Escolar Documentos
Profissional Documentos
Cultura Documentos
Implements Republic Act No. 8424, as amended, entitled "An Act Amending
The National Internal Revenue Code, As Amended" (effective January 1,
1998), specifically, Sections 24, 25, 27, 28, 30, 31, 32, 33, 35, 51(A)(2)(b), 57,
58, 59, 78, 79, 80, 81, 82, 83, 114 and Title V of the NIRC of 1997.
Amended by Revenue Regulations No. 3-98 (effective January 1, 1998)
Re: Implementing Section 33 of the National Internal Revenue Code, as
Amended by Republic Act No. 8424 Relative to the Special Treatment of
Fringe Benefits; Revenue Regulations No. 8-98 (dated August 25, 1998) Re:
Revenue Regulations Amending Pertinent Portions of Revenue Regulations
Nos. 11-96 and 2-98 Relative to the Tax Treatment on the Sale, Transfer or
Exchange of Real Property and for this Purpose Revising the Time and Place
of Payment of the Capital Gains Tax Due Thereon; Revenue Regulations No.
12-98 (dated August 14, 1998) Re: Amending Section 2.57.2 of Revenue
Regulations No. 2-98; Revenue Regulations No. 3-99 (dated January 22,
1999) Re: Further Amending Section 2 of Revenue Regulations No. 12-98;
Revenue Regulations No. 7-2000 (dated June 16, 2000) Re: Amending
Revenue Regulations No. 2-98; Revenue Regulations No. 8-2000 (dated
August 21, 2000) Re: Amending Sections 2.78.1(A)(1), (A)(3), (A)(6), (A)(7),
and (B)(11)(b) of Revenue Regulations No. 2-98, as Amended, and Section
2.33(C) of Revenue Regulations No. 3-98, with Respect to "De Minimis"
Benefits, Additional Compensation Allowance (ACA), Representation and
Transportation Allowance (RATA) and Personal Economic Relief Allowance
(PERA); Revenue Regulations No. 10-2000 (dated December 14, 2000) Re:
Further Amendments to Revenue Regulations No. 2-98 and 3-98, as Last
Amended by Revenue Regulations No. 8-2000; Revenue Regulations No.
6-2001 (dated July 31, 2001) Re: Amending Pertinent Provisions of Revenue
Regulations Nos. 1-98, 2-98, as Amended, and 7-95, as Amended, and
Revenue Memorandum Circular No. 1-98 Relative to the Inclusion of
Additional Taxpayers to be Subject to Final Withholding Tax, Revision of the
Withholding Tax Rates on Certain Income Payments Subject to Creditable
Withholding Tax, Time for the Filing of Various Tax Returns and Payment of
the Taxes Due Thereon And Others; Revenue Regulations No. 12-2001 (dated
September 7, 2001) Re: Amendment to the Pertinent Provisions of Revenue
Regulations No. 1-98, as Amended, Revenue Regulations No. 2-98, as
Amended, and Revenue Regulations No. 6-2001, Relative to the Revision of
Copyright 2015
Prescribing the Guidelines and Conditions for the Tax Treatment of Securities
Borrowing and Lending (SBL) or Securities Lending Transactions (SLTs)
Involving the Fixed-Income Securities Lending Program of the Philippine
Dealing & Exchange Corp. (PDEx); Revenue Regulations No. 10-2006 (dated
June 23, 2006) Re: Prescribing the Guidelines and Conditions for the Tax
Treatment of Securities Borrowing and Lending Transactions Involving Shares
of Stock or Securities Listed in the Philippine Stock Exchange; Section 9 (c) of
Republic Act No. 9243 entitled "An Act Rationalizing the Provisions on the
Documentary Stamp Tax of the National Internal Revenue Code of 1997, as
Amended, and for Other Purposes" (approved February 17, 2004) and Revenue
Regulations No. 13-2004 (issued December 23, 2004) Re: Implementing the
Provisions of Republic Act No. 9243, An Act Rationalizing the Provisions on
the Documentary Stamp Tax of the National Internal Revenue Code of 1997, as
Amended, and for Other Purposes; Revenue Memorandum Circular No.
35-81 (dated October 12, 1981) Re: Publishing Questions and Answers on
Deposit Substitutes as Amended by Revenue Regulations Nos. 8-81 and 16-81;
Revenue Memorandum Circular No. 5-83 (dated October 11, 1983) Re:
Publishing Revenue Regulations No. 16-81 renumbering a pertinent subsection
thereof; Revenue Memorandum Circular No. 12-93 (dated October 23,
1993) Re: Administrative settlement of "back to back" loans tax cases;
Revenue Memorandum Circular No. 22-93 (No date supplied 1993) Re:
Extension of deadline from 31 March 1993 to 28 May 1993; Revenue
Memorandum Circular No. 77-2012 (dated November 22, 2012) Re:
Clarifying Certain Provisions of Revenue Regulations No. 14-2012 on the
Proper Tax Treatment of Interest Income Earnings on Financial Instruments
and Other Related Transactions; Revenue Memorandum Circular No.
81-2012 (dated December 10, 2012) Re: Supplemental Clarifications on the
Provisions of Revenue Regulations No. 14-2012 on the Proper Tax Treatment
of Interest Income Earnings on Financial Instruments and Other Related
Transactions; Revenue Memorandum Circular No. 84-2012 (dated
Clarifying Tax Treatment of Interest Income Earnings on Loans That are Not
Securitized, Assigned or Participated Out; and Revenue Audit Memorandum
Order No. 1-84 (dated January 24, 1984) Re: Tax Treatment of Certain Items
of Income Received by OBUs and FCDUs.
See earlier issuances on Taxation of Interest Income Derived from
Deposits and Yield from Deposit Substitutes Revenue Regulations No.
17-84 (dated October 12, 1984) Re: Income Taxation of Interest Income
Copyright 2015
Derived from Deposits and Yield from Deposit Substitutes, and subsequent
amendments made by Revenue Regulations No. 23-84 (effective January 1,
1985) Re: Amending Revenue Regulations No. 17-84, Revenue Regulations
No. 3-85 (effective March 1, 1985) Re: Amending Revenue Regulations No.
23-84, and Revenue Regulations No. 10-86 (dated June 30, 1986) Re:
Amendment of Section 3 of Revenue Regulations No. 17-84; Revenue
Regulations No. 1-82 (date March 18, 1982) Re: Individual Income Tax as
Restructured by Batas Pambansa Blg. 135; Revenue Memorandum Circular
No. 35-81 (dated October 12, 1981) Re: Publishing Questions and Answers on
Deposit Substitutes as Amended by Revenue Regulations Nos. 8-81 and 16-81;
Revenue Memorandum Circular No. 31-84 (issued October 30, 1984) Re:
Publishing Section 21 (d), 24 (cc) and 53 (d) (1) of the National Internal
Revenue Code, as amended by Presidential Decree No. 1959; Revenue
Memorandum Circular No. 39-85 (dated September 16, 1985) Re: Publishing
Additional Questions and Answers On the Interpretation of the Provisions of
the National Internal Revenue Code, as Implemented by Revenue Regulations
Nos. 16-84 and 17-84 and, Revenue Memorandum Circular No. 27-84;
Revenue Memorandum Circular No. 28-86 (dated August 11, 1986) Re:
Clarifying the Provisions of Revenue Regulations No. 10-86, Amending
Revenue Regulations No. 17-84 on Income Taxation of Interest Income from
Deposits and Yield from Deposit Substitutes; Revenue Memorandum
Circular No. 32-86 (dated October 15, 1986) Re: Publishing Questions Raised
and Answers Given on The Interpretation of Certain Provisions of the Tax
Code and Revenue Regulations Regarding the Final Withholding Tax on
Interest Income from Deposits and Deposit Substitutes; and Revenue Audit
Memorandum Order No. 1-84 (dated January 24, 1984) Re: Tax Treatment
of Certain Items of Income Received by OBUs and FCDUs.
See Issuances on Exemptions from Final Withholding Income Tax on
Interest Income Derived from Deposits and Yield from Deposit Substitutes
Revenue Regulations No. 16-93 (dated April 22, 1993) Re: Republic Act
No. 7353, otherwise known as the Rural Banks Act of 1992, providing for the
Creation, Organization and Operation of Rural Banks and For Other Purposes;
Revenue Regulations No. 1-95 (dated January 24, 1995) Re: Rules and
Regulations to implement the tax incentives provisions under paragraphs (b)
and (c) of Section 12, Republic Act No. 7227 otherwise known as the Bases
Conversion and Development Act of 1992; Revenue Regulations No. 4-95
(dated June 15, 1995) Re: Republic Act No. 7906 otherwise known as the
Copyright 2015
10
Thrift Banks Act of 1995, providing for the Regulation of the Organization and
Operations of Thrift Banks and For Other Purposes; Revenue Regulations No.
6-2010 (dated June 29, 2010) Re: Regulations Providing for the Policies,
Guidelines and Procedures in the Implementation of the Tax Subsidy Granted
Under Sections 17 (c) of Republic Act No. 3591 (Philippine Deposit Insurance
Corporation [PDIC] Charter), as Amended by Republic Act No. 9576;
Revenue Memorandum Circular No. 45-86 (dated December 5, 1986) Re:
Tax exemption of the (i) Government Service Insurance System and (ii) Social
Security System under Presidential Memorandum Order No. 42 dated
September 25, 1986; Revenue Memorandum Circular No. 45-95 (dated
December 11, 1995) Re: Tax Exemption of Interest Income and/or Yield from
the Philippine currency bank deposits and deposit substitutes of Non-stock,
Non-profit Private Educational Institutions; Revenue Memorandum Circular
No. 7-2001 (dated February 20, 2001) Re: Taxability of Thrift Banks Effective
January 1, 2000; and Revenue Memorandum Order No. 9-93 (effective
October 15, 1993) Re: Prescribing the guidelines and procedures in the
processing of claims for tax credit or refund of the then 15%, now 20% final
income tax withheld from interest income/yield from deposit substitute
instruments and interest income from Philippine currency bank deposits of
employees' trust/trusteed private employees retirement plans.
See issuances on Republic Act No. 7279, otherwise known as the "Urban
Development and Housing Act of 1992" Revenue Regulations No. 9-93
(dated March 4, 1993) Re: Republic Act No. 7279 otherwise known as the
Urban Development and Housing Act of 1992, providing tax incentives to
Government-owned and Controlled Corporations and Local Government Units
as well as Private Sector Participating in Socialized Housing and Community
Mortgage Program; Revenue Regulations No. 11-97 (dated July 4, 1997) Re:
Revised Revenue Regulations implementing Republic Act No. 7279, otherwise
known as the Urban Development and Housing Act of 1992, Providing Tax
Incentives to Government-Owned or Controlled Corporations and Local
Government Units, as well as Private Sector Participating in Socialized
Housing and Community Mortgage Program, amending for the purpose
pertinent provisions of Sections 2, 4 and 5 of Revenue Regulations No. 9-93;
Revenue Regulations No. 17-2001 (dated October 5, 2001) Re: Revenue
Regulations Implementing the Provisions on Community Mortgage Program
(CMP) of Republic Act No. 7279, otherwise known as the "Urban
Development and Housing Act of 1992"; Revenue Memorandum Circular
Copyright 2015
11
12
13
14
Real Properties Considered as Ordinary Assets, Donor's Tax, Estate Tax and
Other Taxes including Documentary Stamp Tax Related to the Sale/Transfer of
Properties; and Revenue Memorandum Order No. 21-2003 (dated May 22,
2003) Re: Amending the Effectivity Clause of RMO No. 15-2003 dated May 8,
2003.
See issuances designating personnel of government offices as
withholding agents Revenue Regulations No. 1-87 (dated April 2, 1987)
Re: Regulations Implementing Executive Order No. 651 Requiring
Government Offices, Agencies and Instrumentalities to Comply Strictly with
the Laws and Regulations on Withholding of Taxes, Designating the
Appropriate Withholding Agents For Such Purpose, and Fixing Official
Responsibility Therefore; Revenue Regulations No. 6-96 (dated March 13,
1996) Re: Amendments to Revenue Regulations No. 1-87 Designating
Personnel of Government Offices as Withholding Agents and Fixing Official
Responsibilities, in Relation to Executive Order No. 651; Revenue
Regulations No. 10-97 (dated July 1, 1997) Re: Amendments to Revenue
Regulations No. 1-87, Designating Personnel of Government Offices as
Withholding Agents and Fixing Official Responsibilities, in Relation to
Executive Order No. 651; Revenue Memorandum Circular No. 40-2001
(issued September 25, 2001) Re: Publishing the Full Text of Department of
Interior and Local Government (DILG) Circular No. 99-151 dated August 14,
1999 Re: Implementation of the Withholding Tax System; Revenue
Memorandum Order No. 14-98 (effective December 10, 1997) Re:
Prescribing the Policies and Procedures to Implement Revenue Regulations
No. 10-97 Amending Revenue Regulations No. 1-87, in Relation to Executive
Order No. 651, Re: Designation of Government Officials as Withholding
Agents; and Revenue Memorandum Order No. 70-98 (effective July 27,
1998) Re: Amending Pertinent Provisions of Revenue Memorandum Order No.
