Bir Stuff

BIR REQUIREMENTS
DESCRIPTION Any person, whether natural or juridical, required under the authority of the Internal Revenue Code to make, render or file a return, statement or other documents, shall be supplied with or assigned a Taxpayer Identification Number (TIN) to be indicated in the return, statement or document to be filed with the Bureau of Internal Revenue, for his proper identification for tax purposes (Sec. 236 (j) of the Tax Code). [back to top]
FOR SELF-EMPLOYED AND MIXED INCOME INDIVIDUALS Tax Form BIR Form 1901- Application for Registration for Mixed Income Individuals, Estates and Trusts Documentary Requirements - Birth certificate or any valid identification showing name, address and birth date - Mayors permit or application for Mayors Permit (when applicable) - Department of Trade and Industry (DTI) Certificate of Registration of Business Name (to be submitted prior to the issuance of the BIR Certificate of Registration (COR)
Procedures a) Accomplish BIR Form 1901 and submit the same, together with the required attachments, to the Revenue District Office having jurisdiction over the registered address of the business establishment. b) Pay the Annual Registration Fee (P 500.00) at the Authorized Agent Banks of the RDO. c) Pay P 15.00 for the Certification Fee and P15.00 for the Documentary Stamp Tax (in loose form to be attached to Form 2303). d) The RDO shall issue the Certificate of Registration (Form 2303).
Deadline - All individuals engaged in trade or business shall accomplish and file the application before the commencement of their business operation.
[back to top]
ESTATES Tax Form
BIR Form 1901- Application for Registration for Mixed Income Individuals, Estates And Trusts Documentary Requirements Death Certificate of the Deceased
Procedures
a) Accomplish BIR Form 1901and submit the same, together with the required attachments, to the Revenue District Office having jurisdiction over the registered address of the estate. b) Pay the Annual Registration Fee (P 500.00) at the Authorized Agent Banks of the RDO
Deadline
Application for registration shall be accomplished and filed before filing a return, statement or declaration as required in the Tax Code and payment of any tax due.
[back to top]
TRUSTS Tax Form BIR Form 1901- Application for Registration for Mixed Income Individuals, Estates And Trusts
Documentary Requirements Trust Agreement
Procedures a) Accomplish BIR Form 1901and submit the same together with the required attachments to the Revenue District Office having jurisdiction over the registered address of the trusts. b) Pay the Annual Registration Fee (P500.00) at the Authorized Agent Banks of the RDO
Deadline -Application for registration shall be accomplished and filed before filing a return, statement or declaration as required in the Tax Code and payment of any tax due
[back to top]
INDIVIDUALS EARNING PURELY COMPENSATION INCOME
Tax Form BIR Form 1902 - Application for Registration for Individuals Earning Purely Compensation Income and Non Resident Citizens/OCWS/Seamen Earning Purely Foreign Sourced Income Documentary Requirements - Birth certificate or any valid identification showing name, address and birth date of the applicant employee -Certificate of employment or valid Company ID Procedures a) Accomplish BIR Form 1902 and submit the same, together with the required attachments to the employer. b) The employer shall accomplish the applicable sections of the application form. c) Submit BIR Form 1902 to the RDO having jurisdiction over the place of residence of the applicant or to the RDO having jurisdiction over the business address of the employer. d) The registrant-employee shall inquire from the TSS of the RDO when the TIN can be issued and received by the applicant. Deadline - New employees shall accomplish and file the application within ten (10) days from the date of commencement of employment
[back to top]
NON-RESIDENT CITIZENS Tax Form BIR Form 1902 - Application for Registration for Individuals Earning Purely Compensation Income and Non Resident Citizens/OCWS/Seamen Earning Purely Foreign-Sourced Income
Documentary Requirements - Passport with Visa of the Applicant
Procedures Accomplish BIR Form 1902 and submit the same, together with the required attachments, to the RDO having jurisdiction over the place of residence of the applicant.
Deadline Application for registration shall be accomplished and filed before filing a return, statement or declaration as required in the Tax Code and payment of any tax due
[back to top]
OCWs/SEAMEN EARNING PURELY FOREIGN-SOURCED INCOME Tax Form BIR Form 1902 - Application for Registration for Individuals Earning Purely Compensation Income and Non Resident Citizens/OCWS/Seamen Earning Purely Foreign Sourced Income
Documentary Requirements - Birth certificate or any valid identification showing name, address and birth date; or -Passport with visa; or - Employment contract
Procedures - Accomplish BIR Form 1902 and submit the same, together with the required attachments to the RDO having jurisdiction over the place of residence of the applicant.
[back to top]
CORPORATIONS/PARTNERSHIPS (Including Government-Owned and -Controlled Corporations) (Taxable /Non-Taxable) Tax Form BIR Form 1903 - Application for Registration for Corporations/Partnerships (Taxable/Non Taxable), including GAIs and LGUs
Documentary Requirements - SEC Certificate of Registration (Certificate of Incorporation/Certificate of Co-Partnership) or License To Do Business in the Philippines in case of resident foreign corporation - Mayors Permit or application for Mayors Permit to be submitted prior to the issuance of the BIR Certificate of Registration
Procedures a) Accomplish BIR Form 1903 and submit the same together with the required attachments to the Revenue District Office having jurisdiction over the registered address of the business establishment. b) Pay the Annual Registration Fee (P 500.00) at the Authorized Agent Banks of the RDO. c) Pay P 15.00 for the Certification Fee and P 15.00 for the Documentary Stamp Tax (in loose form to be attached to Form 2303). d) The RDO shall issue the Certificate of Registration (Form 2303).
e) Taxpayer must pay the Documentary Stamp Tax on the Articles of Incorporation as prescribed under Section 175 of the NIRC, on the 5th of the month following the date of issuance of said article (per RR 4-2000).
Deadline Corporations/partnerships/joint ventures shall accomplish and file the application before the commencement of the business operation.
[back to top]
GOVERNMENT AGENCIES AND INSTRUMENTALITIES Tax Form BIR Form 1903 - Application for Registration for Corporations/Partnerships (Taxable/Non-Taxable), including GAIs and LGUs
Documentary Requirements Unit or Agencys Charter
Procedures -Accomplish BIR Form 1903 and submit the same, together with the required attachments, to the Revenue District Office having jurisdiction over the registered address of the government agencies and instrumentalities.
Deadline Application for registration shall be accomplished and filed before filing a return, statement or declaration as required in the Tax Code and payment any tax due
[back to top]
LOCAL GOVERNMENT UNITS Tax Form BIR Form 1903 - Application for Registration for Corporations/Partnerships (Taxable/Non Taxable), including GAIs and LGUs
Documentary Requirements Unit or Agencys Charter
Procedures - Accomplish BIR Form 1903 and submit the same, together with the required attachments, to the Revenue District Office having jurisdiction over the registered address of the government agencies and instrumentalities or local government units.
[back to top]
ONE TIME TAXPAYERS (With No Previously Issued TIN) 1. PAYOR OF CAPITAL GAINS TAX INVOLVING SHARES OF STOCKS
Tax Form BIR Form 1904 - Application for Registration of One Time Taxpayer And Persons Registering Under EO 98 (securing a TIN to be able to transact with any government office)
Documentary Requirements -Birth certificate or any valid identification showing name, address and birth date of applicant (buyer and seller) -Deed of Sale
Procedures - Accomplish BIR Form 1904 and submit the same, together with the required attachments, to the Revenue District Office having jurisdiction over the registered address of the seller / transferror.
Deadline Application shall be accomplished and filed before filing a return, statement or declaration as required in the Tax Code and payment of any tax due.
2. PAYOR OF FINAL CAPITAL GAINS TAX INVOLVING REAL PROPERTIES
Documentary Requirements - Birth certificate or any valid identification showing name, address and birth date of applicant (buyer and seller) - Deed of Sale
Procedures
Accomplish BIR Form 1904 and submit the same, together with the required attachments, to the Revenue District Office having jurisdiction over the location of the property.
Deadline Application shall be accomplished and filed before filing a return, statement or declaration as required in the Tax Code and payment of any tax due.
3. PAYOR OF DONORs TAX FOR RESIDENT OF THE PHILIPPINES
Tax Form BIR Form 1904 - Application for Registration of One Time Taxpayer and Persons Registering Under EO 98 (securing a TIN to be able to transact with any government office) Documentary Requirements -Birth certificate or any valid identification showing name, address and birth date of the donor -Deed of Donation
Procedures If Donation Is Real Property - Accomplish BIR Form 1904 and submit the same, together with the required attachments, to the Revenue District Office having jurisdiction over the place of domicile of the donor at the time of donation.
If Donation Is Personal Property - Accomplish BIR Form 1904 and submit the same, together with the required attachments, to the Revenue District Office having jurisdiction over the address/domicile of the donor at the time of donation.
Deadline Application for registration shall be accomplished and filed before filing a return, statement or declaration as required in the Tax Code and payment of any tax due.
4. PAYOR OF DONORs TAX FOR NON-RESIDENT OF THE PHILIPPINES
Documentary Requirements - Birth certificate or any valid identification showing name, address and birth date of the donor - Deed of Donation
Procedures
If Donation Is Real Property - Accomplish BIR Form 1904 and submit the same, together with the required attachments, to the Revenue District Office No. 39 South Quezon City.
If Donation Is Personal Property - Accomplish BIR Form 1904 and submit the same, together with the required attachments, at RDO 39 South Quezon City.
5. PAYOR OF ESTATE TAX - Decedent with legal residence in the Philippines at the time of death
Documentary Requirements - Death certificate of decedent
Procedures - Accomplish BIR Form 1904 and submit the same, together with the required attachments, to the Revenue District Office having jurisdiction over the domicile/permanent residence of the decedent at the time of death.
Deadline - Application for registration shall be accomplished and filed before filing a return, statement or declaration as required in the Tax Code and payment of any tax due.
6. PAYOR OF ESTATE TAX Non-Resident Decedent Without Administrator in the Philippines
Documentary Requirements Death certificate of decedent
Procedures Accomplish BIR Form 1904 and submit the same, together with the required attachments, at RDO 39 South Quezon City.
7. PAYOR OF ESTATE TAX Non - Resident Decedent With Administrator in the Philippines
Documentary Requirements - Death certificate of decedent - Birth certificate or any valid identification showing name, registered address residence address, birth date of the Philippine Administrator
Procedures - Accomplish BIR Form 1904 and submit the same, together with the required attachments, to the Revenue District Office having jurisdiction over the place where administrator is registered or in the absence of registration, in the place of residence of the administrator.
Deadline - Application for registration shall be accomplished and filed before filing a return, statement or declaration as required in the Tax Code and payment of any tax due.
8. PAYOR OF FINAL TAX ON WINNINGS
Documentary Requirements - Certification from awarding company/person
