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Monthly and quarterly withholding alphalists

New requirements for monthly and quarterly withholding alphalists

Pursuant to Revenue Regulations No. 2-2006 published on January 9, 2006, taxpayers shall be required to prepare monthly or quarterly alphalists on withholding taxes which shall be a required attachments to the  income tax returns, VAT returns, percentage tax returns, and monthly returns for withholding on creditable and final taxes, and VAT effective on returns due in the month of February 2006.
 
A.     Summary Alphalist of Withholding Agents/Payors of Income Payments Subjected to Creditable Withholding Tax at Source  (SAWT)

The company shall prepare an alphalist of withholding agents who paid income to and withheld taxes from the company.  The SAWT shall show the following details, among others (See Annex A in the attachment):

1.      Registered name of withholding agent and its TIN
2.      Nature and amount of income received/gross sales/gross receipts
3.      Tax rate and amount of tax withheld

The SAWT, together with the Certificate of Creditable Withholding Tax at Source (BIR Form 2307), shall be a required attachment to the following returns to support the utilization of creditable withholding taxes on income, VAT and percentage tax:

1.      Quarterly and annual income tax returns (Forms 1700,Q, 1700, 1701Q, 1701, 1702Q and 1702)
2.      Monthly and quarterly VAT returns  (Forms 2550Q and 2550M)
3.      Monthly percentage tax returns (Form 2551)
4.      Percentage tax return under special laws (Form 2553)

B.  Monthly Alphalist of Payees (MAP)

The company shall prepare an alphalist of persons to whom income were paid and from whom taxes were withheld by the company.  The MAP shall contain the following information (See Annex B in the attachment):

1.      Registered name of the income payee and its TIN
2.      Nature and amount of income paid
3.      Tax rate and amount of tax withheld
The MAP shall be a required attachment to the following returns to support the amount of withholding taxes withheld, reported and remitted:

1.      Monthly return of creditable income taxes withheld (Form 1601E)
2.      Monthly return of final income taxes withheld (Form 1601F)
3.      Monthly return of VAT and other percentage taxes withheld (Form 1600)

The alphalists shall be submitted in the following forms:

  • Taxpayers with not more than 10 withholding agents or income payees – in hard copy
  • Taxpayers with more than 10 withholding agents or income payees – in electronic form in a 3.5 inch floppy diskette or CD inside a sealed letter envelope and  following the prescribed BIR format (excel or own extract program validated through the BIR validation module; or the BIR data entry module)
  • EFPS filers – in electronic form attached to the electronic return

The heading/caption shall indicate the name of the company filing the alphalist, trade name, address, TIN, branch code (if applicable), tax type and period covered by the return.

A penalty of P1,000 shall apply on each failure to file the required alphalists but not to exceed P25,000 in a year on all such failures.  The penalty does not exempt the taxpayer from the required submission of the documents.