TAX RETURNS FILED

The total number of tax returns filed for the year 1999 distributed by type of tax is shown below:

DISTRIBUTION OF TAX RETURNS FILED BY TYPE OF TAX CY 1999

A. INCOME TAX RETURNS

1. Individual

This year's total individual income tax returns filed was recorded at 2,176,096 registering a decrease of 425,569 or 16.36% from last year's 2,601,665 returns.

The huge decline in income tax returns filed for CY 1999 was brought about by the exemption of Overseas Filipino Workers (OFW) from paying/filing BIR Form 1703 (Non-Resident Citizens Income) as prescribed in Revenue Memorandum Order (RMO) No. 30-99, as amended by Revenue Regulations No. 9-99. Income of non-resident citizens is taxable only if it is derived within the Philippines.

In 1999, the Compensation Income Tax returns (BIR Form No. 1700) filed was 1,768,201 returns, which comprise 81.26% of the total individual income tax returns filed.

2. Corporate

The total corporate tax returns filed (BIR Form No. 1702) reached 89,289 which is 3.81% more than the previous year's total.

3. Capital Gains Tax Returns

Capital Gains Tax returns filed (BIR Form Nos. 1706 and 1707) summed up to 150,100 resulting to an additional 1,456 returns or 0.98% increase from last year's 148,644 returns.

In 1999, the bulk or 88.75% of the total capital gains tax returns were filed for real estate transactions while 16,889 or 11.25% were on stock transactions.

B. WITHHOLDING TAX

In 1999, the total withholding tax returns filed increased by 175,369 returns or 8.41% compared to the previous year. Monthly Remittance Return of Income Taxes Withheld (BIR Form 1601) filed posted an increase of 181,500 returns or 10.81% and Remittance Return of Value-Added Tax and Other Percentage Taxes Withheld (BIR Form 1600) increased by 12,912 returns or 6.53%.

On the other hand, Quarterly Remittance Return of Final Income Taxes Withheld on Interest Paid on Deposits and Yield on Deposit Substitutes/Trusts/Etc. (BIR Form 1602) posted a decrease of 33.51%. Annual Information Return of Income Taxes Withheld on Compensation, Expanded, and Final Tax (BIR Form 1604) also decreased by 21.03%.

The new Fringe Benefits Tax Return (BIR Form 1603) recorded a compliance of 5,465 returns filed.

C. VALUE-ADDED TAX

The total VAT returns filed reached 1,372,712 of which, Quarterly VAT Return (BIR Form No. 2550Q) posted an increase of 113,691 returns or 27.72% more than last year's total of 410,071 returns. Monthly Value-added Tax Declaration (BIR Form No. 2550M) filed increased by 99,625 returns compared to previous year's total of 749,325 returns.

D. PERCENTAGE TAX RETURNS

In 1999, there was an increase of 67,818 Percentage Tax returns filed or 10.04% compared to last year's total of 675,240 returns. The Insurance Premium Tax (BIR Form No. 2001) returns filed showed an increase of 372.40%. However, the Quarterly Percentage Tax (BIR Form No. 2551) returns filed registered a decrease of 3.42%.

E. TRANSFER TAX

Total Transfer Tax returns (BIR Form Nos. 1800 and 1801) filed in 1999 increased by 1,331 or 3.49% more than the previous total of 38,161 in 1998.

F. EXCISE TAX

The overall count of Excise Tax returns filed in 1999 registered a decrease of 5,798 or 44.45% compared to last year's total of 13,045 returns. Likewise, the number of returns filed for Authority to Accept Payment for Excise Tax returns (BIR Form No. 2319A-E) of 1,222 returns and Excise Tax on Mineral Removals (BIR Form NO. 2223) of 6,025 returns declined from their 1998 total of 4,434 and 8,611 returns, respectively.

The decline in the Authority to Accept Payment for Excise Tax (BIR Form No. 2319A-E) returns is brought about by the use of the new payment form (BIR Form No. 0605) for excise payments as prescribed in RMO NO. 14-99 of Alphanumeric Tax Code.

G. OTHER TAX

Total other tax returns filed in 1999 increased by 205,350 or 24.19% compared to 1998 figures. Among the other tax returns filed, Payment Form (BIR Form No. 2319A/0605) posted an increase of 166,607 returns or 58.21% and Documentary Stamp Tax Declaration (BIR Form No. 2000) of 87,152 returns or 23.64%. The huge increase in the number of Payment Forms filed is due to the use of the said form in paying excise taxes. VAT Registration (BIR Form No. 1558) returns posted a decrease of 48,409 or 24.95%.