Procedures - Accomplish BIR Form 1904 and submit the same, together with the required attachments, to the Revenue District Office having jurisdiction over residence of the applicant.
Deadline - Application for registration shall be accomplished and filed before filing a return, statement or declaration as required in the Tax Code and payment of any tax due
9. VEHICLE REGISTRANT
Documentary Requirements - Birth certificate or any valid identification showing name, address and birth date of applicant - Deed of Sale and Official Receipt or Cash Invoice
Procedures - Accomplish BIR Form 1904 and submit the same, together with the required attachments, to the Revenue District Office having jurisdiction over the registered address of the applicant.
Deadlines - Application shall be accomplished and filed before transacting with any government agencies or instrumentalities.
[back to top]
PERSONS REGISTERING UNDER E.O. 98 (securing a TIN to be able to transact with any government office, e.g. LTO, NBI, DFA, etc.) Tax Form BIR Form 1904 - Application for Registration of One Time Taxpayer And Persons Registering Under EO 98 (securing a TIN to be able to transact with any government office) Documentary Requirements -Birth certificate or any valid identification showing name, address and birth date of the applicant
Procedures - Accomplish BIR Form 1904 and submit the same, together with the required attachments, to the Revenue District Office having jurisdiction over residence of the applicant.
Deadlines - Application shall be accomplished and filed before transacting with any government agencies or instrumentalities.
[back to top]
RELATED REVENUE ISSUANCES RR No. 13-93, RR No. 2-96, RR No. 11-99, RR No. 11-2000, RR No. 3-2003 and RR No.12-2003 RMO No. 22-91, RMO No. 23-91, RMO No. 41-94, RMO No. 48-94, RMO No. 54-97, RMO No. 54-98, RMO No. 82-99, RMO No. 11-2000 and RMO No. 10-2002 RMC No. 58-91, RMC No. 39-95 and RMC No. 6-2003
[back to top]
CODAL REFERENCE Section 232 to 235 of the National Internal Revenue Code [back to top]
FREQUENTLY ASKED QUESTIONS 1) Who are required to register with the BIR?
Any person, whether natural or juridical, required under the authority of the Internal Revenue Code to make, render or file a return, statement or other documents shall be supplied with or assigned a Taxpayer Identification Number (TIN), which he shall indicate in such return, statement or document filed with the Bureau of Internal Revenue for his proper identification for tax purposes.
2) Are non-resident aliens and non-resident foreign corporations receiving income from sources within the Philippines required to register with the BIR?
No, tax due from them shall be remitted/paid to the BIR by the payor who shall constitute as the withholding agent of the tax (RMC 39-95).
3) If the taxpayer is engaged in VATable activity, but the gross sales or receipts from business or practice of profession is P 550,000.00 or below, is he required to register?
Yes, he is required to register as a Non-VAT taxpayer. However, if his gross sales or receipts is more than P 100,000.00 but does not exceed P 550,000.00, he has the option to register as VAT taxpayer. In the case of marginal income earners with gross sales or receipts of P 100,000 and below, they have no other option but to register as non-VAT taxpayer (RMC 39-95).
4) Are taxpayers required to register their business annually?
No, taxpayers are required to register only once before commencing their business. However, they are required to pay the registration fee of P 500.00 annually.
5) Are there instances where the taxpayers are required to register more than once?
Yes, registered taxpayers are required to register again in the following instances: a) Establishment of new branch/storage place/place of production b) Engaging in different business activity (i.e. a VAT taxpayer engaging in a non-VAT activity or vice versa) c) Major changes in business structure resulting to change of ownership
6) When is the taxpayer required to apply for registration and pay the registration fee?
New taxpayers shall apply for registration and pay the registration fee before commencing their business. Thereafter, taxpayers should pay the annual registration fee not later than January 31 every year.
Note: Persons engaged in either VAT or Non-VAT taxable business, whose gross sales or receipts did not exceed P 100,000 for the immediately preceding 12-month period is exempt from paying the annual registration fee.
7) Where should a taxpayer register?
All taxpayers are required to register with the RDO having jurisdiction over the head office, branch office, place of production or storage place where inventory of goods for sale or use in business are kept.
8) Are branches, storage places and places of production also required to pay the Annual Registration Fee of P 500?
Each branch is required to pay the Annual Registration Fee of P 500. However, storage and production places are liable to the annual registration fee only when sales operations are conducted thereat.
9) Who are required to register without paying the registration fee? a) Non-stock, non-profit organizations and associations, not engaged in trade or business, and cooperatives (RMO 41-94)
b) Government agencies and instrumentalities, government offices not engaged in proprietary activities c) Storage places/place of production/extension offices where no selling operations are conducted thereat (RMO 41-94) d) Taxpayers enjoying exemptions under R.A. 6810 (Kalakalan 20) e) Persons engaged in either VAT or Non-VAT taxable business, whose gross sales or receipts did not exceed P 100,000 for the immediately preceding 12-month period (RR 11-2000) f) Persons who will be engaging in business for first time whose expected gross sales or receipts for any 12-month period will not exceed P 100,000 (marginal income earner) (RR 11-2000) g) Individuals earning purely compensation income/overseas workers (Sec. 236 of the NIRC)
10) Are taxpayers transferring business address within the year either within the same district or to another district required to pay another registration fee of P 500?
No, since the annual registration fee is payable annually, they are no longer required to pay the registration fee to the new district office, provided the P 500 was already paid.
11) After complying with all the requirements for registration, what document will be issued to the taxpayer as proof of registration?
Certificate of Registration (BIR Form 2303)
12) When will the Certificate of Registration be issued to the taxpayer?
The Certificate of Registration (BIR Form 2303) will be issued not later than five (5) working days from filing of application and submission of all documentary requirements, and upon presentation of duly validated BIR Form 0605 as proof of payment of Annual Registration Fee or Official Receipt.
13) Who will issue the Certificate of Registration?
The RDO having jurisdiction of the head office, branch, storage/ production place shall issue the Certificate of Registration.
14) How many Certificate of Registration (BIR Form 2303) shall be issued by the Revenue District Office?
For every Application for Registration, there shall be a corresponding Certificate of Registration to be issued to the head office and each branch, each storage place or each place of production being registered.
15) How are the registered activities reflected in the Certificate of Registration?
The RDO issuing the Certificate of Registration shall reflect the registered activities in the Certificate by checking the box(es) corresponding to the approved registered activities, and cross- out the boxes not applicable. For example, if the registration is for VAT only, the RDO shall check the box for VAT and cross-out all other boxes.
16) Why is there a need to cross-out in the Certificate of Registration the activities which have not been applied for registration by the taxpayer?
This is to prevent the taxpayer from making undue alterations in his Certificate of Registration.
17) What will the taxpayer do with the Certificate of Registration and the Proof of Payment of Annual Registration Fee?
The original copy of Certificate of Registration and the duly validated BIR Form 0605 as proof of payment of Annual Registration Fee are required to be displayed in any conspicuous place in the head office, branch office, storage place or place of production.
18) What are the instances when a taxpayer can apply for cancellation of his registration?
A taxpayer can apply for cancellation of his registration in the following instances:
a) due to closure/cessation or termination of business; and b) change in organization structure.
19) Is there a particular form prescribed for Application for Cancellation of Registration?
Yes, BIR Form 1905 (Application for Registration Information Update).
20) Where shall the Application for Registration Information Update be filed?
It shall be filed with the RDO who issued the Certificate of Registration. For VAT taxpayer, he shall further notify the RDO where the Home Office is registered.
21) If a taxpayer is in doubt of his status as VAT taxpayer, what is he supposed to do?
Go to the RDO who has jurisdiction over his place of business and seek assistance.
KINDS OF TAXES
Capital Gains Tax is a tax imposed on the gains presumed to have been realized by the seller from the sale, exchange, or other disposition of capital assets located in the Philippines, including pacto de retro sales and other forms of conditional sale. Documentary Stamp Tax is a tax on documents, instruments, loan agreements and papers evidencing the acceptance, assignment, sale or transfer of an obligation, rights, or property incident thereto. Donor's Tax is a tax on a donation or gift, and is imposed on the gratuitous transfer of property between two or more persons who are living at the time of the transfer. Estate Tax is a tax on the right of the deceased person to transmit his/her estate to his/her lawful heirs and beneficiaries at the time of death and on certain transfers which are made by law as equivalent to testamentary disposition. Income Tax is a tax on all yearly profits arising from property, profession, trades or offices or as a tax on a persons income, emoluments, profits and the like.
Percentage Tax is a business tax imposed on persons or entities who sell or lease goods, properties or services in the course of trade or business whose gross annual sales or receipts do not exceed P550,000 and are not VAT-registered. Value Added Tax is a business tax imposed and collected from the seller in the course of trade or business on every sale of properties (real or personal) lease of goods or properties (real or personal) or vendors of services. It is an indirect tax, thus, it can be passed on to the buyer. Withholding Tax on Compensation is the tax withheld from individuals receiving purely compensation income. Expanded Withholding Tax is a kind of withholding tax which is prescribed only for certain payors and is creditable against the income tax due of the payee for the taxable quarter year. Final Withholding Tax is a kind of withholding tax which is prescribed only for certain payors and is not creditable against the income tax due of the payee for the taxable year. Income Tax withheld constitutes the full and final payment of the Income Tax due from the payee on the said income. Withholding Tax on Government Money Payments is the withholding tax withheld by government offices and instrumentalities, including government-owned or -controlled corporations and
local government units, before making any payments to private individuals, corporations, partnerships and/or associations.
INCOME TAX
Description
Income Tax is a tax on a person's income, emoluments, profits arising from property, practice of profession, conduct of trade or business or on the pertinent items of gross income specified in the Tax Code of 1997 (Tax Code), as amended, less the deductions and/or personal and additional exemptions, if any, authorized for such types of income, by the Tax Code, as amended, or other special laws.
Who Are Required To File Income Tax Returns
Individuals
