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How to Compute Withholding Tax on Compensation (BIR Philippines)FEBRUARY 22, 2011 BY VICTORINO ABRUGAR
How to compute withholding tax on compensation and wages in the Philippines? If
you have seen a Monthly Remittance Return of Income Taxes Withheld on
Compensation or BIR Form No. 1601-C, you will only see totals of compensation and
tax withheld on compensation of the taxpayer’s employees. You will not have an idea
on the computation of the tax withheld on compensation for each of those employees.
In this article, we will tackle how a withholding tax is computed for each of them. So
let’s proceed.
Requirement of Withholding
According to Section 79 of the National Internal Revenue Code (Republic Act No.
8424), as further amended by RA 9504, “except in the case of a minimum wage earner
as defined in Sec. 22(HH) of this code, every employer making payment of wages shall
deduct and withhold upon such wages a tax determined in accordance with the rules
and regulations to be prescribed by the Secretary of Finance, upon recommendation
of the Commissioner.” This means that employees and workers who earn minimum
wages are not subject to withholding tax. The summary of the current regional
minimum wage rates can be viewed at the Department of Labor and Employment
(DOLE) official website.
Methods of computing tax withheld on compensation
1. Use of withholding tax table. In general, every employer making payment of
compensation shall deduct and withhold from such compensation a tax determined in
accordance with the prescribed Revised Withholding Tax Tables (Annex C) which shall
be used starting January 1, 2009. Below are the four withholding tax tables prescribed
in these regulations:
a. Monthly tax table – to be used by employers using the monthly payroll period;
b. Semi-monthly tax table – to be used by employers using the semi-monthly
payroll period;
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c. Weekly tax table – to be used by employers using the weekly payroll period;
d. Daily tax table – to be used by employers using the daily payroll period.
Legend:
Z-Zero exemption
S-Single
ME-Married Employee
1;2;3;4- Number of qualified dependent children
S/ME = P50,000 Each Working employee
Qualified Dependent Child = P25,000 each but not exceeding four (4) children
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USE TABLE A FOR SINGLE/MARRIED EMPLOYEES WITH NO QUALIFIED DEPENDENT
1. Married Employee (Husband or Wife) whose spouse is unemployed.
2. Married Employee (Husband or Wife) whose spouse is non-resident citizen receiving
income from foreign sources.
3. Married Employee (Husband or Wife) whose spouse is engaged in business.
4. Single with dependent father/mother/brother/sister/senior citizen.
5. Single
6. Zero Exemption for Employees with multiple employers for the 2nd ,3rd …employers
(main employer claims personal & additional exemption)
7. Zero Exemption for those who failed to file Application for Registration
USE TABLE B FOR THE FOLLOWING SINGLE/MARRIED EMPLOYEES WITH
QUALIFIED DEPENDENT CHILDREN
1. Employed husband and husband claims exemptions of children
2. Employed wife whose husband is also employed or engaged in business; husband
waived claim for dependent children in favor of the employed wife.
3. Single with qualified dependent children.
If the compensation is paid other than daily, weekly, semi-monthly or monthly, the tax
to be withheld shall be computed as follows.
a. Annually – use the annualized computation (see no. 3 below).
b. Quarterly and semi-annually – divide the compensation by three (3) or six (6)
respectively, to determine the average monthly compensation. Use the monthly
withholding tax table to compute the tax, and the tax so computed shall be multiplied
by three (3) or six (6) accordingly.
2. Cumulative average method. This method is used if (a) in respect of a particular
employee, the regular compensation is exempt from withholding tax because the
amount thereof is below the compensation level, but supplementary compensation is
paid during the calendar year or the supplementary compensation is equal to or more
than the regular compensation to be paid; or (b) the employee was newly hired and
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had a previous employer/s within the calendar year, other than the present employer
doing this cumulative computation.
3. Annualized withholding tax method. This method is used (a) when the employer-
employee relationship is terminated before the end of the calendar year; and (b) when
computing for the year-end adjustment (the employer shall determine the amount to be
withheld from the compensation on the last month of employment or in December of
the current calendar year).
Steps in computing amount of tax to be withheld
Step1. Determine the total monetary and non-monetary compensation paid to an
employee for the payroll period, segregating gross benefits which include 13th month
pay, productivity incentives, Christmas bonus, other benefits, received by the
employee per payroll period, and employees’ contribution (employees’ contribution
only and not the employers’ contribution) to SSS, GSIS, HDMF, PHIC, and union dues.
Gross benefits which are received by officials and employees of both public and
private entities in the amount of P30,000 or less shall be exempted from income and
withholding taxes.
You may read our article about How to compute 13th Month Pay in the Philippines.
Step2. Segregate the taxable from the non-taxable compensation income paid to the
employee for the payroll period. The taxable income refers to all remuneration paid to
an employee not otherwise exempted by law from income tax and consequently from
withholding tax. The non-taxable income are those which are specifically exempted
from income tax by the Code or by other special laws as listed in Sec.2.78.1(B) hereof
(e.g. benefits not exceeding P30,000, non-taxable retirement benefits and separation
pay).
You may read our article titled “How to Compute Separation Pay in the Philippines”.
Step3. Segregate the taxable compensation income as determined in Step 2 into
regular taxable compensation income and supplementary compensation income.
Regular compensation includes basic salary, fixed allowances for representation,
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transportation and other allowances paid to an employee per payroll period.
Supplementary compensation includes payments to an employee in addition to the
regular compensation such as commission, overtime pay, taxable retirement pay,
taxable bonus and other taxable benefit, with or without regard to a payroll period.
You may read our article on “How to Compute Overtime Pay in the Philippines”.
Representation and Transportation Allowance (RATA) granted to public officers and
employees under the General Appropriations Act and the Personnel Economic Relief
Allowance (PERA) which essentially constitute reimbursement for expenses incurred
in the performance of government personnel’s official duties shall not be subject to
income tax and consequently to withholding tax.
Step 4. Use the appropriate tables mentioned under Section 2.79 (B)(1) for the payroll
period: monthly, semi-monthly, weekly or daily, as the case may be.
Step 5. Fix the compensation level as follows:
(a) Determine the line (horizontal) corresponding to the status and number of
qualified dependent children using the appropriate symbol for the taxpayer’s status.
(b) Determine the column to be used by taking into account only the total amount of
taxable regular compensation income. The compensation level is the amount indicated
in the line and column to which the regular compensation income is equal to or in
excess, but not to exceed the amount in the next column of the same line.
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/compensation level.
Sample Computations Using the Withholding Tax Tables
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The following are sample computations of Withholding tax on compensation using the
withholding tax tables:
Example 1: Single with no dependent receiving monthly compensation
Juan Santos, single with no dependent, receives P18,000 (net of SSS/GSIS,PHIC,HDMF
employee share only) as monthly regular compensation and P 7,000 as supplementary
compensation for January 2011 or a total of P25,000. How much is the withholding tax
for January 2011 for Juan?
Computation:
By using the monthly withholding tax table, the withholding tax for January 2011 is
computed by referring to Table A line 2 S (single) of column 6 (fix compensation level
taking into account only the regular compensation income of P18,000 which shows a
tax of P1,875 on P15,833 plus 25% of the excess of P 2,167 (P18,000-15,833) plus
P7,000 supplementary compensation.
Regular compensation: P 18,000
Less: compensation level
(line A-2 column 6) 15,833
Excess P 2,167
Add: Supplementary compensation 7,000
Total P 9,167
Tax on P15,833 P 1,875.00
Tax on excess (P9,167 x 25%) 2,291.75
Withholding tax for January 2011 P 4,166.75
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Example 2: Married with qualified dependent children receiving semi-monthly
compensation
Jose Cruz, married with three (4) qualified dependent children receives P14,000 (net of
SSS/GSIS,PHIC,HDMF employee share only) as regular semi-monthly compensation.
His wife is also employed but he did not waive his right in favor of the wife to claim for
the additional exemptions.
Computation: Using the semi-monthly withholding tax tables, the withholding tax due
is computed by referring to Table B line 4 ME4 of column 6 which shows a tax of
P937.5 on P12,083 plus 25% of the excess (P 14,000 – 12,083 = P1,917).
Total taxable compensation P 14,000
Less: compensation level
(line B-4 Column 6) 12,083
Excess P 1,917
Tax on P12,083 P 937.50
Tax on excess (P1,917 x 25%) 479.25
Semi-monthly withholding tax P1,416.75
For more samples of computations, such as computations using the cumulative
average method, and annualized withholding tax method for computing year-end
adjustments and when the employer-employee relationship is terminated before the
end of the calendar year, please read the BIR issued Revenue Regulations No. 10-2008,
which you can download the full text at the following links:
Revenue Regulations No. 10-2008 PDF file from BIR Website or
Revenue Regulations No. 10-2008 PDF file from our website, in case the BIR link won’t
workPage 7 of 88
You can also view/download the following:
Revised Withholding Tax tables
BIR form 1601-C -Monthly Remittance Return of Income Taxes Withheld on
Compensation
BIR Form 1604C -Annual Information Return of Income Tax Withheld on Compensation
and Final Withholding Taxes
Summary of current regional daily minimum wag rates (Department of Labor and
Employment)
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SSS quarterly and monthy
this page is about paying, remitting and posting SSS contributions of employees monthly and quarterly. As an employer, we are required and mandated to remit payments to SSS of our employees’ premiums either every month or every quarter to ensure complete SSS posting and to ensure our staff entitled for SSS benefits whenever the needs arise.
Requirements in Paying SSS Employees’ Contributions
Employer Contributions Payment Form – also known as SSS Form R-5
Contributions Collection List – also known as SSS Form R-3or R-3 Diskette/USB File
Cash or Check payable to SSS
When and where to pay and remit employees contributions?
Although there is now a special deadline for SSS payments based on the tenth digit of a
member’s SSS number, I advise employers to pay like the usual deadline which is on or
before the 10th day of the following month because your employees have different SSS
number and this is much convenient for you and your payroll staff. I also advise to pay to the
SSS branch that handles your company’s records to maintain fast and easy access of
records and employees’ applications concerns. Paying to the SSS branch will save your time
when you will submit your R3 files too although you can also pay SSS contributions online
and to some accredited payment centers like banks.
Fill out 3 copies of SSS Form R5 and make sure all your company’s info such as SSS
employer’s number, company name, type of payor, date of payment, contact number
and amount of remittance for social security contributions and employees’
compensation contributions are all correctly written.
Count your cash or money or double-check your check or postal money orders before
paying.
Go to the SSS branch near you and pay.
Keep the receipt and have it photocopied for the next step (below)
Steps in Posting Employees SSS Contributions
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Once you paid your employees SSS premiums, you are not done yet. You still need to
submit the receipt together with the SSS R3 diskette or USB file and copies of each
month’s Transmittal Certification and Employee File. If you don’t know how to print
these documents, please read “How to Use SSS R3 Program and Generate File.”
