Withholding Tax Calculator

The Bureau of Internal Revenue's (BIR) Withholding Tax Calculator has restrictions/limitations on the use of the application and it is not downloadable.

Besides, the application is simply an automated computation of the withholding tax due based only on the information entered into by the user in the applicable boxes. Accordingly, the withholding tax due computed by the calculator cannot be used as basis of complaints of employees against their employers.

No validation process is being performed on the following information:
Basic Salary/Statutory Minimum Wage Earner (whether or not the basic salary is more than or less than the statutory minimum wage in the National Capital Region or in other regions);

De Minimis Benefits (whether or not the total de minimis benefits received by the employee is more than or less than the total threshold);

The Cumulative Average Method in computing withholding taxes (where the total supplementary compensation is equal or greater than the total regular compensation) cannot be accommodated in the calculator.

To access Withholding Tax Calculator click here.

SOURCE: http://www.bir.gov.ph/index.php/withholding-tax-calculator.html 

Suspension of Effectivity of All Issuances

The CIR has issued Revenue Memorandum Circular (RMC) No. 69-2016 dated July 1, 2016 relative to the suspension of effectivity of all Issuances Promulgated with the Period Covering June 1-30, 2016.

The effectivity of all revenue issuances issued stated above is hereby suspended until further notice and the circular shall take effect immediately.

Please refer: http://www.bir.gov.ph/images/bir_files/internal_communications_2/RMCs/RMC%20No%2069-2016.pdf

Suspension of Audit of the BIR and Submission of Inventory of Pending Letters of Authority/Letter Notices

The Commissioner of Internal Revenue, Caesar R. Dulay has issued Revenue Memorandum Circular (RMC) No. 70-2016 for the suspension of all field audit and other field operations of the Bureau of Internal Revenue (BIR) relative to the examinations and verifications of taxpayers' books of accounts, records and other transactions effective July 1, 2016.

The inventory of outstanding  Letters of Authority/Audit Notices, and Letter Notices as of June 30, 2016, shall be submitted to the Office of the Commissioner in Excel format, both in softcopy in CD/DVD and hardcopy, on or before July 16, 2016. 

Moreover, no written orders to audit and/or investigate taxpayers' internal revenue tax liabilities shall be issued and/or served except in the following cases:

- Investigation of cases prescribing on or before October 31, 2016; 

- Processing and verification of estate tax returns, donor's tax returns, capital gains tax returns and withholding tax returns on the sale of real properties or shares of stocks together with the documentary stamp tax returns related thereto;

- Examination and/or verification of internal revenue tax liabilities of taxpayers retiring from business;

- Audit of National Government Agencies (NGAs), Local Government Units (LGUs) and Government Owned and Controlled Corporations (GOCCs) including subsidiaries and affiliates; and

- Other matters/concerns where deadlines have been imposed or under orders of the Commissioner of Internal Revenue.

But, services of Assessment Notices, Warrants and Seizure Notices should still be effected. Taxpayers may voluntarily pay their known deficiency taxes without the need to secure authority from concerned Revenue Officials.

SOURCE: http://www.bir.gov.ph/images/bir_files/internal_communications_2/RMCs/RMC%20No%2070-2016.pdf

Pag-IBIG Fund and the BIR agreed to work together in Electronic Filing of Tax Returns thru eBIRForms and Issuance of eCAR

The BIR has issued Revenue Memorandum Order (RMO) No. 28-2016 dated June 21, 2016 with regards to the Policies, Guidelines and Procedures Implementing the Memorandum of Understanding (MOU) between the Home Development Mutual Fund (HDMF) and the Bureau of Internal Revenue (BIR) in Electronic Filing of Tax Returns thru Electronic Bureau of Internal Revenue Form (eBIRForms) and the Issuance of Electronic Certificate Authorizing Registration (eCAR).

The HDMF or Pag-IBIG Fund and the BIR has agreed to provide the necessary support for the use of eBIRForms in the Pag-IBIG Fund's provident and housing loan program and issuance of eCAR.

Please refer http://www.bir.gov.ph/images/bir_files/internal_communications_3/Full%20Text%20of%20RMO%202016/RMO%20No.%2028-2016.pdf to know more about the OBJECTIVES, GENERAL POLICIES, GUIDELINES AND PROCEDURES and the full text of RMO No. 28-2016.