Resident citizens receiving income from sources within or outside the Philippines o employees deriving purely compensation income from 2 or more employers, concurrently or successively at anytime during the taxable year o employees deriving purely compensation income regardless of the amount, whether from a single or several employers during the calendar year, the income tax of which has not been withheld correctly (i.e. tax due is not equal to the tax withheld) resulting to collectible or refundable return o self-employed individuals receiving income from the conduct of trade or business and/or practice of profession o individuals deriving mixed income, i.e., compensation income and income from the conduct of trade or business and/or practice of profession o individuals deriving other non-business, non-professional related income in addition to compensation income not otherwise subject to a final tax o individuals receiving purely compensation income from a single employer, although the income of which has been correctly withheld, but whose spouse is not entitled to substituted filing o marginal income earners Non-resident citizens receiving income from sources within the Philippines Aliens, whether resident or not, receiving income from sources within the Philippines Corporations, no matter how created or organized, including general professional partnerships Domestic corporations receiving income from sources within and outside the Philippines Foreign corporations receiving income from sources within the Philippines
Estates and trusts engaged in trade or business
Annual Income Tax For Individuals Earning Purely Compensation Income (Including Non-Business/Non-Profession Related Income) and For Marginal Income Earners
Tax Form BIR Form 1700 - Annual Income Tax Return (For Individual Earning Purely Compensation Income Including Non-Business/Non-Profession Related Income) Documentary Requirements 1. Certificate of Income Tax Withheld on Compensation (BIR Form 2316) 2. Waiver of the Husbands right to claim additional exemption, if applicable 3. Duly approved Tax Debit Memo, if applicable 4. Proof of Foreign Tax Credits, if applicable 5. Income Tax Return previously filed and proof of payment, if filing an amended return for the same taxable year Procedures 1. Fill-up BIR Form 1700 in triplicate. 2. If there is payment:
Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office where you are registered and present the duly accomplished BIR Form 1700, together with the required attachments and your payment. In places where there are no AABs, proceed to the Revenue Collection Officer or duly Authorized City or Municipal Treasurer located within the Revenue District Office where you are registered and present the duly accomplished BIR Form 1700, together with the required attachments and your payment. Receive your copy of the duly stamped and validated form from the teller of the AABs/Revenue Collection Officer/duly Authorized City or Municipal Treasurer.
3. For "No Payment" Returns including refundable returns, and for tax returns qualified for second installment:
Proceed to the Revenue District Office where you are registered or to any Tax Filing Center established by the BIR and present the duly accomplished BIR Form 1700, together with the required attachments. Receive your copy of the duly stamped and validated form from the RDO/Tax Filing Center representative.
Deadline On or before the 15th day of April of each year covering taxable income for the preceding taxable year
Annual Income Tax For Self-Employed Individuals, Estates And Trusts (Including Those With Mixed Income,i.e., Compensation Income and Income from Business and/or Practice of Profession )
Tax Form BIR Form 1701 - Annual Income Tax Return (For Self-Employed Individuals, Estates and Trusts Including Those With Both Business and Compensation Income) Documentary Requirements 1. Certificate of Income Tax Withheld on Compensation (BIR Form 2316), if applicable 2. Certificate of Income Payments not Subjected to Withholding Tax (BIR Form 2304) if applicable 3. Certificate of Creditable Tax Withheld at Source (BIR Form 2307), if applicable 4. Waiver of the Husbands right to claim additional exemption, if applicable 5. Duly approved Tax Debit Memo, if applicable 6. Proof of Foreign Tax Credits, if applicable 7. Income Tax Return previously filed and proof of payment, if filing an amended return for the same year 8. Account Information Form (AIF) or the Certificate of the independent CPA with Audited Financial Statements if the gross quarterly sales, earnings, receipts or output exceed P 150,000.00 9. Proof of prior years excess tax credits, if applicable Procedures 1. Fill-up BIR Form 1701 in triplicate copies. 2. If there is payment:
Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office where you are registered and present the duly accomplished BIR Form 1701, together with the required attachments and your payment. In places where there are no AABs, proceed to the Revenue Collection Officer or duly Authorized City or Municipal Treasurer located within the Revenue District Office where you are registered and present the duly accomplished BIR Form 1701, together with the required attachments and your payment. Receive your copy of the duly stamped and validated form from the teller of the AABs/Revenue Collection Officer/duly Authorized City or Municipal Treasurer
3. For "No Payment" including refundable/ creditable returns, returns with excess tax credit carry over, and returns qualified for second installment:
Proceed to the Revenue District Office where you are registered or to any established Tax Filing Centers established by the BIR and present the duly accomplished BIR Form 1701, together with the required attachments. Receive your copy of the duly stamped and validated form from the RDO/Tax Filing Center representative.
Deadline Final Adjustment Return or Annual Income Tax Return - On or before the 15th day of April of each year covering income for the preceding year
Account Information Form For Self-Employed Individuals, Estates And Trusts (Including Those With Mixed Income , I.E., Compensation Income and Income from Business and/or Practice of Profession)
Tax Form BIR Form 1701 AIF - Account Information Form For Self-Employed Individuals, Estates and Trusts (Including those with Mixed Income, i.e., Compensation Income and Income from Business and/or Practice of Profession) and Estates and Trusts (Engaged in Trade or Business) NOTE: Pursuant to Revenue Memorandum Circular No. 6 2001, corporations, companies or persons whose gross quarterly sales, earnings, receipts or output exceed P 150,000.00 may not accomplish this form. In lieu thereof, they may file their annual income tax returns accompanied by balance sheets, profit and loss statement, schedules listing income-producing properties and the corresponding income therefrom, and other relevant statements duly certified by an independent CPA. Documentary Requirements None Procedures 1. Accomplish BIR Form 1701 AIF in triplicate. 2. Attach the same to BIR Form 1701. Deadline Same deadline as BIR Form 1701 - On or before the 15th day of April of each year covering taxable income for the preceding year
Quarterly Income Tax For Self-Employed Individuals, Estates And Trusts (Including Those With Mixed Income, I.E., Compensation Income and Income from Business and/or Practice of Profession)
Tax Form BIR Form 1701Q - Quarterly Income Tax Return For Self-Employed Individuals, Estates and Trusts (Including those with both Business and Compensation Income) Documentary Requirements 1. Certificate of Income Tax Withheld at Source (BIR Form 2307), if applicable 2. Certificate of Income Payments not Subjected to Withholding Tax (BIR Form 2304) if applicable 3. Duly approved Tax Debit Memo, if applicable 4. Previously filed return, if an amended return is filed for the same quarter Procedures
1. Fill-up BIR Form 1701Q in triplicate. 2. If there is payment:
Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office where you registered and present the duly accomplished BIR Form 1701 Q, together with the required attachments and your payment. In places where there are no AABs, proceed to the Revenue Collection Officer or duly Authorized City or Municipal Treasurer located within the Revenue District Office where you are registered and present the duly accomplished BIR Form 1701Q, together with the required attachments and your payment. Receive your copy of the duly stamped and validated form from the teller of the AABs/Revenue Collection Officer/duly Authorized City or Municipal Treasurer.
3. For "No Payment" Returns including refundable/ creditable returns with excess tax credit carry over and returns qualified for second installment:
Proceed to the Revenue District Office where you are registered or to any Tax Filing Center established by the BIR and present the duly accomplished BIR Form 1701Q, together with the required attachments. Receive your copy of the duly stamped and validated form from the RDO/Tax Filing Center representative.
o
Deadlines
April 15 for the first quarter August 15 for the second quarter November 15 for the third quarter
Annual Income Tax For Corporations And Partnerships
Tax Form BIR Form 1702 - Annual Income Tax Return (For Corporations and Partnerships) Documentary Requirements 1. Certificate of Income Payments not Subjected to Withholding Tax (BIR Form 2304), if applicable 2. Certificate of Creditable Tax Withheld at Source (BIR Form 2307), if applicable 3. Duly approved Tax Debit Memo, if applicable 4. Proof of Foreign Tax Credits, if applicable 5. Income tax return previously filed and proof of payment, if amended return is filed for the same taxable year 6. Account Information Form (AIF) and/or the Certificate of the independent CPA with Audited Financial Statements, if the gross quarterly sales, earnings, receipts or output exceed P150,000.00
7. Proof of prior years excess tax credits, if applicable Procedures 1. Fill-up BIR Form 1702 in triplicate. 2. If there is payment:
Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office where you are registered and present the duly accomplished BIR Form 1702, together with the required attachments and your payment. In places where there are no AABs, proceed to the Revenue Collection Officer or duly Authorized City or Municipal Treasurer located within the Revenue District Office where you are registered and present the duly accomplished BIR Form 1702 with the required attachments and your payments. Receive your copy of the duly stamped and validated form from the teller of the AABs/Revenue Collection Officer/duly Authorized City or Municipal Treasurer.
3. For "No Payment" Returns including refundable/ creditable returns and returns with excess tax credit carry over:
Proceed to the Revenue District Office where you are registered or to any Tax Filing Center established by BIR and present the duly accomplished BIR Form 1702, together with the required attachments. Receive your copy of the duly stamped and validated form from the RDO/Tax Filing Center representative
o
Deadline
Final Adjustment Return or Annual Income Tax Return - On or before the 15th day of the fourth month following the close of the taxpayers taxable year
Account Information Form For Corporations And Partnerships
Tax Form BIR Form 1702 AIF - Account Information Form (For Corporations and Partnerships) NOTE: Pursuant to Revenue Memorandum Circular No. 6 2001, corporations, companies or persons whose gross quarterly sales, earnings, receipts or output exceed P 150,000.00 may not accomplish this form. In lieu thereof, they may file their annual income tax returns accompanied by balance sheets, profit and loss statement, schedules listing income-producing properties and the corresponding income therefrom, and other relevant statements duly certified by an independent CPA. Documentary Requirements None Procedures 1. Accomplish BIR Form 1702 AIF in triplicate.
2. Attach the same to BIR Form 1702. Deadline Same deadline as BIR Form 1702 - On or before the 15th day of the fourth month following the close of the taxpayers taxable year
Quarterly Income Tax For Corporations And Partnerships
