Pursuant to Revenue Regulations (RR) No. 2-98, dated May 7, 2019 and RR No. 31-2020 dated November 4, 2020, top withholding agents (TWA) are required to correctly withhold and remit the expanded withholding taxes for the government.
The rate of one percent for income payments to local/resident supplier of goods; and two percent for income payments to local/resident supplier of services shall apply, a press release from BIR said.
It adds that the BIR office requires that every taxpayer classified as such shall strictly comply with the withholding tax obligation as a TWA including those identified as TAMP taxpayer.
According to Richard Oquendo, OIC-Revenue District Officer of BIR RD No. 78 based in Binalbagan, Negros Occidental, the BIR office requires strict compliance with the obligation as a TWA.
Failure to withhold and remit either the one percent and/or two percent Creditable Withholding Tax (CWT) from income payments to the supplier of goods and services, respectively, shall result to a deficiency withholding tax, inclusive of surcharge, interest and penalties, pursuant to Sections 57, 247, 248, and 249 of the Tax Code, as amended.
Oquendo further stressed that it is necessary that the tax type expanded withholding tax (WE) is reflected in the Certificate of Registration (COR) or BIR form 2303, if the tax type is not yet added in the COR. Also as a TWA, it is required that filing of tax returns, including the attachments, if any and payment of taxes due thereon must be made thru Electronic Filing and Payment System (EFPS) facility.
Taxpayers may submit their request for updating of COR and letter of intent to use the eFPS facility to the Client Support Section of this Office. A request may be filed with the RDO for an additional documentary proof for being identified as TWA, Oquendo clarified.
For the filing of the Annual Income Tax Return (ITR) for the taxable year ending December 31, 2023, Oquendo reminded all taxpayers that the deadline is on or before April 15, 2024.*