14-98 Prescribing the Policies and Procedures to Implement Revenue
Regulations No. 10-97 Amending Revenue Regulations No. 1-87, in Relation
to Executive Order No. 651, Re: Designation of Government Officials as
Withholding Agents.
See issuances on withholding of taxes on certain money payments of
government offices, agencies and instrumentalities Revenue
Regulations No. 4-83 (dated March 15, 1983) Re: Revised regulations
implementing Republic Act No. 1051; Revenue Regulations No. 20-86
(effective October 13, 1986) Re: Revised Regulations amending Revenue
Copyright 2015
15
16
17
Republic Act No. 7497, "An Act Amending Pertinent Provisions of the
National Internal Revenue Code, as amended, relative to the Final Withholding
Tax on Purely Compensation Income"; Revenue Regulations No. 18-93 (dated
October 25, 1993) Re: Amending Further Revenue Regulations No. 5-85, as
amended by Revenue Regulations No. 3-93; Revenue Regulations No. 1-98
(effective April 8, 1998) Re: Re-Defining the Term "Large Taxpayers",
Modifying the Criteria for Determining Large Taxpayers, and Prescribing the
Time, Place and Manner of Filing of Tax Returns and Payment of Taxes by
Large Taxpayers Amending Further RR No. 12-93, as Amended by RR 3-94;
Revenue Regulations No. 6-2001 (dated July 31, 2001) Re: Amending
Pertinent Provisions of Revenue Regulations Nos. 1-98, 2-98, as Amended, and
7-95, as Amended, and Revenue Memorandum Circular No. 1-98 Relative to
the Inclusion of Additional Taxpayers to be Subject to Final Withholding Tax,
Revision of the Withholding Tax Rates on Certain Income Payments Subject to
Creditable Withholding Tax, Time for the Filing of Various Tax Returns and
Payment of the Taxes Due Thereon And Others; Revenue Regulations No.
9-2001 (dated August 3, 2001) Re: Electronic Filing of Tax Returns and
Payment of Taxes; and subsequent amendments made by Revenue
Regulations No. 2-2002 (dated March 5, 2002) Re: Amending the Coverage of
the Electronic Filing and Payment System (EFPS) By Making It Mandatory for
Large Taxpayers and Optional for Certain Identified Non-Large Taxpayers to
Avail of the EFPS in the Filing of Their Tax Returns and the Payment of Taxes
Due Thereon; Revenue Regulations No. 9-2002 (dated June 28, 2002) Re:
Amending Further Revenue Regulations No. 9-2001, as Amended by Revenue
Regulations No. 2-2002, Implementing Filing of Tax Returns and Payment of
Taxes thru the Electronic Filing and Payment System (EFPS) and likewise
amending partly RR No. 1-98; Revenue Regulations No. 26-2002 (dated
December 5, 2002) Re: Amending Further Revenue Regulations No. 9-2001,
as Amended by Revenue Regulations No. 2-2002 and Revenue Regulations
No. 9-2002, Providing for the Staggered Filing of Returns of Taxpayers
Enrolled in the Electronic Filing and Payment System (EFPS) Based on
Industry Classification; Revenue Regulations No. 5-2004 (dated April 26,
2004) Re: Amending Further Revenue Regulations (RR) No. 9-2001, as
Amended by RR No. 2-2002, RR No. 9-2002 and RR No. 26-2002, Providing
for Additional Tax Returns/Forms Which Shall be Filed thru the Electronic
Filing and Payment System (EFPS), Revising the Requirements for Enrollment
of Taxpayers, and Expanding the Coverage Thereof to Include the Top 10,000
Private Corporations Duly Identified Under RR No. 17-2003; Revenue
Copyright 2015
18
Regulations No. 10-2007 (dated July 18, 2007) Re: Amends further Section 3
of RR No. 9-2001 expanding the coverage of taxpayers required to file returns
and pay taxes through the Electronic Filing and Payment System; Revenue
Regulations No. 3-2009 (dated February 9, 2009) Re: Amending Further
Revenue Regulations (RR) No. 9-2001, As Amended by RR No. 2-2002, RR
No. 9-2002, RR No. 26-2002, RR No. 5-2004, and RR No. 10-2007 Expanding
the EFPS Coverage to Include the Top 20,000 Private Corporations Duly
Identified Under RR No. 14-2008; and Revenue Regulations No. 1-2010
(dated January 21, 2010) Re: Amending Further Section 3 of Revenue
Regulations (RR) No. 9-2001, as Last Amended by RR No. 10-2007,
Expanding the Coverage of Taxpayers Required to File Returns and Pay Taxes
Through the Electronic Filing and Payment System (EFPS) of the Bureau of
Internal Revenue; Revenue Regulations No. 12-2001 (dated September 7,
2001) Re: Amendment to the Pertinent Provisions of Revenue Regulations No.
1-98, as Amended, Revenue Regulations No. 2-98, as Amended, and Revenue
Regulations No. 6-2001, Relative to the Revision of Withholding Tax Rates on
Certain Income Payments Subject to Withholding Tax, the Deferment of the
New Deadline Dates For Filing Selected Tax Returns, the Reporting
Requirements for Recipients of Talent Fees, and for Other Purposes; Revenue
Regulations No. 17-2010 (dated November 26, 2010) Re: Consolidated
Regulations Implementing Republic Act No. 7646, An Act Authorizing the
Commissioner of Internal Revenue to Prescribe the Place for Payment of
Internal Revenue Taxes by Large Taxpayers and Prescribing the Coverage and
Criteria for Determining Large Taxpayers; Revenue Regulations No. 1-2013
(dated January 23, 2013) Re: Further Expands the Coverage of Taxpayers
Required to File Tax Returns and Pay Taxes Through the Electronic Filing and
Payment System (eFPS) to Include National Government Agencies (NGAs)
Mandatorily Required to Use the Electronic Tax Remittance Advice (eTRA);
Revenue Memorandum Circular No. 42-85 (dated October 16, 1985) Re:
Publishing the New BIR Form No. 1743-w, Revising BIR Forms W-1A, W-1,
1743-A1, 1743-A and 1743-C; Revenue Memorandum Circular No. 28-92
(dated June 2, 1992) Re: Publishing the full text of Republic Act No. 7497,
otherwise known as the "Finality of the Withholding Tax on Purely
Compensation Income"; and Revenue Memorandum Circular No. 3-98
(dated January 14, 1998) Re: Clarification on the Schedule of
Payment/Remittance of Taxes Withheld on Compensation, Creditable
Expanded Withholding Tax and Final Tax.
Copyright 2015
19
20
attachment to the Annual Information Return (BIR Form No. 1604-CF and
1604-E) filed in diskette form by Large Taxpayers, Excise Taxpayers and other
Taxpayers/Withholding Agents (WAs) whose number of Employees or Income
Payees are fifty (50) or more and other taxpayers WAs who opted to file in
diskette; and Revenue Regulations No. 7-2000 (dated June 16, 2000) Re:
Amending Revenue Regulations No. 2-98.
See other issuances on compensation income Revenue Regulations
No. 3-2001 (dated April 3, 2001) Re: Granting Moratorium on the Withholding
of Income Tax On the Compensation Income of Public Elementary and
Secondary School Teachers Employed by the National Government; Revenue
Memorandum Circular No. 28-82 (dated December 22, 1982) Re: Treatment
of fixed or variable transportation, representation and other allowances, and
extension of time to furnish BIR Form W-2; Revenue Memorandum
Circular No. 1-83 (dated January 4, 1983) Re: Modification of Revenue
Memorandum Circular No. 28-82 regarding Treatment of Fixed or Variable
Transportation, representation and other allowances; Revenue Memorandum
Circular No. 16-83 (dated May 31, 1983) Re: Treatment of Fixed or Variable
Transportation, Representation/Entertainment and Other Allowances under
Sec. 2(c) of Revenue Regulations No. 6-82; Revenue Memorandum Circular
No. 15-87 (dated April 1, 1987) Re: Tax treatment of subsistence, clothing and
quarters allowances paid to the personnel of the Armed Forces of the
Philippines (AFP); Revenue Memorandum Circular No. 83-91 (dated
November 12, 1991) Re: Publishing the Resolution of the Supreme Court in
the case of "Commissioner of Internal Revenue vs. The Court of Appeals and
Efren P. Castaeda", G.R. No. 96016 promulgated October 17, 1991, Re:
non-taxability of terminal leave pay received by officials/employees retiring
from the government service; Revenue Memorandum Circular No. 50-92
(dated November 25, 1992) Re: Tax Treatment of Loyalty Cash Award;
Revenue Memorandum Circular No. 23-2001 (dated May 22, 2001) Re: An
Act Exempting from Tax Certain Allowances and Benefits Granted to the
Members of the Armed Forces of the Philippines; Revenue Memorandum
Circular No. 21-2010 (dated March 8, 2010) Re: Reiteration of the Applicable
Penalties for Employers Who Fail to Withhold, Remit, Do the Year-End
Adjustment and Refund Employees of the Excess Withholding Taxes on
Compensation; Revenue Memorandum Circular No. 27-2011 (dated July 1,
2011) Re: Revocation of BIR Ruling Nos. 002-99, DA-184-04, DA-569-04 and
DA-087-06; Revenue Memorandum Circular No. 39-2012 (dated August 3,
Copyright 2015
21
22
68-91 (dated July 26, 1991) Re: Grant of Personnel Economic Relief
Allowance (PERA) To All Employees Of The Government; Revenue
Memorandum Circular No. 15-92 (dated March 11, 1992) Re: Tax Treatment
of Personnel Economic Relief Allowance (PERA); Revenue Memorandum
Circular No. 46-92 (dated October 2, 1992) Re: Recomputation of Income
Tax for 1991 for purposes of the credit/refund of excess withholding tax; and
Revenue Memorandum Circular No. 1-95 (dated January 18, 1995) Re:
Second Year Implementation Of The New Salary Schedule In The
Government.
See issuances on private retirement benefit plan Revenue
Regulations No. 1-68 (dated March 25, 1968) Re: Private Retirement Benefit
Plan Regulations; Revenue Regulations No. 1-83 (dated October 28, 1982)
Re: Amendments to Revenue Regulations No. 1-68 or the Private Retirement
Benefit Plan Regulations; Revenue Regulations No. 11-2001 (dated
September 3, 2001) Re: Amendments to Revenue Regulations No. 1-68, as
amended by Revenue Regulations No. 1-83, otherwise known as the Private
Retirement Benefit Plan Regulations; Revenue Memorandum Circular No.
10-83 (dated February 22, 1983) Re: Clarification on the amendments by
Revenue Regulations No. 1-83 of Revenue Regulations No. 1-68 otherwise
known as the Private Retirement Benefit Plan Regulations; Revenue
Memorandum Order No. 9-93 (effective October 15, 1993) Re: Prescribing
the guidelines and procedures in the processing of claims for tax credit or
refund of the then 15%, now 20% final income tax withheld from interest
income/yield from deposit substitute instruments and interest income from
Philippine currency bank deposits of employees' trust/trusteed private
employees retirement plans; and Revenue Memorandum Circular No.
39-2014 (dated May 12, 2014) Re: Clarifying the Tax Treatment of Payouts by
Employee Pension Plans.
See issuances on Special Purpose Vehicle Revenue Regulations No.
6-2004 (dated March 31, 2004) Re: Implementing The Tax Exemptions and
Privileges Granted Under Republic Act No. 9182, Otherwise Known As "The
Special Purpose Vehicle (SPV) Act of 2002"; and Revenue Regulations No.
9-2005 (effective March 19, 2005) Re: Amending Pertinent Provisions of
Revenue Regulations (RR) No. 06-04 Relative to the Tax Exemptions and
Privileges Granted Under Republic Act No. 9182, Otherwise Known As "The
Special Purpose Vehicle (SPV) Act of 2002 (the "Act")".
Copyright 2015
23
See new law and issuances on "Senior Citizens Act" Republic Act
No. 9257 entitled "An Act Granting Additional Benefits and Privileges to
Senior Citizens Amending for the Purpose Republic Act No. 7432, Otherwise
Known as "An Act to Maximize the Contribution of Senior Citizens to Nation
Building, Grant Benefits and Special Privileges and for Other Purposes"
(approved February 26, 2004); Republic Act No. 9994 entitled "An Act
Granting Additional Benefits And Privileges To Senior Citizens, Further
Amending Republic Act No. 7432, As Amended, Otherwise Known As 'An
Act To Maximize The Contribution Of Senior Citizens To Nation Building,
Grant Benefits And Special Privileges And For Other Purposes'" (approved
February 15, 2010); Revenue Regulations No. 4-2006 (dated December 2,
2005) Re: Implementing the Tax Privileges Provisions of Republic Act No.
9257, otherwise known as the "Expanded Senior Citizens Act of 2003", and
Prescribing the Guidelines for the Availment Thereof; Revenue Regulations
No. 1-2007 (dated December 4, 2006) Re: Amending Revenue Regulations No.
