REVENUE REGULATIONS NO. 1-REVENUE REGULATIONS NO. 1-20132013

Electronic Tax Remittance AdviceElectronic Tax Remittance Adviceforfor

NATIONAL GOVERNMENT AGENCIESNATIONAL GOVERNMENT AGENCIES

WHAT IS TRA?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 TAXPAYERS MANDATED TO USE eFPSeFPS

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 1-2013Taxpayer Account Management Program (TAMP)

RR 10-2014Accredited 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-CNo attachment

BIR Form No. 1603

BIR Form No. 1601-E

Monthly alphalist of payeesBIR 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

ePaymentePayment

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

ePaymentePaymentAfter 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 eTRAePayment via eTRA

ePayment via eTRA

ePayment via Fund TransfereFPS 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

eTRA generated thru eFPS

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

REVENUE REGULATIONS NO. 1-REVENUE REGULATIONS NO. 1-20142014

Electronic Submission of Alphabetical Electronic Submission of Alphabetical List of Employees/PayeesList 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 therequired 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, E1601-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

REVENUE REGULATIONS NO. 1-2015REVENUE REGULATIONS NO. 1-2015

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).

REVENUE REGULATIONS NO. 2-REVENUE REGULATIONS NO. 2-20152015

Mandatory Submission of Scanned Mandatory Submission of Scanned Copies of BIR Form No. 2316 & 2307 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; andc. 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 Scanned2307 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 PHILIPPINESPROVINCE 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 RepresentativeTIN: ________________________

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 REGULATIONS NO. 3-REVENUE REGULATIONS NO. 3-20152015

REVENUE MEMORANDUM CIRCULAR NO. 46-REVENUE MEMORANDUM CIRCULAR NO. 46-20132013

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: Other Benefits includes the following: (RR 2-98 Sec. 2.78.1(11)(b) (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 - FormulaAnnualized Withholding Tax - Formula

Annualized Withholding TaxAnnualized Withholding Tax

Collectible: Tax due > tax withheld ----- collect before payment of last wage

Refund: Tax due < tax withheld ----- refund on or beforeJan. 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 Certificate of Income and Tax Withheld on Compensation (BIR Form No. 2316)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

DOCUMENTSSubmit 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.