BIR Form No. 1601E - Guidelines and Instructions

SCHEDULES OF ALPHANUMERIC TAX CODES

NATURE OF INCOME PAYMENT	TAX RATE	ATC		NATURE OF INCOME PAYMENT	TAX RATE	ATC
NATURE OF INCOME PAYMENT	TAX RATE	IND	CORP	NATURE OF INCOME PAYMENT	TAX RATE	IND	CORP
EWT- professional/talent fees paid to juridical persons/individuals (lawyers, CPAs, etc.)	10%	WI 010	WC 010	EWT- gross commission or service fees of custom, insurance, stock, real estate, immigration & commercial brokers & fees of agents of professional entertainers	10%	WI 140	WC 140
EWT- professional entertainers- - if the current year's gross income does not exceed P720,000.00	10%	WI 020		EWT- payments for medical practitioners through a duly registered professional partnership	10%	WI 141
- if the current year's gross income exceeds P720,000.00	20%	WI 021		EWT- payments for medical/dental /veterinary services thru hospitals/clinics/ health maintenance organizations, including direct payments to service providers	10%	WI 151
EWT- professional athletes- - if the current year's gross income does not exceed P720,000.00	10%	WI 030		EWT- payments to partners of general professional partnerships	10%	WI 152
	10%	WI 030		EWT- payments made by credit card companies	1% of 1/2%	WI 156	WC 156
- if the current year's gross income exceeds P720,000.00	20%	WI 031		EWT- payments made by government offices on their local purchase of goods & services from local/resident suppliers	2%	WI 157	WC 157
EWT- movie, stage, radio, television and musical directors- - if the current year's gross income does not exceed P720,000.00	10%	WI 040		EWT- Income payments made by top 10,000 private corporations to their local/resident supplier of goods	1%	WI 158	WC 158
- if the current year's gross income exceeds P720,000.00	20%	WI 041			1%	WI 158	WC 158
EWT- management and technical consultants	10%	WI 050		EWT- Income payments made by top 10,000 private corporations to their local/resident supplier of services	2%	WI 160	WC 160
EWT- bookkeeping agents and agencies	10%	WI 060			2%	WI 160	WC 160
EWT- insurance agents and insurance adjusters	10%	WI 070		EWT- additional payments to government personnel from importers, shipping and airline companies or their agents for overtime services	15%	WI 159
EWT- other recipient of talent fees- - if the current year's gross income does not exceed P720,000.00	10%	WI 080			15%	WI 159
- if the current year's gross income exceeds P720,000.00	20%	WI 081		EWT- commission,rebates, discounts & other similar considerations paid/granted to independent & exclusive distributors, medical/technical & sales representatives & marketing agents & sub-agents of multi-level marketing companies	10%	WI 515	WC 515
EWT- fees of directors who are not employees of the company	20%	WI 090			10%	WI 515	WC 515
EWT- rentals : real/personal properties, poles,satellites & transmission facilities, billboards	5%	WI 100	WC 100	EWT - Gross payments to embalmers by funeral companies	1%	WI 530
	5%	WI 100	WC 100	EWT - payments made by pre-need companies to funeral parlors	1%	WI 535	WC 535
EWT- cinematographic film rentals	5%	WI 110	WC 110	EWT- Tolling fee paid to refineries	5%	WI 540	WC 540
EWT- prime contractors/sub-contractors	2%	WI 120	WC 120	EWT- Income payments made to suppliers of agricultural products	1%	WI 610	WC 610
EWT- income distribution to beneficiaries of estates & trusts	15%	WI 130		EWT- Income payments on purchases of minerals, mineral products & quarry resources	1%	WI 630	WC 630

BIR Form No. 1601-E Monthly Remittance Return of Creditable Income Taxes Withheld (Expanded)
Guidelines and Instructions

Who Shall File

This return shall be filed in triplicate by every withholding agent (WA)/payor who is either an individual or non-individual, required to deduct and withhold taxes on income payments to Expanded/Creditable Withholding Taxes.

If the Government of the Philippines, its political subdivisions or any Agency or Instrumentality, as well as government-owned or controlled corporation is the withholding agent/payor, the return may be made by the officer or employee having control of the disburserment of income payment or other officer or employee appropriately designated for the purpose.

If the person required to withhold and pay the tax is a corporation, the return shall be made in the name of the corporation and shall be signed and verified by the president, vice-president, or any authorized officer and countersigned by the treasurer or assistant treasurer.

With respect to 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 case of two or more joint fiduciaries, the return shall be signed and verified by one of such fiduciaries.

When and Where to File and Remit

The return shall be filed and tax paid on or before the tenth (10th) day of the month following the month in which withholding was made except for taxes withheld for December which shall be filed/paid on or before January 25 of the succeeding year. Provided, that large taxpayers as determined by the Commissioner shall file/pay on or before the twenty fifth (25th) day of the following month.

The return shall be filed and the tax paid with the Authorized Agent Bank (AAB) of the Revenue District Office having jurisdiction over the withholding agent's place of business/office. In places where there are no Authorized Agent Banks, the return shall be filed and the tax paid with the Revenue Collection Officer or the duly Authorized City or Municipal Treasurer within the Revenue District where the withholding agent's place of business/office is located, who will issue a Revenue Official Receipt (BIR Form No. 2524) therefor.