Prepare photocopies of the SSS R5 (receipt). Prepare 2 copies per month because
SSS will keep one copy per month of payment.
Prepare 2 copies of Transmittal Certification, too and sign them. SSS will receive one
copy each month covered.
Prepare 2 copies of Employee File per month of payment.
Submit your SSS R3 diskette or USB flash drive for posting and uploading of the
collections and contributions. SSS then will save the R3 Collection Monthly List before
they will return your diskette or USB flash drive. They will be in PDF format and you
have to print these out and keep them for your file reference.
By the way, paying quarterly means paying 3
consecutive months and doing the same submission to the SSS as discussed above. You
can pay quarterly so that you won’t be going to the SSS every month but you will have to
inform your employees about this option so they will be aware of the deductions from their
salary.
That’s it. You’re done. Very easy right?
Disclaimer: I’m not affiliated with SSS. Just like you, I’m doing this for employer’s SSS report
every month. Thought to share this with you to help first time users. If you have personal
questions and inquiry, contact the SSS branch near you. If you wanna share your experience
using the R3, feel free to share them here. Mabuhay!
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How to Pay and Post Employee or Employer Contributions to The Philippine Social Security System (SSS)All employers are required and mandated to remit payments to Social Security System (SSS) of the employees and employer premiums either every month or every quarter to ensure complete SSS postings and to ensure employees are entitled for SSS benefits whenever the needs arise.
(source: https://www.sss.gov.ph)
Here are the requirements in paying SSS Contributions.1. SSS Form R5 - Employer Contributions Payment Return:
This form is submitted monthly together with the SSS form R3 (see form #2 below). It looks like a bank deposit slip where you will need to write all the information like the following:
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Employer No. Business Name
Business Address
Business Tin
Applicable Reporting Period
Type of Payor
Form of Payment (If cash or check)
Total Amount of Payment
After the employer paid the contribution, the bank or the SSS Office will put a stamp on the R5 form that will served as the employer proof of payment.
2. SSS Form R3 - Contribution Collection List:
This form is submitted monthly or quarterly before the 10th of the following month. If the due date falls on weekend or Holiday it must be submitted by the first working day after. The purpose of this form is to submit names of employees and employer contributions to SSS.
3. Cash or Check Payable to Social Security System (SSS)
Here are the steps in paying SSS Contributions.
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1. Fill out 3 copies of SSS Form R5 (see form #1 above) and make sure all the company’s information are all correctly written.
2. Fill out 3 copies of SSS Form R3 (see form #2 above)
3. Go to SSS office near you and pay the contributions.
4. Once the contributions are paid, you still need to submit the receipt together with the SSS R3 File in a USB flash drive. This SSS R3 file can be created by the SSS R3 generator which is a software that can be downloaded in SSS websitehttps://www.sss.gov.ph/sss/index2.jsp?secid=1&cat=101 This R3 File Generator Program was developed to assist employers in the preparation of their monthly contributions report. This R3 File generator will help employer to submit contributions online. It is also an assurance that each employee’s SSS contribution are posted properly to their account.
By the way, there’s a minimum hardware requirement when downloading R3file Generator:
Minimum Hardware Requirement: 166 MHZ Pentium IV or equivalent
256 MB memory
100 MB extra hard disk space
CGA Display
Minimum Software requirement
JRE 6 or WIndows
JRE 6 for Linux
------------======================
Social Security System
What to do: Fill out and file SSS Form R5. This reflects the amounts contributed by the employee and employer. Prepare four copies.
How to compute: Computation for SSS depends on the salary bracket. Usually, the employer covers 70% of the payment.
When needed: On or before the 10th of the following month.
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Where to pay: Payments are accepted at SSS cashier counters, Bayad Centers, SM Bills Payment Centers , and accredited banks (over the counter or online).
For more info: www.sss.gov.ph
JULY 10, 2015BY JANICE 46 COMMENTS SALARY LOAN
SSS CONTRIBUTION
CONTRIBUTION
When and Where to Pay your SSS Contributions as Voluntary MembersI’m currently a voluntary member of SSS or the Philippine Social Security System, and I pay my contributions quarterly. Today is July 10 and it is the last day to pay my contributions for the last quarter which includes the months of April, May, and June 2015.
I went to SM, where I usually pay my SSS contribution through their Business Services, and it’s the nearest and most convenient payment center for me. I was lucky because I was
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accommodated immediately and I didn’t have to wait and line up in long queue like what I normally do.
In this post, I will share with you some information and tips on how and where to pay your SSS contributions as a Voluntary, Self-employed, or OFW member.
1. How much should you pay for your SSS Contribution?Your contribution is based on how much your compensation is. Below is the latest SSS Table of Contribution of 2015. The minimum contribution for SE (Self-Employed), VM (Voluntary Member), and OFW (Overseas Filipino Worker) is Php 110 if your compensation ranges from Php 1,000 to Php 1,249; while the maximum is Php 1,760 if it ranges from Php 15,750 and higher.
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2. When to Pay your SSS Contribution?For Household Employers, Self-Employed, and Voluntary Members except OFW members, you can pay your contributions on or before the deadline. The payment deadline falls on the month following the applicable month or quarter.
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For example in my case, since I need to pay my contributions for the previous quarter including the months of April, May, and June, the payment deadline is in July. What specific date in July? Here’s the guideline.
If the 10th (last) digit of your Social Security Number ends in 1 or 2, the deadline is on the 10th day of the following month.
If the 10th (last) digit of your Social Security Number ends in 3 or 4, the deadline is on the 15th day of the following month.
If the 10th (last) digit of your Social Security Number ends in 5 or 6, the deadline is on the 20th day of the following month.
If the 10th (last) digit of your Social Security Number ends in 7 or 8, the deadline is on the 25th day of the following month.
If the 10th (last) digit of your Social Security Number ends in 9 or 0, the deadline is on the last day of the following month.
In my case, the last digit of my SS number is 1, and the deadline of my payment for the last quarter (April, May, June) is the 10th of the following month, and that’s today, July 10.
Why is it important to know the payment deadline?
Because if you miss to pay on or before the deadline, you won’t be able to pay your contributions for the previous months. SSS does not accept retroactive payments.
3. Where to Pay SSS Contribution as a Voluntary Member?There are several payment centers and options where you can pay your contributions.
SSS Payment Facilities
SSS Main Office – Cashiering Department
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SSS Branch Tellering Counters CIS Bayad Centers SM Business Centers SSS-accredited Commercial Banks
For Members Abroad
I-Remit PNB Overseas Payment System Ventaja
4. How to check if your payment was accepted and posted online?
Go to sss.gov.ph (preferrably with Internet Explorer) Log in to your SSS Online Account (If you don’t have it yet, you have to register first.
Click HEREto know how). At the E-Services Page, hover your mouse over Member Info, and under that,
click Actual Premiums. (Click HERE to see my video on this).
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How to Calculate Your Philhealth Contribution
Tuesday, April 28, 2015
Like SSS and PAG-IBIG deductions, Philhealth contributions are also deducted from the pay of employees every month. Philhealth aims to be a partner to its members during sickness by providing inpatient and outpatient benefits, which is done by shouldering a portion of an employee’s hospitalization bills or by covering the costs of certain medical procedures.
Philhealth BenefitsSome of the outpatient benefits provided by Philhealth are blood transfusions, radiotherapy, and hemodialysis. Certain diagnostic examinations and selected medicines are also covered by Philhealth.
Computation of Philhealth ContributionsPhilhealth contribution is computed at 2.5% of an individual’s salary rate, with the maximum salary rate pegged at P35,000.00. This means that individuals who receive a salary of more than P35,000.00 will still be deducted 2.5% of P35,000.00 every payday for their Philhealth contribution, or the amount of P875.00.
It is important to note, though, that this is not the actual amount that employees pay because half of the contribution is shouldered by the employer. Meaning, individuals receiving P35,000.00 monthly salary are only deducted P437.5 from their pay—the other P437.5 is shouldered by the employer.
Meanwhile, for employees who receive a salary of P5,000 or lower every month, the employers must shoulder the employees’ full Philhealth contribution.
Philhealth Contribution TableBelow is the complete contribution table for Philhealth employees and employers:
(Click photo for full view)
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Philhealth Contributions for OFWs, Self-Employed, and Individual Paying MembersFor Philhealth members with no employers, the following are the required contributions:
OFWs: P2,400 annual or P1,200 six-month contribution
Self-Employed & individual paying members:
P2,400 annual contribution - for those with a monthly income of P25,000 or lower
P3,600 annual contribution - for those with a monthly income of higher than P25,000
Philhealth: The Need for Updated Contributions
Philhealth contributions prove to be a lot of help in times of need, and members can easily avail the Philhealth benefits as long as they have at least 3 months of contribution within the past 6 months prior to date of availment. For employers, this means the need for both accurate computation of employees’ Philhealth contributions and on-time remittance of said contributions to Philhealth.
In order to ensure both, you need to have a solid payroll system in place, which doesn’t rely much on manual computation but on automated processing. Payroll Pie is one payroll software designed for this—it can process payroll, including bonuses and deductions, in just a matter of a few hours for an entire group. If you want to try and see how Payroll Pie can help you grow your business, try the 60-day free trial—it’s a tool that will revolutionize your payroll process.
Member Inquiry Facility Now AvailableMarch 4, 2015
MEMBERS of the Philippine Health Insurance Corporation (PhilHealth) may now check on the accuracy of their member data records through a new facility in the government corporation’s website.
Launched on PhilHealth’s 20th Anniversary, the Member Inquiry facility can be found on the homepage of www.philhealth.gov.ph.
To access their records, members must first register by following the standard steps indicated in the facility. Once the registration is completed, they can log in using their PhilHealth Identification Numbers and the password that will be sent to their email addresses.
The Member Inquiry facility allows members to verify the accuracy of the information reflected in their membership profiles such as name, date of birth, address, employer, names of dependents, and other pertinent personal details.
It also allows members to check on their posted premium contributions. “If they see that there are months or years without posted contributions, they should
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immediately check with their employers, or check on their personal files of official receipts of premium payments made, or better yet, call our Action Center at (02) 441-7442 to report any discrepancy in the information that they see on their profiles,” PhilHealth President and CEO Alexander A. Padilla said.
Members who need to update their PhilHealth profiles must fill out the PhilHealth Member Registration Form which can be downloaded from the website, and bring it to any of the nearest Local Health Insurance Office in their localities.
“This is our pro-active move to encourage our members to update their records with us. The facility is there to make it easy for them to fulfill their responsibility to make sure that their member records are up-to-date, and help ensure hassle-free availment of benefits,” Padilla said. (END)
Online PhilHealth premium remittance for employers now availableNovember 23, 2015
EMPLOYERS in the private and government sectors may now remit their premium contributions to the Philippine Health Insurance Corporation (PhilHealth) electronically.
This development is made possible through the Electronic Premium Remittance System (EPRS) version 3.1, a facility that was upgraded from being a premium reporting mechanism to one that will now enable employers to remit premium contributions online.
