QuestionsQuestions (BIR REVENUE REGULATIONS NO. 1-2014)
It is issued pursuant to Section 244 in relation to Section 245 of the National Internal Revenue Code (NIRC) of 1997, as amended.
RR 1-2014 amends the specific provisions of Section 2.83.3 of Revenue Regulations (RR) No. 2-98, as further amended by RR No. 10-2008, particularly on the submission of alphabetical lists of employees/payees.
To ensure that information on income payments (whether or not subject to withholding tax, except for cases under existing international agreements/treaties/laws and revenue regulations) are monitored and captured in the BIR database for purposes including simulation modeling and enforcement.
All withholding agents, regardless of the number of employees and payees, whether the employees/payees are exempt or not.
No. RR 1-2014 expressly prohibits submission where income payments and taxes withheld are lumped into one single amount.
It applies to income payments subject to creditable and final withholding taxes that are required to be attached as integral parts of the specified Annual Information Returns and Monthly Remittance Returns.
Annual Information Returns: BIR Form No. 1604CF/1604E; Monthly Remittance Returns: BIR Form No. 1601C, etc.
The alphabetical list may be submitted: (1) as an attachment in the Electronic Filing and Payment System (eFPS); (2) through electronic submission using the BIR website (esubmission@bir.gov.ph); and (3) through electronic mail using dedicated BIR addresses with a prescribed CSV data file format (details in a separate revenue issuance).
The alphalist may be electronically mailed through the e-lounge facility of the nearest BIR revenue district office or revenue region.
It is deemed not received and does not qualify as a deductible expense for income tax purposes.
Manual submission is discontinued beginning January 31, 2014 for BIR Form 1604CF (Annual Information Return) and March 1, 2014 for BIR Form 1604E, and every year thereafter.
January 31, 2014 for BIR Form 1604CF and March 1, 2014 for BIR Form 1604E; then applicable every year thereafter.
Other modes are permitted. RR 1-2014 allows submission not only via eFPS but also via BIR e-submission and via email with a prescribed CSV data file format.
Violations are subject to the corresponding penalties under the pertinent provisions of the NIRC of 1997, as amended, and applicable regulations.
If any provision is declared invalid by a competent court, the remainder remains in force and effect. It preserves the validity of unaffected provisions.
It takes effect fifteen (15) days immediately following publication in a leading newspaper of general circulation.
To clarify that the BIR still wants monitoring/capture in the taxpayer database for income payments generally, subject to exceptions under existing international agreements/treaties/laws/revenue regulations.