BIR releases revised withholding tax table in relation to tax reform law

admin   •   January 4, 2018   •   28979

Revised withholding tax table of BIR

MANILA, Philippines — The Bureau of Internal Revenue (BIR) has released the revised withholding tax table in relation to the government’s tax reform law. However, Bayan Muna Partylist Representative Carlos Zarate said a petition against TRAIN is now being crafted.

Under the Tax Reform for Acceleration and Inclusion or TRAIN Law, those who are earning lower than P20,833  per month or P200,000 a year are exempted from paying income tax.

In relation to the new law, the Bureau of Internal Revenue released a revised withholding tax table.

There are four modes of payment between an employer and an employee: daily, weekly, semi-monthly or every 15th and 30th of the month.

For those who are not exempted, for instance, a worker earning 25,000 pesos a month, a P3,333 tax every cut-off will be deducted from his salary every 15th and 30th.

 

The Bureau of Internal Revenue clarified that the old taxation law will still be the basis when filing the income tax return on April 15.

“So the annual income tax return that was supposed to be filed by our taxpayers on April 15, 2018, refers to the taxable year 2017,” the spokesperson added.

The revised withholding tax table has already been uploaded to the website of the agency at bir.gov.ph.

Public consultations are also set on January 11 and 12 to explain the new law to taxpayers.

In the meantime, Bayan Muna is set to question the tax reform law before the Supreme Court.

The group stressed that proper process was not followed in the passing of the law.

They are currently preparing the petition that they will submit to the high court.

Bayan Muna Partylist Representative Carlos Zarate insists that the new law is not needed for tax collection.

“There are so many taxes that are being shouldered but in reality—this was not fully collected by the agencies which are supposed to collect especially taxes from big taxpayers,” Representative Zarate said in a phone interview.

Meanwhile, the BIR welcomes the challenge of intensifying their collection efficiency.

“I agree with Congressman Zarate that we really have to work all the time, double time,” Commissioner Cesar Dulay said. — Mai Bermudez | UNTV News & Rescue

BIR, DOF urged to extend deadline for ITR filing

Robie de Guzman   •   April 7, 2021

MANILA, Philippines – Senator Nancy Binay on Wednesday called on the Bureau of Internal Revenue (BIR) and the Department of Finance (DOF) to reconsider their decision not to extend the April 15 deadline for the filing and payment of annual income tax returns for the year 2020.

“I-extend na lang sana ang April 15 deadline, kahit na sa NCR Plus lang. We already extended last year dahil sa enhanced community quarantine. Nasa parehong sitwasyon tayo a year later, kaya hindi ko naiintindihan bakit hindi mapagbigyan,” Binay said in a statement.

BIR Deputy Commissioner Arnel Guballa on Monday said the bureau would not be extending the deadline due to the government’s need to reach its revenue targets to fund the pandemic response.

As a relief for taxpayers, Dulay said the BIR will allow the filing of a tentative ITR before the deadline and give them until May 15 to amend the returns without penalties.

If overpayment of taxes will be made on the revised ITRs, the bureau said taxpayers can either file for a refund, or choose to carry over the overpaid tax as a credit against the tax due for the same tax type in the following period.

But Binay said individual taxpayers and even micro and small businesses would find it difficult to comply, in the first place, given the restrictions on movement.

“Ang talo kasi rito iyong mga indibidwal at maliliit na negosyo na limitado ang kapasidad na kumpletuhin ang mga requirements dahil sa lockdown. So para sa kanila, walang bearing ang no-penalty amendments dahil baka mismong pag-file hindi nila magawa,” she said.

The senator also said that even corporate taxpayers would be pressed for time in adjusting their payments to the lower rates provided as relief by the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law, which President Rodrigo Duterte only signed on March 26. The BIR released the law’s draft implementing rules and regulations on Tuesday.

Binay also stressed that a deadline extension does not mean non-payment.

“Hindi naman dahil extended ay hindi na magbabayad. Those who are able to will file and pay. Ang panawagan lang naman natin is not to penalize those who are unable to comply because of the difficulties presented by the lockdown,” she said.

Based on the BIR’s monthly collection goal, the agency aims to collect P235.237 billion in April.

The BIR said taxpayers or assigned officers can also use their electronic signatures in filing returns, attachments, and other documents needed, which will be considered as actual signatures.

It recently allowed taxpayers to file their returns and make payments anywhere, or even outside the area covered by Revenue District Offices where they are registered, without incurring penalties.

Taxpayers can file tax returns ‘anywhere’ amid COVID-19 surge – BIR

Robie de Guzman   •   March 30, 2021

MANILA, Philippines – The Bureau of Internal Revenue (BIR) announced that taxpayers will be allowed to file their tax returns and pay taxes outside of the Revenue District Office (RDO) where they are registered.

In a statement, the BIR said tax returns and payments falling within the period of March 22 to April 30 this year may now be filed ‘anywhere.’

The bureau said this flexibility given to taxpayers aims to provide them relief amid the surge in COVID-19 cases in the country as stated in Revenue Memorandum Circular No. 41-2021.

“This will make it easier for taxpayers to do their civic duty of paying their taxes and helping the government generate more funds for Covid-19 response and other priority programs amid the fresh surge in coronavirus infections,” Finance Secretary Carlos Dominguez III said.

The BIR also encouraged taxpayers to file their tax returns electronically through the eBIR Forms Facility and pay their taxes through the bureau’s authorized digital payment channels.

BIR launches TIN verifier app for taxpayers

Robie de Guzman   •   March 9, 2021

MANILA, Philippines – The Bureau of Internal Revenue (BIR) has launched its mobile taxpayer identification number (TIN) verifier app that lets taxpayer validate their TINs by simply typing relevant information on their smartphones, the Department of Finance (DOF) said.

The DOF said that during a recent Executive Committee (Execom) meeting, BIR Deputy Commissioner Arnel Guballa reported to Finance Secretary Carlos Dominguez III that they have launched the app which will enable taxpayers to make online TIN validation and inquiry using their mobile phones with real-time response from the concerned BIR office.

Guballa said the BIR mobile app was launched as part of the bureau’s digital transformation program.

Revenue Memorandum Circular (RMC) No. 13-2021 was issued last month by BIR Commissioner Caesar Dulay to inform all internal revenue officers and employees of the availability of the TIN Verifier app, and instructed them to encourage taxpayers to download the app and disseminate information about this new BIR-developed digital tool.

“The development of the mobile application is one of the Bureau’s efforts in its digital transformation by giving our taxpayers a convenient way and alternative in availing of the TIN validation service instead of going physically and queueing in the BIR district office,” Dulay said in RMC 13-2021.

The BIR, however, said that it will continue to accept walk-in validation and inquiries about TINs in the bureau’s district offices to serve taxpayers with no access to this mobile service.

The DOF said the new mobile TIN verifier app is expected to discourage the proliferation of illegal activities as this digital tool requires the user to input relevant information before one can validate or inquire about a TIN.

The TIN Verifier requires the user to input his or her complete name, birthdate, address, civil status, and spouse name, (if applicable) and take a selfie together with a valid government-issued ID before proceeding to use the application.

The mobile application is available on both the App Store for those with IOS-enabled smartphones and on Google Play for Android smartphone users.

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