“Initially, we have partnered with Security Bank for the online premium payment facility, but we are optimistic that very soon, other accredited collecting agents (ACAs) will make this facility available for our employer-partners,” PhilHealth President and CEO Alexander A. Padilla said.
The new EPRS will also enable employers to enjoy prompt acknowledgement of premium payments and immediate posting of their premium contributions.
Through the new EPRS, the process of premium remittance and reporting has been reduced from six (6) to three (3) steps, namely, updating of employees’ remittance status; generation of Statement of Premium Account (SPA); and selection of ACA to remit premium contributions online.
Once the online payment succeeds, the employer will receive an electronic PhilHealth Acknowledgement Receipt or ePAR. It will be reflected in the employer’s EPRS account and shall serve as the employer’s proof of premium payment.
“We call on our partner-employers to enrol their accounts now with any of the ACAs with approved payment facilities so that they can immediately avail themselves of the online payment facility in the EPRS,” Padilla said. (Faudia H. Subillaga)
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PhilHealth
What to do: Fill out and file PhilHealth Form ME-5. This reflects the amounts contributed by the employee and employer.
How to compute: The computation changes depending on the salary bracket of employee. Usually, the employer covers 50% of the payment and the employee covers the other 50%.
Salary brackets for PhilHealth computations.
When needed: On or before the 10th of the following month.
Where to pay: Payments are accepted at PhilHealth, at accredited collecting banks (these include LandBank of the Philippines, BPI, MBTC, Unionbank, ChinaBank, and UCPB), accredited collecting partner outlets, or through electronic payment facilities.
For more info: www.philhealth.gov.ph
Philhealth has played a very important role in the lives of its members. Often it was realized only in times of health problems. A member needs to be hospitalized, or its dependents have to undergo an emergency procedure. After which, the member who would pay the hospital bill will say “good thing I have Philhealth, my bill was reduced significantly.” On the other side, those members
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who don’t pay their contribution regularly regret much when unforeseen health problems occur.
For responsible members just continue with what you are doing, and for those members who won’t pay their contribution maybe, this is the time to change your mind as it would really benefit you and your dependents in the long run.
Philhealth Contribution 2015 Rates for Self-Employed and Voluntary
Self-Employed and Voluntary or individually paying members (IPMS) having an income of P25000 pesos and below should pay contribution amounting to P2400 per annum. IPMS who have an income above P25000 shall pay P3600 annually. Payments can be done quarterly for P600 every quarter, Semi-annually for P1200, or annually for P2400.
Philhealth Contribution 2015 Rates for OFW
Overseas Filipino Workers will have to pay P2400 annually. It can also be paid Semi-annually for P1200. This could benefit ofw’s qualified dependents in the Philippines whenever the latter would encounter ailments and the like.
Where to pay your contribution
The fastest is to visit Philhealth branches. Payments can also be processed on Banks, Philippine Postal Corporation, CIS bayad center, MLhuillier Phils, Inc., LBC Express, SM Retail Inc., and LGU.OFWs can pay overseas via Development Bank of the Philippines, Phil. Veterans bank, IRemit, Inc., Land Bank of the Philippines, Ventaja International Corporation, Bank of Commerce, and Other collecting agents.
DEADLINE OF PAYMENT FOR PHILHEALTH CONTRIBUTION FOR SELF EMPLOYED or
INDIVIDUALLY PAYING MEMBERS in 2015
Mar 31 DEFINITION OF TERMSIPMs– Individually paying members are individuals who render services or sell goods as a means of livelihood outside of an employer-employee relationship or
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as a career. These include professional practitioners including but not limited to doctors, lawyers, engineers, artists, architects and the like, businessmen, entrepreneurs, actors, actresses and other performers, news correspondents, professional athletes, coaches, trainers, and such other individuals.Quarter– A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends or premiums.IMPLEMENTING GUIDELINES:Individually Paying Members (IPM.s) shall pay their premium either of the following:
SIX HUNDRED PESOS (P600.00) per quarter;ONE THOUSAND TWO HUNDRED PESOS (P1,200.00) semiannually;TWOTHOUSAND FOUR HUNDRED PESOS (P2,400.00) per annum.As quoted from http://www.philhealth.gov.ph/circulars/2010/circ27_2010.pdfPhilHealth Circular No. 09 series of 2001 provides that “in order to institute a more flexible payment scheme for IPMs, please be informed that the deadline of payments has been moved to the last working day of the quarter being paid for. Thus, all payments within the quarter shall be applied on the same quarter within which the payment is made” .
DEADLINE OF QUARTERLY CONTRIBUTIONINCLUSIVE QUARTER DUE DATE AMOUNT
JAN-MARCH March 31, 2015
P600.00
APRIL-JUNE
June 30, 2015
P600.00
JULY-SEPT.
September 30, 2015
P600.00
OCT-DEC
December 29, 2015
P600.00
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Pag-IBIG (Home Development Mutual Fund)
What to do: Fill out and file PAG-IBIG Form M1. This reflects the amounts contributed by the employee and employer.
How to compute: Calculate 2% of the employee’s gross income.
When needed: Any day of the following month.
Where to pay: Payments are accepted at Pag-IBIG Main Office or the Pag-IBIG branch where the company is registered, at accredited banks, or through online payment facilities (namely BPI Expresslink Online, UnionBank, and LandBank WeAccess)
For more info: www.pagibigfund.gov.ph
Since the introduction of the Pag-IBIG Fund Law of 2009 (Republic Act 9679),
everyone, including overseas Filipino workers, are entitled by law to be members of
the government housing fund. The main objective of the Pag-IBIG Fund is to provide
affordable home options to Filipinos via a savings initiative.
How much should I pay for my Pag-IBIG Monthly Savings?
The answer to this question depends on your current employment status. The
maximum compensation that is being used by both Home Development Mutual Fund
(HDMF) and your company (if currently employed) is set at P5,000. This means that at
a 2% employee share rate, the minimum amount you can pay per month is P100.
Pag-IBIG members are always encouraged to pay more than what is required. For
those who are eyeing to buy a home in the near future, the value of the payments you
have made for 24 months will be used as a basis for HDMF to determine whether to
grant you a higher loan amount. Members can avail a maximum amount of P6 million
for ahome loan through Pag-IBIG.
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To service the needs of its 13.8 million members, HDMF has increased the number of
ways to pay your Pag-IBIG monthly savings or your amortization payments for an
existing home or multi-purpose loan.
1. Through your companyA Philippine-registered company by law is required to remit the Pag-IBIG contribution
of an employee. Your Pag-IBIG monthly savings will be deducted along with other
government contributions from your gross basic salary. If you wish to increase your
monthly savings, you will need to fill out a form one-time only for your human
resources or payroll department to process your request.
If you are self-employed, or if there’s any reason that your employer has failed to pay
your monthly savings, you may opt for the following payment options:
2. Through a Pag-IBIG branchPag-IBIG members can pay their monthly contributions via a nearby HDMF branch.
There are three HDMF offices in Makati. The Housing Loans department is located at
HDMF’s Ortigas branch, while Pag-IBIG claims department has an office at the 7th
floor of SM Aura Office Tower.
3. Bayad CenterThere are hundreds of Bayad Centers in Metro Manila that accept Pag-IBIG and other
government contributions. For monthly contributions, your membership identification
number (MID) / registration tracking number (RTN) will serve as your account number.
If you will be paying for your housing amortization, you will need to have your housing
loan monthly billing statement or the SMS reminder to fill out the payment details.
Keep the receipt issued by the Bayad Center outlet, as it will serve as your Pag-IBIG
fund receipt (PFR).
4. SM Business CenterThe SM Business Center is the bills and customer service arm of SM Supermalls.
These are usually found on the same floor where the SM Supermarket is located. This
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is convenient for customers who needs to pay bills and shop for groceries all in one
go.
5. Credit CardYou can make payments using your Visa or Mastercard via HDMF’s online payment
facility. This can also work with debit cards as long as there are sufficient funds to
make the payment. A minimum convenience fee of P7.20 will be charged for the
monthly payment.
6. Globe G-CashGlobe is the first company in the Philippines that offers Pag-IBIG members a way to
pay their monthly contributions or housing loan amortizations just about anywhere in
the country. By dialing *143# on your mobile phone, select Pay Bills, and then the
Government option to enter your MID number to make your payments. Make sure that
the details on your G-Cash account is the same as on the information registered on
your MID number. You will receive an SMS notification from Globe once the
transaction went through.
7. BanksMetrobank only accepts payments for your home loan amortization with Pag-IBIG. For
monthly contributions and loan amortizations on your short-term loans, Pag-IBIG
members can make payments via Union Bank, BPI and Land Bank’s Internet banking
facilities: Union Bank One Hub, BPI ExpressLink, and Land Bank wePayAccess.
8. Overseas RemittancesRecently, HDMF saw the need to address the concerns of overseas Filipinos workers
(OFWs) who are unable to make periodic monthly payments. OFWs are now given the
option to make annual payments of P1,200 to cover the 12 months in advance, in
place of making monthly contributions. According to the overseas accounts
department of HDMF-POEA (Philippine Overseas Employment Administration), family
members and loved ones of OFWs can also pay for the latter’s contributions on their
behalf.
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Should OFWs prefer to make the contributions themselves, they can do so via the
following payment channels:
Banks
OFWs can now make payments via Philippine National Bank (PNB), Metrobank, or Asia United Bankvia their online bill payments systems. PNB can also accept payments at their New York and Hong Kong branches. OFWs in London can also make their payments at Allied Bank at Rochester Row.
Money Remittance Services
HDMF accepts monthly contributions via I-Remit and Ventaja. i-Remit has 1,400 offices and has more countries covered in the Asia-Pacific and Middle East regions. Ventaja can be a preference for OFWs who are working in the US, Canada, and Australia.
Due Diligence
After making payments to third-party services, you are encouraged to check your
remittances online. You can check your updated contributions via HDMF’s E-Services
portal. OFWs have a special verification tab where you can key in your your MID
number, along your first and last name to check your updated contributions.
HDMF said that the posting of the payments are usually dependent on when third-
party services will submit payments to the agency. You may want to wait for at least 2-
3 business days for the payment to be reflected on your Pag-IBIG account. For
instances that there is a discrepancy with your actual payments to your updated
contributions, it is best to raise this issue with the third party service first before
HDMF. You can also call the Overseas Accounts department based in Makati at
landline numbers 892-0643, 723-7599 or trunkline 812-4731.
Do you have questions about paying your Pag-IBIG contributions that we have left
unanswered? Please let us know by leaving a comment below.
Page 29 of 88
How to Compute VAT Payable in the PhilippinesFEBRUARY 16, 2011 BY VICTORINO ABRUGAR
How to compute Value Added Tax (VAT) payable in the Philippines? Any person or
entity who is engaged in trade, business or in the practice of profession may be
liable to business taxes. Business taxes can be either a Percentage tax or a Value
Added Tax. Furthermore, a taxpayer can be a VAT registered or a Non-VAT
registered taxpayer. In this article, we will tackle how to compute VAT Payable and
file the monthly and quarterly VAT returns.
