1. WITHHOLDING TAX ON GOVERNMENT MONEY PAYMENTS
Presented by:
Susan D. Tusoy, CPA, MPS
Asst. Chief, Assessment Division

2. Withholding Tax of VAT RATE
General Rule: VAT due on sales of goods and services are not subject to withholding since the tax is not determinable at the time of sale. Except:
Gross payments to non-residents by both gov’t. and private entities for services rendered in the Phils.
For lease or use of property or property rights to
non-resident owners(final)
b. Services rendered to local insurance companies
with respect to reinsurance premiums payable
to non-resident insurance or reinsurance
companies (final)
12%*

3. Withholding Tax of VAT RATE
Other services rendered in the Phils.
by non-residents (final)
12%*
2. Sale of goods and services to government 5%
*RMC circularizing the increase in VAT Rate

4. 5% Final VAT Final Withholding VAT on Government Purchases
RA 9337
Payments by the government or any of its political subdivisions, instrumentalities or agencies, including government-owned and controlled corporations (GOCCs) on account of its purchase of goods and services who are subject to VAT 5%
Final VAT

5. Withholding on Percentage Tax
Rate
Persons exempt from VAT under Sec (z) of the Tax Code 3%
Domestic carriers and keepers of garages
Cars for rent or hire
Transportation contractors
Domestic carriers by land, air or water
International carriers doing business in the Phils.
Franchises on radio/tv
Franchise on electric, gas, and water utilities 2%
Banks and non-bank financial intermediaries
0%, 1%, 3%, 5%
Finance Companies

6. Withholding on Percentage Tax
Rate
Life insurance premiums (w/ certain exclusions)
2% (RMC )
Agents of foreign insurance companies
10% /5%
Amusements (RMC – includes karaoke bars/videoke bars)
18%,10%, 15%, 30%
Sale, barter or exchange of shares or stocks listed
or traded through local stock exchange
½ of 1%
Shares of stock sold or exchanges through initial
public offering
1%, 2%, 4%
On gross payments to stock, real estate,
commercial, customs, insurance and immigration
brokers based on gross receipts 7%

7. I. WITHHOLD TAXES TIME TAX BASE COMPENSATION
WHEN PAID / CONTRUCTIVELY PAID
TAXABLE COMPENSATION INCOME
EXPANDED
GMP
(VAT PAYEE)
WHEN PAID / PAYABLE
GROSS PAYMENT
(NET OF VAT)
(NON VAT PAYEE)
FINAL
OTHER FINAL
FRINGE
BENEFITS
WHEN PAID
GROSS –UP MONETARY VALUE

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

9. III. WITHHOLDING TAX CERTIFICATES
TYPES
FORM
TIME
COMPENSATION
2316
Jan 31 of the ff year
For terminated employees - last payment of salary
EXPANDED
2304 (Exempt)
20 days ff. close of the quarter
or upon demand
2307 (Taxable)
GOV’T. MONEY PAYMENTS
2307
For Non-VAT : 10th day of the ff month
2306
For VAT : 10th day on the month ff month
FINAL TAX
Jan. 31 of the following year
FRINGE
BENEFITS

10. IV. ANNUAL RETURNS TYPE FORM DESCRIPTION TIME COMPEN-SATION 1604 CF
Alphalist of employees
Less than 10 employees – manual filing
10 employees or more softcopy
eFPS Filer e-attach
Jan. 31 of the ff year
EXPANDED
1604E
Alphalist of payees
Less than 10 payees – manual filing
10 payees or more softcopy
eFPS Filer e-attach
March 1 of the ff year

11. ON MANDATORY ATTACHMENTS
RR No

12. REVENUE REGULATIONS NO. 2-2006
Mandatory Attachments :
Summary Alphalist of Withholding
Agents of Income Payments Subjected to Tax Withheld at Source (SAWT) to Tax Returns With Claimed Tax Credits due to Creditable Tax Withheld At Source

13. REVENUE REGULATIONS NO. 2-2006
2. Monthly Alphalist of Payees (MAP)
Whose Income Received Have Been
Subjected to Withholding Tax in the
Withholding Tax Remittance Return
Filed by the Withholding Agent/Payor
of Income Payments

14. SAWT - defined
to be submitted by the payee-recipient of income as attachment to its duly filed return for a given period
which Summary List contains a summary of information showing, among others,
total amounts of income/gross sales/gross receipts and
claimed tax credits taken from all Certificates of Creditable Withholding Tax at Source
(BIR Form Nos. 2307/2304/2306/2316) issued by the payors of income payment

15. SAWT- defined S- Summary A- Alphalist of withholding agents
a consolidated Summary alphalist of withholding agents from whom income was earned or received and subjected to withholding tax
S- Summary
A- Alphalist of withholding agents
W- subjected to Withholding
T- Tax