4-2006 Implementing the Tax Privileges Provisions of R.A. No. 9257,
Otherwise Known as the expanded Senior Citizens Act of 2003; Revenue
Regulations No. 7-2010 (dated July 20, 2010) Re: Implementing the Tax
Privileges Provisions of Republic Act No. 9994, Otherwise Known as the
"Expanded Senior Citizens Act of 2010", and Prescribing the Guidelines for
the Availment Thereof; Revenue Regulations No. 8-2010 (dated September 3,
2010) Re: Amending Revenue Regulations No. 7-2010 Implementing the Tax
Privileges Provisions of R.A. No. 9994, Otherwise Known as the "Expanded
Senior Citizens Act of 2010"; Revenue Memorandum Circular No. 45-2010
(dated June 2, 2010) Re: Circularizing Section 4 of Republic Act No. 9994, An
Act Granting Additional Benefits and Privileges to Senior Citizens, Further
Amending Republic Act No. 7432, as Amended, Otherwise Known as "An Act
to Maximize the Contribution of Senior Citizens to Nation Building, Grant
Benefits and Special Privileges and for Other Purposes"; and Revenue
Memorandum Circular No. 38-2012 (dated August 3, 2012) Re: Questions
and Answers Further Clarifying the Provisions of Revenue Regulations (RR)
No. 7-2010, as amended by RR No. 8-2010, Implementing the Tax Privileges
Provisions of Republic Act (RA) No. 9994, Otherwise Known as the
"Expanded Senior Citizens Act of 2010".
See issuances on Managerial and Technical Positions of Filipino
personnel employed by Regional or Area Headquarters (RHQs) and
Regional Operating Headquarters (ROHQs) of multinational companies
Copyright 2015
24
Revenue Regulations No. 11-2010 (dated October 26, 2010) Re: Further
Clarifying the Term "Managerial and Technical Positions" Under Section
2.57.1 (D) of Revenue Regulations (RR) No. 2-98, as Amended, by RR No.
12-2001, Implementing Section 25 (C) of the National Internal Revenue Code
of 1997 (Tax Code), as Amended and Modifying for this Purpose Revenue
Memorandum Circular (RMC) No. 41-09 Including Guidelines on Availment
of the Fifteen Percent (15%) Preferential Income Tax Rate for Qualified
Filipino Personnel Employed by Regional or Area Headquarters (RHQs) and
Regional Operating Headquarters (ROHQs) of Multinational Companies;
Revenue Memorandum Circular No. 41-2009 (dated July 23, 2009) Re:
Clarifying the Meaning of the Term "Managerial and Technical Positions"
under Section 25 (C) of the Tax Code of 1997, as Amended, and for Other
Purposes; Revenue Memorandum Circular No. 82-2010 (dated November 5,
2010) Re: Clarification on the Filing of BIR Form No. 1947 Pursuant to the
Provisions of Revenue Regulations No. 11-2010 Dated October 28, 2010
Clarification on the Filing of BIR Form No. 1947 Pursuant to the Provisions of
Revenue Regulations No. 11-2010 Dated October 28, 2010; and Revenue
Memorandum Circular No. 85-2010 (dated November 12, 2010) Re: Grace
Period on Filing of BIR Form No. 1947 Pursuant to the Provisions of Revenue
Regulations No. 11-2010 Dated October 28, 2010 and Revenue Memorandum
Circular No. 82-2010 Dated November 5, 2010.
See issuances related to General Professional Partnerships - Revenue
Memorandum Circular No. 6-2003 (dated January 15, 2003) Re: Clarifying
Certain Issues Relative to the Services Rendered by Individual Professional
Practitioners, General Professional Partnerships, Entertainers, and Professional
Athletes Who Are Subject to the Value-Added Tax or Percentage Tax,
Whichever is Applicable, Beginning January 1, 2003; Revenue Memorandum
Circular No. 3-2012 (dated January 11, 2012) Re: Tax Implications of General
Professional Partnership; Revenue Memorandum Circular No. 89-2012
(dated December 27, 2012) Re: Clarifying the Tax Implications and Recording
of Deposits/Advances Made by Clients of General Professional Partnerships
for Expenses; Revenue Memorandum Circular No. 16-2013 (dated February
8, 2013) Re: Clarifying the Tax Implications and Recording of
Deposits/Advances for Expenses Received by Taxpayers Not Covered by
Revenue Memorandum Circular No. 89-2012; and Revenue Memorandum
Circular No. 60-2014 (dated July 24, 2014) Re: Clarification on the
Applicability of Revenue Memorandum Circular (RMC) No. 8-2014 to
Copyright 2015
25
26
27
28
29
30
31
32
33
34
10
Income tax rates (Rates of income tax on individual citizen and individual
resident alien of the Philippines).
11
12
xxx
xxx
(6) 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 Code (i.e. the authority of the
Commissioner to prescribe the real property values), whichever is higher Six
percent (6%).
In case of dispositions of real property made by individuals to the
government or any of its political subdivisions or agencies or to
government-owned or controlled corporations, the tax to be imposed shall be
determined either under Section 24(A) of the Code for normal income tax for
individual citizens and residents or under Section 24(D)(1) of the Code for the
final tax on capital gains from sale of property at six percent (6%), at the option
of the taxpayer.
xxx
xxx
xxx
35
xxx
xxx
(6) The rate of six percent (6%) shall be imposed on capital gains
presumed to have been realized by the seller from the sale, exchange or other
disposition of real properties 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
Section 6(E) of the Code (i.e., the authority of the Commissioner to prescribe
the real property values), whichever is higher.
In case of disposition of real property made by individuals to the
government or to any of its political subdivisions or agencies or to
government-owned or -controlled corporations, the tax to be imposed shall be
determined either under the normal income tax rate imposed in Section 24(A)
or under a final capital gains tax of six percent (6%) imposed under
Section 24(D)(1), both of the Tax Code of 1997, at the option of the taxpayer.
13
14
15
16
18
19
Copyright 2015
36
xxx
xxx
xxx
xxx
(3) 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 Code (i.e. the authority of the
Commissioner to prescribe zonal values), whichever is higher Six percent
(6%).
In case of dispositions of real property made by individuals to
government or any of its political subdivisions or agencies or to
government-owned or controlled corporations, the tax to be imposed shall be
determined either under Section 24(A) of the code for the normal rate of income
tax for individual citizens and residents or under Section 24(D)(1) of the Code
for the final tax on capital gains from sale of property at six percent (6%), at the
option of the taxpayer.
20
21
22
Section 2.57.1 (C) - Income Derived from All Sources Within the Philippines by a
Copyright 2015
37
Non-resident Alien Individual Not Engaged in Trade or Business Within the Philippines
23
xxx
xxx
xxx
xxx
(2) 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 Code (i.e. the authority of the
Commissioner to prescribe the real property values), whichever is higher Six
percent (6%).
In case of dispositions of real property made by individuals to
government or any of its political subdivisions or agencies or to
government-owned or controlled corporations, the tax to be imposed shall be
determined either under Sec. 24(a) of the Code for the rates of income tax for
individual citizens and residents or under Sec. 24(D)(1) of the Code for the final
tax on capital gains from sale of property at six percent (6%), at the option of
the taxpayer.
38
24
xxx
xxx
xxx
xxx
39
See also Republic Act No. 8756 entitled "An Act Providing For The
Terms, Conditions And Licensing Requirements Of Regional Or Area
Headquarters, Regional Operating Headquarters, And Regional Warehouses Of
Multinational Companies, Amending For The Purpose Certain Provisions Of
Executive Order No. 226, Otherwise Known As The Omnibus Investments
Code Of 1987" (dated November 23, 1999).
See futher clarificatory
Regulations No. 11-2010.
25
regulations
onthis
provision,
Revenue
Section 2.57.1 (E) - Income Derived by Alien Individuals Employed by Offshore Banking
Units
26
xxx
xxx
40
withheld by the withholding agent from the gross income of alien individuals
occupying managerial or technical positions in offshore banking units
established in the Philippines, as salaries, wages, annuities, compensations,
remuneration and other emoluments such as honoraria and allowances, received
from such offshore banking units.
The same tax treatment shall apply to Filipinos employed and occupying
the same positions as those of aliens who are employed by these offshore
banking units.
Section 2.57.1 (F) - Income of Aliens Employed by Foreign Petroleum Service Contactors
and Subcontractors
27
xxx
xxx
29
Copyright 2015
41
30
xxx
xxx
31
See Revenue Regulations No. 8-98 and Revenue Memorandum Order No.
92-98. See also Revenue Memorandum Order No. 66-99, Revenue
Memorandum Order No. 13-2001; and Revenue Regulations No. 4-99.
32
34
35
36
37
38
Section 2.57.1 (J) - Fringe Benefits Granted to the Employee (Except Rank and File
Employee)
Copyright 2015
42
39
Section 2.57.2 - Income Payment Subject to Creditable Withholding Tax and Rates
Prescribed Thereon
40
Copyright 2015
See amendments made by Revenue Regulations No. 8-98 (dated August 25,
1998) Re: Revenue Regulations Amending Pertinent Portions of Revenue
Regulations Nos. 11-96 and 2-98 Relative to the Tax Treatment on the Sale,
Transfer or Exchange of Real Property and for this Purpose Revising the Time
and Place of Payment of the Capital Gains Tax Due Thereon; Revenue
Regulations No. 12-98 (dated August 14, 1998) Re: Amending Section 2.57.2
of Revenue Regulations No. 2-98; Revenue Regulations No. 3-99 (dated
January 22, 1999) Re: Further Amending Section 2 of Revenue Regulations
No. 12-98; Revenue Regulations No. 6-2001 (dated July 31, 2001) Re:
Amending Pertinent Provisions of Revenue Regulations Nos. 1-98, 2-98, as
Amended, and 7-95, as Amended, and Revenue Memorandum Circular No.
1-98 Relative to the Inclusion of Additional Taxpayers to be Subject to Final
Withholding Tax, Revision of the Withholding Tax Rates on Certain Income
Payments Subject to Creditable Withholding Tax, Time for the Filing of
Various Tax Returns and Payment of the Taxes Due Thereon And Others;
Revenue Regulations No. 12-2001 (issued September 7, 2001) Re:
Amendment to the Pertinent Provisions of Revenue Regulations No. 1-98, as
Amended, Revenue Regulations No. 2-98, as Amended, and Revenue
Regulations No. 6-2001, Relative to the Revision of Withholding Tax Rates on
Certain Income Payments Subject to Withholding Tax, the Deferment of the
New Deadline Dates For Filing Selected Tax Returns, the Reporting
Requirements for Recipients of Talent Fees, and for Other Purposes; Revenue
Regulations No. 14-2002 (dated September 9, 2002) Re: Amending Further
Pertinent Provisions of Revenue Regulations No. 2-98, as amended; Revenue
Regulations No. 19-2002 (dated October 11, 2002) Re: Amending Revenue
Regulations No. 3-2002 and Further Amending Section 2.83 of Revenue
Regulations No. 2-98 as Amended, Relative to Substituted Filing of Income
Tax Return of Employees Receiving Purely Compensation Income from Only
One Employer for One Taxable Year Whose Tax Due is Equal to Tax Withheld
and Individual-Payees Whose Compensation Income is Subject to Final
Withholding Tax; Revenue Regulations No. 17-2003 (dated March 31, 2003)
Re: Amending Further Pertinent Provisions of Revenue Regulations No. 2-98,
as Amended, Providing for Additional Transactions Subject to Creditable
CD Technologies Asia, Inc. and Accesslaw, Inc.
43
Withholding Tax; Re-Establishing the Policy that the Capital Gains Tax on the
Sale, Exchange or Other Disposition of Real Property Classified as Capital
Assets Shall be Collected as a Final Withholding Tax, Thereby Further
Amending Revenue Regulations Nos. 8-98 and 13-99, as Amended by
Revenue Regulations No. 14-2000; and for Other Purposes; Revenue
Regulations No. 30-2003 (dated November 12, 2003) Re: Amending Further
Pertinent Provisions of Revenue Regulations No. 2-98, as Last Amended by
Revenue Regulations No. 17-2003, and Revenue Regulations No. 8-98, as
Amended, Providing for the Imposition of Final Withholding Tax on the Sale,
Exchange or Other Disposition of Real Property Classified as Capital Assets by
Non-resident Aliens, Increasing the Withholding Tax Rates on Certain Income
Payments, Inclusion of Certain Income Payments, Sanctions to be Imposed on
Payees Who Refuse the Withholding of Tax on Their Income/Receipts, and for
Other Purposes; Revenue Regulations No. 1-2004 (dated January 14, 2004)
Re: Amending Further Sec. 2.57.2(S) of Revenue Regulations No. 2-98, as
Last Amended By Revenue Regulations No. 30-2003, Exempting Marginal
Income Earners From Creditable Withholding Tax on Payments Made By
Hotels, Restaurants, Resorts, Caterers, Food Processors, Canneries,
Supermarkets, Livestock, Poultry, Fish and Marine Product Dealers,
Hardwares, Factories, Furniture Shops, and All Other Establishments;
Revenue Regulations No. 3-2004 (dated March 1, 2004) Re: Suspending the
implementation of withholding tax on income payments made to suppliers of
agricultural products under Section 2.57.2(S) of Revenue Regulations 2-98, as
amended by RR 17-2003, further amended by RR 30-2003 and 1-2004;
Revenue Regulations No. 8-2005 (dated February 23, 2005) Re: Amending
further pertinent provisions of Revenue Regulations No. 2-98, as last amended
by Revenue Regulations 3-2004, as Amended, providing for the inclusion of
Income Payments subject to Creditable Withholding Tax under Section
2.57.2(U) on Manila Electric Company (MERALCO) Refund arising from
Supreme Court Case G.R. No. 14814 of April 9, 2003 to Customers under
Phase IV as approved by Energy Regulatory Commission (ERC); Revenue
Regulations No. 2-2009 (dated February 4, 2009) Re: Amending Further Secs.