What is a Value Added Tax?
Value-Added Tax is a business tax in the form of sales tax. It is a tax on
consumption levied on the sale, barter, exchange or lease of goods or properties
and services in the Philippines and on importation of goods into the Philippines. It
is an indirect tax, which may be shifted or passed on to the buyer, transferee or
lessee of goods, properties or services.
Who Are Required To File VAT Returns
The following persons or entities are required to file VAT returns:
1. Any person or entity who, in the course of his trade or business, sells, barters,
exchanges, leases goods or properties and renders services subject to VAT, if the
aggregate amount of actual gross sales or receipts exceed P1,919,500 (RR 16-
2011, RR 3 -2012), as amended.
2. A person required to register as VAT taxpayer but failed to register
3. Any person, whether or not made in the course of his trade or business, who
imports goods
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Who may opt to register as VAT and what will be his liability?
1. Any person who is VAT-exempt under Sec. 4.109-1 (B) (1) (V) not required to
register for VAT may, in relation to Sec. 4.109-2, elect to be VAT-registered by
registering with the RDO that has jurisdiction over the head office of that person,
and pay the annual registration fee of P500.00 for every separate and distinct
establishment.
2. Any person who is VAT-registered but enters into transactions which are exempt
from VAT (mixed transactions) may opt that the VAT apply to his transactions
which would have been exempt under Section 109(1) of the Tax Code, as
amended [Sec. 109(2)].
3. Franchise grantees of radio and/or television broadcasting whose annual gross
receipts of the preceding year do not exceed ten million pesos (P10,000,000.00)
derived from the business covered by the law granting the franchise may opt for
VAT registration. This option, once exercised, shall be irrevocable. (Sec. 119, Tax
Code).
4. Any person who elects to register under optional registration shall not be allowed
to cancel his registration for the next three (3) years.
The above-stated taxpayers may apply for VAT registration not later than ten (10) days before the beginning of the calendar quarter and shall pay the registration fee unless they have already paid at the beginning of the year. In any case, the Commissioner of Internal Revenue may, for administrative reason deny any application for registration. Once registered as a VAT person, the taxpayer shall be liable to output tax and be entitled to input tax credit beginning on the first day of the month following registration.
What are the BIR forms used in filing VAT Returns?
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VAT returns are filed monthly using the Monthly Value Added Tax Declaration
Return BIR Form 2550M and quarterly using the Quarterly Value Added Tax
Declaration Return BIR Form 2550Q. To download forms, please click here to go
to the BIR forms download page.
How to compute Value Added Tax Payable
Value Added Tax Payable is normally computed as follows:
1. Computing Net VAT Payable on VAT “exclusive” Sales/Receipts
Total Output Tax Due or Total Vatable Sales/Receipts x 12%
Less: Total Allowable Input Tax or Total Vatable Purchases x 12%
Equals: VAT Payable
Sample Computation of VAT Payable:
Let’s assume that,
Total Vatable Sales (VAT exclusive) = P100,000
Total purchases with VAT receipts (VAT exclusive) = P70,000
P100,000 x 12% or P12,000
– P70,000 x 12% or P8,400
VAT Payable = P3,600
2. Computing Net VAT Payable on VAT “inclusive” Sales/Receipts
Total Output Tax Due or Total Vatable Sales / 1.12 x 12%
Less: Total Allowable Input Tax or Total Vatable Purchases / 1.12 x 12%
Equals: VAT Payable
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Sample Computation of VAT Payable:
Example based on the above assumption:
Total Vatable Sales (VAT inclusive) = P112,000
Total purchases with VAT receipts (VAT inclusive) = P78,400
P112,000 /1.12 x 12% or P12,000
– P78,400 /1.12 x 12% or P8,400
VAT Payable = P3,600
Or an alternative computation:
P112,000 /9.333 or P12,000
– P78,400 /9.333 or P8,400
VAT Payable = P3,600
Output tax means the VAT due on the sale, lease or exchange of taxable goods or
properties or services by any person registered or required to register under
Section 236 of the Tax Code.
Input tax means the VAT due on or paid by a VAT-registered on importation of
goods or local purchase of goods, properties or services, including lease or use of
property in the course of his trade or business. It shall also include the transitional
input tax determined in accordance with Section 111 of the Tax Code, presumptive
input tax and deferred input tax from previous period.
Total Vatable Purchases are your total purchases from VAT registered suppliers.
This should be supported with VAT receipts.
Note:
VAT exempt sales, zero rated sales, purchases not qualified for input tax, and
other input taxes (if any) should also be shown in the VAT returns. See BIR
Forms.
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How, when and where to File VAT Returns?
Documentary Requirements
1. Duly issued Certificate of Creditable VAT Withheld at Source (BIR Form No.
2307), if applicable
2. Summary Alphalist of Withholding Agents of Income Payments Subjected to
Withholding Tax At Source (SAWT), if applicable
3. Duly approved Tax Debit Memo, if applicable
4. Duly approved Tax Credit Certificate, if applicable
5. Authorization letter, if return is filed by authorized representative.
Procedures
1. Fill-up BIR Form No. 2550M (for monthly VAT declaration) or 2550Q (for
quarterly VAT declaration) in triplicate copies (two copies for the BIR and one copy
for the taxpayer)
2. If there is payment: File the Monthly VAT declaration, together with the required
attachments, and pay the VAT due thereon with any Authorized Agent Bank (AAB)
under the jurisdiction of the Revenue District Office (RDO)/Large Taxpayers District
Office (LTDO) where the taxpayer (head office of the business establishment) is
registered or required to be registered.
The taxpayer must accomplish and submit BIR-prescribed deposit slip, which the
bank teller shall machine validate as evidence that payment was received by the
AAB. The AAB receiving the tax return shall stamp mark the word “Received” on
the return and machine validate the return as proof of filing the return and payment
of the tax.
In places where there are no duly accredited agent banks, file the Monthly VAT
declaration, together with the required attachments and pay the VAT due with the
Revenue Collection Officer (RCO) or duly authorized Treasurer of the Municipality
where such taxpayer (head office of the business establishment) is registered or
required to be registered.
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The RCO or duly authorized Municipal/City Treasurer shall issue a Revenue
Official Receipt upon payment of the tax.
3. If there is no payment:
File the Monthly VAT Declaration, together with the required attachments with the
RDO/LTDO/Large Taxpayers Assistance Division, Collection Agent or duly
authorized Municipal/ City Treasurer of Municipality/City where the taxpayer (head
office of the business establishment) is registered or required to be registered.
Deadline
Monthly VAT returns BIR Form 2550M:
Not later than the 20th day following the end of each month (manual filing)
Quarterly VAT returns BIR Form 2550Q:
Within twenty five (25) days following the close of taxable quarter (manual filing)
For EFPS filing, please visit the BIR website for detailed and updated dates of
deadlines.
Reference:BIR Tax information on Value Added TaxSections 105 to 115 of the National Internal Revenue Code of 1997, as amended
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How to compute quarterly income tax return in the Philippines for self-employed
individuals? If you are a professional who practice your profession or a self-
employed individual engaged in a sole proprietorship business, you may be looking
for a guide on how to prepare your BIR Form 1701Q. BIR form 1701Q is filed
quarterly for the first quarter, second quarter and third quarter. For the annual
income tax return, the BIR form 1701 is used. The following are the steps,
procedures, requirements, tips and other important information you need to know
in computing and preparing your quarterly income tax returns.
What is the BIR form to be used?
The return we need to file is BIR Form No. 1701Q: Quarterly Income Tax Return
for Self-employed Individuals, Estates, and Trusts (Including Those with both
Business and Compensation Income)
The following are the documentary requirements that need to be attached with the
form, if applicable:
1. Certificate of Income Tax Withheld at Source (BIR Form 2307), if applicable
2. Certificate of Income Payments not Subjected to Withholding Tax (BIR Form
2304) if applicable
3. Duly approved Tax Debit Memo, if applicable
4. Previously filed return, if an amended return is filed for the same quarter
Who are required to file BIR Form 1701Q?
This return shall be filed in triplicate by the following individuals regardless of
amount of gross income:
1) A resident citizen engaged in trade, business, or practice of profession within
and without the Philippines.Page 36 of 88
2) A resident alien, non-resident citizen or non-resident alien individual engaged in
trade, business or practice of profession within the Philippines.
3) A trustee of a trust, guardian of a minor, executor/administrator of an estate, or
any person acting in any fiduciary capacity for any person, where such trust,
estate, minor, or person is engaged in trade or business.
When are the deadlines or due dates of filing the return?
The following are the deadlines for manual filing of BIR Form 1701Q :
1st qtr: On or before April 15 of the current taxable year
2nd qtr: On or before August 15 of the current taxable year
3rd qtr: On or before November 15 of the current taxable year
How to compute and prepare the quarterly income tax returns?
The following are the steps in the computation and preparation of your quarterly
income tax returns. You can also check the sample computation we have provided
below. For better understanding, please download BIR Form 1701Q here.
STEP 1: Fill up completely the Part 1 of BIR form 1701Q with the applicable
information, which include your Taxpayer Identification Number (TIN) , registered
name, registered address, line of business or occupation, method of deduction
(itemized deduction or optional standard deduction), and other information that are
applicable. Also fill in the year, quarter, check if amended or not, and the no. of
sheet/s attached which can be found on the top of the return.
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STEP 2: Fill up Part 2 of the form, which is the computation of the quarterly income
tax. Refer to the form 1701Q to check the line items and their corresponding
reference numbers.
Step 2.1: Determine your [26] Sales/Revenues/Receipts/Fees. Add any [27] Amount You Received as a Partner from General Professional Partnership (except loans), if any, to arrived at [28] Total.
Step 2.2: Calculate your [30] Gross income from Operation by subtracting
your [29] Cost of Sales/Services to your [28] Total in Step 2.1. Costs of services
are the direct costs attributable to the rendering of your services, such as the
depreciation of the building for business engage in building rental, internet cost for
internet café business, salaries of janitors for business engaged in janitorial
services, and others.
Step 2.3: Compute your [32] Total Gross Income by adding [30] Gross Income to your[31] Other Income, if any.
Step 2.4: Determine and compute your total allowable [33] Deductions for the
quarter. You can choose one from the two (2) methods of deduction: (a) Itemized
deduction or the (b) Optional Standard Deduction (OSD). Your chosen method of
deduction will be your method of deduction for the entire taxable year. The
following are the bases for computing the two methods:
Option 1: Optional Standard Deduction (OSD) – A maximum of 40% of their
gross sales or receipts shall be allowed as deduction in lieu of the itemized
deduction. This type of deduction shall not be allowed for non-resident aliens
engaged in trade or business. Example, if you have P100,000 gross sales or
receipts for the quarter, you can claim an allowable deduction (OSD) of P40,000
(P100,000 x 40%), if you choose OSD instead of Itemized deduction.
