Monthly Filing of Expanded/Creditable and Final Withholding Tax Returns

This Tax Alert is issued to inform all concerned on the filing and payment deadlines for expanded/creditable withholding tax (BIR Form 1601-E/1606) and final withholding tax (BIR Form 1601-F/1602).

Under the TRAIN Law (RA No. 10963), the final and creditable withholding tax returns (except for withholding tax on compensation and withholding VAT) shall be due quarterly on or before the last day of the month following the close of the calendar quarter (CQ).  The first quarterly return covering the months of January to March 2018 should be due on April 30, 2018.  These used to be filed monthly.

We note that the BIR recently posted an advisory still requiring monthly remittance of taxes withheld through BIR Form 0605 on or before the 10th day following the month of withholding.  The taxes withheld in the third month shall be remitted using BIR Form 1601EQ or the applicable quarterly return. However, this Advisory was also taken down from the BIR’s website on the same day it was uploaded.

Until the BIR issues the official guidelines, we believe that it is conservative to still follow the old monthly filing and payment deadlines for the January expanded and final withholding taxes.   

We note that the monthly withholding tax returns are still available in the eFPS and the eBIR Forms facilities. Any payments/remittances made can be credited against the total amount due in the quarterly return.

Please also continue monitoring the BIR website for the developments on the filing and payment deadlines. We shall issue a new tax alert once the BIR formally issued its implementing rules and regulations.