2.57.2 and 2.58 of Revenue Regulations No. 2-98, as Amended, Subjecting to
Creditable Withholding Tax the Interest Portion of the Refund of Meter
Deposits by MERALCO and Other Distribution Utilities to Residential and
Non-Residential Electricity Consumers/Customers; Revenue Regulations No.
8-2009 (dated October 22, 2009) Re: Amending Further Secs. 2.57.2 and
2.57.3 of Revenue Regulations No. 2-98, as Amended, Subjecting to Creditable
Copyright 2015
44
Copyright 2015
45
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
xxx
xxx
46
estate consultants, real estate appraisers and real estate brokers) requiring
government licensure examination given by the Real Estate Service
pursuant to Republic Act No. 9646 and all other profession requiring
government licensure examination regulated by the Professional Regulations
Commission, Supreme Court, etc. . . .
xxx
xxx
xxx
Copyright 2015
(1)
(2)
Professional entertainers, such as, but not limited to, actors and
actresses, singers, lyricist, composers and emcees;
(3)
(4)
(5)
(6)
47
(7)
(8)
(9)
xxx
xxx
48
xxx
xxx
xxx
(2)
Professional entertainers, such as, but not limited to, actors and
actresses, singers and emcees Twenty percent (20%), if the
professional entertainer's gross income for the current year
exceeds P720,000; and Ten percent (10%), if otherwise;
(3)
(4)
(8)
Copyright 2015
xxx
xxx
xxx
49
xxx
xxx
Copyright 2015
xxx
xxx
50
(2)
Professional entertainers, such as, but not limited to, actors and
actresses, singers and emcees Twenty percent (20%)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
51
not only fees, but also per diems, allowances and any other form of income
payments. In the case of professional entertainers, athletes, and all recipients of
talent fees, the amounts subject to withholding tax shall also include amounts
paid to them in consideration for the use of their names or pictures in print,
broadcast, or other media or for public appearances, for purposes of
advertisements or sales promotion;
xxx
xxx
xxx
Section 2.57.2 (B) - Professional Fees, Talent Fees, etc. for Services of Taxable Juridical
Persons
42
xxx
xxx
(B) Professional fees, talent fees, etc. for services of taxable juridical
persons On the gross professional, promotional and talents fees, or any other
form of remuneration enumerated in the preceding subparagraph for the services
of taxable juridical persons Five percent (5%).
xxx
xxx
xxx
xxx
xxx
(B) Professional fees, talent fees, etc. for services of taxable juridical
persons On the gross professional, promotional and talents fees, or any other
form of remuneration enumerated in the preceding subparagraph for the services
Copyright 2015
52
xxx
xxx
xxx
xxx
xxx
xxx
(C) Rentals
(1) Real properties. On gross rental for the
continued use or possession of real property used in business
which the payor or obligor has not taken or is not taking title,
or in which he has no equity Five percent (5%);
(2) Personal properties. On gross rental or lease
in excess of Ten Thousand Pesos (P10,000.00) per payment
for the continued use or possession of personal property
used in business which the payor or obligor has not taken
or is not taking title, or in which he has no equity which
Copyright 2015
53
xxx
xxx
Copyright 2015
54
Original text:
Section 2.57.2. Income Payments Subject to Creditable Withholding Tax
and Rates Prescribed Thereon. Except as herein otherwise provided, there
shall be withheld a creditable income tax at the rates herein specified for each
class of payee from the following items of income payments to persons residing
in the Philippines:
xxx
xxx
xxx
(2)
Copyright 2015
(a)
Reclamation works;
(b)
Railroads;
(c)
(d)
Tunnels;
(e)
(f)
(g)
(h)
(i)
Land leveling;
(j)
Excavating;
(k)
Trenching;
(l)
Paving; and
(m)
Surfacing work.
General
Building
contractors
Those
whose
principal
55
contracting business is in connection with any structure built, for the support,
shelter and enclosure of persons, animals, chattels, or movable property of any
kind, requiring in its construction the use of more than two unrelated building
trades or crafts, or to do or superintend the whole or any part thereto. Such
structure includes sewers and sewerage disposal plants and systems, parks,
playgrounds, and other recreational works, refineries, chemical plants and
similar industrial plants requiring specialized engineering knowledge and skills,
powerhouse, power plants and other utility plants and installation, mines and
metallurgical plants, cement and concrete works in connection with the
above-mentioned fixed works.
(3) Specialty Contractors Those whose operations pertain to the
performance of construction work requiring special skill and whose principal
contracting business involves the use of specialized building trades or crafts.
cdasia
(4)
Copyright 2015
Other contractors
(a)
(b)
Operators of dockyards;
(c)
(d)
(e)
(f)
(g)
56
business agencies;
(h)
(i)
(j)
(k)
(l)
(m)
(n)
(o)
(p)
(q)
xxx
xxx
xxx
xxx
57
(2%)
xxx
(3)
Other contractors
xxx
xxx
xxx
(1)
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
Other contractors
xxx
xxx
xxx
58
xxx
xxx
xxx
xxx
Copyright 2015
(a)
Reclamation works;
(b)
Railroads;
(c)
(d)
Tunnels;
(e)
(f)
(g)
(h)
(i)
Land leveling;
(j)
Excavating;
(k)
Trenching;
59
(l)
Paving; and
(m)
Surfacing work.
Copyright 2015
Other contractors
(a)
(b)
Operators of dockyards;
(c)
(d)
Operators of stevedoring,
establishments;
(e)
(f)
warehousing
or
forwarding
60
(h)
(i)
Independent producers
performances or shows;
(j)
(k)
(l)
(m)
(n)
(o)
(p)
(q)
of
television,
radio
and
stage
45
See earlier provisions under Section 1(e)2(e), Revenue Regulations No. 6-85,
and subsequent amendments made by Revenue Regulations Nos. 8-85 and
13-86.
46
47
Copyright 2015
61
49
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
Copyright 2015
62
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
Copyright 2015
63
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
64
c)
xxx
xxx
xxx
xxx
xxx
xxx
...
xxx
xxx
65
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
66
shall be withheld a creditable income tax at the rates herein specified for each
class of payee from the following items of income payments to persons residing
in the Philippines:
xxx
xxx
xxx
xxx
xxx
xxx
67
xxx
xxx
xxx
xxx
xxx
xxx
Copyright 2015
68
1.
2.
b)
c)
Hospitals and clinics shall submit the names and addresses of medical
practitioners in the following classifications, every 15th day after the
end of each calendar quarter, to the Collection Division of the Revenue
Region where such hospital or clinic is located, using "Annex A" [i.e.,
as indicated in Revenue Regulations No. 3-99]:
(i)
(ii)
(iii)
(iv)
d)
e)
Copyright 2015
69
Tax Withheld at Source (BIR Form No. 2307) to medical practitioners who
were subjected to withholding, every 20th day following the close of the taxable
quarter. The names of medical practitioners shall be included in the
Alphabetical List of Income Recipients attached to the Annual Information
Return (BIR Form No. 1604).
xxx
xxx
"b)
"2.
"c)
Copyright 2015
70
Copyright 2015
"i.
"ii.
"iii.
"iv.
"d)
"e)
71
xxx
xxx
72
xxx
xxx
73
Exempt
1.5%
3.0%
5.0%
Gross selling price shall mean the consideration stated in the sales
document or the fair market value determined in accordance with Section 6 (E)
of the Code, as amended, whichever is higher. In an exchange, the fair market
value of the property received in exchange, as determined in the Income Tax
Regulations shall be used.
Where the consideration or part thereof is payable on installment, no
withholding of tax is required to be made on the periodic installment payments
where the buyer is an individual not engaged in trade or business. In such a case,
the applicable rate of tax based on the entire consideration shall be withheld on
the last installment or installments to be paid to the seller.
However, if the buyer is engaged in trade or business, whether a
corporation or otherwise, the tax shall be deducted and withheld by the buyer on
every installment.
xxx
Copyright 2015
xxx
xxx
74
xxx
xxx
1.5%
With a selling price of more than Five Hundred Thousand Pesos
(P500,000.00) but not more than Two Million Pesos
(P2,000,000.00)
3.0%
With a selling price of more than Two Million Pesos
(P2,000,000.00)
5.0%
C.
6.0%
Copyright 2015
75
76
See earlier provision under Section 1(l), Revenue Regulations No. 6-85, and
subsequent amendments made by Revenue Regulations Nos. 4-91, 6-94, 7-94,
8-94, and 12-94.
Section 2.57.2 (L) - Certain Income Payments Made by Credit Card Companies
54
xxx
xxx
77
the gross amounts paid by any credit card company in the Philippines to any
business entity, whether a natural or juridical person, representing the sales of
goods/services made by the aforesaid business entity to cardholders One half
percent (1/2%);
xxx
xxx
xxx
See earlier provision under Section 1(m), Revenue Regulations No. 6-85,
and subsequent amendments made by Revenue Regulations Nos. 6-94, 7-94,
8-94, 12-94, and 16-94.
Section 2.57.2 (M) - Income Payments Made by the Top Twenty Thousand (20,000)
Corporations
55
xxx
xxx
Copyright 2015
(1)
(2)
78
(3)
(4)
xxx
xxx
xxx
xxx
(M) Income payments made by the top twenty thousand (20,000) private
corporations to their local/resident supplier of goods and local/resident
supplier of services other than those covered by other rates of withholding tax.
Income payments made by any of the top 20,000 private corporations, as
determined by the Commissioner, to their local/resident supplier of goods and
local/resident supplier of services, including non-resident aliens engaged in
trade or business in the Philippines. Provided, however, that for purchases
involving agricultural products in their original state, the tax required to
be withheld under, this sub-section shall only apply to purchases in excess
of the cumulative amount of Three Hundred Thousand Pesos (P300,000)
within the same taxable year. For this purpose, agricultural products in
their original state as used in these regulations, shall only include corn,
coconut, copra, palay, rice, cassava, sugar cane, coffee, fruits, vegetables,
marine food products, poultry and livestocks.
Supplier of goods
Copyright 2015
Supplier of services
79
d.
e.
f.
g.
year;
year;
year;
year.
Illustrative example for agricultural products:
Question: How do we compute the 1% expanded withholding tax
(EWT) on purchases of palay, an agricultural product, made by ABC
Corporation, included in the BIR's list of Top 20,000 Private Corporations,
from Mr. Ben Soriano, a small supplier/planter based on the following
information:
Number of
Transactions Year
Copyright 2015
Purchase Amount
One
2009
P 90,000.00
Two
2010
320,000.00
80
One
2011
400,000.00
One
2012
90,000.00
Answer:
1.
In 2009, the transaction is exempt from the 1% EWT since the
amount is less than P300,000.00.
2.
In 2010, only the amount in excess of P300,000.00 or
P20,000.00 shall be subject to the 1% EWT. Thus, the 1% EWT shall be
P200.00 (P20,000.00 x 1%).
3.
In 2011, the amount of P100,000.00 shall be subject to the 1%
EWT since the amount is in excess of the P300,000.00 threshold. Therefore,
the amount of P1,000.00 shall be withheld (P100,000.00 x 1%).
4.
In 2012, the transaction is exempt from the 1% EWT since the
amount involved is only P90,000.00 which is below the P300,000.00
threshold.
xxx
xxx
xxx
xxx
xxx
Copyright 2015
81
82
(for
83
(20,000) private corporations for purposes of these regulations but rather shall
be treated as one under the succeeding sub-section (N) since it is already
withholding 1% or 2% of the amount paid for the purchase of goods/services
from local/resident suppliers.
TAIESD
xxx
xxx
(M) Income payments made by the top ten thousand (10,000) private
corporations to their local/resident supplier of goods and local/resident
supplier of services other than those covered by other rates of withholding
tax. Income payments made by any of the top ten thousand (10,000)
private corporations, as determined by the Commissioner, to their
local/resident supplier of goods and local/resident supplier of services,
Copyright 2015
84
85
withholding tax.
A corporation shall not be considered a withholding agent for purposes
of this Section, unless such corporation has been determined and duly
notified, in writing, by the Commissioner that it has been selected as one of
the top ten thousand (10,000) private corporations.
Any corporation which has been duly classified and notified as large
taxpayer by the Commissioner pursuant to RR 1-98, as amended, shall be
automatically considered one of the top ten thousand (10,000) private
corporations, provided, however, that its authority as a withholding agent
shall be effective only upon receipt of written notice from the Commissioner
that it has been classified as a large taxpayer, as well as one of the top ten
thousand (10,000) private corporations, for purposes of these regulations.
