Question & AnswerQ&A (BIR REVENUE REGULATIONS NO. 1-2014)
The primary objective is to ensure that information on all income payments paid by employers/payors, whether or not subject to withholding tax, is monitored and captured in the BIR's taxpayer database for policy analysis and enforcement activities.
It amends the provisions of Revenue Regulations No. 2-98 as further amended by Revenue Regulations No. 10-2008.
Section 2.83.3 of Revenue Regulations No. 10-2008 is amended.
All withholding agents, regardless of the number of employees and payees, whether exempt or not, are required to submit alphabetical lists.
Income payments subject to creditable and final withholding taxes must be included.
They can be submitted as attachments in the Electronic Filing and Payment System (eFPS), through electronic submission on the BIR website, or via electronic mail using prescribed CSV data file format.
Such submission will not be allowed and will be deemed not received, thus it will not qualify as deductible expense for income tax purposes.
Manual submission of alphabetical lists containing less than 10 employees/payees under the specified Annual Information Returns shall be discontinued starting January 31, 2014, for BIR Form No. 1604CF and March 1, 2014, for BIR Form No. 1604E.
Penalties for violations shall be subject to provisions under the National Internal Revenue Code of 1997, as amended, and other applicable regulations.
The remainder of the regulations or any unaffected provision shall remain in force and effect as per the separability clause.
They took effect fifteen (15) days after publication in a leading newspaper of general circulation.