BIR Form 2551Q, 0605 & 1601EQ Tax Advisory BIR (Irregular and Questionable)
Channel: TaxSpecialista
Date: 2018-02-11

BUREAU OF INTERNAL REVENUE TAX ADVISORY In compliance with Section 40 of the TRAIN Law mandating every person subject to the percentage taxes imposed under Title V of the Tax Code, as amended, to file a quarterly return of his gross sales, receipts or eamings and pay the tax due thereon within twenty-five (25) days after the end of each taxable quarter, the following instructions must be observed: 1. A1l taxpayers subject to percentage tax pursuant to Section 116 of the Tax Code and those who will be subject thereto due to change of registration from VAT to Non-VAT, are required to pay the percentage tax on a quarterly basis using BIR Form No. 2551Q. There is no need to file and pay monthly percentage tax on their monthly gross receipts using BIR Form No. 2551M. 2. Taxpayers who are required to withhold Other Percentage Taxes and Value-added Tax under Revenue Regulations No. 2-98, as amended,shall continue to withhold and remit taxes on a monthly basis using BIR Form No. 1600 - Remittance Return of VAT and Other Percentage Taxes Withheld, considering that taxes withheld are held in trust for the government. Furthermore, BIR Form No. 1600 (Remittance Return of VAT and Other Percentage Taxes Withheld) shall still be used for VAT withheld on government money payments and payments to non-residents. In summary please refer to the following:
This advisory is issued to clae contractors and subcontractors enjoying preferential tax treatment prior to 2018 are now subject to regular Income Tax rates. more
Creation and modification of Alphanumeric Tax Code (ATC) of selected revenue source under the TRAIN Law. RMO 9-2018
Transitory guidelines relative to the implementation of TRAIN Law governing Excise Tax on petroleum products, automobiles and sweetened beverages, pending the issuance of the Implementing Rules and Regulations. OM2018-01-03/Annex A/Annex B1/Annex B2/Annex B3/Annex C1/Annex C2/Annex C3/Annex D
To further clarify the advisory issued by this Bureau last January 31, 2018 relative to the remittances of creditable and final withholding taxes for the first two (2) months of every quarter, the withholding agents (WAs) are advised to remit the withheld taxes using BIR Form No. 0605 on or before the 1Oth day (for over-the-counter filers) or 15th day (for eFPS filers) of the following month of withholding. It is further advised that the Alphanumeric Tax Code to be used in the filing and remittance of the said taxes thru BIR Form 0605 shall be "MC 200" and the tax type to be indicated shall be "WE" for Expanded Withholding Tax or "WF" for Final Withholding Tax. whichever is applicable. This is only a transitory procedure pending the issuance of the enhanced withholding tax remittance forms. With regard to the submission of the alphabetical list of payees from whom taxes were withheld, such shall be submitted not later than the last day of the month following the close of the taxable quarter during which the withholding tax was made.
This is in relation to the amendment of the provisions of Section 58 of the National Internal Revenue Code QIIIRC). as amended by Republic Act No. 10963 (TRAIN Act). prescribing the payment of creditable and final withholding taxes not later than the last day of the month following the close of the taxable quarter during which the w'ithholding tax lr,as made. Considering that taxes withheld by the withholding agents are held in trust fbr the goverrunent and its availability is an imperious necessity, there is utmost need to require withholding agents to immediately remit taxes withheld to this Bureau in order to ensure sutficient cash inflow to the treasury. Therefore, pursuant to Section 6 of the NIRC. as amended, the Commissioner of Internal Revenue prescribes additional requirements for tax administration and enforcement: THAT TAXES WITHHELD WITHIN THE FIRST TWO (2) MONTHS OF EVERY TAXABLE QUARTER SHALL BE REMITTED THRU BIR FORM 0605 ON OR BEFORE THE 1OTH DAY FOLLOWING THE MONITH OF WITHHOLDING. TAXES WITHHELD ON THE THIRD (3R) MONTH OF EVERY TAXABLE QUARTER SHALL BE REMITTED THRU BIR FORM I6O1EQ (OR THE APPLICABLE QUARTERLY WITHHOLDING TAX RETURN). NOT LATER THAN THE LAST DAY OF THE MONTH FOLLOWING THE CLOSE OF THE TAXABLE QUARTER DURING WHICH THE WITHHOLDING TAX WAS MADE. In this regard, all concerned withholding agents are hereby advised to strictly comply with the abovementioned procedures for withholding tax remittance starting taxable year 201 8. Issued this 31't day of January 2018 ..