Amending the process of submission of Alphabetical List of Employees/Payees of income payments
Tax Alert No. 1 [Revenue Regulations No. 1 - 2014 dated 17 December 2013]
13 January 2014
The Commissioner of Internal Revenue (“CIR”) has issued Revenue Regulations (“RR”) No. 1-2014 dated 17 December 2013 amending Section 2.83.3 of Revenue Regulation (RR) No.2-98 on the submission of alphabetical list of employees/payees.
The salient portions of the RR are as follows:
- All withholding agents shall submit an alphabetical list of employees and payees on income payments subject to creditable and final withholding taxes regardless of the number of employees and payees, exempt or not.
- The withholding agent is required to submit under the following modes, instead of the usual submission of the alphalist through floppy diskettes/CD or email:
- As attachment in the Electronic Filing and Payment System (eFPS);
- Through Electronic Submission using the BIR’s website address at firstname.lastname@example.org; and
- Through Electronic Mail (email) at dedicated BIR addresses using the prescribed CSV data file format, the details of which shall be issued in a separate revenue issuance.
- In case where any withholding agent does not have any access whatsoever to internet facilities, the alphalist may be electronically sent thru the e-lounge facility of the nearest revenue district region of the BIR.
- Submissions where income payments and taxes withheld are lumped into one single amount (e.g. various employees, various payees, PCD nominees, others, etc.) shall not be allowed.
- Non-conformity with the prescribed format constitutes non-receipt of the submission and the income payment shall not qualify as a deductible expense.
- The manual submission of the alphabetical lists containing less than ten (10) employees/payees under Annual Information Returns BIR Form No. 1604CF and BIR No. 1604E shall be immediately discontinued beginning 31 January 2014 and 01 March 2014, respectively, and every year thereafter.
The regulation states that it shall take effect 15 days after publication in a newspaper of general circulation. The RR was published in Manila Bulletin on 13 January 2014.