Option 2: Itemized Deduction – There shall be allowed as deduction from gross
income all the ordinary and necessary expenses paid or incurred during the
taxable year in carrying on or which are directly attributable to the development,
management, operation and/or conduct of the trade, business or exercise of a
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profession including a reasonable allowance for salaries, travel, rental and
entertainment expenses. Examples of itemized deductions are the following:
Step 2.5: Calculate your [34] Taxable Income this Quarter by deducting your [33] Allowable Deduction computed in Step 2.4 to your [32] Total Gross Income.
Step 2.6: Compute your [36] Taxable Income to Date by adding your [35] “Taxable Income for the Previous Quarter/s” during the taxable year to
your [34] Taxable Income this Quarter. Take the following guides:
1. For the 1st quarter, you don’t have [35] Taxable Income for the Previous Quarter/ssince it is the beginning quarter of the taxable year.
2. For the 2nd quarter, your [35] Taxable Income for the Previous Quarter/s is equal to your [34] Taxable Income this Quarter in the 1st
quarter.
3. For the 3nd quarter, your [35] Taxable Income for the Previous Quarter/s is equal to the “total of your taxable [34] Income this Quarter in
the 1st and 2nd quarters” or the “total [36] Taxable income to Date of the
2nd quarter”.
4. There is no 1701Q filed and computed in the fourth quarter. Instead the
annual income tax return (BIR Form 1701) is filed and computed. To learn
how to compute annual income tax for self-employed please read our article
on “How to compute income tax in the Philippines for self-employed
individuals”.
Step 2.7: Compute your [37] Tax Due using the Graduated Tax Table for
Individuals. You can jump below Step 2.9 to see tax rates table and our sample
computation.
Step 2.8: Compute your [39] Tax Payable by deducting to your [37] Tax Due to
your [38] total tax Credits/Payments for the Quarter, which include [38A/B] Prior
Year’s Excess Credits, [38C/D] Tax Payment(s) for the Previous Quarter(s),
[38E/F] Creditable Tax Withheld for the Previous Quarter(s), [38G/H] Creditable
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Tax Withheld Per BIR Form 2307 for the Quarter, and [38I/J] Tax Paid in Return
Previously Filed (if you are filing an amended return).
Step 2.9: Compute your [41] Total Amount Payable by adding any [40] Penalties(surcharge, interest and compromise), if there is any. Penalty is charged
for late filing. To learn more about computing penalties, please check our article
“How to compute BIR penalties”.
Sample computation of quarterly income tax due and payable
Example: Let us assume the following financial information of J. Santos, single and
Filipino Citizen, for the 3rd Quarter of 2011. Santos has chosen to claim itemized
deduction, instead of Optional Standard Deduction (OSD). He is also filing the
return before the due date, which is also not an amended return.
Gross sales: P300,000Cost of Sales: P 180,000Expenses (rent, depreciation, salaries, taxes and licenses): P 60,000Other income: P 20,000Total taxable income for the 1st and 2nd Quarters: P40,000Income tax paid for the 1st and 2nd Quarters: P1,000
Page 40 of 88
Creditable tax withheld for the previous quarters: P3,000Creditable tax withheld per BIR form 2307 for this quarter: P2,000What is your income tax due and payable for the 3rd quarter of 2011?
Answers and computation:
Gross Sales [26] P 300,000
Add: Share from Gen. Prof. Partnership [27] 0
Total [28] 300,000
Less: Cost of Sales [29] 180,000
Gross Income from Operation [30] 120,000
Add: Other Income [31] 20,000
Total Gross Income [32] 140,000
Less: Deductions [33] 60,000
Taxable Income This Quarter [34] 80,000
Add: Taxable Income for the Previous Qtrs [35] 40,000
Taxable Income to Date [36] 120,000
Tax Due [37] * 18,500Less: Tax Credits/Payments: [38]
Tax Paid for the Previous Quarters 1,000
Creditable tax withheld for the previous quarters 3,000
Creditable tax withheld per BIR form 2307 for this qtr 2,000
Tax Payable [39] 12,500Less Penalties [40] 0
Total Amount Payable [41] P 12,500 * Computation of tax due:
Since P120,000 is under the “over P70,000 but not over P140,000, your tax due is
equal to P8,500 + 20% of the Excess of 70,000.
Tax Due = P8,500 + 20% of the Excess over 70,000.
Tax Due = 8,500 + [20% (120,000 – 70,000)]
Tax Due = 8,500 + (20% x 50,000)
Tax Due = 8,500 + 10,000
Tax Due = P18,500
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Notes:
1. The personal and additional exemptions of the taxpayer are only claimed on the
computation of annual income tax return..
2. Compensation income need not be reported in the Quarterly Income Tax Return.
The same shall be reported in the Annual Income Tax Return only.
Step 2.10. If you are filing consolidated income tax return with your spouse,
aggregate your income tax payable.
Step 2.11 Put your signature over your printed name. Also fill the Title/Position of
Signatory.
STEP 3: Fill out the details of payment in Part III
How to file the quarterly income tax returns?
The following are the procedure in filing the quarterly income tax returns:
1. Fill-up BIR Form 1701Q in triplicate.
2. If there is payment:
Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District
Office where you registered and present the duly accomplished BIR Form
1701 Q, together with the required attachments and your payment.
In places where there are no AABs, proceed to the Revenue Collection
Officer or duly Authorized City or Municipal Treasurer located within the
Revenue District Office where you are registered and present the duly
accomplished BIR Form 1701Q, together with the required attachments and
your payment.
Receive your copy of the duly stamped and validated form from the teller of
the AABs/Revenue Collection Officer/duly Authorized City or Municipal
Treasurer.Page 42 of 88
3. For “No Payment” Returns including refundable/ creditable returns with excess
tax credit carry over and returns qualified for second installment:
Proceed to the Revenue District Office where you are registered or to any
Tax Filing Center established by the BIR and present the duly accomplished
BIR Form 1701Q, together with the required attachments.
Receive your copy of the duly stamped and validated form from the RDO/Tax
Filing Center representative.
Reference: Bureau of Internal Revenue Philippines
Page 43 of 88
Page 44 of 88
Form No.
Requirement Deadline for manual filers
1601-C Monthly Remittance Return of W/Tax on Compensation
Every 10th day after the end of each month
1601-E Monthly Remittance Return of Expanded Withholding Tax(together with Monthly Summary Alpha List)
Every 10th day after the end of each month
1601-F Monthly Remittance Return of Final Income Tax Withheld
Every 10th day after the end of each month
2550-M
Monthly Value Added Tax Declaration Every 20th day after the end of each month
2551-M
Monthly Percentage Tax Return Every 20th day after the end of each month
2550-Q Quarterly Value Added Tax Return(together with Quarterly List of Sales and Purchases)
Every 25th day after the end of each qtr.
1701-Q Quarterly Income Tax Return (for self-employed individuals)
- 1st Quarter April 15 or 15 days after end of qtr.
- 2nd Quarter August 15 or 45 days after end of qtr.
- 3rd Quarter Nov. 15 or 45 days after end of qtr.
1702-Q Quarterly Income Tax Return (for corporations and partnerships)
- 1st Quarter May 29 or 60 days after end of each qtr.
- 2nd Quarter August 29 or 60 days after end of each qtr.
- 3rd Quarter Nov. 29 or 60 days after end of each qtr.
1701 Annual Income Tax Return (for self-employed individuals)
Ápril 15
1702 Annual Income Tax Return (for corporations and partnerships)
April 15 or 105 days after the end of the fiscal year
2000 Documentary Stamp Tax Declaration 5th day after the end of each month
0605 Payment Form - Annual Registration Fee January 311604-CF
Annual Information Return of Income Taxes withheld on Compensation and Final Withholding Tax
January 31
1604-E Annual Information Return of Creditable Income Taxes withheld (Expanded)
March 1
1905 Registration renewal of manual books of accounts
December 29
1900 Registration of computerized books of accounts and other accounting records (together with affidavit attesting the
January 30 or 30 days after the end of the
WAIVER: Please note that this is just a basic listing and should not be taken as complete or accurate. Deadlines may change without prior notice. For a more complete and updated listing, please visit the website of the respective agency concerned.
(Filing and Remittance)
*NOTE:
1. For Large and Selected Non-Large Taxpayers who are enrolled in the eFPS( Electronic Filing and Payment System) , the remittance and filing of the basic tax returns is staggered based on the industry classification of the company.
All other tax forms or tax deadlines not enumerated in the above schedule, please feel free to consult with us
How to compute SSS contribution in the Philippines? Employers must know how
much employer’s contribution (ER) they must pay to the Philippine Social Security
System (SSS) for their employers. If you’re an employee, you might also ask how
much employee’s contribution (EE) is deducted, withheld and remitted by
your employer to the SSS from your salary. For self-employed persons, such as
Page 45 of 88
professionals, businessmen and entrepreneurs, their SSS contributions are paid
entirely by themselves. This is different from the contributions made by employees,
because employers contribute for the benefit of theiremployees. That is why
employers SSS contributions form part of employees’ benefits expense incurred by
employers.
How to determine SSS contributions
Determining how much employees contribution (EE) an employer should deduct
from his employees salary and how much employers contribution (ER) he should
contribute to the SSS is quite easy. We only need to refer to the New SSS
Contribution Schedule issued by the Social Security System. Let’s assume the
following as an example:
Example:Mr. Santos is an employee working for Mr. Cruz, his employer. Mr. Santos earns a
monthly salary equivalent to P14,000.
Questions and answers:
1. Question: How much Employees Contribution (EE) should Mr. Cruz deduct
from Mr. Santos salary?
Answer: Php 466.70 (See schedule on the Total Contribution of EE in the P14,000
Monthly Salary Credit range [highlighted in red]).
2. Question: How much is the total Employers Contribution (ER) Mr. Cruz should
remit to the SSS for Mr. Santos?
Answer: Php 999.30 (See schedule on the Total Contribution of ER in the P14,000
Monthly Salary Credit range [highlighted in red]).
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3. Question: How much is the total SSS contribution that should be remitted to the
SSS for Mr. Santos?
Answer: Php 1,466.00 (See schedule on the Total Contribution of ER + EE in the
P14,000 Monthly Salary Credit range [highlighted in red]).
New SSS Contribution Schedule
For Self-employed (SE) persons, Voluntary Members (VM) and Overseas Filipino
Workers (OFW), since they don’t have employers, they pay their total SSS
contributions alone. Their total contribution is determined by simply looking at the
last column (SE/VM/OFW Total Contribution) of the schedule based on their
monthly salary /earnings credit range. Thus, if you’re self-employed and you earn
P14,000 a month, the total SSS contribution you should remit to the SSS amounts
to P1,456.