Tax Form BIR Form 1702 Q - Quarterly Income Tax Return (For Corporations and Partnerships) Documentary Requirements 1. Certificate of Income Tax Withheld at Source (BIR Form 2307), if applicable 2. Certificate of Income Payments not Subjected to Withholding Tax (BIR Form 2304), if applicable 3. Duly approved Tax Debit Memo, if applicable 4. Previously filed return, if an amended return is filed for the same quarter Procedures 1. Fill-up BIR Form 1702 Q in triplicate. 2. If there is payment:
Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office where you are registered and present the duly accomplished BIR Form 1702 Q, together with the required attachments and your payment. In places where there are no AABs, proceed to the Revenue Collection Officer or duly Authorized City or Municipal Treasurer located within the Revenue District Office where you are registered and present the duly accomplished BIR Form 1702 Q. Receive your copy of the duly stamped and validated form from the teller of the AABs/Revenue Collection Officer/duly Authorized City or Municipal Treasurer.
3. For Refundable Returns and for those returns with second installment:
o o
Deadline
Proceed to the Revenue District Office where you are registered and present the duly accomplished BIR Form 1702 Q, together with the required attachments. Receive your copy of the duly stamped and validated form from the RDO representative.
Corporate Quarterly Declaration or Quarterly Income Tax Return - On or before the 60th day following the close of each of the quarters of the taxable year
Improperly Accumulated Earnings Tax For Corporations
Tax Form BIR Form 1704 - Improperly Accumulated Earnings Tax Return (For Corporations) Documentary Requirements 1. Photocopy of Annual Income Tax Return (BIR Form 1702) with Audited Financial Statements and/or Account Information Form of the covered taxable year duly received by the BIR; and 2. Sworn declaration as to dividends declared taken from the covered year's earnings and the corresponding tax withheld, if any Procedures 1. Fill-up BIR Form 1704 in triplicate. 2. If there is payment:
Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office where you are registered and present the duly accomplished BIR Form 1704, together with the required attachments and your payment. In places where there are no AABs, proceed to the Revenue Collection Officer or duly Authorized City or Municipal Treasurer located within the Revenue District Office where you are registered and present the duly accomplished BIR Form 1704 Receive your copy of the duly stamped and validated form from the teller of the AABs/Revenue Collection Officer/duly Authorized City or Municipal Treasurer.
3. If there is no payment:
o o
Deadline
Proceed to the Revenue District Office where you are registered and present the duly accomplished BIR Form 1704, together with the required attachments. Receive your copy of the duly stamped and validated form from the RDO representative
Within fifteen (15) days after the close of the taxable year
Annual Income Information Form for General Professional Partnerships
Sec. 55. Returns of General Professional Partnership (Tax Code of 1997, as amended) Every general professional partnership shall file, in duplicate, a return of its income, except income exempt under Section 32 (B) of this Title, setting forth the items of gross income and of deductions allowed by this Title, and the names, Taxpayer Identification Numbers (TIN), addresses and shares of each of the partners.
Tax Rate
For Individuals Earning Purely Compensation Income and Individuals Engaged in Business and Practice of Profession Amount of Net Taxable Income Over P10,000 P30,000 P70,000 P140,000 P250,000 P500,000 But Not Over P10,000 P30,000 P70,000 P140,000 P250,000 P500,000 5% P500 + 10% of the Excess over P10,000 P2,500 + 15% of the Excess over P30,000 P8,500 + 20% of the Excess over P70,000 P22,500 + 25% of the Excess over P140,000 P50,000 + 30% of the Excess over P250,000 P125,000 + 32% of the Excess over P500,000 in 2000 and onward Rate
Note: When the tax due exceeds P2,000.00, the taxpayer may elect to pay in two equal installments, the first installment to be paid at the time the return is filed and the second installment 15 of the same year at on or before July the Authorized Agent Bank (AAB) within the jurisdiction of the Revenue District Office (RDO) where the taxpayer is registered.
Tax Rate 1. Domestic Corporations: a. In General 30% (effective Jan. 1, 2009)
Taxable Base Net taxable income from all sources Gross Income Improperly Accumulated Taxable Income Net taxable income provided that the gross income from unrelated trade, business or other activity does not exceed 50% of the total gross income Net taxable income provided that the gross income from unrelated trade, business or other activity does not exceed 50% of the total gross income
b. Minimum Corporate Income 2% Tax* c. Improperly Accumulated Earnings 2. Proprietary Educational Institution 10%
10%
3. Non-stock, Non-profit Hospitals 4. GOCC, Agencies & Instrumentalities a. In General
10%
32%
Net taxable income from all sources Gross Income Improperly Accumulated Taxable Income Net taxable income from all sources Gross Income Improperly Accumulated Taxable Income Net taxable income from all sources
b. Minimum Corporate Income 2% Tax* c. Improperly Accumulated Earnings 5. National Gov't. & LGUs a. In General 32% 10%
b. Minimum Corporate Income 2% Tax* c. Improperly Accumulated Earnings 6. Taxable Partnerships a. In General 32% 10%
b. Minimum Corporate Income 2% Tax* c. Improperly Accumulated Earnings 7. Exempt Corporation a. On Exempt Activities b. On Taxable Activities 8. General Professional Partnerships 9. Corporation covered by Special Laws 10. International Carriers 11. Regional Operating Head 12. Offshore Banking Units (OBUs) 0% 32% 0% Rate specified under the respective special laws 2.5% 10% 10% 32% 13. Foreign Currency Deposit Units (FCDU) 10% 32% 10%
Gross Income Improperly Accumulated Taxable Income
Net taxable income from all sources
Gross Philippine Billings Taxable Income Gross Taxable Income On Foreign Currency Transaction On Taxable Income other than Foreign Currency Transaction Gross Taxable Income On Foreign Currency Transaction On Taxable Income other than Foreign Currency Transaction
*Beginning on the 4th year immediately following the year in which such corporation commenced its business operations, when the minimum corporate income tax is greater than the tax computed using the normal income tax.
Passive Income 1. Interest from currency deposits, trust funds and deposit substitutes Holding Period - Four (4) years to less than five (5) years - Three (3) years to less than four (4) years - Less than three (3) years 2. Royalties (on books as well as literary & musical composition) - In general 3. Prizes (P10,000 or less ) - In excess of P10,000 4. Winnings (except from PCSO and lotto) 5. Interest Income of Foreign Currency Deposit 6. Cash and Property Dividends - To individuals from Domestic Corporations - To Domestic Corporations from Another Domestic Corporations 7. On capital gains presumed to have been realized from sale, exchange or other disposition of real property (capital asset) 8. On capital gains for shares of stock not traded in the stock exchange - Not over P100,000 - Any amount in excess of P100,000 B. For Non-Resident Aliens Engaged in Trade or Business 5% 10% 10 % 0% 6% 5% 12% 20% 10% 20% 5% 20% 20% 7.5% 20%
1. On Certain Passive Income* 2. Interest Income from long time deposits Holding Period -Four (4) years to less than five (5) years -Three (3) years to less than four (4) years -Less than three (3) years
20%
5% 12% 20%
3. On capital gains presumed to have been realized from the sale, 6% exchange or other disposition of real property 4. On capital gains for shares of stock not traded in the Stock Exchange - Not over P100,000 - Any amount in excess of P100,000 5% 10%
C) For Non-Resident Aliens Not Engaged in Trade or Business 1. On the gross amount of income derived from all sources within the Philippines 2. On capital gains presumed to have been realized from the exchange or other disposition of real property located in the Phils. 25% 6%
D) On the gross income in the Philippines of Aliens Employed by Regional Headquarters (RHQ) or Area Headquarters and Regional Operating Headquarters (ROH), 15% Offshore Banking Units (OBUs), Petroleum Service Contractor and Subcontractor E) General Professional Partnerships F) Domestic Corporations 1) a. In General on net taxable income b. Minimum Corporate Income Tax on gross income c. Improperly Accumulated Earnings on improperly accumulated taxable income 2) Proprietary Educational Institution and Non-profit Hospitals - In general (on net taxable income) - If the gross income from unrelated trade, business or other activity exceeds 50% of the total gross income from all sources 4) GOCC, Agencies & Instrumentalities a. In General - on net taxable income 30% 2% 10% b. Minimum Corporate Income Tax on gross income c. Improperly Accumulated Earnings on improperly accumulated taxable income 5) Taxable Partnerships a. In General on net taxable income b. Minimum Corporate Income Tax on gross income c. Improperly Accumulated Earnings on improperly accumulated taxable income 6) Exempt Corporation a. On Exempt Activities b. On Taxable Activities 8) Corporation covered by Special Laws 0% 32% Rate specified under the respective special laws 30% 2% 10% 30% 2% 10% 10% 10% 30% 0%
G) Resident Foreign Corporation 1)a. In General on net taxable income b. Minimum Corporate Income Tax on gross income c. Improperly Accumulated Earnings on improperly accumulated taxable income 2) International Carriers on gross Philippine billings 3) Regional Operating Headquarters on gross income 4) Corporation Covered by Special Laws 5) Offshore Banking Units (OBUs) on gross income 6) Foreign Currency Deposit Units (FCDU) on gross income 30% 2% 10% 25% 10% Rate specified under the respective special laws 10% 10%
Related Revenue Issuances
RR No. 4-95, RR No. 4-96, RR No. 5-97, RR No. 1-98
Codal Reference
Sections 23-59, 67-73 and 74-77 of the National Internal Revenue Code
Frequently Asked Questions
1) What is income? Income means all wealth, which flows into the taxpayer other than as a mere return of capital. 2) What is Taxable Income? Taxable income means the pertinent items of gross income specified in the Tax Code as amended, less the deductions and/or personal and additional exemptions, if any, authorized for such types of income, by the Tax Code or other special laws. 3) What is Gross Income? Gross income means all income derived from whatever source. 4) What comprises gross income? Gross income includes, but is not limited to the following:
Compensation for services, in whatever form paid, including but not limited to fees, salaries, wages, commissions and similar item Gross income derived from the conduct of trade or business or the exercise of profession Gains derived from dealings in property Interest Rents Royalties Dividends Annuities
Prizes and winnings Pensions Partner's distributive share from the net income of the general professional partnerships
5) What are some of the exclusions from gross income?
Life insurance Amount received by insured as return of premium Gifts, bequests and devises Compensation for injuries or sickness Income exempt under treaty Retirement benefits, pensions, gratuities, etc. Miscellaneous items income derived by foreign government income derived by the government or its political subdivision prizes and awards in sport competition prizes and awards which met the conditions set in the Tax Code 13th month pay and other benefits GSIS, SSS, Medicare and other contributions gain from the sale of bonds, debentures or other certificate of indebtedness gain from redemption of shares in mutual fund
6) What are the allowable deductions from gross income? Except for taxpayers earning compensation income arising from personal services rendered under an employeremployee relationships where the only deduction provided that the gross family income does not exceed P250,000 per family is the premium payment on health and/or hospitalization insurance, a taxpayer may opt to avail any of the following allowable deductions from gross income: a)Optional Standard Deduction - an amount not exceeding 40% of the net sales for individuals and gross income for corporations; or
b) Itemized Deductions which include the following:

