Amendment on Submission of Employee Alphalists

Section 1 grounds the regulation on Section 244, in relation to Section 245, of the National Internal Revenue Code of 1997 (NIRC), as amended.
BIR Revenue Regulations No. 1-2014 specifically amends Section 2.83.3 of RR No. 2-98, as further amended by RR No. 10-2008.
Section 2 expressly revises the operative requirement under Section 2.83.3 (Requirement for list of payees).

The regulations require capture of information on all income payments paid by employers/payors—whether subject to withholding tax or not, except in cases under existing international agreements, treaties, laws, and revenue regulations—for inclusion in the BIR taxpayer database.
The purpose is to establish a simulation model, formulate an analytical framework for policy analysis, and institutionalize appropriate enforcement activities.

All withholding agents must submit an alphabetical list of employees and a list of payees.
The submission obligation applies regardless of the number of employees and payees.
The submission applies whether the employees/payees are exempt or not.
The lists must cover income payments subject to creditable and final withholding taxes, and must be attached as an integral part of:
- Annual Information Returns (BIR Form No. 1604CF/1604E), and
- Monthly Remittance Returns (BIR Form No. 1601C, etc.).
Income payments included in the monitoring requirement include payments whether or not subject to withholding tax, subject to the exceptions for existing international agreements, treaties, laws, and revenue regulations.

Withholding agents must submit the alphalists using one of the following modes:
- As attachment in the Electronic Filing and Payment System (eFPS).
- Through Electronic Submission using the BIR website address esubmission@bir.gov.ph.
- Through Electronic Mail at dedicated BIR addresses using the prescribed CSV data file format, whose details are to be issued in a separate revenue issuance.
If a withholding agent has no own internet facility or if there is unavailability of commercial establishments with internet connection within the location of the withholding agent, the alphalist may be electronically mailed through the e-lounge facility of the nearest revenue district office or revenue region of the BIR.

Submission is prohibited when income payments and taxes withheld are lumped into one single amount (e.g., “Various employees,” “Various payees,” “PCD nominees,” “Others,” etc.).
The regulations prohibit submissions that do not conform with the prescribed format.
A submission that results in unsuccessful uploading into the BIR system is deemed not received and does not qualify as a deductible expense for income tax purposes.

Manual submission of alphabetical lists under annual returns is required to stop on the following dates:
- Manual submission under Annual Information Returns using BIR Form No. 1604CF is discontinued starting January 31, 2014.
- Manual submission under Annual Information Returns using BIR Form No. 1604E is discontinued starting March 1, 2014.
The discontinuance applies every year thereafter.

Section 3 provides that any violation of BIR Revenue Regulations No. 1-2014 is subject to the corresponding penalties under the pertinent provisions of the NIRC of 1997, as amended, and applicable regulations.

Section 4 (Separability Clause) states that if any provision is declared invalid by a competent court, the remainder of the regulations remains in force.
Section 5 (Repealing Clause) revokes, repeals, or amends existing regulations, rulings, orders, or portions inconsistent with these regulations.
Section 6 (Effectivity) provides that the regulations take effect fifteen (15) days after publication in a leading newspaper of general circulation.