Legal basis and authority
- The regulation is promulgated pursuant to Section 245, in relation to Sections 50, 51, and 74 of the National Internal Revenue Code, as amended.
- It is also issued in relation to Section 4 of Republic Act No. 7646.
- The regulation implements the time and manner of filing withholding tax returns and remittances of creditable and final income taxes withheld by Large Taxpayers.
Policy, purpose, and coverage
- The regulation establishes rules on the time and manner for filing withholding tax returns and making remittances for taxes withheld by Large Taxpayers.
- It applies to taxes withheld by Large Taxpayers identified and notified by the Bureau of Internal Revenue pursuant to Republic Act No. 7646.
- It governs the remittance deadlines and return filing using BIR Form 1743-W for withholding taxes that fall under:
- taxes deducted and withheld on compensation income;
- taxes deducted and withheld on income payments subject to the creditable withholding taxes; and
- taxes subject to final withholding taxes.
Monthly withholding return and remittance rule
- Monthly Return and Remittance: Taxes deducted and withheld on compensation and income payments subject to creditable withholding taxes, and taxes subject to final withholding taxes, shall be remitted within ten (10) days after the end of each calendar month with the filing of BIR Form 1743-W.
- December exception for non–Large Taxpayers: Taxes withheld from the last compensation/income payment for the calendar year (December) shall be remitted on or before the 25th of January of the succeeding year.
- Large Taxpayer monthly rule: Taxes withheld by Large Taxpayers, as identified and notified by the Bureau of Internal Revenue under Republic Act No. 7646 and implemented by Revenue Regulations No. 12-93, shall be remitted within twenty-five (25) days after the end of each calendar month with the filing of BIR Form 1743-W.
- The regulation retains the monthly filing structure through BIR Form 1743-W while changing the deadline specifically for Large Taxpayers.
Required return form and remittance mechanics
- The filing requirement for both the general monthly rule and the Large Taxpayer rule is the submission of the appropriate return using BIR Form 1743-W.
- Remittance is required together with the filing of BIR Form 1743-W for monthly withholding.
- The calendar-month deadline is computed from the end of each calendar month.
Repealing and effectivity provisions
- Repealing clause: All rules and regulations or parts thereof inconsistent with KRI Revenue Regulation No. 18-93 are amended accordingly.
- Effectivity: The amendment takes effect on taxes withheld beginning the month following the month of notification to the Large Taxpayer of its status as such by the Commissioner of Internal Revenue.