How to File Final Withholding Tax on Interest Pending BIR Form No. 1602Q Update

The Bureau of Internal Revenue issued Revenue Memorandum Circular (RMC) No. 92-2025 on 22 October 2025, to provide a workaround procedure for accomplishing the Quarterly Remittance Return of Final Income Taxes Withheld on Interest Paid on Deposits and Yield on Deposit Substitutes/Trusts/Etc. (BIR Form No. 1602Q), following the implementation of Republic Act No. 12214, also known as the Capital Markets Efficiency Promotion Act (CMEPA).

CMEPA aims to modernise and simplify the taxation system for passive income and capital market transactions in the Philippines. As reiterated under Revenue Regulations No. 21-2025, the law introduced uniform tax rates on certain passive income, including an increase in the final withholding tax on interest earned from foreign currency deposits from 15% to 20%.

Workaround Procedure

Pending the revision of BIR Form No. 1602Q, all eFPS and eBIRForms filers shall use the Payment Form (BIR Form No. 0605) and indicate the following details:

• Alphanumeric Tax Code or ATC: MC200
• Tax Type: WB representing final withholding tax on interest income
• Manner of Payment: Select “Others” and specify “FWT CMEPA”

After validating and filing, taxpayers may proceed with payment through the following options:

• Manual payment over the counter at Authorized Agent Banks for eBIRForms filers; or
• Online payment via Maya, Landbank Electronic Payment Portal, or BIR-DBP PayTax Online.

Effectivity

RMC No. 92-2025 shall take effect immediately. 

Please be guided accordingly.

Source:

P&A Grant Thornton

Certified Public Accountants

P&A Grant Thornton is the Philippine member firm of Grant Thornton International Ltd

As published in SunStar Cebu, dated 10 December 2025