Clarification on Proper Due dates for Filing of Returns and Payment of Taxes for the Purpose of Imposition of Penalties for Late Filing and/or Late Payment

Revenue Memorandum Circular (RMC) No. 65-2016 dated June 23, 2016 has issued by the Bureau for the Clarification on Proper Due dates for Filing of Returns and Payment of Taxes for the Purpose of Imposition of Penalties for Late Filing and/or Late Payment.

 

This Circular is being issued to clarify the rules on appropriate due date of filing of return and payment of taxes when the exact due dates fall on a Saturday, Sunday, or a holiday both for electronic and manual filers and payers of taxes., for the purpose of imposition of penalties for Late Filing and/or Late Payment.

 

A. For Taxpayers under the Electronic Filing and Payment System (EFPS)

 

For taxpayers mandatorily covered by the EFPS rules and those taxpayers registered and enrolled under the EFPS, the due date of , filing of return and the payment of taxes shall be the exact dates stated in the law or regulations for filing or payment. However, if the deadline falls on a Saturday, Sunday or a holiday, the appropriate deadline for the electronic filing and payment shall fall on the next business day.

 

Transmission of electronic returns and electronic payment must be completed/made on and actually received by the Bureau of Internal Revenue on or before 12 midnight of the defined statutory or regulatory due date for the filing and payment of the relevant return. Otherwise, the same shall be considered to have been filed late or paid late, and thus shall be subject to the appropriate penalty for late filing/late payment.

 

In case of dispute, the taxpayer shall present the written advice of the BIR that its electronic system for filing and payment of taxes is down or unavailable, which shall be issued by the BIR everytime its electronic system for filing and payment of taxes is down or unavailable. Said advice will also include instruction of appropriate deadline for manual filing and thereafter an instruction for the due date of electronic filing of tax returns initially filed manually. Failure to file the returns and/or pay the taxes on or before the deadline stated in the said written advice shall warrant the imposition of penalties for failure to file the returns and/or pay the taxes, or for late filing/late payment whichever is applicable.

 

B. For Taxpayers under the Online eBlR Form System

 

For those taxpayers covered by eFiling of Return under the Online eBlR Forms System and those taxpayers registered and enrolled under the Online eBlR Forms System, the due date of filing of return shall be the exact dates stated in the law or regulations for filing of said return. However, if the deadline falls on a Saturday, Sunday or a holiday, the appropriate deadline for the electronic filing shall fall on the next business day.

 

Transmission of electronic returns must be completed/made on and actually received by the Bureau of Internal Revenue on or before 12 midnight of the defined statutory or regulatory due date for the filing of the relevant return. Otherwise, the same shall be considered to have been filed late and thus shall be subject to the appropriate penalty for late filing.

 

In case of dispute, the taxpayer shall present the written advice of the BIR that its online eBlR Forms System is down or unavailable, which shall be issued by the BIR everytime its Online eBlR Forms System is down or unavailable. Said advice will also include instruction of appropriate deadline for manual filing and ' thereafter an instruction for the due date of electronic filing of tax returns initially filed manually. Failure to file the returns on or before the deadline stated in the said written advice shall warrant the imposition of penalties for failure to file the returns or for late filing whichever is applicable.

 

The due date for the payment of taxes due for the returns filed under the Online eBlR Forms System shall be made on the exact dates stated in the law or regulations for payment thereof. However, if the deadline falls on a Saturday, Sunday or a holiday, the appropriate deadline for the payment thereof shall fall on the next business day, or on the same deadline for the filing of the returns under the Online eBlR Forms System.

 

C. For Taxpayers who are Manual Filers or are using the Offline eBlR Forms Package

 

Taxpayers not mandatorily covered or enrolled under either the EFPS or the Online eBlR Form System or are users of the Offline eBlR Form Package are classified as Manual Filers.

 

Manual filers are required to file and pay on or before the due date stated in the law or regulation for filing returns and/or payment of taxes due thereon, however, if such due date falls on a Saturday, Sunday or a holiday the act of filing and payment shall be done on the next business day. Any returns filed and/or tax paid beyond the dates stated in this paragraph, shall be subject to the appropriate penalty for none filing/payment, or late filing/payment, whichever is applicable.

 

SOURCE: http://www.bir.gov.ph/images/bir_files/internal_communications_2/RMCs/RMC%20No.%2065-2016_copy.pdf of the full text of RMC No. 65-2016.