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SSS contributions as deductions for computing income tax
A common mistake made by employers or their accountants and bookkeepers is
claiming the total (ER and EE) SSS contributions as expenses or deductions
against their taxable income. Only the total employer’s contributions (ER) should
be recorded as expenses (employees’ benefits) in the books of the employer.
Accordingly, ER expenses are the only allowable deductions an employer should
claim against his taxable income. This is because ERs are the only expenses
actually incurred and paid by employers. Employees’ contributions (EEs) are
actually paid by employees – these are deducted from their salaries.
How to determine the total contributions credited in your SSS records
It is very important that you should know how much is the total SSS contributions
you have made and credited to your SSS account. This is to ensure that your
contributions or the contributions made by your employers are actually and
correctly reflected in your SSS records. To know you SSS records, you may inquire
personally at the counter of the nearest SSS office in your area. If you have an
SSS ID, you can use it in utilizing their kiosk. It’s an electronic machine like ATM
that you can use to inquire your balances, such as your loan balances and total
contributions made (this is what I do to check my records because it’s convenient
and I don’t need to wait for hours for my name/number to be called at the counter).
You may also try to visit and register at their website. But based on my experience,
there is a problem in their web system. I have registered a few months ago, but I
haven’t received any email confirming my registration. Thus, I still can’t log on to
their website to check my records. I hope they could fix it as soon as possible. I
also learned that there are several members who also experience this kind of
problem. Good thing, I have my SSS ID.
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Please don’t ask me how much is the total SSS contributions reflected in your
records – I’m not an employee or an officer of the SSS. For more details and for
your inquiries, you may visit or contact them at the following office address,
telephone numbers, emal, website and facebook page.
Social Security System (SSS)SSS Main Bldg, East Ave., Diliman, Q.C.
Trunkline: 920-6401
MRD email: [email protected]
To get information on your SSS data or membership, you can use their automated
telephone service by calling the SSS IVRS at 917-7777 or call 920-6446 to 55 to
speak to an SSS representative from 8:00 am to 5pm, Mondays to Fridays.
Website: www.sss.gov.ph
Facebook page: follow this link
Relevant law and resources: Social Security Act of 1997, Republic Act No. 8282
Citizen’s Charter of the Social Security System
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What Taxes Should I Pay in the Philippines (Self-employed)FEBRUARY 8, 2011 BY VICTORINO ABRUGAR 83 COMMENTS
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What taxes should you pay in the Philippines? What taxes should self-employed
individuals pay in the Philippines? Self-employed taxpayers are those individuals
who receive income from business or from practice of profession. Persons who
receive mixed income (income from business or practice of profession and income
from compensation) are also considered as self-employed and are also taxed
similarly.
Self-employed individuals include persons who own business in the form of single
proprietorship and practicing professionals (registered or non-registered with the
professional commission), such as accountants, lawyers, doctors, engineers,
architects, artists and even bloggers. If you are one of them, the following are the
ordinary taxes you may be required to pay or remit to the Bureau Internal Revenue
(BIR) .
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Taxes that are payable monthly
1. Monthly Percentage Tax (BIR Form 2551M)This is applicable to persons whose gross annual sales and/or receipt do not
exceed P1,919,500 (RR 16-2011, RR 3 -2012, as amended). and who are not
VAT-registered persons. If paid manually (other than EFPS), it should be paid not
later than the 20th day following the end of each month.
To learn more about Percentage Tax, please read our article “How to Compute
Percentage Tax Payable in the Philippines“.
Note: Taxpayer can either be VAT registered or NON-VAT registered. Thus, he can be liable to either Percentage Tax or Value Added Tax, but not both.
2. Monthly Value Added Tax (BIR Form 2550M)This is applicable to persons whose gross annual sales and/or receipt is at least
P1,919,500, persons who are required to register as VAT taxpayers and those who
have opted to duly register as VAT registered taxpayers. The deadline for monthly
VAT is the same with monthly percentage tax.
To learn more about the computation of Value Added Tax payable and filing of the
VAT returns, please read our article titled “How to Compute VAT Payable in the
Philippines“.
Note:Monthly VAT returns are not filed on the months that correspond the end of the quarters (i.e., March, June, September and December). Instead, the taxpayer must file Quarterly VAT returns which compute the VAT Payable as of the end of the quarter. Please see #2 of taxes that are paid quarterly.
4. Monthly Remittance Return of Income Taxes Withheld on Compensation (BIR Form 1601C)If you have employees, you are required to deduct and withhold taxes on
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compensation paid to employees. The return must be filed on or before the 10th
day of the month following the month in which withholding was made. For the
month of December, it must be filed on or before January 15 of the following year.
EFPS may have different deadlines of filing.
5. Monthly Remittance Return of Creditable Income Taxes Withheld (Expanded) (BIR Form 1601E)If you are paying for rental, professional services, prime contractors/subcontractors
and other income payment subject to Expanded/Creditable Withholding taxes, you
are required to deduct and withhold taxes on those income payments. The return
must be filed and remitted on or before the tenth (10th) day of the month following
the month in which withholding was made except for taxes withheld for the month
of December which shall be filed on or before January 15 of the succeeding year.
Taxes that are payable quarterly
1. Quarterly Income Tax (BIR Form 1701Q)This return shall be filed by the following individuals regardless of amount of gross
income:
a) A resident citizen engaged in trade, business, or practice of profession within
and without the Philippines.
b) A resident alien, non-resident citizen or non-resident alien individual engaged in
trade, business or practice of profession within the Philippines.
c) A trustee of a trust, guardian of a minor, executor/administrator of an estate, or
any person acting in any fiduciary capacity for any person, where such trust,
estate, minor, or person is engaged in trade or business.
The deadline for filing is shown below:
1st qtr – On or before April 15 of the current taxable year
2nd qtr – On or before August 15 of the current taxable year
3rd qtr – On or before November 15 of the current taxable year
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Note: There is no quarterly return to be filed on the fourth quarter, since the taxpayer is filing Annual Income Tax Return where the previous three quarters tax payments are carried forward. Please see #1 of the taxes that are payable annually.
2. Quarterly Value Added Tax (BIR Form 2550Q)This return is filed not later than the 25th day following the close of each taxable
quarter. The term “taxable quarter” shall mean the quarter that is synchronized to
the income tax quarter of the taxpayer (i.e. Calendar quarter of Fiscal Quarter).
This return shows the VAT payable at the end of the quarter. Please see #2 of the taxes that are paid monthly.
3. Quarterly Percentage Tax (BIR Form 2551Q)This return shall be filed by the following:a. Franchise grantees sending overseas dispatch, messages or conversation from
the Philippines;and
b. Proprietor, lessees or operators of cockpits, cabarets, night or day clubs, boxing
exhibitions, professional basketball games, jai-alai and racetracks.
The return shall be filed and the tax paid within twenty (20) days after the end of
each taxable quarter.
Taxes that are payable annually
1. Annual Income Tax (BIR Form 1701)Aside from the 3 quarterly (1st , 2nd and 3rd) income taxes that you will pay during the
taxable year, you will also file your annual income tax return. Please see #1 on
taxes that are payable quarterly. This tax return should be paid and filed on or
before April 15 of each year covering income for the preceding taxable year.
Please read our article on how to compute Income Tax for self-employed
individuals.
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Note: When the tax due exceeds P2,000.00, the taxpayer may elect to pay in two equal installments, the first installment to be paid at the time the return is filed and the second installment 15 of the same year at on or before July the Authorized Agent Bank (AAB) within the jurisdiction of the Revenue District Office (RDO) where the taxpayer is registered.
2. Annual Registration Fee (BIR Form 0605) An annual registration fee of Php 500 should be paid on or before January 31 of
the year.
3. Annual Information Return of Income Tax Withheld on Compensation and Final Withholding Taxes BIR (Form 1604CF)There is no payment to be made in this return for it only reports the summary of
Monthly Remittance Return of Income Taxes Withheld on Compensation (BIR
Form 1601C) you have paid and filed for the year. Please see # 4 of the taxes that
are payable monthly. This return must be filed on or before January 31 of the year
following the calendar year in which the compensation payment and other income
payments subject to final withholding taxes were paid or accrued.
4. Annual Information Return of Creditable Income Taxes Withheld (Expanded)/ Income Payments Exempt from Withholding Taxes (BIR Form 1604E)Just like BIR Form 1604CF, this return is only filed to the BIR. It contains the
annual summary of your remittance of Creditable Income Taxes Withheld
(Expanded)/ Income Payments Exempt from Withholding Taxes to the BIR. Please
see #5 on taxes that are payable monthly. The return shall be filed on or before
March 1 of the year following the calendar year in which the income payments
subjected to expanded withholding taxes or exempt from withholding tax were paid
or accrued.
5. Annual Inventory List (only to be filed)If you are engage in trading and merchandising business, you may have inventory.
Thus, you are also required to submit an annual inventory list not later than thirty
days after the close of accounting period.
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Note:This article only lists the regular and ordinary taxes that should be paid by self-
employed taxpayers in the Philippines. There can be other taxes and returns that
may be required to be paid and filed by particular taxpayers, such as Excise tax
and other taxes payable per transactions. For more information, please visit
the BIR website or inquire at the RDO offices where your business is located.
Updates on this post will be provided.
How to File Tax Returns Online in the PhilippinesJULY 15, 2015 BY ETHEL JAYNE PEREZ 18 COMMENTS
Manual filing remains the traditional and most widespread method of submitting
various tax returns for government revenue services in the Philippines. However,
the tax environment is changing rapidly vis-à-vis the advancement of information
and communication technology (ICT). As web technology is becoming more and
more popular, the introduction of the internet filing has brought fundamental
changes to the method of filing tax returns. In response, the BIR has introduced
two (2) methods of electronic filing (e-filing) of tax returns: (1) Electronic Filing and
Payment System (eFPS); and (2) Electronic BIR Forms (eBIRForms).
METHODS OF ONLINE FILING
1. Electronic Filing and Payment System (eFPS)
Electronic Filing and Payment System is the electronic processing and
transmission of tax return information including attachments, and taxes due
thereon to the government made over the internet through the BIR website and
was implemented under Revenue Regulations No. 9-2001.
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Taxpayers intending to use the BIR eFPS facility are required to enroll through the
BIR e-Lounge or may directly access BIR website for enrollment and required to
maintain an online banking facility integrated with the eFPS.
How to File Tax Returns using Electronic Filing and Payment System (eFPS):Upon successful enrollment with both eFPS and online banking with any of the
Authorized Agent Banks (AABs), the taxpayer may simply access the BIR eFPS
website, fill out the tax returns field with the required details, validate and submit it.
A Filing Reference Number (FRN) page is generated and displayed after a
successful online filing and submission of the tax return. The system will likewise
store e-filed tax returns for future reference.
A sample of reference number for eFPS filing.
If the taxpayer has a tax due to be paid, click the Proceed to Payment button at the
bottom of the FRN page.
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The bottom of eFPS filing reference number page (sample).
