updates-on-withholding-taxes-association-of-government_compress.pdf

REVENUE REGULATIONS NO. 1-2013
Electronic Tax Remittance Advice
for
NATIONAL GOVERNMENT AGENCIES

WHAT IS TRA?
A serially-numbered document prescribed by the
DBM that should be used by the NGAs in the
remittance of withheld taxes on funds coming
from DBM. This form is being distributed by the BIR
to be accomplished by the NGAs. The same shall
be duly certified by the Chief Accountant and
approved by the Head of the concerned NGA or
his duly authorized representative, and attached
to every withholding tax return filed as payment
for taxes withheld. This shall be the basis for the BIR
and the Bureau of Treasury (BTr) to record the tax
collection in their respective books of accounts.

TAXPAYERS MANDATED TO USE eFPS
ISSUANCES
Large Taxpayers RR No. 2-2002, as amended
Government Bidders RR No. 3-2005
Procuring Government Agencies with respect to
Withholding of VAT and Percentage Taxes
RR No. 3-2005
Corporations with Paid-Up Capital Stock of P10
Million
RR No. 10-2007
Top 20,000 Private Corporations RR No. 2-98, as amended
Top 5,000 Individual Taxpayers RR No. 6-2009
Enterprises Enjoying Fiscal Incentives (PEZA, BOI,
Various Economic Zones, Etc.)
RR 1-2010
National Government Agencies (NGAs) RR 1-2013
Taxpayer Account Management Program (TAMP)
RR 10-2014
Accredited Importers with BIR-ICC and BIR-BCCs

Tax Return Forms available for e-Filing for NGAs
Monthly Returns
 1600 Monthly Remittance Return of Value - Added Tax and Other Percentage
Taxes Withheld
 1601C Monthly Remittance Return of income Taxes Withheld on Compensation
 1601E Monthly Remittance Return of Creditable Income Taxes Withheld
(Expanded)
 1601F Monthly Remittance Return of Final Income Taxes Withheld
 1603 Quarterly Remittance Return of Final Income Taxes Withheld
 1600WP Remittance Return of Percentage Tax on Winnings and Prizes Withheld
by Race Track Operators
Annual Returns
 1604CF Annual Information Return of Income Taxes Withheld on Compensation
and Final Withholding Taxes
 1604E Annual Information Return of Creditable Income Taxes Withheld
(Expanded)/Income Payments Exempt from Withholding Taxes
Payment Form
 0605 Payment Form

BIR Form No. January to November December
BIR Form No. 1600 On or before the 10th day of the following month
BIR Form No. 1601-C
On or before the10th day
of the following month
On or before the 15th day
of the following month
BIR Form No. 1601-E
BIR Form No. 1601-F
BIR Form No. 1603
BIR Form No. 1604-CF On or before January 31 of the following year
BIR Form No. 1604-E On or before March 1 of the following year

BIR Form No. Attachment
BIR Form No. 1601-C
No attachment
BIR Form No. 1603
BIR Form No. 1601-E
Monthly alphalist of payees
BIR Form No. 1601-F
BIR Form No. 1600
BIR Form No. 1604-CF Alphalist of employees
BIR Form No. 1604-E Annual alphalist of payees

ePayment after eFiling a Return
A filing reference number is
generated by eFPS. This means
that the form has been
successfully submitted and
received by eFPS
Click on “Proceed to Payment” to
perform e-payment
Remember that eFPS generates the Filing Confirmation
screen with the filing reference number immediately after
eFPS receives an eFiled return

ePayment
After clicking on “Proceed to
Payment” the eFPS Payment
Form is displayed with default
payment information retrieved
from the eFiled return. You
cannot edit these fields
There are THREE (3)
possible mode of
payments for eFiled
returns: Fund Transfer, via
Tax Debit Memo, OR Tax
Remittance Advice (eTRA).

ePayment via Fund Transfer
eFPS will display a confirmation screen stating that your payment has been
successfully received and confirmed to eFPS the receipt of the payment instruction.
Note that the screen includes important information such as…
Your e-filed return’s Filing
Reference Number
The Payment
Transaction
number and Date
The AAB’s generated
Confirmation Number
- is equivalent of the
bank-validation
and/or stamp of the
BIR.

This amount can be edited based
on the amount to be remitted per
fund type

In case of erroneous filing & payment
 The NGA shall prepare a written notice to the
concerned RDO for purposes of validation and
preparation of TRADM.
 The validated error(s) shall be corrected in the ITS-CBR
and not through the eFPS. The necessary correction
shall only be effected once the corresponding TRA
Debit Memo has been duly approved by the
concerned Regional Director/ACIR, LTS.
 Only the concerned RDO, LTDO-Makati & Cebu,
LTDPQAD are authorized to manually cancel/modify
the erroneous entries affecting the amount of
withholding tax in the ITS_CBRS according to the
procedures prescribed in the ITS Operation Manual.