o o o o o o o o o o
Expenses Interest Taxes Losses Bad Debts Depreciation Depletion of Oil and Gas Wells and Mines Charitable Contributions and Other Contributions Research and Development Pension Trusts
In addition, individuals who are either earning compensation income, engaged in business or deriving income from the practice of profession are entitled to personal and additional exemptions as follows: Personal Exemptions: For single individual or married individual judicially decreed as legally separated with no qualified dependentsP 50,000.00 For head of familyP 50,000.00 For each married individual *P 50,000.00 Note: In case of married individuals where only one of the spouses is deriving gross income, only such spouse will be allowed to claim the personal exemption.
Additional Exemptions:
For each qualified dependent, an P25,000 additional exemption can be claimed but only up to 4 qualified dependents
The additional exemption can be claimed by the following:
The husband who is deemed the head of the family unless he explicitly waives his right in favor of his wife The spouse who has custody of the child or children in case of legally separated spouses. Provided, that the total amount of additional exemptions that may be claimed by both shall not exceed the maximum additional exemptions allowed by the Tax Code. The individuals considered as Head of the Family supporting a qualified dependent
The maximum amount of P 2,400 premium payments on health and/or hospitalization insurance can be claimed if:
Family gross income yearly should not be more than P 250,000 For married individuals, the spouse claiming the additional exemptions for the qualified dependents shall be entitled to this deduction
7) Who are required to file the Income Tax returns?
Individuals
Resident citizens receiving income from sources within or outside the Philippines o employees deriving purely compensation income from 2 or more employers, concurrently or successively at anytime during the taxable year o employees deriving purely compensation income regardless of the amount, whether from a single or several employers during the calendar year, the income tax of which has not been withheld correctly (i.e. tax due is not equal to the tax withheld) resulting to collectible or refundable return o self-employed individuals receiving income from the conduct of trade or business and/or practice of profession o individuals deriving mixed income, i.e., compensation income and income from the conduct of trade or business and/or practice of profession o individuals deriving other non-business, non-professional related income in addition to compensation income not otherwise subject to a final tax o individuals receiving purely compensation income from a single employer, although the income of which has been correctly withheld, but whose spouse is not entitled to substituted filing o marginal income earners
Non-resident citizens receiving income from sources within the Philippines
Aliens, whether resident or not, receiving income from sources within the Philippines Corporations no matter how created or organized including partnerships o domestic corporations receiving income from sources within and outside the Philippines o foreign corporations receiving income from sources within the Philippines o taxable partnerships Estates and trusts engaged in trade or business
8) Who are not required to file Income Tax returns?
a. An individual who is a minimum wage earner
An individual whose gross income does not exceed his total personal and additional exemptions
b.
c. An individual whose compensation income derived from one employer does not exceed P 60,000 and the income
tax on which has been correctly withheld
d. An individual whose income has been subjected to final withholding tax (alien employee as well as Filipino
employee occupying the same position as that of the alien employee of regional headquarters and regional operating headquarters of multinational companies, petroleum service contractors and sub-contractors and offshore-banking units, non-resident aliens not engaged in trade or business)
e. Those who are qualified under substituted filing. However, substituted filing applies only if all of the following requirements are present :
o
the employee received purely compensation income (regardless of amount) during the taxable year o the employee received the income from only one employer in the Philippines during the taxable year o the amount of tax due from the employee at the end of the year equals the amount of tax withheld by the employer o the employees spouse also complies with all 3 conditions stated above o the employer files the annual information return (BIR Form No. 1604-CF) o the employer issues BIR Form No. 2316 (Oct 2002 ENCS version ) to each employee. 9) Who are exempt from Income Tax?
Non-resident citizen who is: a) A citizen of the Philippines who establishes to the satisfaction of the Commissioner the fact of his physical presence abroad with a definite intention to reside therein b) A citizen of the Philippines who leaves the Philippines during the taxable year to reside abroad, either as an immigrant or for employment on a permanent basis c) A citizen of the Philippines who works and derives income from abroad and whose employment thereat requires him to be physically present abroad most of the time during the taxable year d) A citizen who has been previously considered as a non-resident citizen and who arrives in the Philippines at any time during the year to reside permanently in the Philippines will likewise be treated as a non-resident citizen during the taxable year in which he arrives in the Philippines, with respect to his income derived from sources abroad until the date of his arrival in the Philippines.
Overseas Filipino Worker, including overseas seaman An individual citizen of the Philippines who is working and deriving income from abroad as an overseas Filipino worker is taxable only on income from sources within the Philippines; provided, that a seaman who is a citizen of the Philippines and who receives compensation for services rendered abroad as a member of the complement of a vessel engaged exclusively in international trade will be treated as an overseas Filipino worker.
NOTE: A Filipino employed as Philippine Embassy/Consulate service personnel of the Philippine Embassy/consulate is not treated as a non-resident citizen, hence his income is taxable.
10) What are the procedures in filing Income Tax returns (ITRs)?
For with payment ITRs (BIR Form Nos. 1700 / 1701 / 1701Q / 1702 / 1702Q / 1704) File the return in triplicate (two copies for the BIR and one copy for the taxpayer) with the Authorized Agent Bank (AAB) of the place where taxpayer is registered or required to be registered. In places where there are no AABs, the return will be filed directly with the Revenue Collection Officer or duly Authorized Treasurer of the city or municipality in which such person has his legal residence or principal place of business in the Philippines, or if there is none, filing of the return will be at the Office of the Commissioner.
For no payment ITRs -- refundable, break-even, exempt and no operation/transaction, including returns to be paid on 2nd installment and returns paid through a Tax Debit Memo(TDM) File the return with the concerned Revenue District Office (RDO) where the taxpayer is registered. However, "no payment" returns filed late shall be accepted by the RDO but instead shall be filed with an Authorized Agent Bank (AAB) or Collection Officer/Deputized Municipal Treasurer (in places where there are no AABs), for payment of necessary penalties.
11) How is Income Tax payable of individuals (resident citizens and non-resident citizens)computed? Gross Income
Less: Allowable Deductions (Itemized or Optional) Net Income Less: Personal & Additional Exemptions Net Taxable Income Multiply by Tax Rate (5 to 32%) Income Tax Due: Tax withheld (per BIR From 2316/2304) Income tax payable P ___________ ___________ P ___________ ___________ P ___________ ____________ P ___________ P____________
12) How is Income Tax paid?
Through withholding
o o o
Generally 10% or 15% if the gross annual business or professional income exceeds P720,000 per year 20% - Fees paid to directors who are not employees and 20% of professional fees paid to nonindividuals Other withholding tax rates
Pay the balance as you file the tax return, computed as follows: Income Tax Due
Less: Withholding Tax Net Income Tax Due P ___________ ___________ P ___________
13) Is the Minimum Corporate Income Tax (MCIT) an addition to the regular or normal income tax? No, the MCIT is not an additional tax. An MCIT of 2% of the gross income as of the end of taxable year (whether calendar or fiscal year, depending on the accounting period employed) is imposed on a corporation taxable under Title II of the Tax Code, as amended, beginning on the 4th taxable year immediately following the taxable year in
which such corporation commenced its business operations when the MCIT is greater than the regular income tax. The MCIT is compared with the regular income tax, which is due from a corporation. If the regular income is higher than the MCIT, then the corporation does not pay the MCIT but the amount of the regular income tax. 14) Who are covered by MCIT? The MCIT covers domestic and resident foreign corporations which are subject to the regular income tax. The term regular income tax refers to the regular income tax rates under the Tax Code. Thus, corporations which are subject to a special corporate tax system do not fall within the coverage of the MCIT. For corporations whose operations or activities are partly covered by the regular income tax and partly covered by the preferential rate under special law, the MCIT shall apply on operations by the regular income tax rate. Newly established corporations or firms which are on their first 3 years of operations are not covered by the MCIT.
15) When does a corporation start to be covered by the MCIT? A corporation starts to be covered by the MCIT on the 4th year of its business operations. The period of reckoning which is the start of its business operations is the year when the corporation was registered with the BIR. This rule will apply regardless of whether the corporation is using the calendar year or fiscal year as its taxable year. 16) When is the MCIT reported and paid? Is it quarterly? The MCIT is paid on an annual basis and quarterly basis. The rules are governed by Revenue Regulations No. 122007. 17) How is MCIT computed? The MCIT is 2% of the gross income of the corporation at the end of the year. Gross income means gross sales less sales returns, discounts and cost of goods sold. Passive income, which have been subject to a final tax at source do not form part of gross income for purposes of the MCIT. Cost of goods sold includes all business expenses directly incurred to produce the merchandise to bring them to their present location and use. For trading or merchandising concern, cost of goods sold means the invoice cost of goods sold, plus import duties, freight in transporting the goods to the place where the goods are actually sold, including insurance while the goods are in transit. For a manufacturing concern, cost of goods manufactured and sold means all costs of production of finished goods such as raw materials used, direct labor and manufacturing overhead, freight cost, insurance premiums and other costs incurred to bring the raw materials to the factory or warehouse. For sale of services, gross income means gross receipts less sales returns, allowances, discounts and cost of services which cover all direct costs and expenses necessarily incurred to provide the services required by the customers and clients including:
Salaries and employees benefits of personnel, consultants and specialists directly rendering the service; Cost of facilities directly utilized in providing the service such as depreciation or rental of equipment used; Cost of supplies
Interest Expense is not included as part of cost of service, except in the case of banks and other financial institutions. Gross Receipts means amounts actually or constructively received during the taxable year. However, for taxpayers employing the accrual basis of accounting, it means amounts earned as gross income. 18) What is the carry forward provision under the MCIT? Any excess of the MCIT over the normal income tax may be carried forward on an annual basis and be credited against the normal income tax for 3 immediately succeeding taxable years. 19) How would the MCIT be recorded for accounting purposes? Any amount paid as excess minimum corporate income tax should be recorded in the corporations books as an asset under account title Deferred charges-MCIT 20) How long can we amend our income tax return?
There is no prescription period for amending the return. When the taxpayer has been issued a Letter of Authority, he can no longer amend the return. 21) Can a benefactor of a senior citizen claim him/her as additional dependent in addition to his/her 3 qualified dependent children at P 25,000 each? No, pursuant to Revenue Regulations 2-94, the benefactor of a senior citizen cannot claim the additional exemption. 22) What is a tax treaty? A tax treaty formally known as convention or agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (and on capital) could be defined in terms of its purpose. First, a tax treaty is intended to promote international trade and investment in several ways, the most important of which is by allocating taxing jurisdiction between the Contracting States so as to eliminate or mitigate double taxation of income. Second, a tax treaty is intended to permit the Contracting States to better enforce their domestic laws so as to reduce tax evasion. These purposes are in fact incorporated in the title and the preamble. 23) What are the effective Philippine tax treaties? The Philippines has thirty-seven (37) effective tax treaties. The following tax treaties and their dates of effectivity as as follows: Effective Philippine Tax Treaties (as of June 2010)
