Wrapping up 2019

IT feels like it was just yesterday when we unwrapped our Christmas gifts and welcomed a new year. It was an eventful one for some because of all that happened assessments, refunds, filing obligations, registrations, etc. and yet, here we are nearing the end of 2019. But before we close this chapter, all concerned taxpayers should keep

matter of regulatory compliance.

Every employer or withholding agent/ payor is required to deduct and withhold taxes on compensation paid to employees,

and expanded withholding tax or income payments not subject to withholding tax but subject to income tax. At year-end, the withholding agents are required to sum

calendar year.

Pursuant to Revenue Regulations (RR) 112018, the Bureau of Internal Revenue (BIR) introduced new tax forms that replace the Annual Information Return of Income Taxes Withheld on Compensation and Final Withholding Taxes (BIR Form No. 1604CF) in accordance with the implementation of Republic Act 10963, also known as the “Tax Reform for Acceleration and Inclusion (Train) Law.”

The summary of the information presented in the related tax returns will be reported separately as Annual Information Return of Income Taxes Withheld on Compensation (BIR Form 1604C) and Annual Information Return of Income Payments Subjected to Final Withholding Taxes (BIR Form 1604F) starting this calendar year. Withholding agents are required to submit the annual tax returns, including the required attachments, on or before January 31 of the following year in which the compensation income payment and income payments

or accrued, respectively.

Following the above provision, the tax authorities issued Revenue Memorandum Circular (RMC) 73-2019 to inform all concerned withholding agents of the availability of the revised manual tax forms on the BIR website and as attachment (Annexes A-C) in the preceding memorandum. However, the said tax forms have yet to be made available in the Electronic Filing and Payment System and Electronic Bureau of Internal Revenue Forms of all involved parties. Accordingly, a separate advisory announcing the availability of the enhanced version of the tax returns

give the withholding agents ample time to prepare the foregoing, the BIR opted to extend the deadline of submission of the aforementioned tax returns, including the Alphabetical List of Employees and Annual Alphabetical List of Payees, from Jan. 31, 2020 to Feb. 28, 2020 as prescribed in RMC 124-2019.

For the attachments mentioned above, RR 11-2018 also indicated the additional information required to be disclosed in the new format of the Alphabetical List of Employees aside from the annualized computation for each employee. Consequently, the current employment status (i.e., regular, casual, contractual/project-based, seasonal, probationary or apprentices/learners) and reason for the termination (i.e., terminated/resigned, transferred, retired or death) of the employees

Further, in case of hazardous employ

minimum wage earners who receive hazard pay, their period of employment, the

- ment of Labor and Employment or other concerned allied agency. Hence, an updated Alphalist Data Entry and Validation Module

facilitate the information that needs to be presented in the said attachments. However, as of this writing, the same is still being completed and all technical issues are also being determined and addressed. Nonetheless, the BIR is expected to release the updated version

On a related matter, withholding agents are also required to submit the Annual Information Return of Creditable Taxes Withheld (Expanded)/Income Payments Exempt from Withholding Tax (BIR Form 1604E), including the corresponding Annual Alphabetical List of Payees, on or before March 1 of the following calendar year when the income payments subject to expanded withholding taxes or exempt from withholding tax were

Failure to file an information return, statement or list, or keep any record, or supply any information required under the National Internal Revenue Code or by the Commissioner of Internal Revenue on the statutory deadline provided will result in the imposition of administrative penalties, i.e., P1,000 compromise penalties, provided the aggregate amount imposed for all such failures during a calendar year shall not exceed P25,000.

- marize all the efforts made by taxpayers in compliance with the BIR’s mandated tax

the right side of the rules and look forward to another prosperous year!