BIR FORM 1600 - MONTHLY REMITTANCE RETURN OF VALUE-ADDED TAX AND OTHER PERCENTAGE TAXES WITHHELD
GUIDELINES AND INSTRUCTIONS
 

Who Shall File

This return shall be filed in triplicate by the following:

1) All government offices, bureaus, agencies or instrumentalities, local government units, government owned and controlled corporation on money payments made to private individuals, corporations, partnerships, associations and other juridical/artificial entities as required under RA Nos. 1051, 7649, 8241, and 8424.

2) Payors to non-residents receiving income subject to value-added tax.

3) Payors to VAT registered taxpayers receiving income subject to value-added tax.

4) Payors to persons, natural or juridical, subject to percentage tax under Sec. 116 of the Tax Code, (ATC 082 & 084), if the taxpayer-payee opts to remit his percentage tax through the withholding and remittance of the same by the withholding agent-payor which option is manifested by filing the “Notice of Availment of the Option to Pay the Tax through the Withholding Process”, copy-furnished the withholding agent-payor and the Revenue District Offices of both the payor and payee.

Treasurers of local government units, Treasurer/Chief Accountant of Government Agencies and Instrumentalities and Government-Owned and Controlled Corporations (GOCCs), or any person holding similar position and performing similar function, as withholding agents, shall deduct and withhold the prescribed creditable value-added tax and other percentage taxes before making any payment to the seller of goods and services.

Where the government as herein defined has regional offices, branches or units, the withholding of the creditable VAT/other percentage taxes and the remittance therefor may be done on a decentralized basis. As such, the treasurer or the chief accountant or any person holding similar position in said regional office, branch or unit shall deduct and withhold the creditable VAT/other percentage taxes before making any payment to the seller of goods and services..

When and Where to File and Remit

The return shall be filed and the tax paid on or before the tenth (10th) day of the month following the month in which withholding was made. 
The return shall be filed and the tax paid with the Authorized Agent Bank (AAB) of the Revenue District Office having jurisdiction over the withholding agent’s place of business/office. In places where there are no Authorized Agent Banks, the return shall be filed and the tax paid with the Revenue Collection Officer or the duly Authorized City or Municipal Treasurer within the Revenue District where the withholding agent's place of business/office is located, who will issue a Revenue Official Receipt (BIR Form No. 2524) therefore.

Where the return is filed with an AAB, the lower portion of the return must be properly machine-validated and duly stamped by the Authorized Agent Bank to serve as the receipt of payment. The machine validation shall reflect the date of payment, amount paid and transaction code, and the stamped mark shall show the name of the bank, branch code, teller's code and teller's initial. The AAB shall also issue an official receipt or bank debit advice or credit document, whichever is applicable, as additional proof of payment. 

A taxpayer may file a separate return for the head office and for each branch or place of business/office or a consolidated return for the head office and all the branches/offices, except in the case of large taxpayers where only one consolidated return is required.

Penalties

There shall be imposed and collected as part of the tax:

1. A surcharge of twenty five percent (25%) for each of the following violations: 

a. Failure to file any return and pay the amount of tax or installment due on or before the due date;

b. Unless otherwise authorized by the Commissioner, filing a return with a person or office other than those with whom it is required to be filed; 

c. Failure to pay the full or part of the amount of tax shown on the return, or the full amount of tax due for which no return is required to be filed on or before the due date; 

d. Failure to pay the deficiency tax within the time prescribed for its
payment in the notice of assessment. 

2. A surcharge of fifty percent (50%) of the tax or of the deficiency tax, in case any payment has been made on the basis of such return before the discovery of the falsity or fraud, for each of the following violations:

a. Willful neglect to file the return within the period prescribed by
the Code or by rules and regulations; or

b. In case a false or fraudulent return is willfully made.

3. Interest at the rate of twenty percent (20%) per annum, or such higher rate as may be prescribed by rules and regulations, on any unpaid amount of tax, from the date prescribed for the payment until the amount is fully paid. 

4. Compromise penalty.

Violation of Withholding Tax Provisions by a Government Officer

Any person required to withhold, account for, and remit any tax imposed by the National Internal Revenue Code or who willfully fails to withhold such tax, or account for and remit such tax, or aids or abets in any manner to evade any such tax or the payment thereof, shall, in addition to other penalties provided for under this Law, be liable upon conviction to a penalty equal to the total amount of the tax not withheld, or not accounted for and remitted.

Any person required under the National Internal Revenue Code or by rules and regulations promulgated thereunder to pay any tax, make a return, keep any record, or supply correct and accurate information, who willfully fails to pay such tax, make such return, keep such record, or supply such correct and accurate information, or withhold or remit taxes withheld, or refund excess taxes withheld on compensation, at the time or times required by law or rules and regulations shall, in addition to the other penalties provided by law, upon conviction thereof, be punished by a fine of not less than ten thousand pesos (P= 10,000.00) and suffer imprisonment of not less than one (1) year but not more than ten (10) years.

Every officer or employee of the Government of the Republic of the Philippines or any of its agencies and instrumentalities, its political subdivisions, as well as government-owned or controlled corporations, including the Bangko Sentral ng Pilipinas, who, under the provisions of the Code, as amended, or regulations promulgated thereunder, is charged with the duty to deduct and withhold any internal revenue tax and to remit the same in accordance with the provisions of the Tax Code, as amended, and other laws is guilty of any offense herein below specified shall upon conviction of each act or omission, be fined in a sum not less than five thousand pesos (P= 5,000) but not more than fifty thousand pesos (P= 50,000) or imprisoned for a term of not less than six (6) months and one day but not more than two (2) years, or both:

a) Those who fail or cause the failure to deduct and withhold any internal revenue tax under any of the withholding tax laws and implementing regulations;

b) Those who fail or cause the failure to remit taxes deducted and withheld within the time prescribed by law, and implementing regulations; and

c) Those who fail or cause the failure to file a return or statement within the time prescribed, or render or furnish a false or fraudulent return or statement required under the withholding tax laws and regulations. 

If the withholding agent is the Government or any of its agencies, political subdivisions or instrumentalities, or a government-owned or controlled corporation, the employee thereof responsible for the withholding and remittance of tax shall be personally liable for the additions to the tax prescribed by the National Internal Revenue Code.

Attachment Required

Alphabetical list of payees using the format prescribed/reflected below (if the same cannot be accommodated in the return).

Note: All background information must be properly filled up.
- All returns filed by an accredited tax representative on behalf of a taxpayer shall bear the following information :


A. For CPAs and others (individual practitioners and members of GPPs);

a.1 Taxpayer Identification Number (TIN); and 

a.2 Certificate of Accreditation Number, Date of Issuance, and 
Date of Expiry.


B. For members of the Philippine Bar (individual practitioners, members of GPPs);

b.1 Taxpayer Identification Number (TIN); and

b.2 Attorney’s Roll number or Accreditation Number, if any.

§ Box No. 1 refers to transaction period and not the date of filing this return.


- The last 3 digits of the 12-digit TIN refers to the branch code.
- TIN = Taxpayer Identification Number.

ENCS