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January 2017 filing reminders

Nikkolai Canceran Nikkolai Canceran

Now that the festivities of Christmas and New Year’s have come to pass, let us start reminding ourselves of some of the filing requirements for January 2017. Below chronological are due dates of these filing requirements.

1. January 10

  • Monthly Remittance Return of Value Added Tax and Other Percentage Taxes Withheld (BIR Form No. 1600) for the month of December 2016 -- This return shall be filed, whether manual filing or thru electronic filing and payment system (EFPS) by the following: (a) all government offices, bureaus, agencies or instrumentalities, local government units, government owned and controlled corporation on money payments made to private individuals, corporations, partnerships, associations and other juridical/artificial entities as required under RA Nos. 1051, 7649, 8241, 8424 and 9337; (b) payors to non-residents receiving income subject to value-added tax; (c) payors to VAT registered taxpayers receiving income subject to value-added tax; and (d) payors to persons, natural or juridical, subject to percentage tax under Sec. 116 of the Tax Code, if the taxpayer-payee opts to remit his percentage tax through the withholding and remittance of the same by the withholding agent-payor which option is manifested by filing the “Notice of Availment of the Option to Pay the Tax through the Withholding Process”, copy-furnished the withholding agent-payor and the Revenue District Offices of both the payor and payee.
  • Quarterly Remittance Return of Final Income Taxes Withheld on Fringe Benefits Paid to Employees Other than Rank and File (BIR Form No. 1603) for the 4th quarter of 2016 -- This return shall be filed and paid on or before Jan. 10 for non-EFPS filers.

2. January 11, 12, 13, 14 and 15

  • Monthly Remittance Return of Income Taxes Withheld on Compensation (BIR Form No. 1601-C);
  • Monthly Remittance Returns of Creditable Income taxes Withheld/Expanded (BIR Form No. 1601-E);
  • Monthly remittance Return of Final Income Taxes Withheld (BIR Form No. 1601-F); and
  • Monthly Remittance Return of Final Income Taxes Withheld on Interest Paid on Deposits and Yield on Deposit Substitutes (BIR Form No. 1602) for the month of December 2016

For EFPS filers, the due date of filing these returns is based on their respective industry groupings but the payment is on or before Jan. 20. On the other hand, for non-EFPS filer, these returns shall be filed and paid on or before Jan. 15.

  •  Quarterly Remittance Return of Final Income Taxes Withheld on Fringe Benefits Paid to Employees Other than rank and File (BIR Form No. 1603) for the 4th quarter of 2016 -- This return should be filed and paid on or before Jan. 15 for EFPS filers.
  • Submission of Loose-leaf books of accounts -- The deadline for submission of loose-leaf bound books of accounts for taxable year ended Dec. 31, 2016 is on Jan. 15.

3. January 20

  • Renewal of Local Government Unit (LGU) registration -- The annual renewal of business registration with the LGU include, among others, payments of local business tax (LBT), mayor’s permit fee, sanitary inspection fee, garbage fee, building inspection fee, electrical inspection fee, mechanical inspection fee, plumbing inspection fee, fire inspection fee, personnel fee, business plate registration fee, and other charges imposed by the different LGUs.

This renewal is due on or before Jan. 20. However, companies may opt to pay this on instalment basis within the first 20 days of each quarter.

  • Monthly Value Added Tax Declaration (BIR Form No. 2550M) and Monthly Percentage Tax Return (BIR Form No. 2551M) -- for non-EFPS filers, this return shall be filed and paid on or before Jan. 20. However, for EFPS filers, the filing is due depending on the industry groupings but the payment is due on Jan. 25.

4. January 25

Quarterly VAT Return (BIR Form No. 255Q) -- this return shall be filed and paid on or before Jan. 25, whether EFPS or non-EFPS filer.

5. January 30

  • Submission of computerized books of account -- The deadline for submission of computerized books of accounts and other accounting records in CD-R, DVD-R, or other optical media for the year ended Dec. 31, 2016 is on Jan. 30.
  • Submission of enhanced inventory list -- The submission of the annual inventory list shall cover companies maintaining inventory of stock-in-trade, raw materials, goods in process, supplies and other goods such as manufacturing, wholesaling, distributing/retailing sectors including real estate dealers/developers, service companies, e.g., construction companies, building contractors, etc. This is due on Jan. 30. The annual inventory list shall be submitted in hard and soft copies using the prescribed format illustrated in Revenue Memorandum Circular (RMC) No. 57-2015.

It is important to ensure that the amount of ending inventory declared in the list can be reconciled with the amount reported in the annual income tax return.

6. January 31

  • Annual Information Return of Income Taxes Withheld on Compensation and Final Withholding Taxes (BIR Form No. 1604-CF) -- this annual information return and alphabetical list must be submitted on or before Jan. 31 in which the compensation payment and other income payments subject to final withholding taxes were paid or accrued. The alphalist is required to be attached as an integral part of BIR Form 1604-CF under certain prescribed modes.
  • BIR Annual Registration Fee (BIR Form No. 0605) -- this annual registration fee should be paid on or before Jan. 31, whether manual filing, eBIR Form, or EFPS.
  • Employer’s Certificate of Compensation/Tax Withheld For Compensation Payment With or Without Tax Withheld (BIR Form No. 2316) -- Employees must be provided a copy of their corresponding BIR Form 2316 on or before Jan. 31.

In addition, in cases covered by substituted filing, the employer shall furnish each employee with original copy of BIR Form 2316 and file/submit to the BIR the duplicate copy not later than Feb. 28.

  • List of regular suppliers of goods and services by the Top 20,000 private corporations for the 2nd semester of 2016 -- the filing of this 2nd semestral list of regular suppliers of goods and services, using the prescribed format, is due on Jan. 31.

The date for filing and payment shall be the exact dates stated in the law or regulations. If the deadline falls on a Saturday, Sunday or a holiday, the appropriate deadline for the filing and payment shall fall on the next business day.

The above listed details are just some of the common filing requirements for this month. Needless to say, failure to meet the due dates shall result in unwelcome New Year’s penalties. Let us start the taxable year 2017 compliant and wishing everyone a penalty-free 2017.

Nikkolai F. Canceran is a senior manager of the Tax Advisory and Compliance division of Punongbayan & Araullo.

 

As published in BusinessWorld dated 03 January 2017