Schedule 2
SCHEDULE OF TAX TREATY CODE
TREATY CODE
COUNTRY
TREATY CODE
COUNTRY
TREATY CODE
COUNTRY
TREATY CODE
COUNTRY
DM
Denmark
AL
Australia
AS
Austria
SD
Sweden
SP
Singapore
JP
Japan
US
USA
IT
Italy
SN
Canada
BG
Belgium
TH
Thailand
NL
Netherlands
FR
France
NZ
New Zealand
GY
Germany
BZ
Brazil
UK
United Kingdom
FN
Finland
ML
Malaysia
SN
Spain
PK
Pakistan
IN
Indonesia
KR
Korea
ID
India
HU
Hungary
RM
Romania
RU
Russia
   
BIR Form 1602 - Monthly Remittance Return of Final Income Taxes Withheld
(On Interest Paid On Deposits and Yield On Deposit Substitutes/Trusts/Etc.)
Guidelines and Instructions

Who Shall File

       This return shall be filed in triplicate by all banks, non-bank financial intermediaries, finance corporations, investment and trust companies and similar institutions for final income tax withheld on interest paid/accrued on deposit and yield or any other monetary benefit from deposit substitutes and from trust fund and similar arrangements.

       The return shall be filed by the President, Vice-President or other principal officer and shall be sworn to by the Treasurer or Assistant Treasurer.

When and Where to File and Remit

       The return shall be filed and the tax due remitted on or before the tenth (10th) day of the following month in which withholding was made except for taxes withheld for December which shall be filed/paid on or before January 15 of the succeding year. However, with respect to non-large and large taxpayers who availed of the Electronic Filing and Payment System (EFPS), the deadline for electronically filing and paying the taxes due thereon via EFPS shall be five days later than the deadline set above.

       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) therefor.

       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.

       The exchange rate to be used shall be the Daily Bangko Sentral ng Pilipinas (BSP) Guiding Rate on the date of payment.

       Those payees availing of tax relief under an International Tax Treaty or Special law shall indicate under what classification they belong. If they are availing under a Special law, they shall specify that which is applicable to them.

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

Long Term Deposit or Investment

       The term "long-term deposit or investment certificate" shall refer to certificate of time deposit or investment in the form of savings, common or individual trust funds, deposit substitute, investment management accounts and other investments with a maturity peroid of not less than five (5) years, the form of which shall be prescribed by the Bangko Sentral ng Pilipinas (BSP) and issued by banks only (not by nonbank financial intermediaries and finance

 

       Interest income derived from long-term deposit or investment in the form of savings, common or individual trust funds, deposit substitutes, investment management accounts and other investments evidenced by certificates in such form prescribed by the Bangko Sentral ng Pilipinas which was pre-terminated by the holder before the fifth (5th) year shall be subjected to final withholding tax at the rates herein prescribed to be deducted and withheld from the proceeds thereof based on the length of time that the instrument was held by the taxpayer.

Holding Period Rate
Four (4) years to less than five(5) years 5%
Three (3) years to less than four(4) years 12%
Less than three (3) years 20%

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 amont 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.

Note: All background information must be properly filled up.

The last 3 digits of the 12-digit TIN refers to the branch code.
Box No. 1 and 2 refer to the transaction perod and not the date of filing this return.
TIN = Taxpayer Identification Number
For Part II (B), the ATC is the same as the ATC in Part II (A)