“ TAXES ARE THE

LIFEBLOOD OF OUR
NATION.”
NO GOVERNMENT CAN
EXIST WITHOUT TAXES
RESPONSIBLITIES OF THE GOVERNMENT
OFFICIALS/EMPLOYEES AS WITHHOLDING
AGENTS ( RMC No. 23-2012)
1.To register the government office as withholding agent.
2.To require employees to submit the duly accomplished Application
for Registration (BIR Form No. 1902) for newly-hired employees

3. To withhold the correct amount of tax.

4.To remit on time taxes withheld.

5.To issue the corresponding certificates of taxes withheld.
6.To do the year-end adjustment.
7. To timely file with the BIR, the annual information
return and alphabetical lists of employees/payees, if
applicable.
 PERSONS RESPONSIBLE FOR WITHHOLDING
The following officials are duty bound to deduct, withhold and remit
taxes:
a) For Office of the Provincial Government-province- the Chief Accountant,
Provincial Treasurer and the Governor;
b)For Office of the City Government-cities- the Chief Accountant, City
Treasurer and the City Mayor;
c) For Office of the Municipal Government-municipalities- the Chief
Accountant, Municipal Treasurer and the Mayor;
d) Office of the Barangay-Barangay Treasurer and Barangay Captain
e) For NGAs, GOCCs and other Government Offices, the Chief Accountant
and the Head of Office or the Official holding the highest position (such as
the President, Chief Executive Officer, Governor, General Manager)
Revenue Memorandum Order No. 23-2014 dated
June 20, 2014 is being issued to remind all officials
and employee in the Public Sector whether
exercising Proprietary or Governmental Functions
to withhold taxes on its transactions as a customer,
that is, on its purchases on goods/services and as
employer, on compensation paid to its official and
employee.
 EXPANDED WITHHOLDING TAX
PERIOD BIR FORM DEADLINE ATTACHMENT
JANUARY 0619-E FEB. 10 NONE
FEBRUARY 0619-E MAR. 10 NONE
MARCH 1601-E Q APR 30 QAP
APRIL 0619-E MAY 10 NONE
MAY 0619-E JUNE 10 NONE
JUNE 1601-E Q JULY 31 QAP
JULY 0619-E AUG 10 NONE
AUGUST 0619-E SEPT 10 NONE
SEPTEMBER 1601-E Q OCT 31 QAP
OCTOBER 0619-E NOV 10 NONE
NOVEMBER 0619-E DEC 10 NONE
DECEMBER 1601-E Q JAN 31 QAP
 HOW TO COMPUTE EWT?
BASIS PURCHASE OF PURCHASE OF
GOODS SERVICES

VAT NET OF VAT 1% 2%

(GROSS AMT÷
1.12)

NON-VAT GROSS 1% 2%
AMOUNT
 GOVERNMENT MONEY PAYMENTS
(VAT & PERCENTAGE TAX WITHHOLDING)

PERIOD BIR FORM DEADLINE ATTACHMENT

MONTHLY 1600 10TH DAY OF MAP
THE
FOLLOWING
MONTH
 HOW TO COMPUTE GMP?
BASIS PURCHASE OF PURCHASE OF
GOODS SERVICES

VAT NET OF VAT 5% 5%

(GROSS AMT ÷
1.12)