Country 1. Australia 2. Austria 3. Bahrain 4. Bangladesh 5. Belgium 6. Brazil 7. Canada 8. China 9. Czech 10. Denmark (Renegotiated) 11. Finland 12. France 13. Germany 14. Hungary 15. India 16. Indonesia 17. Israel 18. Italy 19. Japan 20. Korea 21. Malaysia 22. Netherlands 23. New Zealand 24. Norway Date of Effectivity January 1, 1980 January 1, 1983 January 1, 2004 January 1, 2004 January 1, 1981 January 1, 1992 January 1, 1977 January 1, 2002 January 1, 2004 January 1, 1998 January 1, 1982 January 1, 1978 January 1, 1985 January 1, 1998 January 1, 1995 January 1, 1983 January 1, 1997 January 1, 1990 January 1, 1981 January 1, 1987 January 1, 1985 January 1, 1992 January 1, 1981 January 1, 1998 Date and Venue of Signature May 11, 1979, Manila, Philippines April 4, 1981, Vienna, Austria November 7, 2001, Manila, Philippines September 8, 1997, Manila, Philippines October 2, 1976, Manila, Philippines Sept. 29, 1983, Brasilia, Brazil March 11, 1976, Manila, Philippines November 18, 1999, Beijing, China November 13, 2000, Manila, Philippines June 30, 1995, Copenhagen, Denmark October 13, 1978, Manila, Philippines January 9, 1976, Kingston, Jamaica July 22, 1983, Manila, Philippines June 13, 1997, Budapest, Hungary February 12, 1990, Manila, Philippines June 18, 1981, Manila, Philippines June 9, 1992, Manila, Philippines December 5, 1980, Rome, Italy February 13, 1980, Tokyo, Japan February 21, 1984, Seoul, Korea April 27, 1982, Manila, Philippines March 9, 1989, Manila, Philippines April 29, 1980, Manila, Philippines July 9, 1987, Manila, Philippines
25. Pakistan 26. Poland 27. Romania 28. Russia 29. Singapore 30. Spain 31. Sweden (Renegotiated) 32. Switzerland 33. Thailand 34. United Arab Emirates 35. United Kingdom of Great Britain
January 1, 1979 January 1, 1998 January 1, 1998 January 1, 1998 January 1, 1977 January 1, 1994 January 1, 2004 January 1, 2002 January 1, 1983 January 1, 2009 January 1, 1979
February 22, 1980, Manila, Philippines September 9, 1992, Manila, Philippines May 18, 1994, Bucharest, Romania April 26, 1995, Manila, Philippines August 1, 1977, Manila, Philippines March 14, 1989, Manila, Philippines June 24, 1998, Manila, Philippines June 24, 1998, Manila, Philippines July 14, 1982, Manila, Philippines September 21, 2003, Dubai, UAE June 10, 1976, London, United Kingdom October 1, 1976, Manila, Philippines November 14, 2001, Manila, Philippines
and Northern Ireland 36. United States of America 37. Vietnam January 1, 1983 January 1, 2004
24) What office can we inquire about the said tax treaties? The International Tax Affairs Division (ITAD). 25) What taxes are covered b Philippine tax treaties? Income taxes imposed by the domestic laws of the Contracting States, including substantially similar taxes that may be imposed later, in addition to, or in place, are covered by the tax treaties. In the Philippines, this is generally limited to Title II (Tax on Income) of the National Internal Revenue Code of 1997, as amended. 26) How is business income treated under our tax treaties? The business profits of a resident of a Contracting State shall not be taxable in the Philippines unless that enterprise of a resident of a Contracting State carries on business in the Philippines through a permanent establishment. 27) What is the concept of permanent establishment (PE) as used in tax treaties? PE is defined as a fixed place of business through which the business of the enterprise is wholly or partly carried on. The concept of permanent establishment is used to determine the rights of a Contracting State to tax the business profits of enterprises of the other Contracting State. Under this concept, profits of an enterprise of a Contracting State are not taxable by the other Contracting State, unless the enterprise carries on business through a permanent establishment situated in the other Contracting State. A list of places, circumstances, and activities which constitute a permanent establishment is provided under the different tax treaties which the Philippines has with other countries. 28) What is the Most-Favored-Nation clause (MFN)? The appearance of the MFN clause in the tax treaty means that a Contracting State will grant to a resident of the other Contracting State the same lower rate of tax or exemption the former has granted to a resident of a third State. 29) What is the tax treatment on immovable property? Income from an immovable property is taxable in the Contracting State where the property is situated. This term is generally defined under the domestic laws of the Contracting States. However, this is further defined in the tax treaties. 30) How are capital gains taxed under our tax treaties?
Gains from the alienation of immovable property or movable property forming part of the business property of a permanent establishment or pertaining to a fixed base are taxed in the Philippines if the immovable property or permanent establishment or fixed base is located here.
WITHHOLDING TAXES
Description
-Withholding Tax on Compensation is the tax withheld from income payments to individuals arising from an employeremployee 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
Republic Act Nos. 8424, 9337, 9442, 9504 Sections 57 to 58 and 78 to 83 of the National Internal Revenue Code (NIRC)
Monthly Remittance of Taxes Withheld on Compensation
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)
Documentary Requirements/Attachments to the tax return: 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 submitted to the DOLE Regional/Provincial Offices-Operations Division/Unit, if applicable. 4) For Public Sector, copy of Department of Budget and Management (DBM) circular/s or equivalent, if applicable. 5) Tax Remittance Advices (TRAs) for National Government Agencies as required under DOF-DBM Joint Circular No. 12000A.
Procedures 1. Read instructions indicated in the tax return. 2. Accomplish correctly BIR Form 1601-C 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 (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 Filing Via EFPS Group A - Fifteen (15) days following end of the month Group B - Fourteen (14) days following end of the month Group C - Thirteen (13) days following end of the month Group D - Twelve (12) days following end of the month Group E - Eleven (11) days following end of the month Note: The staggered manner of filing is only allowed to taxpayers using the Eletronic Filing and Payment System (EFPS). Please refer to RR No. 26-2002 for the groupings of taxpayers based on the industry classification.
Payment Via EFPS 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 Manual Filing and Payment 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 on or before January 15 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] Who Are Required To File Every registered withholding agent on Expanded Withholding Tax, which may include, but not limited to the following: 1) Individual engaged in business or practice of profession 2) Non-individual (corporation, association, partnership) whether engaged in business or not. 3) Government agencies and instrumentalities (e.g., National Government Agencies, Government-Owned or Controlled Corporations, Local Government Units, etc.)
Documentary Requirements 1.Return previously filed and proof of remittance, if amended return 2. Monthly Alphalist of Payees (MAP) 3. For advance payment, BIR Form No. 0605 4. Tax Remittance Advice ( for NGAs)
Procedures 1. Read instructions indicated in the tax return. 2. Accomplish BIR Form No. 1601-E 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- E, together with the required attachments 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 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. 4. If there is no tax required to be remitted: - Proceed to the Revenue District Office where you are registered and present the duly accomplished BIR Form 1601 E, together with the required attachments. - Receive your copy of the duly stamped and validated form from the RDO representative. Deadline
Filing Via EFPS Group A - Fifteen (15) days following end of the month Group B - Fourteen (14) days following end of the month Group C - Thirteen (13) days following end of the month Group D - Twelve (12) days following end of the month Group E - Eleven (11) days following end of the month Note: The staggered manner of filing is only allowed to taxpayers using the Eletronic Filing and Payment System (EFPS). Please refer to RR No. 26-2002 for the groupings of taxpayers based on the industry classification. Payment Via EFPS 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 Manual Filing and Payment 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
Monthly Remittance Of Value-Added Taxes And Other Percentage Taxes Withheld
Tax Form BIR Form No. 1600 - Monthly Remittance Return of Value-Added Taxes and Other Percentage Taxes Withheld Who Are Required To File 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. 2. Payors of income subject to Value-Added Tax to Non-residents. 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 2. Return previously filed and proof of tax payments, if amended return 3. Certificate of Tax Treaty Relief, if applicable 4. Authorization Letter, if the return is filed by the authorized representative 5. Tax Remittance Advice (TRA), if NGA. Procedures 1. Accomplish BIR No. Form 1600 in triplicate copies.
2. If there is tax required to be remitted: - Proceed to the nearest Authorized Agents Banks (AAB's) of 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. - 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. 3. If there is no tax required to be remitted: - Proceed to the Revenue District Office where you are registered and present the duly accomplished BIR Form No. 1600, together with the required attachments. - Receive your copy of the duly stamped and validated form from the RDO representative. 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
Monthly Remittance Of Final Income Taxes Withheld
Tax Form BIR Form 1601-F : Monthly Remittance Return of Final Income Taxes Withheld Who Are Required To File Every withholding agent/payor who is either an individual or non-individual required to deduct and withhold taxes on income payments subject to Final Withholding Taxes Documentary Requirements 1. 2. 3. 4. Return previously filed and proof of remittance, if amended return Monthly Alphalist of Payees (MAP) For advance payment, BIR Form No. 0605 Tax Remittance Advice ( for NGAs)
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 agents place of business/office is located who will issue a Revenue Official Receipt (BIR Form No. 2524) therefor; 4. If there is no tax required to be remitted: - 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
Filing Via EFPS Group A - Fifteen (15) days following end of the month Group B - Fourteen (14) days following end of the month Group C - Thirteen (13) days following end of the month Group D - Twelve (12) days following end of the month Group E - Eleven (11) days following end of the month Note: The staggered manner of filing is only allowed to taxpayers using the Eletronic Filing and Payment System (EFPS). Please refer to RR No. 26-2002 for the groupings of taxpayers based on the industry classification. Payment Via EFPS 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 Manual Filing and Payment 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 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 Who Are Required To File -Operators of race tracks 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 2. Return previously filed and proof of tax payments, if amended return Procedures 1. Accomplish BIR Form 1600-WP in triplicate copies. 2. 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. 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. 3. If there is no tax required to be remitted:
- Proceed to 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. - 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 Who Are Required To File Every withholding agent/payor who is either an individual or non-individual required to deduct and withhold taxes on fringe benefits furnished to employees other than rank and file employees subject to Final Withholding Tax Documentary Requirements Return previously filed and proof of tax payments , if amended return Procedures 1. Read instructions indicated in the tax return. 2. Accomplish BIR Form 1603 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. 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. 4. If there is no tax required to be remitted:
- 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. Manual Filing and Payment On or before the tenth (10th) day of the month following the end of the calendar quarter in which the fringe benefits were granted to the recipient.
Tax Rates
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. Who Are Required To File 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 Procedures 1. Accomplish BIR Form No. 1602 in triplicate copies. 2. 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. 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 agents 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. 3. If there is no tax required to be remitted:
- 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. Notes: The exchange rate to be used shall be the Daily Bangko Sentral ng Pilipinas (BSP) Guiding Rate on the date of payment. Those payees availing of tax relief under an International Tax Treaty or Special Law shall indicate under what classification they belong. If they are availing under a Special law, they shall specify which Special law is applicable to them. Deadline Filing Via EFPS On or before the fifteenth (15th) day of the month following the month withholding was made Payment Via EFPS 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 Manual Filing and Payment
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 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 Who Are Required To File Every withholding agent/payor who is either an individual or non-individual required to deduct and withhold taxes on income payments subject to Expanded/Creditable Withholding Taxes Documentary Requirements 1. Alphalist of Payees subjected to Expanded Withholding Tax 2. Alphalist of Other Payees Whose Income Payments Are Exempt from Withholding Tax but subject to Income Tax 3. Return previously filed and proof of tax payment for amended return Note: Above alphalists are to be submitted in accordance with RR 3-2002 as amended. Procedures 1. 2. E, 3. Accomplish BIR Form No. 1604-E in triplicate copies. Proceed to the Revenue District Office where you are registered and present the duly accomplished BIR Form No. 1604together with the required attachments. Receive your copy of the duly stamped and validated form from the RDO representative
