The Bureau of Internal Revenue is reminding Top Withholding Agents (TWA) to correctly withhold and remit the expanded withholding taxes for the government.
Under Revenue Regulations (RR) No. 2-98, dated May 7, 2019 and RR No. 31-2020, dated Nov. 4, 2020, the rate to be applied should be one percent on income payments to local/resident supplier of goods, and two percent on income payments to local/resident supplier of services.
The BIR requires that every taxpayer classified as such shall strictly comply with the withholding tax obligation as a TWA, including those identified under the TAMP, or Taxpayer Account Management Program, which aims to improve voluntary tax compliance of top business taxpayers.
Richard Oquendo, OIC revenue district officer of BIR RD No. 78, based in Binalbagan, Negros Occidental, said the BIR requires that one shall strictly comply with the obligation as a TWA.
“Failure to withhold and remit either the one percent and/or two percent creditable withholding tax (CWT) from your income payments to your supplier of goods and services, respectively, shall result in 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 stressed.
It is also a must 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, he said.
As a TWA, it is required that filing of tax returns, including the attachments, if any, and payment of taxes due must be made through the Electronic Filing and Payment System (eFPS) facility.
“You may submit your request for updating of COR and letter of intent to use the eFPS facility to the Client Support Section of BIR,” Oquendo said in a press release, adding that the request may be filed with the RDO for an additional documentary proof of being identified as TWA.
He also reminded all taxpayers that the filing of the annual Income Tax Return (ITR) for taxable year ending Dec. 31, 2023 is on or before April 15 this year. ||