Any corporation shall remain a withholding agent for purposes of
these regulations, unless the Commissioner notifies it in writing that it shall
cease to be one. The following, however, are some of the reasons that a
taxpayer shall automatically cease to be a withholding agent, and therefore
no prior written notice, for purposes of these Regulations, is required, to
wit:
a) closure/cessation of business/dissolution (for
taxpayer with notice of dissolution given to the BIR),
b) merger/consolidation (for dissolved or absorbed
corporation);
c) any other form of business combination wherein
by operation of law a corporate taxpayer loses its juridical
personality.
The withholding agent shall submit on a semestral basis a list of
regular suppliers of goods and/or services to the Large Taxpayers Assistance
Division/Large Taxpayers District Office in the case of large taxpayers duly
notified as such pursuant to RR 1-98, as amended, or Revenue District Office
having jurisdiction over the withholding agent's principal place of business on
or before July 31 or January 31 of each year.
A government-owned or controlled corporation previously classified
as one of the top five thousand (5,000) corporations under RR 14-94, as
amended, shall cease to be a withholding agent or included in the top ten
thousand (10,000) private corporations for purposes of these regulations but
Copyright 2015
86
rather shall be treated as one under the succeeding sub-section (N) since it
is already withholding two percent (2%) of the amount paid for the
purchase of goods/services from local/resident suppliers.
The Commissioner of Internal Revenue may recommend to the
Secretary of Finance the amendment/modification to any or all of the
criteria in the determination and selection of taxpayers forming part of the
top ten thousand (10,000) private corporations after considering such
factors as inflation, volume of business, and similar factors. Provided,
however, That the Commissioner is empowered to conduct periodic review
as to the number of taxpayers who ceased to qualify under the category of
top ten thousand private corporations for purposes of delisting them or
excluding them from the list and to identify taxpayers to be added to the list
of top 10,000 private corporations. The top ten thousand (10,000) private
corporations will be announced through the issuance of a Revenue
Memorandum Circular to be issued for this purpose.
All taxpayers previously included in the list of Top 5,000
Corporations under RR 12-94, as amended, shall continue to withhold the
one percent (1%) withholding tax (which shall become 1% for supplier of
goods and 2% for supplier of services upon the effectivity of these
Regulations) unless any of the following situations occur: (a) the
Commissioner communicates in writing that they have ceased to qualify as
taxpayers includible in the list of top ten thousand private corporations, or
(b) those officially identified to have ceased business operations, or
undergone any of the business combinations wherein by operation of law
the juridical personality of said taxpayers ceased.
xxx
xxx
xxx
xxx
xxx
87
See earlier provision under Section 1(n), Revenue Regulations No. 6-85,
and subsequent amendments made by Revenue Regulations Nos. 6-94, 7-94,
8-94, and 12-94.
See also Revenue Memorandum Circular No. 28-94 (dated January 29,
1994) Re: Creditable Withholding Tax on Income Payments by Top 5,000
Corporations.
Section 2.57.2 (N) - Income Payments Made by the Government to Its Local/Resident
Supplier of Goods and Local/Resident Supplier of Services Other than those Covered by
Other Rates of Withholding Tax
56
xxx
xxx
88
single purchase which is P10,000 and below, which are made by a government
office, national or local, including government-owned or controlled
corporations, on their purchases of goods from local suppliers One percent
(1%);
A government-owned or controlled corporation which is listed as one of
the top five thousand (5,000) corporations shall withhold the tax in its capacity
as a government-owned or controlled corporation rather than as one of the top
five thousand (5,000) corporations.
cdasia
xxx
xxx
xxx
xxx
xxx
xxx
xxx
89
xxx
xxx
xxx
xxx
xxx
See earlier provision under Section 1(n), Revenue Regulations No. 6-85,
and subsequent amendments made by Revenue Regulations Nos. 6-94, 7-94,
8-94, and 12-94.
Section 2.57.2 (O) - Commissions of Independent and/or Exclusive Sales
Representatives, and Marketing Agents of Companies
57
xxx
xxx
90
encourages the distributor to build and manage his own sales force by
recruiting, motivating, and training others to sell the product or service. A
percentage on the sales of the distributor's sales force would be his
compensation in addition to his personal sales.
'Multi-level marketing companies' means any entity that is engaged
in the sale of its products or services through individual that directly sell
such products or services to the consumers."
xxx
xxx
xxx
Copyright 2015
91
xxx
xxx
92
limited to, eels, trout, lobsters, shrimps, prawns, oysters, mussels and clams,
shells and other aquatic products.
xxx
xxx
xxx"
Section 2.57.2 (T) - Income Payments on Purchases of Minerals, Mineral Products and
Quarry Resources as Defined and Discussed in Section 151 of the Code
Copyright 2015
93
62
xxx
xxx.
Section 2.57.2 (T) of Rev. Regs. No. 2-98, as amended by Rev. Regs.
No. 17-2003, is hereby further amended to read as follows:
"(T) Income payments on purchases of minerals,
mineral products and quarry resources as defined and
discussed in Section 151 of the Code. Income payments on
purchases of minerals, mineral products and quarry resources
such as but not limited to silver, gold, marble, granite, gravel,
sand, boulders and other materials/products Ten percent
(10%)"
xxx
xxx
(U) MERALCO Refund arising from Supreme Court Case G.R. No.
14814 of April 9, 2003 to customers under Phase IV as approved by ERC
On gross amount of refund given by MERALCO to Customers with active
contracts as classified by MERALCO Twenty Five Percent (25%); To
Copyright 2015
94
Section 2.57.2 (V) - Interest Income on the Refund Paid either through Direct Payment or
Application Against Customers' Billings by Other Electric Distribution Utilities (DUs)
64
Section 2.57.2 (W) - Income Payments Made by the Top Five Thousand (5,000)
Individual Taxpayers to Their Local/Resident Suppliers of Goods and Local/Resident
Suppliers of Services Other than those Covered by Other Rates of Withholding Tax
65
xxx
xxx
Copyright 2015
95
xxx
xxx
"(W)
(2) 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 Five percent (5%).
Section 2.57.2 (Y) - Interest Income Derived from Any Other Debt Instruments
67
Section 2.57.2 (Z) - Income payments to Real Estate Investment Trust (REIT)
67-a Added by Section 2, Revenue Regulations No. 11-2014.
Section 2.57.2 (AA) - Income payments on locally produced raw sugar
67-b Added by Section 2, Revenue Regulations No. 11-2014.
Section 2.57.3 - Persons Required to Deduct and Withhold
68
Copyright 2015
(A)
(B)
96
xxx
xxx
xxx
xxx
97
Copyright 2015
98
(C) . . ."
99
Original text:
SECTION 2.57.4. Time of Withholding. The obligation of the payor
to deduct and withhold the tax under Section 2.57 of these regulations arises at
the time an income is paid or payable, whichever comes first, the term "payable"
refers to the date the obligation become due, demandable or legally enforceable.
See earlier provision under Section 3, Revenue Regulations No. 6-85 and
subsequent amendments thereto.
Section 2.57.5 - Exemption from Withholding
71
its
instrumentalities,
including
Copyright 2015
(1)
(2)
(3)
Corporations which are exempt from the income tax under Sec. 30
of the NIRC, to wit: the Government Service Insurance System
100
73
Entitled "An Act Providing for the Legal Framework and Mechanisms for the
Creation, Operation, Administration, and Coordination of Special Economic
Zones in the Philippines, Creating for this Purpose, the Philippine Economic
Zone Authority (PEZA), and for Other Purposes" (effective February 24,
1995).
74
EO 226 entitled "The Omnibus Investments Code Of 1987" (effective July 16,
1987).
75
See earlier provision under Section 2, Revenue Regulations No. 5-85, and
subsequent amendments made by Revenue Regulations Nos. 3-93 and 18-93;
and Revenue Memorandum Circular No. 42 -85.
See also Section 5, Revenue Regulations No. 8-98, Revenue
Copyright 2015
101
WHEN TO FILE
(a)
(b)
For large taxpayers , the filing of the return and the payment of
tax shall be made within twenty five (25) days after the end of
each month.
(c)
102
the prescribed form (BIR Form 2307) showing the income payments made and
the amount of taxes withheld therefrom, for every month of the quarter within
twenty (20) days following the close of the taxable quarter employed by the
payee in filing his/its quarterly income tax return. Upon request of the payee,
however, the payor must furnish such statement to the payee simultaneously
with the income payment. For final withholding taxes, the statement should be
given to the payee on or before January 31 of the succeeding year.
(C) Annual information return for income tax withheld at source.
The payor is required to file with the Commissioner, Revenue Regional
Director, Revenue District Officer, Collection Agent in the city or municipality
where the payor has his legal residence or principal place of business, where the
government office is located in the case of a government agency, on or before
January 31 of the following year in which payments were made, an Annual
Information Return of Income Tax Withheld at Source (Form No. 1604),
showing among others the following information:
(1)
(2)
xxx
xxx
xxx
xxx
103
Monthly Alphalist of Payees (MAP) (Annex "A") for each calendar quarter,
which shall be electronically attached to the monthly remittance return of the
calendar quarter (e.g., BIR Form 1601-E for the quarter ending March with
attached MAP for January, February, March). It shall contain an alphalist of
customers from whom taxes have been withheld for the return period and in
whose behalf, the taxes were remitted under BIR Form No. 1601-E showing
the total amount of income and taxes withheld and remitted.
"xxx
xxx
xxx"
xxx
xxx"
WHERE TO FILE
104
xxx
(2)
xxx
xxx
xxx
xxx
WHEN TO FILE
xxx
xxx
xxx
xxx
...
(2)
WHEN TO FILE
(a) For both large and non-large taxpayers, the withholding tax
return, whether creditable or final (including final withholding taxes on
interest from any currency bank deposit and yield or any other monetary
benefit from deposit substitutes and from trust funds and similar
arrangements) shall be filed and payments should be made, within ten (10)
days after the end of each month, except for taxes withheld for the month of
December of each year, which shall be filed on or before January 15 of the
following year; and except for the final capital gains tax on the sale or other
onerous disposition of real property considered as capital asset which must
be taken/withheld from the seller by the buyer and remitted within thirty
(30) days from the date of notarization of the transfer document to the
collecting agent of the RDO having jurisdiction over the place where the
property is located.
TCaEIc
Copyright 2015
105
xxx
(2)
xxx
xxx
WHEN TO FILE
(a) For both large and non-large taxpayers, the withholding tax
return, whether creditable or final (including final withholding taxes on
interest from any currency bank deposit and yield or any other monetary
benefit from deposit substitutes and from trust funds and similar
arrangements) shall be filed and payments should be made, within ten (10)
days after the end of each month, except for taxes withheld for the month of
December of each year, which shall be filed on or before January 15 of the
following year.
(b) With respect, however, to taxpayers, whether large or non-large,
who availed of the electronic filing and payment (EFPS), the deadline for
electronically filing the applicable withholding tax returns and paying the
Copyright 2015
106
taxes due thereon via the EFPS shall be five (5) days later than the deadlines
set above."
78
See Revenue Memorandum Order No. 48-2000 (dated October 23, 2000)
Re: Re-classification of Status of Taxpayers Previously Classified as Large
Taxpayers Under Revenue Regulations No. 12-93, as Amended by Revenue
Regulations No. 3-94; Revenue Regulations No. 1-98; Revenue Regulations
No. 6-2001; Revenue Regulations No. 9-2001; and Revenue Regulations No.
12-2001.
Section 2.58 (B) - Returns and Payment of Taxes Withheld at Source; Withholding Tax
Statements for Taxes Withheld
79
xxx
xxx
xxx
xxx
See earlier provision under Section 6, Revenue Regulations No. 6-85 and
subsequent amendment made by Revenue Regulations No. 12-94.
Section 2.58 (C) - Returns and Payment of Taxes Withheld at Source; Annual
Information Return for Income Tax Withheld at Source
80
Copyright 2015
107
xxx
xxx
(2)
xxx
xxx
xxx
xxx
xxx
108
xxx
xxx
82
Copyright 2015
109
have been reported and the expanded withholding tax, inclusive of the
documentary stamp tax, due thereon have been fully paid, pursuant to the
provisions of Sections 57 and 196 of the Code , respectively.
85
86
See earlier provision under Section 10, Revenue Regulations No. 6-85, and
subsequent amendment made by Revenue Regulations No. 12-94.
See earlier provision under Section 7, Revenue Regulations No. 6-85, and
subsequent amendments thereto.
Copyright 2015
110
(A) The payee reported the income and the withholding agent/taxpayer
pays the tax, including the interest incident to the failure to withhold the tax, and
surcharges, if applicable, at the time of the original audit and investigation;
(B) The recipient/payee failed to report the income on the due date
thereof, but the withholding agent/taxpayer pays the tax, including the interest
incident to the failure to withhold the tax and surcharges, if applicable, at the
time of the original audit and investigation;
(C) The withholding agent erroneously underwithheld the tax but pays
the difference between the correct amount and the amount of tax withheld,
including the interest, incident to such error, and surcharges, if applicable, at the
time of the original audit and investigation.
