Compliant alphalists as condition for deductibility of expenses
The submission of alphalists where the income payments and taxes withheld are lumped into one single amount (e.g. “various employees”, “various payees”, PCD nominees”, “Others”, etc.) shall no longer be allowed. Such alphalists including any alphalist that does not conform to the prescribed format thereby resulting to the unsuccessful uploading into the BIR system shall be deemed not received and shall disqualify the deductibility of the expense for income tax purposes.
The alphalists cover those which are required to be attached in the annual information returns (BIR Forms1604CF/1604E) and monthly remittance returns (BIR Form 1601C, etc.).
Mandatory electronic submission of alphalists
Beginning January 31, 2014 and March 1, 2014, taxpayers with less than 10 employees/payees shall already be required to file their alphalists electronically. Manual filing shall no longer be allowed.
Hence, all withholding agents, regardless of the number of employees and payees, should submit electronically their alphabetical list of employees and list of payees using either of the following modes:
1) Attachment in the electronic filing and payment system (eFPS)
2) Electronic submission using the BIR’s website (firstname.lastname@example.org)
3) Electronic mail (email) at dedicated BIR address using the prescribed CSV data file format.
Withholding agents without their own internet facility or do not have access to internet connection within their location should file their alphabetical lists through electronic mail (e-mail) using the e-lounge facility of the nearest revenue district office or revenue region of the BIR.