NON-VAT PURCHASE 3% 3%
PRICE
 SUMMARY FOR EWT AND GMP
(VAT PURCHASE)
GOODS SERVICES BIR FORM CERTIFICATE TO BE
ISSUED TO THE
SUPPLIER
PURCHASE 10,000.00 10,000.00
PRICE
EWT (10,000÷1.12) (10,000÷1.12) 0619-E – BIR FORM
X 1% X 2% MONTHLY 2307
= 89.28 = 178.57 1601-EQ -
QUARTERLY
GMP (10,000÷1.12) (10,000÷1.12) 1600 BIR FORM
X5% X5% 2306
= 446.43 = 446.43
AMOUNT PAID 9,464.29 9,375.00
TO SUPPLIER
 SUMMARY FOR EWT AND GMP
(NON-VAT PURCHASE)
GOODS SERVICES BIR FORM CERTIFICATE TO BE
ISSUED TO THE
SUPPLIER
PURCHASE 10,000.00 10,000.00
PRICE
EWT 10,000 X 1% 10,000 X 2% 0619-E – BIR FORM
= 100 = 200 MONTHLY OR 2307
1601-EQ -
QUARTERLY
GMP 10,000 X 3 % 10,000 X 3 % 1600 BIR FORM
= 300 = 300 2306
AMOUNT PAID 9,600.00 9,500.00
TO SUPPLIER
 HOW TO COMPUTE THE
QUARTERLY EWT?
TAX DUE FOR THE QUARTER 20,000

LESS: 0619-E 12,000.00

TAX REMITTED FOR THE 1ST
MONTH OF THE QUARTER
TAX REMITTED FOR THE 2ND 0619-E 5,000.00 17,000
MONTH OF THE QUARTER

TAX TO BE REMITTED 1601-EQ 3,000

TAXABLE TRANSACTIONS:
Income
Creditable
Payment
INCOME
Operating Expenses Classification
BIR Form
(Goods or
1601E
Services
Payment For Service 2%
Communication
Repairs & Maintenance Service 2%
Purchases of Supplies & Goods 1%
Materials
Rental Service 5%
 Income Creditable
Payment INCOME
Classification BIR Form
(Goods or 1601E
Operating Expenses Services
Payment to Electricity Service 2%
Payment to Water Utilities Service None
Payment to Cooperatives:
With BIR Exemption Service None
Goods None
Without BIR Exemption Service 2%
Goods 1%
 Income Creditable
Payment INCOME
Classification BIR Form
(Goods or 1601E
Operating Expenses Services
Payment for Training & Service 2%
Seminars
Gasoline Station Goods 1%
Payment for Service of Services 2%
Security, Janitorial
 Income Creditable
Payment INCOME
Classification BIR Form
(Goods or 1601E
Operating Expenses Services
Maintenance of Aircon, Service 2%
Computers
Payment of Professional Fee to 5% OR 10%
Individual
& Jurisdiction Service
Payment for Purchases of other Goods 1%
Goods
Payment for Purchases of Agri. Goods 1%
Products
 Income Creditable
Payment INCOME
Classification BIR Form
(Goods or 1601E
Operating Expenses Services
Straight contract (Labor & Service 2%
Materials)
Separate Invoice for Goods 1%
Materials
Separate Invoice for Labor Service 2%
 Income Creditable
Payment INCOME
Classification BIR Form
(Goods or 1601E
Operating Expenses Services
Payment for Furniture, Goods 1%
Fixtures IT Equipment
Payment to Radio & TV Service 2%
Broadcasting Companies
 WITHHOLDING TAXES ON COMPENSATION
PERIOD BIR FORM DEADLINE ATTACHMENT
MONTHLY 1601-C 10TH DAY OF MAP
THE
FOLLOWING
MONTH
 SECTION 3. INCOME TAX RATES ON INDIVIDUAL
CITIZEN AND INDIVIDUAL RESIDENT ALIEN

Effective January 1, 2018 until December 31, 2022:

RANGE OF TAXABLE INCOME TAX DUE = a + (b x c)
BASIC ADDITIONAL OF OVER
OVER NOT OVER (a) (b) (c)
- 250,000.00 - -
250,000.00 400,000.00 - 20% 250,000.00
400,000.00 800,000.00 30,000.00 25% 400,000.00
800,000.00 2,000,000.00 130,000.00 30% 800,000.00
2,000,000.00 8,000,000.00 490,000.00 32% 2,000,000.00
8,000,000.00 - 2,410,000.00 35% 8,000,000.00
BIR'S IT TEAM 21
REVENUE MEMORANDUM ORDER NO. 13-2008
Prescribing the Policies, Guidelines and Procedures in the
Collection, Affixture, Remittance and Reporting of Documentary
Stamp Tax (DST) Through “Constructive Stamping or Receipt
System” on Certificates Issued by Government Agencies and its
Instrumentalities including Local Government Unit
“Section 188. Stamp Tax on Certificates-On each certificate of
damage or otherwise and on every certificate or document issued
by any customs officer, marine surveyor, or other person acting
as such, and on each certificate issued by a notary public, and on
each certificate of any description required by law or by rules or
regulations of a public office, or which is issued for the purpose
of giving information, or establishing proof of a fact, and not
otherwise specified herein, there shall be collected a documentary
stamp tax of Fifteen Pesos (P 15.00).”
 DOCUMENTARY STAMP TAX
PERIOD BIR FORM DEADLINE ATTACHMENT
5TH DAY OF
SUMMARY OF
THE
MONTHLY 2000 ISSUED
FOLLOWING
CERTIFICATES
MONTH
PROCEDURES

 COLLECT THE DST. INDICATE IN THE GOR THE FF:

A. AMOUNT OF THE DST
B. NAME OF THE RECIPIENT
C. KIND OF CERTIFICATION
D. AMOUN PAID

 AFFIX THE ORIGINAL GOR TO THE TAXABLE

DOCUMENT/CERTIFICATION ISSUED.
(*No separate GOR shall be issued for the DST.)
 MAINTAIN A LOGBOOK approved by the BIR. INDICATE THE
FF:
A. SERIAL NOS. OF THE GOR ISSUED
B. DATE ISSUED
C. NUMBER AND KIND OF CERTIFICATIONS ISSUED
D. AMOUNT OF DST COLLECTED
E. DETAILS OF REMITTANCE
- AMOUNT REMITTED
- DATE OF REMITTANCE
- WHERE PAID
 ANNUAL INFORMATION RETURNS

BIR FORM DEADLINE ATTACHMENT

ALPHALIST OF
Annual MARCH 31 OF
PAYEES/
Information THE
1604-E SUPPLIERS
Return for FOLLOWING
(online
Expanded WT YEAR
submission)
 ANNUAL INFORMATION RETURNS
BIR FORM DEADLINE ATTACHMENT
Annual
Information
Return for WT JAN 31 OF ALPHALIST OF
on THE EMPLOYEES
1604-CF
Compensation FOLLOWING (online
and Final YEAR submission)
Withholding
Taxes
 SANCTIONS AND PENALTIES FOR NON-
COMPLIANCE
BASIC INTEREST SURCHARGE COMPROMISE PENALTY
TAX DUE (based on tax due)

√
XX 5,000.00 1,000.00
5,000.00 10,000.00 3,000.00
Late Filing √ 10,000.00 20,000.00 5,000.00
and 20% - prior to √ 20,000.00 50,000.00 10,000.00
Payment √ Jan. 1, 2018 50,000.00 100,000.00 15,000.00
12% - starting 25%
of Returns 100,000.00 500,000.00 20,000.00
Jan. 1, 2018 500,000.00 1,000,000.00 30,000.00
1,000,000.00 5,000,000.00 40,000.00
5,000,000.00 XX 50,000.00
 SANCTIONS AND PENALTIES FOR NON-
COMPLIANCE
COMPROMISE PENALTY

Failure to File and

submit BIR FORM 1,000.00 - 25,000.00
1604-E and 1604-
CF

Minimum of P 1,000.00
Failure to maintain
logbook for
Documentary
Stamp Tax
SAMPLE COMPUTATION OF PENALTIES
TAX DUE 5,100.00
ADD PENALTIES:
25% SURCHARGE 1,275.00
12% INTEREST (1 DAY LATE) 1.68

COMPROMISE PENALTY 3,000.00 4,276.68

TOTAL AMOUNT DUE 9,376.68