111
91
112
Copyright 2015
113
(b)
(ii)
114
xxx
xxx
...
xxx
(3)
xxx
xxx
xxx
xxx
Copyright 2015
(a)
(b)
115
(c)
(d)
Rice subsidy of P1,500 or one (1) sack of 50 kg. rice per month
amounting to not more than P1,500;
(e)
(f)
(g)
(h)
(i)
(j)
xxx
xxx"
116
xxx
xxx
xxx
Copyright 2015
(b)
(c)
(d)
(e)
(f)
(g)
(h)
117
(i)
(j)
xxx
xxx
xxx
...
xxx
(3)
xxx
xxx
xxx
xxx
118
...
xxx
xxx
xxx
(c) Rice subsidy of P1,500.00 or one (1) sack of 50 kg. rice per month
amounting to not more than P1,500.00;
(d)
annum;
xxx
xxx
xxx
xxx
xxx
xxx
xxx
Copyright 2015
119
(d)
(e)
(f)
xxx
xxx
xxx
xxx
"(b) . . .
"(i) . . .
"(ii) The employee is required to account/liquidate for the expenses in
accordance with the specific requirements of substantiation for each category of
expenses pursuant to Sec. 34 of the Code. The excess of ADVANCES MADE
over ACTUAL EXPENSES shall constitute taxable income if such amount is
not returned to the employer. Reasonable amounts of reimbursements/advances
for travelling and entertainment expenses which are pre-computed on a daily
basis and are paid to an employee while he is on an assignment or duty need not
be subject to the requirements of substantiation and to withholding."
"(iii) . . .
Copyright 2015
120
"xxx
xxx
xxx
Copyright 2015
121
(b)
(c)
(d)
NOT
(e)
NOT
(f)
(g)
(h)
(i)
(j)
BENEFITS
122
..
Copyright 2015
123
"(b)
"(ii)
xxx
xxx
124
Special Treatment of Fringe Benefit. See Revenue Regulations No. 3-98 and
subsequent amendments thereto.
94
95
See also Executive Order No. 291 entitled "Monetization of Leave Credits of
Government Officials and Employees" (effective September 27, 2000); and
Revenue Memorandum Circular No. 16-2000.
See Executive Order No. 291 and Revenue Memorandum Circular No.
16-2000.
97
99
100
Copyright 2015
125
Revenue vs. The Court of Appeals and Efren P. Castaeda", G.R. No. 96016
promulgated October 17, 1991, re: non-taxability of terminal leave pay
received by officials/employees retiring from the government service; Revenue
Memorandum Circular No. 3-2001 (dated January 13, 2001) Re: Delegation
of Authority to Regional Directors to Issue Certain Rulings with Established
Precedents; Revenue Memorandum Circular No. 14-2001 (dated March 12,
2001) Re: Lists of Requirements from Taxpayers for Issuance of Certain
Rulings with Established Precedents Delegated to Regional Directors and to
the Assistant Commissioner, Legal Service under RMC Nos. 2-2001, 3-2001
and 10-2001; Revenue Memorandum Circular No. 17-2001 (dated March
20, 2001) Re: Adoption of Fiscal Discipline Measures in the Public Sector for
FY 2001; and Revenue Memorandum Order No. 75-99 (dated September 9,
1999) Re: Delegation of Authority to Regional Directors to Issue Certain
Rulings with Established Precedents.
Section 2.78.1 (B) - Withholding of Income Tax on Compensation Income
101
xxx
xxx
Copyright 2015
(ii)
(iii)
126
(b)
Copyright 2015
(c)
(d)
127
(f)
(2)
(a)
(b)
(c)
(i)
(ii)
(iii)
Copyright 2015
128
(e)
Copyright 2015
(ii)
(ii)
(iv)
(v)
129
130
incidental or regular. The expression "not in the course of the employer's trade
or business" includes labor that does not promote or advance the trade or
business of the employer.
Thus, any remuneration paid for labor which is occasional, incidental or
irregular, and does not promote or advance the employer's trade or business, is
not considered as compensation.
EXAMPLE: A's business is that of operating a sawmill. He employs B, a
carpenter, at an hourly wage to repair his home. B's work is irregular and he
spends, the greater part of two days in completing the work. Since B's labor is
casual and is not in the course of A's business, the remuneration paid for such
services is exempted.
Any remuneration paid for casual labor, that is, labor which is
occasional, incidental or irregular, but which is rendered in the course of the
employer's trade or business, is considered as compensation.
EXAMPLE: E is engaged in the business of operating a department
store. He employs additional clerks for a short period. While the services of the
clerks may be casual, they are rendered in the course of the employer's trade or
business and therefore the remuneration paid for such services is considered as
compensation.
Any remuneration paid for casual labor performed for a corporation is
considered as compensation;
(5) Compensation for services by a citizen or resident of the
Philippines for a foreign government or an international organization.
Remuneration paid for services performed as an employee of a foreign
government or an international organization is exempted. The exemption
includes not only remuneration paid for services performed by ambassadors,
ministers and other diplomatic officers and employees but also remuneration
paid for services performed as consular or other officer or employee of a foreign
government or as a non-diplomatic representative of such government.
(6) Damages. Actual, moral, exemplary and nominal damages
received by an employee or his heirs pursuant to a final judgment or
compromise agreement arising out of or related to an employer-employee
relationship.
(7) Life Insurance. The proceeds of life insurance policies paid to
the heirs or beneficiaries upon the death of the insured, whether in a single sum
Copyright 2015
131
or otherwise, provided however, that interest payments agreed under the policy
for the amounts which are held by the insured under such an agreement shall be
included in the gross income.
(8) Amount received by the insured as a return of premium. The
amount received by the insured, as a return of premium or premiums paid by
him under life insurance, endowment, or annuity contracts either during the term
or at the maturity of the term mentioned in the contract or upon surrender of the
contract.
(9) Compensation for injuries or sickness. Amounts received
through Accident or Health Insurance or under Workmen's Compensation Acts,
as compensation for personal injuries or sickness, plus the amount of any
damages received whether by suit or agreement on account of such injuries or
sickness.
(10) Income exempt under treaty. Income of any kind to the extent
required by any treaty obligation binding upon the Government of the
Philippines.
(11) Thirteenth (13th ) month pay and other benefits.
(a) Thirteenth (13th) month pay equivalent to the mandatory one (1)
month basic salary of officials and employees of the government, (whether
national or local), including government-owned or controlled corporations, and
or private offices received after the twelfth (12th) month pay; and
(b) Other benefits such as Christmas bonus, productivity incentive
bonus, loyalty award, gifts in cash or in kind and other benefits of similar nature
actually received by officials and employees of both government and private
offices.
The above stated exclusions (a) and (b) shall cover benefits paid or
accrued during the year provided that the total amount shall not exceed thirty
thousand pesos (P30,000.00) which may be increased through rules and
regulations issued by the Secretary of Finance, upon recommendation of the
Commissioner, after considering, among others, the effect on the same of the
inflation rate at the end of the taxable year.
(12) GSIS, SSS, Medicare and other contributions. GSIS, SSS,
Medicare and Pag-Ibig contributions, and union dues of individual employees.
132
"SECTION 2.78.1.
Income.
xxx
xxx
xxx
xxx
xxx
"(13)
COMPENSATION INCOME OF INDIVIDUALS
THAT DO NOT EXCEED THE STATUTORY MINIMUM WAGE OR
FIVE THOUSAND PESOS (PHP5,000.00) PER MONTH (SIXTY
THOUSAND PESOS [PHP60,000.00] A YEAR), WHICHEVER IS
HIGHER."
"(14)
COMPENSATION INCOME OF EMPLOYEES OF
THE GOVERNMENT OF THE PHILIPPINES, OR ANY OF ITS
POLITICAL
SUBDIVISIONS,
AGENCIES
OR
INSTRUMENTALITIES, WITH SALARY GRADES 1 TO 3."
xxx
xxx
xxx
xxx
"(a) . . .
"(b) Other benefits such as Christmas bonus, productivity incentives,
loyalty award, gift in cash or in kind and other benefits of similar nature actually
received by officials and employees of both government and private offices,
INCLUDING THE ADDITIONAL COMPENSATION ALLOWANCE
("ACA") GRANTED AND PAID TO ALL OFFICIALS AND
EMPLOYEES OF THE NATIONAL GOVERNMENT AGENCIES
Copyright 2015
133
...
"(13)
FACILITIES AND PRIVILEGES OF RELATIVELY
SMALL VALUE OR 'DE MINIMIS' BENEFITS AS DEFINED UNDER
THESE REGULATIONS."
Entitled "An Act Amending Article 287 of Presidential Decree No. 442, as
amended, Otherwise Known as the Labor Code of the Philippines, by
Providing for Retirement Pay to Qualified Private Sector Employees in the
Absence of Any Retirement Plan in the Establishment" (effective December 9,
1992).
See issuances on private retirement benefit plan Revenue Regulations
No. 1-83; Revenue Regulations No. 11-2001; Revenue Memorandum
Circular No. 10-83; and Revenue Memorandum Order No. 9-93.
103
Republic Act No. 1161, as amended, entitled "An Act to Create a Social
Security System Providing Sickness, Unemployment, Retirement, Disability
and Death Benefits for Employees" (effective June 18, 1954).
See now Republic Act No. 8282 entitled "An Act Further Strengthening
The Social Security System Thereby Amending For This Purpose Republic Act
No. 1161, As Amended, Otherwise Known As The Social Security Law"
(approved May 1, 1997).
Copyright 2015
134
104
105
106
107
108
Revenue Regulations No. 8-2000 inserted the provision "(13) facilities and
privileges of relatively small value or 'de minimis' benefits as defined under
these regulations" which was amended by Section 1, Revenue Regulations
No. 10-2008.
Revenue Regulations No. 10-2008 also inserted provision "(14)
Compensation income of employees in the public sector with compensation
income of not more than the SMW in the non-agricultural sector, as fixed by
Copyright 2015
135
See earlier provision under Section 4, Revenue Regulations No. 6-82 and
subsequent amendments thereto.
See earlier provision under Section 5, Revenue Regulations No. 6-82 and
subsequent amendments thereto.
See earlier provision under Section 6, Revenue Regulations No. 6-82 and
subsequent amendments thereto.
Section 2.78.4 (C) - Employer; Compensation Paid on behalf of Two or More Employers
114
See earlier provision under Section 11, Revenue Regulations No. 6-82 and
subsequent amendments thereto.
136
(2)
xxx
xxx
137
xxx
xxx
xxx
xxx
xxx
138
follows:
(a)
(b)
(c)
(d)
(b)
(2)
(a)
139
Step 1.
Use the appropriate tables for the payroll period; monthly
semi-monthly weekly or daily as the case may be.
Step 2.
Determine the total monetary and non-monetary
compensation paid to an employee for the payroll period, segregating gross
Copyright 2015
140
(i)
(ii)
Step 6.
Compute the withholding tax due by adding the tax
predetermined in the compensation level indicated at the top of the column, to
the tax on the excess of the total regular and supplementary compensation over
the compensation level, which is computed by multiplying the excess by the rate
also indicated at the top of the same column.
cdrep
(4)
Copyright 2015
141
P 6,000.00
Tax on P4,167.00
Tax on excess (P1,833.00 x 15%)
Monthly withholding tax
4,167.00
P 1,833.00
P 208.33
274.95
P 483.28
P 7,000.00
Excess
Tax on (P4,583.00)
Tax on excess (P2,417.00 x 1 5%)
Withholding tax for January
Copyright 2015
4,583.00
P 2,417.00
P 208.33
362.55
P 570.88
142
P 5,500.00
5,167.00
P 333.00
Excess
Tax on P5,167,00
Tax on excess (P333.00 x 15%)
Monthly withholding tax
P 208.33
49.95
P 258.28
P3,550.00
3,250.00
P 300.00
P 104.17
45.00
P 149.17
143
Excess
P 50.00
Tax on P3,250.00
P 104.17
Tax on excess (P50.00 x 15%)
7.50
Semi-monthly withholding
P 111.67
COMPUTATION:
Regular Wage
Gross Benefits:
13th month pay
Productivity
Loyalty pay
P30,000.00
P15,000
10,000
P6,000
1,000.00
P31,000.00
22 500.00
144
Excess
Tax on P22,500 (line A2, col. 7)
Tax on excess (P8,500.00 x 30%)
Withholding tax for the month of June
P 8,500.00
P 4,166.67
2,550.00
P 6,716.67
* gross benefit of P31,000 less the maximum total exemptions of the gross benefit of
P30,000
(5)
Step 4.
Multiply the tax computed in Step No. (3) by the number of
payroll period to which it relates;
Step 5.
Determine the excess, if any, of the amount of tax
computed in Step No. (4) over the total amount of tax already deducted and
withheld from the beginning payroll period to the last payroll period, including
Copyright 2015
145
that withheld by the previous employer/s within the calendar year, if any. The
excess, as computed, shall be deducted and withheld from the compensation to
be paid for the last payroll period of the current calendar year.
The cumulative average method, once applicable to a particular
employee at any time during the calendar year, shall be the same method to be
consistently used for the remaining payroll period/s of the same calendar year.
EXAMPLE VII: (Regular monthly compensation is exempt from
withholding but supplementary compensation is paid during the calendar year)
Mr. G, married with three (3) qualified dependent children whose spouse is
not employed received the following compensation:
Month
Regular
Compensation
Supplementary
Compensation
Total
Compensation
Jan.