The eFPS Payment Form will be displayed with default payment information
displayed and retrieved from the e-Filing service. Choose eFPS mode of payment
and the authorized agent bank.
An eFPS payment form sample.
Click submit. The taxpayer’s payment instruction is submitted to the bank by
redirecting the control over the participating bank’s URL.
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eFPS redirection to the bank’s ePayment facility.
Upon successful payment, a confirmation screen stating that the BIR eFPS has
received the payment transaction will appear, as proof of successful tax payment.
An eFPS payment confirmation sample from the BIR.
2. Electronic BIR Forms (eBIRForms)
The Electronic BIR Forms (eBIRForms) was developed primarily to provide non-
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eFPS taxpayers and their accredited tax agents (ATAs) with an accessible and
more convenient service through easy preparation and filing of tax returns and is
mandated under Revenue Regulations No. 6-2014. It consists of the following:
a. Offline Package – a tax-preparation software that allows the taxpayers and their
ATAs to prepare tax returns offline with automatic computations and validation
features to lessen human error.
Taxpayers with internet can download the eBIRForm Package from the BIR
website (https://ebirforms.bir.gov.ph). Those without internet may copy the
eBIRForms Package from the BIR RDO e-lounges through USB flash drives.
b. Online Package – a filing infrastructure that accepts, validates, processes and
stores tax returns submitted online. The system creates secure user accounts for
taxpayers, ATAs and Tax Software Providers (TSPs) for use of the Online System.
It also allows ATAs to file on behalf of their clients. The system also has a facility
for TSPs to test and certify the outputs of their tax preparation software. It is
likewise capable of accepting returns data filed using system-certified TSP tax
preparation software.
Taxpayers who are required to use this need to enroll by accessing the eBIRForms
website. After successful enrollment and account activation, taxpayers or tax filers
can already e-file their tax returns.
How to File Tax Returns using Electronic BIR Forms (eBIRForms):
1. Download the latest Offline eBIRForms Package;
2. After downloading the Package, exit the BIR website to avoid site traffic
congestion;
3. Returns can be prepared offline after installation;
4. Select the form and FILL-UP by encoding data in the return;
5. VALIDATE after completely encoding all the necessary information;
6. A copy of the tax return can be saved by clicking the button FINAL COPY;
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7. Go online and click SUBMIT to electronically submit the tax return through
the use of Online eBIRForms System. Taxpayer will be asked to provide a
username and password.
8. A Filing Reference Number (FRN) will be generated in all returns as
acknowledgment of its receipt along with the continue button to go to the FRN
page. The page likewise displays a message “The form has been successfully
filed”.
eBIRForms filing reference page sample9. In case of unsuccessful submission, click FINAL COPY button to use the
alternative mode of electronic submission of returns. An email confirmation will be
received by the taxpayer.
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A sample of eBIRForms receipt of submission
Note: For those who are not yet enrolled to the eBIRForms System, it is required to fully and unconditionally agree to the Terms of Service Agreement (TOSA).
For tax returns with payment, print the tax return together with the FRN or e-mail
notification and proceed to manually pay through the authorized agent bank or
Collection Agent.
If no email notification is received, what shall I do?To be able to receive the EMAIL NOTIFICATION from the BIR on the submitted tax
return, make sure that all of the following are complied with:
The email address indicated/encoded in the return is VALID and
ACTIVE.
The mailbox has enough space/not “quota exceeded”.Page 61 of 88
BIR email is not in the SPAM folder.
BIR website “bir.gov.ph” is NOT BLOCKED by your email
provider.
Non-compliance in any of the above requires re-encoding and re-submission of the
return.
If all of the above were undertaken and still NO EMAIL is received after two (2)
hours from efiling, then MANUALLY e-mail the generated xml file following the
steps in Annex D of RMC 14-2015.
If, after MANUALLY emailing following the steps in Annex D of RMC 14-2015, no
email is received after two (2) hours, then call the BIR for assistance, the help desk
number to call are also contained in Annex D of RMC 14-2015.
BENEFITS OF ONLINE FILING
1. Electronic Filing and Payment System (eFPS)
Convenient and easy to use. It is quick and simple to use as well
as secure.
Interactive. Information exchange is immediate and online users
get immediate feedback from the system when enrolling, e-filing or
performing e-payments.
Self-validating. Errors are minimized because all of the
information supplied by the taxpayer is validated before final
submission.
Fast. Response or acknowledgment time is quicker than manual
filing.
Readily available. eFPS is available 24 hours a day, 7-days a
week including holidays.
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Secure. Return and payment transactions are more secure, as
all data transmission is encrypted.
Cost-effective. Processing cost of returns and payments is
minimized (e.g. receiving, pre-processing, encoding, error-handling
and storage).
All e-filed tax returns with corresponding FRN shall be deemed
duly stamped received by the BIR except for Annual Income Tax
returns (RR 3-2005).
Staggered filing of tax returns based on industry classification
(RR 26-2002).
The system will store e-filed tax returns for future references.
2. Electronic BIR Forms (eBIRForms)
Saves time because of automatic computations and auto-
populated fields;
Easy to use;
Lessens human errors because of the validation feature;
Available even to those without consistent internet connection;
Captures taxpayer data; and
Lessens manual encoding.
Who are mandated to use Online Filing?
1. Electronic Filing and Payment System (eFPS)The eFPS was initially intended for large taxpayers with respect to some tax
returns in the past but was later further developed. It is almost available to all
taxpayers at their option. However, certain taxpayers are mandated to file their tax
returns via EFPS as follows:
a. Taxpayer Account Management Program (TAMP) Taxpayers (RR 10-2014);
b. Accredited Importer and Prospective Importer required to secure the BIR-ICC
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and BIR-BCC (RR 10-2014);
c. National Government Agencies (NGAs) (RR 1-2013);
d. All licensed local contractors (RR 10-2012);
e. Enterprise enjoying fiscal incentives (PEZA, BOI, Various Zone Authorities, etc.)
(RR 1-2010);
f. Top 5,000 Individual Taxpayers (RR 6-2009);
g. Corporations with paid-up capital stock of P10 Million and above (RR 10-2007);
h. Corporations with complete Computerized Accounting System (CAS) (RR 10-
2007);
i. Procuring Government Agencies with respect to withholding of VAT and
Percentage Taxes (RR 3-2005);
j. Government bidders (RR 3-2005);
k. Insurance companies and Stock brokers (RMC 71-2004)
l. Large taxpayers (RR 2-2002, as amended); and
m. Top 20,000 Private Corporations (RR2-98, as amended).
2. Electronic BIR Forms (eBIRForms)RR 6-2014 mandates the use of eBIRForms to the following taxpayers:
a. Accredited Tax Agents / Practitioners and all its client-taxpayers who authorized
them to file on their behalf;
b. Accredited Printers of Principal and Supplementary Receipts / Invoices;
c. One-Time Transaction (ONETT) taxpayers;
d. Those engaged in business, or those with mix income (both compensation and
business income) who shall file a “NO PAYMENT” return (exception under RMC
12-2015);
e. Government-Owned and Controlled Corporations (GOCCs);
f. Local Government Units (LGUs), except barangays; and
g. Cooperatives, registered with National Electrification Administration (NEA) and
Local Water Utilities Administrations (LWUA).
Are all taxpayers required to electronically file tax returns?Not all taxpayers are required to file electronically. Only taxpayers enumerated
above are required. However, nothing prevents them from using the eBIRForms /
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eFPS facility of the BIR as volunteering taxpayer. The existing procedures on
manual filing shall still apply.
Is using eBIRForms mandatory to all taxpayers?NO. Only those taxpayers enumerated in RR 6-2014 are mandated to use and
enroll in the eBIRForms System. Individual and non-individual taxpayers who do
not fall under those categories may still file manually using the printed BIR Forms
or file using the generated form from the Offline eBIRFoms either manually or
electronically by online submission or e-Filing.
Who are exempted from electronic filing?Under Section 4(3) of RR 6-2014 and RR 5-2015, NO PAYMENT returns shall be
electronically filed using the eBIRForms, however, the following taxpayers are
exempted and may instead manually file their NO PAYMENT returns:
a. Senior Citizen (SC) or Persons with Disabilities (PWDs) filing for their own
return;
b. Employees deriving purely compensation income whether from one or more
employers, whether or not they have any tax due that needs to be paid; and
c. Employees qualified for substituted filing under RR 2-98 Sec. 2.83.4, as
amended, but opted to file for Income Tax Return (ITR) and are filing for the
purposes of promotion (PNP/AFP), loans, scholarship, foreign travel requirements,
etc.
Do I still need to submit the e-Filed tax return to the RDO?
1. For e-filed tax returns with corresponding FRN using the eFPS facility,
there’s no need to submit the printed form of the tax returns to the
RDO/LTDO/LT Office as it is already deemed received by the BIR (RR 3-
2005), except for Annual Income Tax Returns as you will need to submit the
Audited Financial Statements together with the required attachments.
2. For e-filed tax returns using the eBIRForms without any attachments
required, no need to submit to the RDO.
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However, if there are any attachments required, submit the printed form of tax
returns, together with the attachments, to the RDO/LTDO/LT Office within fifteen
(15) days from the date of e-Filing.
For the required attachments to be submitted such as Summary Alphalist of
Withholding Tax (SAWT), Monthly Alphalist of Payees (MAP) required under BIR
Form Nos. 1600, 1601-E, 1601-f, 2550-M/2550-Q and 1701-Q/1702-Q, it shall be
prepared using the Data Entry Module. In the case of the Summary List of Sales/
Purchases/ Importation for all VAT taxpayers, the same is prepared using the BIR
RELIEF module. All attachments are submitted to the BIR via email to:
[email protected]. Validation report of the attachments generated by the
BIR system shall also be included.
Sample validation report of Monthly Alphalist of Payees (MAP):
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Sample validation report of Monthly Alphalist of Payees (MAP).
Sample validation of Summary Lists of Sales and Purchases (SLSP):
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Sample validation of Summary Lists of Sales and Purchases (SLSP)
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Sample validation of Summary Lists of Sales and Purchases (SLSP) 2
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Sample validation of Summary Lists of Sales and Purchases (SLSP) 3
What BIR Forms are covered by the regulation?The eBIRForms is an application covering thirty-six (36) BIR Forms comprised of:
1. Income Tax Returns;
2. Excise Tax forms;
3. Value Added Tax forms;
4. Withholding Tax forms;
5. Documentary Stamp Tax forms;
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6. Percentage Tax forms;
7. ONETT forms; and
8. Payment forms.
For the complete list of the BIR Forms, please see this BIR webpage.
What are the penalties for failure to file returns under electronic systems of the BIR by taxpayers mandatorily covered by eFPS or eBIRForms?All taxpayers, under the existing issuances, who are mandatorily covered to file
their returns using eFPS or eBIRForms, who fail to do so, shall be imposed a
penalty of P1,000 per return pursuant to Sec. 250 of the NIRC, as amended.