Proper Tax Treatment of Passed-on Gross Receipts Tax

Revenue Memorandum Circular (RMC) No. 62-2016 has issued by the Bureau to clarify the Proper Tax Treatment of Passed-on Gross Receipts Tax under Sections 121 and 122 of the National Internal Revenue Code, as amended (Tax Code).

It was mentioned in the memorandum that all banks, non-bank financial intermediaries performing quasi-banking functions, financing companies and other financial intermediaries not performing quasi-banking functions doing business in the Philippines are directly liable for GRT pursuant to Sections 121 and 122 of the Tax Code.

"SEC. 121. Tax on Banks and Non-Bank Financial Intermediaries Performing Quasi-Banking Functions. - There ,shall be collected a tax on gross receipts derive from sources within the Philippines by all banks and non-bank financial intermediaries in accordance with the following schedule: xxx" 

"SEC. 122. Tax on Other Non-Bank Financial Intermediaries. - There shall be collected a tax of five percent (5%) on the gross receipts derived by other non-honk financial intermediaries doing business in the Philippines, from interest, commissions, discounts and all other items treated as gross income under this Code: xxx" 

The "passed-on" GRT should form part of the tax base upon which the GRT is based for gross receipts tax purposes, based on the definition of "gross receipts", that is based on "actual or constructive receipt" of income. Since banks, non-bank financial intermediaries, financing companies and other financial intermediaries not performing quasi-banking functions doing business in the Philippines are directly liable for GRT on gross receipts derived by them from business operations, the "passed-on" GRT shall be considered as receipt of gross income specified under Section 32(A) of the Tax Code.

Banks and non-bank financial intermediaries can claim the GRT paid as a deductible expense for income tax purposes pursuant to Section 34 (C) of the Tax Code subject to the actual remittance of the GRT as provided under Section 128 of the Tax Code. The "passed-on" GRT shall be considered as receipt of income as specified under Section 32 of the Tax Code.

Please refer http://www.bir.gov.ph/images/bir_files/internal_communications_2/RMCs/RMC%20No%2062-2016.pdf of other concerns, illustration and full text of RMC No. 62-2016

Supplemental Rules on the Matter of Prescribing the Investigation of Parties in Transactions Involving the Transfer/Assignment/Sale of Properties

The bureau has issued Revenue Memorandum Order (RMO) No. 25-2016 as a supplement to the guidelines and procedure in the conduct of investigation on the capacity of a party/ies to acquire properties provided for in RMO No. 24-2016.

A paragraph shall be added to Section I Guidelines and Procedures (iii)(b) of Revenue Memorandum Order No. 24-2016, and said subsection shall now read as follow:

"b. Financial capacity of the buyer to acquire the Subject Property shall be determined during the application of CARs and TCLs.

If the buyer/trasferee is proven to have no financial capacity to acquire the Subject Property, the transaction is not a sale but a donation and donor's tax should be imposed and not capital gains tax, and a duly executed Deed of Donation shall be required.

However, if the seller/transferor/assignor is a corporation or is a stranger to the buyer/trasferee of the Subject Property, it shall be presumed that the buyer/trasferee/assignee have earned income that he/she/it did not declare and taxes due thereon where not paid. In addition to any tax due on the seller and it is proven that the buyer/transferee/assignee does not have any financial capacity to purchase the Subject Property, income taxes shall be assessed against the buyer/transferee/assignee on that amount of the consideration for which buyer/transferee/assignee on the amount of the consideration for which buyer/trasferee/assignee cannot show proof that he/she/it has the financial capacity for, on the taxable year when the sale/trasferer/assignment of the Subject Property occurred."

The RMO No. 25-2016 is dated June 12, 2016. This Order shall take effect immediately. 

SOURCE: http://www.bir.gov.ph/images/bir_files/internal_communications_3/Full%20Text%20of%20RMO%202016/RMO%20No.%2025-2016.pdf

How to Set-up User Name and Password with BIR Alphalist Data Entry System Version 5.1

Currently, the BIR has issued the Alphalist Data Entry System and Validation Module Version 5.1 for creation of Monthly Alphalist of Payees (MAP), Summary Alphalist of Withholding Tax (SAWT) and others for reporting and compliance with the bureau.