NOTE:
 One TRADM shall be issued for each erroneously
generated eTRA as indicated in Policy 4 of RMO 30-
2014, on a tax/form type and on a per transaction
basis. Accordingly, erroneous entries in the eTRA other
than those affecting the amount of the withholding
tax, shall not be covered and corrected through the
issuance of TRADM.
 The RDO/LTS Office shall issue/transmit the appropriate
copies of the duly approved TRADM to the concerned
offices within twenty four (24) hours immediately after
receipt of the duly approved TRADM.
 The duly approved TRADM shall be non-transferable
and non-cash convertible to cash.

Erroneous entry that may be committed by the NGA, such as,
but not limited to, the following:
a. Amount of tax paid per system-generated TRA is more than the
amount of tax due and payable reflected in the electronically filed
tax return.
b. Sum of the amounts in two or more eTRAs each containing different
amounts of withholding tax is more than the amount of tax due and
payable per electronically filed tax return.
c. Sum of the amount in eTRAs and cash payments made through
authorized banks is more than the amount of tax due and payable
per electronically filed tax return.
d. Double or multiple system-generated TRAs each containing exactly
the same amount of withholding tax that corresponds to only one
electronically filed tax return.
e. Amount of tax paid per system-generated TRA is less than the amount
of tax due and payable reflected in the electronically filed tax return.
f. No tax has been paid per amount of tax due and payable reflected
in the electronically filed tax return.

In case of erroneous cash payment
 Immediately inform the bank
 Submit a written request for transaction reversal
and crediting back of amount erroneously paid
 Provide the branch a copy of the downloaded
tax return and confirmation receipt for said
transaction.
In case of unauthorized debit from account
 Change password
 Immediately notify branch of account for the
initiation of investigation.
RMC No. 83- 2014 – Surrender of Manual TRA Forms

Electronic Submission of Alphabetical List of
Employees/Payees

Section 2.83.3 Requirement for
list of payees
All withholding agents shall, regardless of the
number of employees and payees, whether the
employees/payees are exempt or not, submit an
alphabetical list of employees and list of payees
on income payments subject to creditable and
final withholding taxes which are required to be
attached as integral part of the Annual
Information Returns (BIR Form No.
1604CF/1604E) and Monthly Remittance
Returns (BIR Form No. 1601C-E etc.), under the
following modes of payments

 As attachment in the Electronic Filing and Payment
System (eFPS);
NOTE: The attachment of alphalist through the eFPS is
temporarily disabled and a tax advisory shall be
immediately issued through the BIR website as soon as
the technical issues thereon are resolved.
 Through Electronic Submission (esubmission) using the
BIR’s website address at esubmission@bir.gov.ph; and
 Through Electronic Mail (email) submission at
dedicated BIR email addresses using the data entry
module of the Bureau of Internal Revenue (BIR).

NOTE
Submission of hard or physical copies of alphalists, or of storage
devices such as, but not limited to, compact diskette (CD), Digital
Versatile Diskette (DVD), Universal Serial Bus (USB) containing the
alphalist, which are both considered as manual submission, shall no
longer be allowed.

Required Format in the Submission/attachment
of Alphalist/SAWT/ MAP to the
required returns.
The Alphalist/SAWT/MAP shall be submitted/attached to the return
and shall contain all the required information in the prescribed
electronic format using any of the following:
Option 1 Microsoft Excel Format;
Option 2 Taxpayer’s own extract program; or
Option 3 Alphalist Data Entry Module ver. 3.4 developed by
the BIR that is downloadable from the BIR’s web site
at http://www.bir.gov.ph with the corresponding job
aid to be provided by the BIR.

BIR Form Nos. 1604-CF, E
1601-E, 106-F, 1600
Alphalist of
Employees/Payees
Submission of BIR Forms and the attached
Alphalist of eFPS/IAF users
RMC 5-2014 – Clarifies the submission of alphalist pursuant to RR N0. 1-2014

Benefits received by an employee by virtue of a
CBA and productivity incentive schemes
provided that the total annual monetary value
received from both CBA and productivity
incentive schemes combined do not exceed
P10,000 per employee per taxable year.
(Additional de-minimis benefits).