16. FORMAT Annex “A”
BIR REGISTERED NAME
TRADE NAME
ADDRESS
TIN
SUMMARY ALPHALIST OF WITHHOLDING AGENTS OF INCOME PAYMENTS SUBJECTED TO WITHHOLDING TAX AT SOURCE (SAWT)
From _______________ to _________________
Seq no. 1
TIN
Inclu-ding branch code 2
Registered name
(Alphalist) 3
Return period
From
Mm/dd/yy 4a
Return
Period To 4b
ATC 5
Nature of income payment 6
AMOUNT
Tax base 7
Tax rate 8
Tax Withheld 9 4
TOTAL AMOUNT P
I declare under the penalties of perjury, that this certificate has been made in good faith, verified by me, and to the best of my knowledge and belief, is true and correct pursuant to the provisions of the NIRC, and the regulations issued under the authority thereof ; that the information contained herein completely reflects a summary of information on all Certificates of Creditable Withholding Tax at Source (BIR Form No. 2307/2304/2306/2316) issued by the payor; that, the income payments has been declared part of the gross income/receipt in the our Income Tax/ VAT/ Percentage Tax Returns where the taxable income was earned or received; that, the information appearing herein is consistent with the information contained in the Certificate of Tax Withheld at Source and that, inconsistent information shall result to denial of the claims for refund/tax credit.
_ _________________________
Signature over printed name
Taxpayer/Authorized representative
Attachments to BIR Form Nos. 1700, 1701Q, 1701, 1702Q, 1702, 2550M, 2550Q, 2551M, 2553

17. Monthly Alphalist of Payees(MAP)
is a consolidated alphalist of income earners from whom taxes have been withheld by the payor of income for a given return period and in whose behalf, the taxes were remitted.
It contains a summary of information on taxes withheld and remitted through the monthly remittance returns (BIR Form Nos E, 1601-F, 1600) showing , among others,
total amounts of income/gross sales/gross receipts and
taxes withheld and remitted.

18. Attachments to BIR Form Nos. 1601-E, 1601-F, 1600
FORMAT
Annex “B”
BIR REGISTERED NAME
TRADE NAME
ADDRESS
TIN
MONTHLY ALPHALIST OF PAYEES (MAP)
RETURN PERIOD (mm/yyyy)
Seq no. 1
TIN
Inclu-ding branch code 2
Registered Name
(Alphalist) 3
Return period
mm/yy 4
ATC 5
Nature of income payment 6
AMOUNT
Tax base 7
Tax rate 8
Tax Withheld 9
TOTAL AMOUNT P
I declare under the penalties of perjury, that this has been made in good faith, verified by me, and to the best of my knowledge and belief, is true and correct pursuant to the provisions of the NIRC, and the regulations issued under the authority thereof; that the information contained herein completely reflects all income payments with the corresponding taxes withheld from payees are duly remitted to the BIR and proper Certificates of Creditable Withholding Tax at Source (BIR Form Nos. 2304/2307/2306/2316) have been issued to payees; that, the information appearing herein shall be consistent with the total amount remitted and that, inconsistent information shall result to denial of the claims for expenses.
__________________________
Signature over printed name
Taxpayer/Authorized representative
Attachments to BIR Form Nos E, 1601-F, 1600

19. Below 10 payees - hard copy
SAWT/MAP
Below 10 payees hard copy
10 or more payees softcopy
(diskette, CD etc.)
EFPS regardless of the e-attach
number of income payees/
income recipient

20. Illustration
A local government unit purchased the following goods and services for the month of November 2013.
Invoice Price
Fertilizers P56,000.00
Construction Materials ,800.00
Repair of Aircon Units ,400.00
Rental of equipments ,600.00
Compute for the withholding tax on government money payments assuming the seller is:
a) Non-VAT registered
b) VAT taxpayer

21. Answer – Non VAT Supplier
Invoice Price
Tax Base
Tax Rate
EWT
GMP
% Tax
Fertilizers
56,000.00
EWT 1%
GMP - none
560.00
0.00
Const. Materials
44,800.00
EWT – 1%
GMP – 3%
448.00
1,344.00
Repair of Aircon Untis
22,400.00
EWT – 2%
672.00
Rental of Equipments
33,600.00
EWT – 5%
1,680.00
1,008.00

22. Answer – VAT Supplier Invoice Price Tax Base Tax Rate EWT GMP VAT
Fertilizers
56,000.00
EWT 1%
560.00
None
Const. Materials
44,800.00
40,000.00
EWT – 1%
GMP – 5%
400.00
2,000.00
Repair of Aircon Untis
22,400.00
20,000.00
EWT – 2%
1,000.00
Rental of Equipments
33,600.00
30,000.00
EWT – 5%
1,500.00

23. The usefulness of the cup is its emptiness.
-Bruce Lee

24. THE END