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. Who Are Required To File Every withholding agent/payor who is either an individual or non-individual required to deduct and withhold taxes on: - compensation paid to employees - income payments subject to Final Withholding Taxes Documentary Requirements 1. 2. 3. 4. 5. 6. 7. 8. Alphalist of Employees as of December 31 With no Previous Employer within the year Alphalist of Employees as of December 31 with Previous Employer/s within the year Alphalist of Employees Terminated Before December 31 Alphalist of Employees Whose Compensation Income Are Exempt from Withholding Tax But Subject to Income Tax Alphalist of Minimum Wage Earners Alphalist of Employees other than Rank and File Who Were Given Fringe Benefits During the Year Alphalist of Payees Subjected to Final Withholding Tax Return previously filed and proof of tax payment for amended return
Note: Above alphalists are to be submitted in accordance with RR 3-2002 as amended. Procedures 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. 1604CF, 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.
Related Revenue Issuances
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 22006, RR 4-2006, 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
Frequently Asked Questions
1) What are the types of Withholding Taxes? There are two main classifications or types of withholding tax. These are: a) Creditable Withholding Tax - Withholding Tax on Compensation - Expanded Withholding Tax - Withholding of Business Tax (VAT and Percentage) b) Final Withholding Tax 2) What is compensation? It means any remuneration received for services performed by an employee from his employer under an employeeemployer relationship. 3) What are the different kinds of compensation? 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 4) What are exempted from Withholding Tax on Compensation?
1. Remuneration as an incident of employment, such as follows: a. Retirement benefits received under RA 7641 b. Any amount received by an official or employee or by his heirs from the employer due to death, sickness or other physical disability or for any cause beyond the control of the said official or employee such as retrenchment, redundancy or cessation of business c. Social security benefits, retirement gratuities, pensions and other similar benefits d. Payment of benefits due or to become due to any person residing in the Philippines under the law of the US administered US Veterans Administration e. Payment of benefits made under the SSS Act of 1954, as amended f. Benefits received from the GSIS Act of 1937, as amended, and the retirement gratuity received by the government employee 2. Remuneration paid for agricultural labor 3. Remuneration for domestic services 4. Remuneration for casual labor not in the course of an employer's trade or business 5. Compensation for services by a citizen or resident of the Philippines for a foreign government or an international organization 6. Payment for damages 7. Proceeds of Life Insurance 8. Amount received by the insured as a return of premium 9. Compensation for injuries or sickness 10. Income exempt under Treaty 11. Thirteenth (13th) month pay and other benefits (not to exceed P 30,000) 12. GSIS, SSS, Medicare and other contributions 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. 5) What are De Minimis Benefits? -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 and the monetized value of leave credits paid to government officials and employees. 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 sack of 50 kg. rice per month amounting to not more than P1,500 Uniform and clothing allowance not exceeding P4,000 per annum Actual yearly medical benefits not exceeding P10,000 per annum Laundry allowance not exceeding P300.00 per month Employees achievement awards not exceeding P10,000 Gifts given during Christmas and major anniversary celebration not exceeding P5,000.00 per annum Flowers, fruits, books, or similar items given to employees under special circumstances Daily meal allowance for overtime work not exceeding 25% of the basic minimum wage
6) What is substituted Filing of income tax returns (ITR)? Substituted Filing of ITR is the manner by which declaration of income of person receiving purely compensation income which have been withheld by their employer the correct tax due, are no longer required to file their individual ITR (BIR Form 1700). Instead, the employers 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). 7) Who are qualified to avail the substituted filing? Employees who satisfies all of the following conditions: a. Receiving purely compensation income regardless of amount; 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 employees spouse also complies with all three (3) conditions stated above. e. The employer files the annual information return (BIR Form No. 1604-CF) f. The employer issues BIR Form 2316 to each employee. 8) What income payments are subject to Expanded Withholding Tax? a) Professional fees / talent fees for services rendered by the following: - 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 real property used in business -Rental of personal properties in excess of P 10,000 annually -Rental of poles, satellites and transmission facilities -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 and other business agencies 9. Independent producers of television, radio and stage performances or shows
10. Independent producers of "jingles" 11. Labor recruiting agencies 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 eletrict 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 9) What income payments are subject to Final Withholding Tax? a) Income Payments to a Citizen or to a Resident Alien Individual: - Interest on any peso bank deposit - Royalties - Prizes [except prizes amounting to P10,000 or less which is subject to tax under Sec. 24(A)(1) of the Tax Code] - Winnings (except winnings from Philippine Charity Sweepstake Office and Lotto) - Interest income on foreign currency deposit - Interest income from long term deposit (except those with term of five years or more) - Cash and/or property dividends - Capital Gains presumed to have been realized from the sale, exchange or other disposition of real property b) Income Payments to a Non-Resident Alien Engaged in Trade or Business in the Philippines - On Certain Passive Income - cash and/or property dividend - Share in the distributable net income of a partnership - Interest on any bank deposits - Royalties - Prizes (except prizes amounting to P10,000 or less which is subject to tax under Sec. 25(A)(1) of the Tax Code. - Winnings (except from Philippine Charity Sweepstake Office and Lotto) - Interest on Long Term Deposits (except those with term of five years or more) - Capital Gains presumed to have been realized from the sale, exchange or other disposition of real property c) Income Derived from All Sources Within the Philippines by a Non-Resident Alien Individual Not Engaged in Trade or Business - On gross amount of income derived from all sources within the Philippines
- On Capital Gains presumed to have been realized from the sale, exchange or disposition of real property located in the Philippines d) Income Derived by Alien Individual Employed by a Regional or Area Headquarters and Regional Operating Headquarters of Multinational Companies, Income Derived by Alien Individual Employed by Offshore Banking Units and Income of Aliens Employed by Foreign Petroleum Service Contractors and Subcontractors e) Income Payment to a Domestic Corporation - Interest from any currency bank deposits and yield or any other monetary benefit from deposit substitutes and from trust fund and similar arrangements derived from sources within the Philippines - Royalties derived from sources within the Philippines - Interest income derived from a depository bank under the Expanded Foreign Currency Deposit (FCDU) System - Income derived by a depository bank under the FCDU from foreign transactions with local commercial banks - On capital gains presumed to have been realized from the sale, exchange or other disposition of real property located in the Philippines classified as capital assets, including pacto de retro sales and other forms of conditional sales based on the gross selling price or fair market value as determined in accordance with Sec. 6(E) of the NIRC, whichever is higher f) Income Payments to a Resident Foreign Corporation - Offshore Banking Units - Tax on branch Profit Remittances - Interest on any currency bank deposits and yield or any other monetary benefit from deposit substitute and from trust funds and similar arrangements and royalties derived from sources within the Philippines - Interest income on FCDU - Income derived by a depository bank under the expanded foreign currency deposits system from foreign currency transactions with local commercial banks g) Income Derived from all Sources Within the Philippines by a Non-Resident Foreign Corporation - Gross income from all sources within the Philippines such as interest, dividends, rents, royalties, salaries, premiums (except re-insurance premiums), annuities, emoluments or other fixed determinable annual, periodic or casual gains, profits and income or capital gains; - Gross income from all sources within the Philippines derived by a non-resident cinematographic film owner, lessor and distributor - On the gross rentals, lease and charter fees derived by a non-resident owner or lessor of vessels from leases or charters to Filipino citizens or corporations as approved by the Maritime Industry Authority - On the gross rentals, charter and other fees derived by a non-resident lessor of aircraft, machineries and other equipment - Interest on foreign loans contracted on or after August 1, 1986 h) Fringe Benefits Granted to the Employee (except Rank and File) - Goods, services or other benefits furnished or granted in cash or in kind by an employer to an individual employee (except rank and file) such as but not limited to the following: - Housing - Vehicle of any kind - Interest on loans - Expenses for foreign travel - Holiday and vacation expenses - Educational assistance to employees or his dependents - Membership fees, dues and other expense in social and athletic clubs or other - similar organizations - Health insurance i) Informers Reward 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) Value Added Tax on all payments subject to VAT - On gross payments for the purchase of goods - On gross payments for the purchase of services b) VAT on payments for lease or use of properties or property rights to non-resident owners; services rendered to local insurance companies, with respect to reinsurance premiums payable to non-residents; other services rendered in the Philippines by non-residents. c) Percentage Tax on all payments subject to percentage tax such as payments to the following: - Any person engaged in business whose gross sales or receipts do not exceed P1,500,000 and who are not VAT-registered persons. (Persons exempt from VAT under Sec. 109V of the Tax Code) - Domestic carriers and keepers of garages, except owners of bancas and owners of animal drawn two wheeled vehicle - Operators of international carriers doing business in the Philippines. - Franchise grantees of electric, gas or water utilities - Franchise grantees of radio and/or television broadcasting companies whose gross annual receipts of the preceding year do not exceed Ten Million (P10,000,000.00) Pesos and did not opt to register as VAT Taxpayers - Banks and non-bank financial intermediaries and finance companies - Life insurance companies - Agents of foreign insurance companies - Proprietor, lessee, or operator of cockpits, cabarets, night or day clubs, boxing exhibitions, professional basketball games, jai-alai and race tracks - Every stock broker who effected a sale, barter, exchange or other disposition of shares of stock listed and traded through
the Local Stock Exchange (LSE) other than the sale by a dealer in securities - A corporate issuer/stock broker, whether domestic or foreign, engaged in the sale, barter, exchange or other disposition through Initial Public Offering (IPO) /secondary public offering of shares of stock in closely held corporations 11) Who is a withholding agent? 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 13) Who are considered TOP 20,000 Corporate Taxpayers? 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; e) Gross sales of P10,000,000 and above for the preceding year; f) Gross purchases of P5,000,000 and above for the preceding year; g) Total excise tax payment of at least P100,000 for the preceding year. 14. What are the obligations of Top 20,000 Corporate Taxpayers? 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. 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.
15. Who are considered TOP 5,000 Individual Taxpayers? 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; d) Gross sales of P10,000,000 and above for the preceding year; e) Gross purchases of P5,000,000 and above for the preceding year; f) Total excise tax payment of at least P100,000 for the preceding year. 16. What are the obligations of Top 5,000 Individual Taxpayers? 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 othe 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. 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) b) c)
For Office of the Provincial Government-province- the Chief Accountant, Provincial Treasurer and the Governor;
For Office of the City Government-cities- the Chief Accountant, City Treasurer and the City Mayor; For Office of the Municipal Government-municipalities- the Chief Accountant, Municipal Treasurer and the Mayor;
d) Office of the Barangay-Barangay Treasurer and Barangay Captain e) For NGAs, GOCCs and other Government Offices, the Chief Accountant and the Head of Office or the Official holding the highest position.