Mandatory Submission of Scanned Copies of BIR
Form No. 2316 & 2307

Taxpayers registered with the Large Taxpayers
Service
In lieu of the submission of hard copies of the duplicate original thereof, the
following procedures shall be strictly observed:
1. Scan the duplicate original copies of BIR Form No. 2316 through the
scanning machine or device;
2. Store the soft copies of BIR Form No. 2316 using the “PDF” file format
with the filenames alphabetically arranged in a Digital Disk-Recordable
(DVD-R). The filename shall contain the following information:
a. Surname of the employee;
b. Taxpayer Identification Number (TIN) of the employee; and
c. Taxable Period
Example: Dela Cruz_131-885-522-000_12312014 or if multiple BIR Form
No. 2307 affix a number at the end of the name of taxpayer. (e.g. Dela
Cruz1_131-885-522-000_12312014

3. Label the DVD-R containing the soft copies of the
said BIR forms in accordance with the format
prescribed in Annex “A” of the Regulation; and
4. Submit the duly accomplished DVD-R to the BIR
Office where the taxpayer is duly registered,
together with a notarized Certification, using the
format in Annex “C” of the regulation and duly
signed by the authorized representative of the
taxpayer certifying that the soft copies of the said
BIR Form contained in the DVD-R are the
complete and exact copies of the original.

Annex “A”
BIR FORM 2307
Name and TIN of Taxpayer
Period Covered:
Mm/dd/yyyy
No. of Scanned
2307 Copies: 9999
Signature over Printed name
of Authorized Representative
1 of 5
Note:
• DVD-R 5
• Single sided
• Single layered
• Resolution at
least 200 dpi
• Black & white
• Front only
• Readable

Annex "C“
SWORN DECLARATION
REPUBLIC OF THE PHILIPPINES
PROVINCE OF _______________________
CITY/MUNICIPALITY OF _____________
l, l (Name of Authorized Representative), Nationality), of legal age designated as (Position) of
(Registered Name of Companv/Corporation), with business address located at _________________ do
hereby certify the following:
 That in compliance with the requirements of Revenue Regulations No. 2-2015,
submitted herewith is/are (Number of DVD-R/s) containing (Number of Scanned BIR
Form 2307/2316) covering the period mm/dd/yyyy.
 The the contents of the DVD-Rs being submitted herewith conform to the
conditions/specification requirements set by the Bureau of Internal Revenue.
 That the soft copies of BIR Form 2307/2316 contained in the DVD-R/s being submitted
herewith are the complete and exact copies of the original thereof.
I HEREBY DECLARE UNDER THE PENALTIES OF PERJURY THAT THE FOREGOING
ATTESTATIONS ARE TRUE AND CORRECT.
____________________________
Name and signature of Authorized
Representative
TIN: ________________________
SUBSCRIBED and sworn to before me, in the City/Municipality of _____________, this day of
_______ by _____________ with Residence Certificate No. _______________ issued at ___________, of ______
20____.
Notary Public
Doc. No. ________
Page No. ________
Book No. ________
Series of _________

• 13TH Month pay and other BENEFITS up to P82,000.00 for the TAXABLE YEAR.
[Section 32(B)(7)(e), Tax Code] RA No. 10653 – dated February 12,
2015 .
Note:
 Shall NOT apply to other compensation received by an employee under an employer-
employee relationship, such as basic salary and other allowances. This exclusion from
gross income is NOT applicable to self-employed individuals and income generated from
business.
 Shall apply to the 13th month pay and other benefits paid or accrued beginning January 1,
2015.
 The employer shall issue the BIR Form 2316 on or before January 31 of the succeeding
calendar year or upon termination of employment or the payment of last compensation.
 The employee-transferee shall immediately furnish the new employer the accomplished
BIR Form issued by the previous employer for the appropriate withholding tax
computation regular compensation and subsequent year-end-adjustment, if any.

REVENUE MEMORANDUM CIRCULAR NO. 46-2013
 Benefits under Collective Negotiations Agreement (CNA) granted to
Government Employees’ Organizations duly approved/accredited by the CSC.
CNA incentive is included in the “other benefits” . It is exempt from income and
withholding tax, provided that, the benefits when added to the 13th month pay
and other benefits shall exceed the threshold of P82,000. Any excess shall be
taxable to the employee, whether rank and file or supervisory. (Classified under
13th month pay and other benefits).
Other Benefits includes the following: (RR 2-98 Sec. 2.78.1(11)(b)
 Christmas Bonus
 Productivity incentive bonus
 Loyalty award
 Gift in cash or in kind
 Other benefits in similar nature actually received by employee and officials

Year-end Adjustment
On or before the end of the calendar year but prior to
the payment of the compensation for the last payroll
period, the employer shall determine the tax due from
each employee on taxable compensation income for the
entire taxable year. The difference between the tax due for
the entire year and the sum of taxes withheld from
January to November shall either be withheld from his
salary in December of the current calendar year or
refunded to the employee, not later than January 25 of the
succeeding year.

Annualized Withholding Tax
(Year-End Adjustment)
WHEN:
PURPOSE:
Tax due = Tax Withheld
• On or before the end of the calendar year, prior to
the payment of compensation for the last payroll
period.
• If terminated, on the day on which the last payment
of compensation is made.