Feb.
Mar.
P4,500.00
4,500.00
4,400.00
P1,750.00
1,750.00
1,500.00
P6,250.00
6,250.00
5,500.00
COMPUTATION:
1.
=
=
=
P 6,250.00
P12,500.00
P18,000.00
2.
=
=
=
P 6,250.00
P 6,250.00
P 6,000.00
3.
For January
Tax on P5,500.00 (Line C.3, Col. 3)
Tax on excess (P750.00 x 10%)
Tax on P6,250.00
For February
Tax on P5,500 (line C.3, col. 3)
Tax on excess (P750.00 x 10%)
Tax on P6,250
Copyright 2015
41.67
75.00
P 116.67
41.67
75.00
P 116.67
146
For March
Tax on P5,500 (line C.3, col. 3)
Tax on excess (P500.00 x 15%)
41.67
50.00
P 91.67
Tax on P6,000.00
4.
=
=
=
P 116.67
P 233.34
P 275.01
5.
=
=
=
P 116.67
P 116.67
P 41.67
Regular
Compensation
Supplementary
Compensation
Total
Compensation
Jan.
Feb.
Mar.
P3,000.00
3,000.00
3,000.00
P3,000.00
3,500.00
5,000.00
P6,000.00
6,500.00
8,000.00
COMPUTATION:
Copyright 2015
1.
=
=
=
P 6,000.00
P12,500.00
P20,500.00
2.
=
=
=
P 6,000.00
P 6,250.00
P 6,833.33
3.
For January
Tax on P5,167.00 (line A4, col. 4)
Tax on excess (P833.00 x 15%)
P 208.33
P 124.95
147
P 333.28
Tax on P6,000.00
For February
Tax on P5,167.00 (line A4, col. 4)
Tax on excess (P1,083.00 x 15%)
P 208.33
P 162.45
P 370.78
Tax on P6,250.00
For March
Tax on P5,167.00 (line A 4 col. 4)
Tax on excess (P1,666.33 x 15%)
P 208.33
P 249.95
P 458.28
Tax on P6,833.33
4.
=
=
=
P 333.28
P 741.56
P 1,374.84
5.
=
=
=
P 333.28
P 408.28
P 633.28
Copyright 2015
Month
Present
Compensation
Income
Total
Previous
Income
Total
Taxable
Income
JULY
10,000.00
36,000.00
46,000.00
148
AUG
10,000.00
10,000.00
SEPT
10,000.00
10,000.00
OCT
10,000.00
10,000.00
NOV
10,000.00
10,000.00
DEC
10,000.00
60,000.00
10,000.00
96,000.00
36,000.00
COMPUTATION:
Step 1
For July 36,000 +10,000
46,000.00
56,000.00
66,000.00
76,000.00
86,000.00
Step 2
For July 46,000/7
6,571.43
7,000.00
7,333.33
7,600.00
7,818.18
=
=
P 208.33
360.66
Step 3
For July P6,571.43
Tax on P4,167
Tax on excess (2,404.43 x 15%)
Copyright 2015
149
Copyright 2015
Tax on P6,571.43
=
=
Tax on P7,000
=
=
Tax on P7,333.33
=
=
Tax on P7,600
=
=
Tax on P7,818.18
P568.99
P208.33
424.95
P633.28
P208.33
474.95
P683.28
P708.33
20.00
P728.33
P708.33
63.64
P771.97
Step 4
For July
For August
For September
For October
For November
P568.99 X 7
P633.28 X 8
P683.28 X 9
P728.33 X 10
P771.97 X 11
=
=
=
=
=
P3,982.93
P5,066.24
P6,149.52
P7,283.30
P8,491.67
Step 5
For July
For August
P3,982.93 - 2,899.68
P5,066.24 - 3,982.93
=
=
P1,083.26
P1,083.31
150
For Sept.
For October
For Nov.
P6,149.52 - 5,066.24
P7,283.30 - 6,149.52
P8,491.67 - 7,283.30
=
=
=
P1,083.28
P1,133.78
P1,208.37
Step 2.
If the employee has previous employment/s within the year,
add the amount of taxable regular and supplementary compensation paid to the
employee by the previous employer doing the annualized computation to the
taxable compensation income received from previous employer/s during the
calendar year:
(i)
(ii)
(iii)
Step 3.
Deduct from the aggregate amount of compensation
computed in Step No. (2) the amount of the total personal and additional
exemptions of the employee.
Copyright 2015
151
Step 4.
Deduct the amount of premium payments on Health and/or
Hospitalization Insurance of employees who have presented evidence that they
have paid during the taxable year premium payments (the deductible amount
shall not exceed P2,400 or P200 per month whichever is lower) and that their
family's total gross income does not exceed P250,000 for the calendar year. For
purposes of substantiating the claim of insurance expense, the policy contract
shall be presented to the employer together with the original official receipt of
the premium payment, in addition to the documents which will be prescribed by
the BIR in a separate regulation to determine the aggregate of his family income.
Total family income includes primary income and other income from
sources received by all members of the nuclear family, i.e. father, mother,
unmarried children living together as one household, or a single parent with
children. A single person living alone is considered as a nuclear family.
The spouse claiming the additional exemptions for the qualified
dependent children shall be the same spouse to claim the deductions for
premium payments.
Step 5.
Compute the amount of tax on the difference arrived at in
Step 4, in accordance with the schedule provided in Sec. 24 (A) of the Code, as
follows:
Over
not over
10,000
30,000
70,000
140,000
250,000
500,000
But Not
Over
10,000
30,000
70,000
140,000
250,000
500,000
over
Amount Rate
Of Excess
Over
5%
500+10%
10,000
2,500+15%
30,000
8,500+20%
70,000
22,500+25%
140,000
50,000+30%
250,000
125,000+34%
500,000
(33% in 1999)
(32% in 2000 and thereafter)
Step 6.
Determine the deficiency or excess, if any, of the tax
computed in Step 5 over the cumulative tax already deducted and withheld since
the beginning of the current calendar year. The deficiency tax (when the amount
of tax computed in Step 5 is greater than the amount of cumulative tax already
deducted and withheld or when no tax has been withheld from the beginning of
the calendar year) shall be deducted from the last payment of compensation for
Copyright 2015
152
the calendar year. If the deficiency tax is more than the amount of last
compensation to be paid to an employee, the employer shall be liable to pay the
amount of tax which cannot be collected from the employee. The obligation of
the employee to the employer arising from the payment by the latter of the
amount of tax which cannot be collected from the compensation of the
employee is a matter of settlement between the employee and employer.
The excess tax (when the amount of cumulative tax already deducted
and withheld is greater than the tax computed in Step 5) shall be credited or
refunded to the employee not later than January 25 of the following year.
However, in case of termination of employment before December, the refund
shall be given to the employee at the payment of the last compensation during
the year. In return, the employer is entitled to deduct the amount refunded from
the remittable amount of taxes withheld from compensation income in the
current month in which the refund was made, and in the succeeding months
thereafter until the amount refunded by the employer is fully repaid.
EXAMPLE
X:
(Use
of
annualized
computation
when
employer-employee relationship was terminated before December) Mr. X,
head of the family with a qualified dependent brother receives P8,000 as
monthly regular compensation starting January 1, 1998. On June 1, 1998, he
filed his resignation effective June 30, 1998. The tax withheld from January to
May was P3,624.65.
COMPUTATION: (To be done before payment of the compensation for
June 1998):
Total compensation received from
January 1 to May 31, 1998
Add: Compensation to be received on June
Gross compensation Jan-June
Less: Personal Exemption
Net Taxable Compensation
Tax Due*
Less: Tax Withheld from Jan to May
To be refunded to Employee Mr. X
Copyright 2015
P40,000.00
8,000.00
P48,000.00
25,000.00
P23,000.00
P1,800.00
3,624.00
(P1,824.65)
153
* Tax on P10,000.00
Tax on excess (P13,000 x 10%)
Tax on P36,000
P 500.00
1,300.00
P 1,800.00
P45,000
P 5,000
P45,000
P12,000
2.
Mr. L, married, whose wife is also employed, with two dependent
children. The second child was born in December. He received for the year, the
following:
Basic Monthly Salary
Thirteenth Month Pay
Other Benefits
3.
P6,500
P6,500
P6,000
She paid for the year an annual premium on health and hospitalization
insurance amounting to P2,400.00.
4.
following:
P35,000
P17,500
Copyright 2015
154
Mr. K
Compensation
Basic Salary
Overtime (Nov.)
13th month pay
Other benefits
Totals
Received
for the year
P540,000
5,000
45,000
12,000
P602,000
Non-Taxable
30,000
P30,000
Tax due*
Less: Tax w/held from previous months (Jan-Nov.)
Tax to be withheld for December
Taxable
P540,000
5,000
15,000
12,000
P572,000
48,000
P 524,000
P133,160.00
130,788.79
P 2,371.21
*
Tax Due is computed by using the rates prescribed in Sec. 24 (A), NIRC
(refer to schedule on page 43 of these regulations)
2.
Mr. L
Compensation
Basic Salary
13th month pay
Other benefits
Totals
Received
for the year
P 78,000
6,500
6,000
P90,500
Non-Taxable
P78,000.00
P6,500
6,000
P12,500
Taxable
P 78,000.00
48,000.00
P 30,000.00
155
Tax due
Less: Tax withheld from previous month (Jan-Nov.)
P 2,500.00
2,291.63
P 208.37
3.
P2,899.68
15,591.98
P 36,000.00
120,000.00
P156,000.00
22,400.00
P133,600.00
P 21,220.00
18,491.66
P 2,728.34
*
Refer to Certificate of Income Tax Withheld on Compensation issued by
previous employer.
** Taxes withheld from July to December computed by the present employer
using the cumulative computation.
4.
Basic Salary
13th month pay
Other benefits
Copyright 2015
P245,000
17,500
6,000
Non-Taxable
Taxable
P245,000
P17,500
6,000
Philippine Taxation Encyclopedia 2014
156
P268,500
P23,000
P245,000
32,000
P213,000
P40,750.00
45,700.02
P(4,950.02)
b)
c)
d)
Copyright 2015
xxx
xxx
157
See earlier provision under Section 7, Revenue Regulations No. 6-82 and
subsequent amendments made by Revenue Regulations Nos. 6-83, 9-83, 2-85,
12-86, 1-92, 3-92 and 4-93.
118
See Section 33, NIRC of 1997; and Revenue Regulations No. 3-98 and
subsequent amendments made by Revenue Regulations Nos. 8-2000 and
10-2000.
119
120
122
124
125
126
127
Copyright 2015
158
128
131
132
Section 2.79 (I) - Income Tax Collected at Source on Compensation Income; Right to
Claim Withholding Exemptions
133
Copyright 2015
159
(a)
(i)
(ii)
(iii)
160
See earlier provision under Section 8, Revenue Regulations No. 6-82 and
subsequent amendments made by Revenue Regulations Nos. 6-83, 2-85,
12-86, 1-92, 3-92 and 4-93.
Section 2.79.1 - Application for Registration for Individuals Earning Compensation
Income (BIR Form No. 1902)
134
Copyright 2015
(1)
(2)
(3)
161
(5)
(6)
Copyright 2015
Husband is unemployed;
(b)
(c)
(a)
Marriage contract;
(b)
(c)
(d)
(e)
(f)
162
Copyright 2015
(h)
(i)
Death certificate;
(j)
(k)
(7)
(8)
(9)
163
(2)
Copyright 2015
(b)
(c)
164
(3)
(4)
(b)
(ii)
(c)
Copyright 2015
165
See earlier provision under Section 9, Revenue Regulations No. 6-82 and
subsequent amendment made by Revenue Regulations No. 4-93.
See also Section 4, Revenue Regulations No. 7-96 (dated June 6, 1996)
Re: Prescribing the Use of the Redesigned/New Forms in the Filing of Tax and
Information Returns/Declarations and Applications for Registration and
Permit.
Section 2.79.2 - Failure to file Application for Registration (BIR Form No. 1902) or
Certificate of Update of Exemption and of Employer's and Employee's Information (BIR
Form No. 2305)
135
Copyright 2015
166
See earlier provision under Section 12, Revenue Regulations No. 6-82 and
subsequent amendments thereto.
See earlier provision under Section 13, Revenue Regulations No. 6-82 and
subsequent amendments thereto.
See earlier provision under Section 22(b), Revenue Regulations No. 6-82 and
subsequent amendments made by Revenue Regulations Nos. 6-83 and 12-86.
See also Revenue Memorandum Order No. 80-98, Revenue
Memorandum Order No. 5-2001, and Revenue Regulations No. 7-2000.
139
Copyright 2015
167
excess withholding tax not later than January 25 of the succeeding year shall, in
addition to any penalties provided in Title X of the Code , as amended, be liable
to a penalty equal to the total amount of refund which was not refunded to the
employee resulting from any excess of the amount withheld over the tax actually
due on their return.
xxx
xxx
xxx
See earlier provision under Section 14, Revenue Regulations No. 6-82
and subsequent amendment made by Revenue Regulations No. 4-93.