Where the return is filed with an AAB, the lower portion of the return must be properly machine-validated and duly stamped by the Authorized Agent Bank to serve as the receipt of payment. The machine validation shall reflect the date of payment, amount paid and transaction code, and the stamped mark shall show the name of the bank, branch code, teller's code and teller's initial. The AAB shall also issue an official receipt or bank debit advice or credit document, whichever is applicable, as additional proof of payment.

A taxpayer may file a separate return for the head office and for each branch or place of business/office or a consolidated return for the head office and all the branches/offices except in the case of large taxpayers where only one consolidated return is required.

Penalties

There shall be imposed and collected as part of the tax:

1. A surcharge of twenty five percent (25%) for each of the following violations:

a. Failure to file any return and pay the amount of tax or installment due on or before the due date;

b. Unless otherwise authorized by the Commissioner, filing a return with a person or office other than those with whom it is required to be filed;

c. Failure to pay the full or part of the amount of tax shown on the return, or the full amont of tax due for which no return is required to be filed on or before the due date;

d. Failure to pay the deficiency tax within the time prescribed for its payment in the notice of assessment.

2. A surcharge of fifty percent (50%) of the tax or of the deficiency tax, in case any payment has been made on the basis of such return before the discovery of the falsity or fraud, for each of the following violations:

a. Willful neglect to file the return within the period prescribed by the Code or by rules and regulations; or

b.In case a false or fraudulent return is willfully made.

3.Interest at the rate of twenty percent (20%) per annum, or such higher rate as may be prescribed by rules and regulations, on any unpaid amount of tax, from the date prescribed for the payment until the amount is fully paid.

4.Compromise penalty.

Violation of Withholding Tax Provisions

Any person required to withhold, account for, and remit any tax imposed by the National Internal Revenue Code or who willfully fails to withheld such tax, or account for and remit such tax, or aids or abets in any manner to evade any such tax or the payment thereof, shall, in addition to other penalties provided for under this Law, be liable upon conviction to a penalty equal to the total amount of the tax not withheld, or not accounted for and remitted.

Any person required under the National Internal Revenue Code or by rules and regulations promulgated thereunder to pay any tax, make a return, keep any record, or supply correct and accurate information, who willfully fails to pay such tax, make such return, keep such record, or supply such correct and accurate information, or withhold or remit taxes withheld, or refund excess taxes withheld on compensation, at the time or times required by law or rules and regulations shall, in addition to the other penalties provided by law, upon conviction thereof, be punished by a fine of not less than ten thousand pesos (P10,000.00) and suffer imprisonment of not less than one (1) year but not more than ten (10) years.

Every officer or employee of the government of the Republic of the Philippines or any of its agencies and instrumentalities, its political subdivisions, as well as government-owned or controlled corporation, including the Bangko Sentral ng Pilipinas, who, under the provisions of the Code, as amended, or regulations promulgated thereunder, is charged with the duty to deduct and withhold any internal revenue tax and to remit the same in accordance with the provisions of the Tax Code, as amemded, and other laws shall be guilty of any offense herein-below specified and upon conviction of each act or omission, be fined in a sum not less than five thousand pesos (P5,000) but not more than fifty thousand pesos (P50,000) or imprisoned for a term of not less than six (6) months and one day but not more than two (2) years, or both:

a) Those who fail or cause the failure to deduct and withhold any internal revenue tax under any of the withholding tax laws and implementing regulations;

b) Those who fail or cause the failure to remit taxes deducted and withheld within the time prescribed by law, and implementing regulations; and

c) Those who fail or cause the failure to file a return or statement within the time prescribed, or render or furnish a false or fraudulent return or statement required under the withholding tax laws and regulations.

If the withholding agent is the Government or any of its agencies, political subdivisions or instrumentalities, or a government-owned or controlled corporation, the employee thereof responsible for the withholding and remittance of tax shall be personally liable for the additions to the tax prescribed by the National Internal Revenue Code.

Note: All background information must be properly filled up.

• All returns filed by an accredited tax representative on behalf of a taxpayer shall bear the following information :
A. For CPAs and others (individual practitioners and members of GPPs);
a1. Taxpayer Identification Number (TIN); and
a2. Certificate of Accreditation Number, Date of Issuance, and Date of Expiry.
B. For members of the Philippine Bar (individual practitioners, members of GPPs);
B.1 Taxpayer Identification Number (TIN); and
B.2 Attorney's Roll number or Accreditiation Number, if any.
• Box No. 1 refers to transaction period and not the date of filing this return.
• The last 3 digits of the 12-digit TIN refers to the branch code.
• TIN = Taxpayer Identification Number
• IND = Individual Payee
• CORP = Corporate Payee
• Hospitals and Clinics shall submit the names and addresses of medical practitioners every 15th day after the end of each calendar quarter to the Collection Division of the Revenue Region for non-large taxpayers, and at the Large Taxpayers Document Processing and Quality Assurance Division (National Office)/Large Taxpayers District Office (LTDO) for large taxpayers, where such hospital or clinic is regitered using the Bureau of Internal Revenue's prescribed report format.