GROSS INCOME (previous + present employer) P x x x
(Less: Non-Taxable Items - Gross Income:
a. 13th month pay, Christmas Bonus
Loyalty Award, gift in cash/kind
and other benefits not to exceed P82,000
b. SSS, GSIS, Medicare, Pag-ibig and
union dues of individual employees x x x
c. De-Minimis Benefits x x x
d. Other non-taxable compensation income x x x x x x
GROSS TAXABLE COMPENSATION INCOME P x x x
Less: Total Exemptions P x x x
Premium paid on Health and/or Hospitalization
Insurance (Maximum of P2,400.00) x x x x x x
Taxable Compensation Income P x x x
Tax Due: Refer to Annualized Table [Sec. 24(A), Tax Code] P x x x
Less: Tax Withheld (Jan. to Nov.) from previous & present employer x x x
Amount to be withheld in December/refunded on or before Jan. 25 ff. year P x x x
Annualized Withholding Tax - Formula

Annualized Withholding Tax
Collectible: Tax due > tax withheld ----- collect before payment
of last wage
Refund: Tax due < tax withheld ----- refund on or before
Jan. 25th of the ff. year/payment of last
compensation
Break even: Tax due = tax withheld ---- do not withhold for
December salary
Scenarios:

Certificate of Income and Tax Withheld on
Compensation (BIR Form No. 2316)
Filing/Submission of Hard Copy of the Certificate
of Compensation Payment/Tax Withheld (BIR Form
2316) Covering Employees Who are Qualified for
Substituted Filing (RR No. 11-2013).
 Original - Taxpayers Copy
 Duplicate - submit to RDO
 Triplicate - Employer’s Copy
DEADLINE: on or before February 28 of the following year.

REVENUE MEMORANDUM CIRCULAR
NO. 59-2015
Availability of the Update of Exemption of
Employees (UEE) Data Entry Module in Filing of
the Bureau of Internal Revenue (BIR) Form No.
2305 (Certificate of Update of Exemption and of
Employers and Employee’s Information) and
2305 Batch File Validation Module

UPDATES COVERED BY THE 2305 DATA ENTRY
AND BATCH FILE VALIDATION MODULES
Updating of Employee’s Additional Exemption
for Dependents;
Change of Status; and
Execution of the “Waiver to Claim the Additional
Exemption” by the husband; or revocation of the
previously executed “Waiver to Claim the
Additional Exemption by the Husband”

UEE Data Entry Module – This is a data entry
module where the employer inputs all the
registration updates of exemptions of its
employees one by one with validation
before sending electronically to the BIR.
2305 Batch File Validation Module – This is a
validation module of BIR Form 2305 for the
CSV file generated by the employer using
their own extract program.

FILING AND SUBMISSION
 Option 1 : Microsoft Excel CSV format
 Option 2 : Taxpayer’s own extract program
- Use the Format of CSV file indicated in Annex B of RMC No. 59-2015
- Using any of the above options requires the use of 2305 BATCH FILE
VALIDATION MODULE
- Submit the CSV file via e-mail at BIRFORM_2305@bir.gov.ph with the
subject :
TIN_Branch_mmddyyyy _2305(e.g. Subject: 999999999_000_07312015_2305))

OPTION 3 : BIR’s UEE Data Entry Module
 Download the Update of Exemption of Employees Data Entry Module (BIR
Form 2305 Data Entry Module) with systems requirements of Microsoft
Access 2010 or higher version OS: Microsoft Windows 7 above; OS X

 Receive and validate the documentary requirement/s
submitted by employees.
 Update the employee’s Exemption using the Update of
Exemption of Employees Data Entry Module (BIR Form
2305 Data Entry Module)

 Generate Monthly CSV Report
 Attach to email the generated csv file located at drive
C:BIRF2305 with a filename format:
999999999_99999_mmddyyyy_2305_xxx.csv

 Receive system-generated email notification (Annex E)
for successful filing.

SUBMISSION OF SUPPORTING DOCUMENTS
Submit the following every 10th day of the following
month for those with update only :
Accomplished BIR Form 2305 signed by both
employee and employer together with the
documentary requirement/s;
System-generated email notification

Printed Monthly Alphalist of Employees and
Information Update (Alpha_1) report

VENUE OF SUBMISSION
 Regular Taxpayer-Employers shall submit the supporting
documents to the RDO having jurisdiction over the place of office
of the employer where the employee is expected to report for
work.
 Large Taxpayer- Employers shall submit the supporting
documents to the
Large Taxpayers Assistance Division (LTAD),
Excise Large Taxpayers Regulatory Division (ELTRD),
Large Taxpayers Division (LTD-Makati/Cebu)
having jurisdiction over the Head Office of the Large
Taxpayer-Employer.

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