Transcript File - Susan Dajao Tusoy

WITHHOLDING TAX ON GOVERNMENT
MONEY PAYMENTS
Presented by:
Susan D. Tusoy, CPA, MPS
Asst. Chief, Assessment Division
Final Withholding VAT on Government Purchases
RA 9337
Payments by the government or any of its
political subdivisions, instrumentalities or
agencies, including government-owned
and controlled corporations (GOCCs) on
account of its purchase of goods and
services who are subject to VAT
5%
Final VAT
Withholding on Percentage Tax
Rate
Persons exempt from VAT under Sec. 109 (z) of the Tax Code
3%
Domestic carriers and keepers of garages
Cars for rent or hire
•Transportation contractors
•Domestic carriers by land, air or water
3%
International carriers doing business in the Phils.
3%
Franchises on radio/tv
Franchise on electric, gas, and water utilities
3%
Banks and non-bank financial intermediaries
0%, 1%, 3%, 5%
Finance Companies
0%, 1%, 3%, 5%
2%
Withholding on Percentage Tax
Rate
Life insurance premiums (w/ certain exclusions)
2% (RMC 222010)
Agents of foreign insurance companies
10% /5%
Amusements (RMC 18-2010 – includes karaoke bars/videoke bars)
18%,10%, 15%,
30%
Sale, barter or exchange of shares or stocks listed
or traded through local stock exchange
½ of 1%
Shares of stock sold or exchanges through initial
public offering
1%, 2%, 4%
On gross payments to stock, real estate,
commercial, customs, insurance and immigration
brokers based on gross receipts
7%
I.
WITHHOLD TAXES
TIME
TAX BASE
COMPENSATION
WHEN PAID /
CONTRUCTIVELY PAID
TAXABLE COMPENSATION
INCOME
EXPANDED
GMP
WHEN PAID / PAYABLE
GROSS PAYMENT
(NET OF VAT)
(VAT PAYEE)
GMP
WHEN PAID / PAYABLE
(NON VAT PAYEE)
FINAL
OTHER FINAL
FRINGE
BENEFITS
WHEN PAID / PAYABLE
WHEN PAID
GROSS PAYMENT
GROSS PAYMENT
GROSS –UP MONETARY
VALUE
II. WITHHOLING TAX REMITTANCE
TYPES
COMPEN-SATION
FORM
1601-C
EFPS FILING
EFPS PAYMENT
10th day of the ff month
except for the month of
December which is due on
the Jan. 15
Staggered Filing (RR 262002)
15th day of the ff month
except for the month of
December which is due
on the Jan. 20
MANUAL FILING/
PAYMENT
EXPANDED
1601-E
BANKS
1602
Real Property
(Ordinary Asset)
1606
10th day of the ff month
Not applicable
Not applicable
FINAL
OTHER FINAL
1601-F
10th day of the ff month
Staggered Filing (RR 262002)
15th day of the ff month
W/TAX ON
VAT & PERCENTAGE
1600
(ALPHALIS
T)
10th day of the ff month
10th day of the ff month
10th day of the ff month
FRINGE
BENEFITS
1603
10th day of the month
following the end of the qtr.
15th day of the
month ff the end of
the quarter
15th day of the month ff
the end of the quarter
III. WITHHOLDING TAX CERTIFICATES
TYPES
FORM
TIME
COMPENSATION
2316
Jan 31 of the ff year
For terminated employees - last payment of salary
EXPANDED
2304
(Exempt)
20 days ff. close of the quarter
or upon demand
2307
(Taxable)
GOV’T. MONEY
PAYMENTS
2307
For Non-VAT : 10th day of the ff month
2306
For VAT
FINAL TAX
2306
Jan. 31 of the following year
FRINGE
BENEFITS
2306
Jan. 31 of the following year
: 10th day on the month ff month
IV. ANNUAL RETURNS
TYPE
FORM
COMPENSATION
1604 CF
EXPANDED
1604E
DESCRIPTION
Alphalist of employees
Less than 10 employees – manual filing
10 employees or more - softcopy
eFPS Filer
- e-attach
Alphalist of payees
Less than 10 payees
10 payees or more
eFPS Filer
– manual filing
- softcopy
- e-attach
TIME
Jan. 31 of
the ff year
March 1 of
the ff year
ON MANDATORY
ATTACHMENTS
RR No. 2-2006
REVENUE REGULATIONS NO. 2-2006
Mandatory Attachments :
1. Summary Alphalist of Withholding
Agents of Income Payments Subjected to Tax Withheld at
Source (SAWT) to Tax Returns With Claimed Tax Credits
due to Creditable Tax Withheld At Source
REVENUE REGULATIONS NO. 2-2006
2. Monthly Alphalist of Payees (MAP)
Whose Income Received Have Been
Subjected to Withholding Tax in the
Withholding Tax Remittance Return
Filed by the Withholding Agent/Payor
of Income Payments
Monthly Alphalist of Payees(MAP)
is a consolidated alphalist of income earners
from whom taxes have been withheld by the
payor of income for a given return period and in
whose behalf, the taxes were remitted.
It contains a summary of information on taxes
withheld and remitted through the monthly
remittance returns
(BIR Form Nos. 1601E, 1601-F, 1600) showing , among others,
total amounts of income/gross sales/gross receipts and
taxes withheld and remitted.
SAWT/MAP
Below 10 payees
- hard copy
10 or more payees
- softcopy
(diskette, CD etc.)
EFPS regardless of the
number of income payees/
income recipient
- e-attach
Illustration
A local government unit purchased the following goods and services for
the month of November 2013.
Invoice Price
 Fertilizers
-
P56,000.00
 Construction Materials
-
44,800.00
 Repair of Aircon Units
-
22,400.00
 Rental of equipments
-
33,600.00
Compute for the withholding tax on government money payments assuming
the seller is:
a) Non-VAT registered
b) VAT taxpayer
Answer – Non VAT Supplier
Invoice Price
Tax Base
GMP
% Tax
Tax Rate
EWT
560.00
0.00
Fertilizers
56,000.00
56,000.00
EWT 1%
GMP - none
Const.
Materials
44,800.00
44,800.00
EWT – 1%
GMP – 3%
448.00
1,344.00
Repair of
Aircon Untis
22,400.00
22,400.00
EWT – 2%
GMP – 3%
448.00
672.00
Rental of
Equipments
33,600.00
33,600.00
EWT – 5%
GMP – 3%
1,680.00
1,008.00
Answer – VAT Supplier
Invoice
Price
Fertilizers
56,000.00
Tax Base
Tax Rate
EWT
GMP
VAT
56,000.00
EWT 1%
560.00
None
EWT – 1%
GMP – 5%
400.00
2,000.00
Const.
Materials
44,800.00
40,000.00
Repair of
Aircon Untis
22,400.00
20,000.00
EWT – 2%
GMP – 5%
400.00
1,000.00
Rental of
Equipments
33,600.00
30,000.00
EWT – 5%
GMP – 5%
1,500.00
1,500.00
The usefulness of the cup is its emptiness.
-Bruce Lee
THE END