or supply a statement, list,
or information required herein on the date prescribed therefor shall pay, upon notice and demand by the CIR, an administrative penalty of One Thousand Pesos (P1,000) for each such failure, unless it is satisfactorily shown that such failure is due to reasonable causes and not due to willful neglect.
For this purpose, the failure to supply the required
information shall constitute a single act or omission punishable thereof. However, the aggregate amount to be imposed for all such failures during the year shall not
exceed Twenty Five Thousand Pesos (P25,000).
PENALTY PROVISION
In addition to the imposition of administrative penalty,
willful failure by such person to keep any record and to supply the correct and accurate information at the time required herein, shall be subject to the criminal penalty under the relevant provisions of the Tax Code of 1997, upon conviction of the offender.
The imposition of any of the penalties under the Tax Code
of 1997 and the compromise of the criminal penalty on such violations, notwithstanding, shall not in any
manner relieve the violating taxpayer from the obligation to submit the required documents
PENALTY PROVISION
Finally, the corresponding administrative penalty shall be
imposed on every violation of the provisions of these Regulations, upon due notice and demand by the CIR. second offense - A subpoena duces tecum for the submission of the required documents shall be issued on the. third offense shall set the motion for a criminal prosecution of the offender. compromised, the submission of the unsubmitted lists should always form part of the obligation of the taxpayer to be embodied in the compromise agreement.
In cases where a violation hereof is allowed to be
The end

WITHHOLDING TAX OBLIGATIONS

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WITHHOLDING TAX AT SOURCE

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

Importance of Withholding Tax System

Types of Withholding Taxes

Duties & Obligations of a Withholding Agent

1903 CORPORATIONS / GOCC /PARTNERSHIP

II. WITHHOLD TAXES

WHEN PAID / PAYABLE WHEN PAID / PAYABLE

FINAL OTHER FINAL

GROSS PAYMENT GROSS UP MONETARY VALUE

III. WITHHOLING TAX REMITTANCE

Staggered Filing (RR 26-2002)

1600 (ALPH ALIST) 1603

15th day of the month ff the end of the quarter

IV. WITHHOLDING TAX CERTIFICATES

Jan 31 of the ff year For terminated employees - last payment of salary

20 days ff. close of the quarter or upon demand

GOVT. MONEY PAYMENTS

Jan. 31 of the following year

March 1 of the ff year

DIFFERENCE: FINAL AND CREDITABLE WITHHOLDING TAX

EXPANDED WITHHOLDING TAX

Persons Required to Deduct & withhold

INCOME PAYMENTS SUBJEC TO EWT

A. Professional fees, talent fees, etc., for services rendered by individuals

INCOME PAYMENTS SUBJEC TO EWT

INCOME PAYMENTS SUBJEC TO EWT

INCOME PAYMENTS SUBJEC TO EWT

G. Gross payments to certain brokers and agents

10% on gross commissions or service fees

H.Income payments to partners of general professional partnerships

INCOME PAYMENTS SUBJECT TO EWT I.

INCOME PAYMENTS SUBJEC TO EWT

1% on 1/2of the gross amounts paid

Supplier of goods 1% Supplier of services 2%

Supplier of goods 1% Supplier of services 2%

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

INCOME PAYMENTS SUBJEC TO EWT

P. Tolling fees paid to refineries

5% on gross processing/tolling fees

S. Income payments to 1% suppliers of agricultural products

For purchases involving agricultural

not subject P20,000 x 1% = P200.00 P100,000 x 2% = P1,000 not subject

shall only include:

copra sugar cane marine food

products vegetables palay

INCOME PAYMENTS SUBJEC TO EWT

FINAL WITHHOLDING TAX

Income Payments Subject to Final Withholding Tax:

Income Payments Subject to Final Withholding Tax:

Income Payments Subject to Final Withholding Tax:

Income Payments Subject to Final Withholding Tax:

ON GOVERNMENT MONEY PAYMENTS

Final Withholding VAT on Government Purchases

NATURE OF INCOME PAYMENT

INCOME % TAX TAX 2% 3%

NATURE OF INCOME PAYMENT

INCOME % TAX TAX

domestic air, & sea (w/in the Phils)

Purchase of Supplies & Materials, including equipments

NATURE OF INCOME PAYMENT

c. Other services rendered in the Phils. by non-residents

NATURE OF INCOME PAYMENT