Bir Stuff

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Bir Stuff

Uploaded by

Copyright:

Available Formats

BIR REQUIREMENTS

ESTATES Tax Form

Documentary Requirements Trust Agreement

INDIVIDUALS EARNING PURELY COMPENSATION INCOME

Documentary Requirements - Passport with Visa of the Applicant

Documentary Requirements Unit or Agencys Charter

Documentary Requirements Unit or Agencys Charter

2. PAYOR OF FINAL CAPITAL GAINS TAX INVOLVING REAL PROPERTIES

3. PAYOR OF DONORs TAX FOR RESIDENT OF THE PHILIPPINES

4. PAYOR OF DONORs TAX FOR NON-RESIDENT OF THE PHILIPPINES

Documentary Requirements - Death certificate of decedent

6. PAYOR OF ESTATE TAX Non-Resident Decedent Without Administrator in the Philippines

Documentary Requirements Death certificate of decedent

8. PAYOR OF FINAL TAX ON WINNINGS

Documentary Requirements - Certification from awarding company/person

4) Are taxpayers required to register their business annually?

7) Where should a taxpayer register?

Certificate of Registration (BIR Form 2303)

12) When will the Certificate of Registration be issued to the taxpayer?

13) Who will issue the Certificate of Registration?

a) due to closure/cessation or termination of business; and b) change in organization structure.

Yes, BIR Form 1905 (Application for Registration Information Update).

Who Are Required To File Income Tax Returns

1. Fill-up BIR Form 1701Q in triplicate. 2. If there is payment:

Annual Income Tax For Corporations And Partnerships

Account Information Form For Corporations And Partnerships

Quarterly Income Tax For Corporations And Partnerships

Improperly Accumulated Earnings Tax For Corporations

Annual Income Information Form for General Professional Partnerships

Tax Rate 1. Domestic Corporations: a. In General 30% (effective Jan. 1, 2009)

3. Non-stock, Non-profit Hospitals 4. GOCC, Agencies & Instrumentalities a. In General

Gross Income Improperly Accumulated Taxable Income

Net taxable income from all sources

Related Revenue Issuances

RR No. 4-95, RR No. 4-96, RR No. 5-97, RR No. 1-98

Frequently Asked Questions

5) What are some of the exclusions from gross income?

b) Itemized Deductions which include the following:

The additional exemption can be claimed by the following:

7) Who are required to file the Income Tax returns?

Non-resident citizens receiving income from sources within the Philippines

8) Who are not required to file Income Tax returns?

a. An individual who is a minimum wage earner

12) How is Income Tax paid?

Monthly Remittance of Taxes Withheld on Compensation

Monthly Remittance Of Value-Added Taxes And Other Percentage Taxes Withheld

Monthly Remittance Of Final Income Taxes Withheld

Frequently Asked Questions

You might also like