 

After you have downloaded the latest version in your PC desktop, laptop, USB or any other compatible devices, you can create a User Name and Password to log on to data entry as follows:

 

1. For new user, click the bir1604v51 Alphalist Data Entry System Bureau of Internal Revenue icon to open the Alphalist Data Entry Ver. 5.1. To log to data entry, type the default User Name: user and default Password: password

 

2. In the Main Menu of the Alphalist data Entry System, click Withholding Agent to update the Tax Payer's information and other details.

 

3. In Main Menu, click the Utilities to Set-up or Change User and Password. Under the Utility Setups, click Change User to set-up or change User Name and click Change Password to create new password.

 

In the Utility Setups, you can explore the Printer Setup, Change User, Delete User, Change Password, Add New User, Import Records, Purge and Archive and ReindexAll.

 

To download the Alphalist Data Entry and Validation Module Version 5.1, visit the blog post: http://philippinetaxtalk.blogspot.com/2016/01/alphalist-data-entry-and-validation.html and follow the instructions provided.

 

 

Availability of the Update of Exemption of Employees (UEE) Data Entry Module in Filing of the BIR Form No. 2305 and 2305 Batch File Validation Module

The Bureau has issued Revenue Memorandum Circular (RMC) No. 59-2015 in relation to RR 7-2012 to circularize the availability of Update of Exemption of Employees (UEE) (BIR Form No. 2305 - Certificate of Update of Exemption and of Employees and Employee's Information) Data Entry Module and 2305 Batch File Validation Module which shall be used for the following:

1. Updating of Employee's Additional Exemption for Dependents;

2. Change of Status; and

3. Execution of the "Waiver to Claim the Additional Exemption" by the husband ; or revocation of the previously executed "Waiver to Claim the Additional Exemption by the Husband"

UEE Data Entry Module - This is a data entry module where the employer inputs all the registration updates of exemptions of its employees one by one with validation before sending electronically to the BIR.

2305 Batch File Validation Module - This is a validation module of BIR Form 2305 for the CSV file generated by the employer using their own extract program.

The UEE Data Entry and 2305 Batch file Validation Module are available at http://www.bir.gov.ph/index.php/downloadables.html or click the following: 

Update of Exemption of Employees Data Entry Module: http://www.bir.gov.ph/images/bir_files/downloadables/BIRF2305/BIRF2305.accdb

2305 Batch File Validation Module (EXE) http://www.bir.gov.ph/images/bir_files/downloadables/BIRF2305/BIRF2305ValidationM.exe and (ZIP) http://www.bir.gov.ph/images/bir_files/downloadables/BIRF2305/BIRF2305ValidationM.zip

Job Aid - Batch Validation Module: http://www.bir.gov.ph/images/bir_files/downloadables/BIRF2305/job_aid_batch_entry_annex_b.pdf

Job Aid - Batch Data Entry Module: http://www.bir.gov.ph/images/bir_files/downloadables/BIRF2305/job_aid_data_entry_annex_a.pdf

SOURCE: http://www.bir.gov.ph/images/bir_files/internal_communications_2/RMC%20No%2059-2015_copy_copy.pdf and http://www.bir.gov.ph/images/bir_files/internal_communications_2/RMCs/annexesA-F.pdf

How to Apply SSS Retirement Benefit

A member who is qualified to avail the SSS Retirement Benefit should consider the following:

1. Application Requirements

a. Retirement Claim Application

b. DDR Signature Card

c. DDR Savings Account form;

d. Certificate of Separation from last employer (if member is less than 65 years old) ;

e. Passbook or ATM Card (if pension);

A member must open a single savings account in the bank of his choice and submit to the SSS his savings account number and a photocopy of his passbook or ATM Card upon filing of his application. 

f. The original copy of the passbook must be presented for authentication purposes.

g. Certified true copies of birth or baptismal certificate of dependent children;

h. Certified of cessation of business or practice of profession (for self-employed members who are less than 65 years old);

i. Certified true copy of marriage certificate

j. Proofs of filiation for illegitimate dependent children

k. UMID or SSS biometrics ID card or two (2) other valid IDs, both with signature and at least one (1) with photo and date of birth.

* Other supporting documents may be requested by SSS depending on the evaluation of the claim

2. Filing Procedure

Applications for retirement benefit are filed at any SSS branch or representative office. 

SOURCE: https://www.sss.gov.ph/sss/appmanager/pages.jsp?page=retirementapplication