Goodbye BIR Form 1601E – hello BIR Form 0605 – see you soon BIR Form 1601EQ?
So I went to the “Keeping up with TRAIN (RA 10963)” seminar held by Navarro Ampers & Co., and one thing I highlighted was the amendment of the Section 58 of the National Internal Revenue Code prescribing the payment of creditable and final withholding taxes not later than the last day of the month following the close of the taxable quarter during which the withholding was made:
Photo taken from Keeping track of TRAIN Seminar Material by Navarro Ampers & Co.
Its always a mystery to me, and probably to many, how BIR would interpret the law. In my experience in private companies though, its really not very easy to transition from one process to another, so benefits of the doubt to the tax authorities.
10 days before the deadline of filing, BIR issued a Tax Advisory regarding the said amendment:
If you are or have been a tax preparer, you’d know how insufficient this advisory is. Like me, you are probably wondering how BIR communications are partial sometimes. I too wish they could somehow anticipate questions from taxpayers first before releasing communications.
I don’t know so much about how binding tax advisories are, yet of course we don’t want any cause of audit finding by BIR examiners so I went ahead and ask for more details from BIR personnel in our RDO. The officer-of-the-day mentioned some helpful things but got a few details inaccurate. Good thing, in that same afternoon, BIR released another tax advisory clarifying details:
So this is how I interpret all of this:
- The attached issued tax advisory is only applicable for Expanded (EWT) and Final (FWT) Withholding Tax (as opposed to previous treatment where final withholding tax is partnered with withholding tax on compensation)
- EWT and FWT for the 1st and 2nd months of the quarter (e.g. Jan and Feb) shall be remitted using BIR Form 0605 due on the 10th (over-the-counter) or 15th (eFPS) of the month following the month of withholding – BIR Form 0605 replaces BIR Forms 1601E and 1601F
- Here’s an example in filling up the form in eFPS:
- Item 6. ATC: Mark with MC200
- Item 8. Tax Type Code: Use “WE” for Expanded Withholding Tax or “WF” for Final Withholding Tax
- EWT and FWT for the 3rd month of the quarter (e.g. March) shall be remitted using BIR Form 1601EQ or BIR Form 1601FQ(?) due last day of the month following the close of the taxable quarter during which the withholding was made, together with the alphalist – these forms are soon to be available in e-FPS
- With regards to alphalist, no need to submit monthly as it is due on the last day of the month following the close of the taxable quarter as mentioned above
As reminded by BIR, this is only to facilitate the transition to comply with the TRAIN law, this is still subject to change upon issuance of the enhanced withholding remittance forms.
Update (04/30/2018): BIR Forms 1601EQ and 1601FQ have been released on eBIRForms version 7.0 and Electronic Filing and Payment System (eFPS). Alphalist Data Entry & Validation Module version 6.0 which were updated for the accompanying Quarterly Alphalist (QAP) are also available.