141
xxx
xxx
xxx
xxx
Section 2.80 (C) - Liability for Tax; Additions to Tax; Deficiency Interest
143
Copyright 2015
168
145
Section 2.81 - Filing of Return and Payment of Income Tax Withheld on Compensation
(Form No. 1601)
146
If the person required to withhold and pay the tax is a corporation, the
Copyright 2015
169
return shall be made in the name of the corporation and shall be signed and
verified by the president, vice-president, or authorized officers.
With respect to any tax required to be withheld by a fiduciary, the
returns shall be made in the name of the individual, estate, or trust for which
such fiduciary acts, and shall be signed and verified by such fiduciary. In the
case of two or more joint fiduciaries the return shall be signed and verified by
one of such fiduciaries.
See earlier provision under Section 16, Revenue Regulations No. 6-82
and subsequent amendment made by Revenue Regulations No. 4-93; and
Section 2, Revenue Regulations No. 5-85 and subsequent amendments
thereto.
See also Revenue Regulations No. 9-2001.
Section 2.82 - Return and Payment in case Where the Government is the Employer
147
Copyright 2015
170
duplicate copies of Form No. 2316 showing the name and address of the
employer; employer's TIN; name and address of the employee; employee's TIN;
amount of exemptions claimed; amount of premium payments on medical
insurance not exceeding P2,400.00, if any; the sum of compensation paid
including the non-taxable benefits; the amount of tax due; the amount of tax
withheld during the calendar year and such other information as may be
required. The statement must be signed by both the employer or other authorized
officer and the employee, and shall contain a written declaration that it is made
under the penalties of perjury. If the employer is the Government of the
Philippines, its political subdivision, agency or instrumentality or
government-owned or controlled corporation, the statement shall be signed by
the duly designated officer or employee.
An extra copy of Form 2316 shall be furnished by the employee, duly
certified by him, to his new employer.
xxx
xxx
171
of three (3) years as required under the National Internal Revenue Code.
The employee who is qualified for substituted filing of income tax return
under these regulations, shall no longer be required to file income tax return
(BIR Form No. 1700) since BIR Form No. 1604-CF shall be considered a
substituted return filed by the employer. BIR Form No. 2316, duly certified by
both employee and employer, shall serve the same purpose as if a BIR Form
No. 1700 had been filed, such as proof of financial capacity for purposes of
loan, credit card, or other applications, or for the purpose of availing tax
credit in the employee's home country and for other purposes with various
government agencies. This may also be used for purposes of securing travel
tax exemption, when necessary.
However, information referring to the certification, appearing at the
bottom of BIR Form No. 2316, shall not be signed by both the employer and
the employee if the latter is not qualified for substituted filing. In which case,
BIR Form No. 2316 furnished by the employer to the employee shall be
attached to the employees Income Tax Return (BIR Form No. 1700) to be
filed on or before April 15 of the following year.
For the implementation of these Regulations, BIR Form No. 2316 herein
referred to shall be BIR Form No. 2316 version October 2002 or any later
version. Thus, the old version cannot be used for this purpose although may be
used for those taxpayers still required to file BIR Form No. 1700."
xxx
xxx
xxx
172
certification (Annex "A") to the effect that the employer's filing of BIR Form
No. 1604-CF shall be considered a substituted filing of the employee's income
tax return to the extent that the amount of compensation and tax withheld
appearing in BIR Form No. 1604-CF, as filed with the BIR, is consistent with
the corresponding amounts indicated in BIR Form No. 2316 and the
certification. The parties shall likewise certify, under oath, that the
information stated in such certification is true and correct to the best of their
knowledge. Such employee shall no longer be required to file income tax
return (BIR Form No. 1700) since BIR Form No. 1604-CF shall be
considered a substituted return filed by the employer with the consent of such
employee.
The joint certification shall serve the same purpose as if a BIR Form
No. 1700 had been filed, such as proof of financial capacity for purposes of
loan, credit card, or other applications, or for the purpose of availing tax
credit in the employee's home country and for other purposes with various
government agencies. This may also be used for purposes of securing travel
tax exemption, when necessary."
See earlier provision under Section 20(a), Revenue Regulations No. 6-82
and subsequent amendment made by Revenue Regulations No. 4-93; and
Section 7, Revenue Regulations No. 2-95 (dated January 3, 1995) Re:
Implementing Republic Act No. 7833 An Act to Exclude the Benefits
Mandated Pursuant to Republic Act No. 6686 and Presidential Decree No. 851,
as Amended, and other Benefits from the Computation of Gross Compensation
Income for the Purposes of Determining Taxable Compensation Income,
Amending for the Purpose Section 28 (b) (8) of the National Internal Revenue
Code, as Amended.
Section 2.83.2 - Annual Information Return of Income Tax Withheld on Compensation
(Form No. 1604, Formerly Form No. 1743IR)
149
Copyright 2015
173
(2)
(3)
(a) Taxable 13th month pay/Other benefits for the rank and file
employees
(b) Taxable fringe benefits for managerial employees
(4)
(5)
Amount of exemptions;
(6)
(7)
(8)
(9)
Adjustment, if any.
Copyright 2015
(1)
(2)
(3)
174
175
176
177
ten (10) or more, are mandatorily required to submit the said lists in 3.5-inch
floppy diskettes/CD or email: esubmission@bir.gov.ph using the existing CSV
data file format, together with the manually prepared alphabetical list. In order
to comply with this format, the withholding agents shall have the option to use
any of the following:
1.
Excel format provided under Revenue Regulations No. 7-2000, as
amended, following the technical specifications required by the BIR;
2.
Their own extract program that shall meet the technical
specifications required by the BIR; or
3.
Data Entry Module using Visual FoxPro that will be available upon
request or by downloading from the BIR's web site at http://www.bir.gov.ph
with the corresponding job aid.
For those who would choose either option 1 or 2, such taxpayers shall
use a validation module developed by the BIR, which can be downloaded from
the BIR website.
In any case, the withholding agents are required to save the same to a
secondary storage as back up for a period of three (3) years from submission of
the diskette, as aforementioned, for future reference.
For withholding agents classified as large taxpayers and excise taxpayers
falling within the jurisdiction of the Large Taxpayers Service and/or Large
Taxpayers District Office, the Annual Information Return of Income Taxes
Withheld on Compensation and Final Withholding Taxes (BIR Form No.
1604-CF) and the Annual Information Return of Creditable Income Taxes
Withheld (Expanded)/ Income Payments Exempt from Withholding Tax (BIR
Form No. 1604-E) shall be submitted to the Large Taxpayers Assistance
Division, Large Taxpayers District Offices or Excise Taxpayers Assistance
Division, as the case may be. For other withholding agents, the aforesaid annual
returns shall be submitted to their respective Revenue District Offices. BIR
Form No. 1604-CF shall be submitted on or before January 31 of the succeeding
year while BIR Form No. 1604-E shall be filed on or before March 1 of the
following year. Only diskettes/CD/email: esubmission@bir.gov.ph readable
and virus free files upon submission shall be considered as duly filed
"Alphabetical List of Employees/Payees" by the employer. Violation hereof,
shall be a ground for the mandatory audit of violator's income tax liabilities
(including withholding tax). Diskettes/CDs must be uploaded by the
above-mentioned offices within fifteen (15) days from receipt.
Copyright 2015
178
(B)
(C)
Copyright 2015
179
(E)
xxx
xxx
xxx
xxx
"(C) EMPLOYEES
WHOSE
GROSS COMPENSATION
INCOME DO NOT EXCEED THE STATUTORY MINIMUM WAGE
OR FIVE THOUSAND PESOS (PHP5,000.00) PER MONTH (SIXTY
THOUSAND PESOS [PHP60,000.00] A YEAR), WHICHEVER IS
HIGHER, INCLUDING EMPLOYEES OF THE GOVERNMENT OF
THE PHILIPPINES, OR ANY OF ITS POLITICAL SUBDIVISIONS,
AGENCIES OR INSTRUMENTALITIES, WITH SALARY GRADES 1
TO 3."
xxx
xxx
xxx"
180
not be required to file BIR Form No. 1700. In lieu of BIR Form No. 1700, the
Annual Information Return of Income Taxes Withheld on Compensation and
Final Withholding Taxes (BIR Form No. 1604-CF) (hard copy) filed by their
respective employers, duly stamped "received" by the BIR, shall be
tantamount to the substituted filing of income tax returns by said employees.
The following individuals, however, are not qualified for substituted
filing and therefore, still required to file BIR Form No. 1700 in accordance
with existing regulations:
(A) Individuals deriving compensation from two or more employers
concurrently or successively at anytime during the taxable year.
(B) Employees deriving 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.
(C) Employees whose monthly gross compensation income does not
exceed Five Thousand Pesos (P5,000.00) or the statutory minimum wage,
whichever is higher, and opted for non-withholding of tax on said income.
(D) Individuals deriving other non-business, non-profession-related
income in addition to compensation income not otherwise subject to a final
tax.
(E) Individuals receiving purely compensation income from a single
employer, although the income tax of which has been correctly withheld, but
whose spouse falls under Section 2.83A(A), (B), (C) and (D) of these
Regulations.
(F) Non-resident aliens engaged in trade or business in the
Philippines deriving purely compensation income, or compensation income
and other non-business, non-profession-related income.
In case of married individuals who are still required to file returns
under existing provisions of the law, i.e., in those instances not covered by the
substituted filing of returns, only one return for the taxable year shall be filed
by either spouse to cover the income of the spouses, which return shall be
signed by the husband and wife unless it is physically impossible to do so, in
which case signature of one of the spouses would suffice."
See earlier provision under Section 19, Revenue Regulations No. 6-82
Copyright 2015
181
See earlier provision under Section 23, Revenue Regulations No. 6-82
and subsequent amendments thereto.
Section 2.83.6 - Applicability of Constructive Receipt of Compensation
153
See earlier provision under Section 25, Revenue Regulations No. 6-82 and
subsequent amendments thereto.
See earlier provision under Section 20(b), Revenue Regulations No. 6-82 and
subsequent amendment made by Revenue Regulations No. 4-93.
Copyright 2015
182
155
3%
6%
(2)
(3)
xxx
xxx
183
xxx
xxx
xxx
xxx
Copyright 2015
xxx
xxx
184
xxx
xxx
xxx
xxx
xxx
xxx
xxx"
185
Original text:
SECTION 4.114. Withholding of Creditable Value-Added Tax
xxx
xxx
xxx
xxx
xxx
xxx
xxx
160
See Section 272 (Violation of Withholding Tax Provision), NIRC of 1997; and
EO 651 entitled "Requiring Government Offices, Agencies and
Instrumentalities to Comply Strictly with the Laws and Regulations on
Withholding Taxes" (dated February 16, 1981).
160-a Sec. 4.114 was impliedly repealed by the enactment of RA 9337 amending,
among others, Section 114 of the NIRC of 1997. See now Section 4.114-2, RR
16-2005.
Section 5.116 (A) - Withholding of Percentage Tax; Internal Revenue Taxes Required to
Copyright 2015
186
be Withheld
161
(2)
(3)
International carriers
(4)
(a)
(b)
Franchises
(a)
Copyright 2015
187
(5)
(6)
Copyright 2015
(i)
1%
(ii)
0%
over 7 years
(b)
On dividends
0%
(c)
Finance companies
(a)
(b)
188
Copyright 2015
(a)
(b)
(c)
(d)
189
(8)
(9)
Copyright 2015
(b)
(b)
(c)
190
(d)
(e)
xxx
xxx
191
163
164
165
Copyright 2015
192
xxx
xxx
xxx
xxx
xxx
xxx
193
No. 1600) in triplicate to be filed and the tax to be paid to the Authorized
Agent Bank under the jurisdiction of the Large Taxpayers Service including
the Large Taxpayer's District Office, in case of large taxpayer, or the
Authorized Agent Bank under the jurisdiction of the Revenue District Office
where the withholding agent is located, for non-large taxpayer. In places where
there are no authorized agent bank, the return shall be filed directly with the
Revenue Collection Officer or the duly authorized Treasurer of the City or
Municipality where the withholding agent is required to register except in
cases where the Commissioner otherwise permits. The required return shall be
filed and payments made within ten (10) days following the end of the month
the withholding was made or the withholding tax has accrued.
xxx
xxx
xxx"
xxx
xxx
194
xxx
xxx
See also Revenue Regulations No. 1-98 and Revenue Regulations No.
6-2001.
Section 5.116 (D) - Liability of Designated Officers
168
169
Copyright 2015
195
Endnotes
1 (Popup - Popup)
*
2 (Popup - Popup)
*
3 (Popup - Popup)
RA 7392 entitled "An Act to Maximize the Contribution of Senior Citizens to Nation
Building, Grant Benefits and Special Privileges and for Other Purposes" (dated April
23, 1992), provides:
"Section 2.
Definition of Terms. As used in this Act, the term "senior
citizen" shall mean any resident citizen of the Philippines at least sixty (60) years old, including
those who have retired from both government offices and private enterprises, and has an
income of not more than Sixty thousand pesos (P60,000.00) per annum subject to review by the
National Economic and Development Authority (NEDA) every three (3) years."
4 (Popup - Popup)
*
Copyright 2015
196