In addition, the taxpayer shall also be imposed with civil penalties equivalent to
25% of the tax due to be paid, for filing a return not in accordance with existing
regulations, thus, tantamount to WRONG VENUE filing pursuant to Section 248 (A)
(2) of the NIRC, as amended.
Finally, RDOs are directed to include non-compliant taxpayers in their priority audit
program.
Are those mandated to e-File but filed manually be penalized?Yes, under RR 5-2015. If there will be an extension or waiver of penalties, the
same shall be circularized in a revenue issuance.
In relation to RMC 43-2008, when there are technical problems encountered in the
eFPS environment during deadlines for tax filing, the authority for manual filing of
all tax returns of eFPS enrolled taxpayers is given once the Information System
Group (ISG) of the BIR announced thru an official memorandum and posted in the
BIR web and BIR e-mail the unavailability or limited capability of the system on the
deadline date or the date before the deadline. However, taxpayers are still required
to lodge/file via eFPS said declarations/returns, up to the step of getting the Filing
Reference Number (FRN), fifteen (15) days from the date of manual filing to ensure
submission of complete and accurate return data for uploading to the BIR
Intergrated Tax System (ITS).
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Can the offline eBIRForms be used even when the taxpayer is enrolled in the eFPS?Yes, all taxpayers enrolled in either eFPS or eBIRForms or those who will file
manually, are encouraged to use Offline eBIRForms for ease and convenience,
and to provide them ample time to encode/edit and complete their returns.
Disclaimer: This article/guide is for general information use only and doesn’t constitute professional advice. Moreover, new and subsequent laws and tax rules may render whole or part of this article obsolete. If you see any errors, please contact us to correct them.
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In line with the government’s policy of providing fast and convenient manner of
transacting with government offices, the BIR being one of the government
agencies with a very important role in nation building, conceptualized and
introduced eFPS (eFiling and Payment System) in 2001 to make the filing of tax
returns and payment of taxes convenient for taxpayers through a much faster
processing and immediate confirmation of tax returns filed and paid.
With the eFPS, taxpayers can avail of a paperless tax filing experience and can
also pay their taxes online through the convenience of internet-banking service via
debit facility from their enrolled bank account. In addition, since eFPS is available
on the internet, taxpayers can file and pay their taxes anytime and anywhere, at
their own convenience, as long as they are using a computer with secured and
stable internet connection.
eFPS is available to all taxpayers with e-mail account and internet access who are
registered in the BIR Integrated Tax System (ITS). Taxpayers who would like to
avail of the eFPS shall register in accordance with the provisions of the applicable
regulations, circulars and orders.
The following enrollment procedures shall be observed by all qualified taxpayers:
A. ENROLLMENT OF NEW ACCOUNTS
1. Access the BIR eFPS Login Screen. The following are the two (2) ways to access the Login Screen:
a. From BIR website: http://www.bir.gov.ph
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You can click the eFPS logo to visit the BIR’s eFPS page.
b. Direct to eFPS Login Screen by accessing https://efps.bir.gov.ph/index.html.
The eFPS login page.
2. Select “Enroll to eFPS” to proceed to the Enrollment Form Screen.
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The eFPS Login Screen.
3. The eFPS enrollment form has three (3) parts:
3.1. In the Taxpayer Details part, the enrollee must supply his profile information
such as:
1. Selecting if the taxpayer is an individual or a Corporate user
2. Taxpayer Identification Number (TIN)
3. The Registered Name of Taxpayer (for Corporations only)
4. Last Name, First Name and Middle Name of the authorized user
5. Date of birth (in mm/dd/yyyy format)
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• For Corporate users: Date of Incorporation
• For Individual users: Taxpayer’s Date of Birth
6. Registered address of the Taxpayer
• The Region (to be selected form the drop-down list)
• Province (to be selected form the drop-down list)
• City or Municipality (to be selected form the drop-down list)
• House / Building No.
• Street Name
7. Contact Number
8. Reason for e-Filing (to be selected form the drop-down list)
eFPS Enrollment Form – Taxpayer’s details.Page 76 of 88
9. Click NEXT to continue.
3.2. The second part of the enrollment form is the Account Details wherein the
user is required to supply the following information:
1. The desired username (one word, should be at least 8 characters)
2. The desired password (8 to 15 characters)
3. Challenge Question
4. Answer to the challenge question (no special characters)
(NOTE: Username, Password, and Answer to Challenge Question are case-sensitive and use of special characters is not allowed.)
eFPS Enrollment Form step 2 – Account Details
It is necessary to indicate a VALID EMAIL ADDRESS where the system will send
the VERIFICATION CODE to be supplied in the next portion.
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A prompt that the eFPS Verification Code was sent to your email.
Sample verification code sent in an email for completing eFPS enrollment.
3.3. In the Verification portion of the Enrollment Form, supply the EMAIL
VERIFICATION CODE as stated in the e-mail. Then, input the CAPTCHA CODE
and click on “SUBMIT”.
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eFPS email verification code sample.
4. If the message box below appears, it means that your TIN is not yet pre-loaded in the eFPS Registration database. Pre-loading of TIN is one of the pre-
requisites in the eFPS availment. You must coordinate with your RDO by
submitting a Letter of Intent. Once done, you may fill-up the enrollment form again.
A message from eFPS webpage
5. If you have submitted the Enrollment Form successfully, a subscreen with the following message will pop-up “Record accepted. BIR will be processing your enrollment. Please wait for email notification status.”
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A prompt in eFPS that the record is accepted, and BIR will be processing the eFPS enrollment.
6. Print the email notification status from the BIR.
BIR Email Notification with the message that the eFPS enrollment is under investigation.
7. Submit all the necessary documents to the respective RDO having the jurisdiction for account activation.
8. Receive an e-mail notification (within 3 to 10 working days) from LTAS/RDO-TASS indicating the status of application.
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BIR Email Notification with the message that the eFPS enrollment is activated.
9. When account is activated, taxpayer may start filing tax returns. In addition,
eFPS enrolled taxpayer is required to maintain an online banking facility with any
authorized agent bank (AAB) where he intends to pay through the bank debit
system.
B. ENROLLMENT OF ADDITIONAL USERS FOR EXISTING CORPORATE ACCOUNTS
For Corporate taxpayers, enrollment of a maximum of three (3) usernames
associated to a single TIN and Branch Code combination is allowed. The following
steps need to be carried out:
1. The primary user shall access the BIR eFPS Login Screen. Refer
to Scenario A Step 1.
2. Enter the following data in the TIN, Username and Password field as defined during the enrollment process.
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The data required in the eFPS Login
3. Click on the “LOGIN” button.
4. Enter the answer to the challenge question. Then click “SUBMIT” button.
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Sample of the eFPS Challenge Question
5. Click on “Enroll More Users” at the bottom of the screen.
The button “enroll more users” at the bottom of eFPS user menu.
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6. The online Enrollment Form screen will now be displayed. Take note that
the field for the TIN and the Registered Name of Taxpayer are already pre-filled.
The additional user may now fill-up the enrollment form in accordance with the
same procedures provided for in Number 3 of Scenario 1.
7. After “SUBMIT”, you may either proceed or cancel your enrollment. If you
click on button, the focus will stay on Step 3 – Verification screen.
The eFPS verification screen
If you click on the “YES” button, a message box will appear on the screen
informing you that your enrollment has been received for processing. Click “OK” to
proceed. User is then returned to the User Menu.
If you have already reached the maximum number of enrollees, the Enrollment
Form will not be accepted.
8. Submit the necessary documents to the respective RDO.
9. Wait for an email notification.
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WHAT ARE THE REQUIREMENTS TO ENROLL IN BIR EFPS?
1. A computer with a secure and stable internet connection.
2. An internet browser installed such as Microsoft Internet Explorer version 6 or
higher, Mozilla Firefox version 2 or higher, or Netscape Navigator version 6 or
higher.
3. Valid email address.
4. Taxpayer must be registered with the BIR Integrated Tax System.
5. For juridical entities or artificial persons, enrollment shall be made by the
officers required by law to file returns. Thus, for domestic corporations, submit
a Board Resolution authorizing any two (2) officers designated to file the
return under Section 52 (A) of the Tax Code (president or other principal
officer and Treasurer or Asst. Treasurer of the Corporation; the managing
partner of the Partnership; managing head for Joint Venture; and the country
manager for resident foreign corporation) who shall enroll for the system
usage to the Large Taxpayer Assistance Service Section / Revenue District
Office – Taxpayer Assistance Service Section (LTAS/RDO-TASS)
6. Letter of intent to enroll with eFPS and any accredited agent bank.
7. Photocopy of Valid IDs of authorized representative(s).
8. Printed email notification from the BIR.
9. Enrollment with any eFPS Authorized Agent Bank (eFPS-AAB) for use of
their e-payment system, in accordance with the bank’s procedures.
CAN A TAXPAYER ENROLL MORE THAN ONCE?
NO. Enrollment is done only once per company. However, once the initial user is
activated, he/she may enroll additional users following the procedures in Scenario B.
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For corporate taxpayers, enrollment of a maximum of three (3) usernames
associated to a single TIN and Branch Code combination is allowed. For individual
taxpayers, only one (1) username is allowed to a single TIN and Branch Code.
WHAT TO DO WHEN EFPS USER FORGETS PASSWORD AND OTHER NECESSARY INFORMATION?
In case taxpayer forgets necessary information such as the Username, Password,
and Answer to Challenge Question, the following procedures must be undertaken:
1. Submit written request to BIR for re-enrollment in case taxpayer forgets the
necessary information or there is a change in the corporate authorized
signatory (RMO 5-2002).
2. Receive communication by e-mail from LTAS/RDO-TASS that their request
for re-enrollment has been approved.
3. Perform the procedures in Scenario A, after approval of the re-enrollment
request, if the reason for re-enrollment is the change in the corporate
authorized signatory.
4. Receive an e-mail notification (within 3 to 10 working days) from LTAS/RDO-
TASS indicating the status of their application.
WHAT ARE THE POSSIBLE REASONS / GROUNDS FOR THE REJECTION OF THE ENROLLMENT?
There may be several reasons / grounds for the rejection of enrollment, these
include, but not limited to the following:
1. Upon investigation, taxpayer was found to be bogus;
2. E-mail address does not exist; and
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3. Persons enrolled is not authorized by President of the Corporation / Head
Office.
IS THE EFPS USER ALLOWED TO CHANGE PASSWORD?
Yes, eFPS user is encouraged to change the user password regularly for security
purposes using the Change User Info facility.
The “Change User Info” button in eFPS User menu.
For more information about eFiling of taxes in the Philippines, please read my
article “How to file tax returns online in the Philippines.”
Disclaimer: This article/guide is for general information use only and doesn’t constitute professional advice. Moreover, new and subsequent laws and tax rules may render whole or part of this article obsolete. If you see any errors, please
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contact us to correct them. For more information, please visit the Frequently Asked Questions (FAQ) page of BIR’s eFPS or visit the nearest RDO in your area.
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