The BIR Revenue District Office (RDO) 78 has reminded government agencies, including barangays and government owned and controlled corporations, of the taxes on purchase of goods and services from local/resident suppliers, and the forms to be used.
Richard Oquendo, officer-in-charge of RDO 78, said that Republic Act 10963, or the Tax Reform for Acceleration and Inclusion Act, provides income payments made by a government office, national or local, including barangays, or their attached agencies or bodies, and GOCCs, on purchase of goods and services from local suppliers.
“These are subject to creditable withholding tax on income of one percent for supplier of goods, and two percent for supplier of services” except for a single purchase amounting to P10,000 and below, Oquendo said in a press release.
He added that those required to withhold creditable VAT must use BIR Form 1600-VT or the Monthly Remittance Return of VAT Withheld, and BIR Form 1600-PT, or the Monthly Remittance Return of Other Percentage Taxes Withheld Form for Non-VAT taxpayers in filing and remitting the amount of taxes withheld.
To withhold and remit the creditable Income Tax (IT), the government or any of its political subdivisions, instrumentalities, or agencies, including barangays and GOCCs, must use Form 0619-E, or the Monthly Remittance Form for Creditable Income Taxes Withheld (Expanded) for the first and second month of every quarter, and Form 1601-EQ, or the Quarterly Remittance Return of Creditable Income Taxes Withheld (Expanded) for quarterly filing of returns, Oquendo said.
“Failure to comply with such obligations will be considered as tax fraud and/or tax evasion,” he said, adding that the filing of the annual Income Tax Return for taxable year ending Dec. 31, 2023 is on or before April 15 this year.
RDO 78 covers Bago, Himamaylan, Kabankalan, La Carlota, Sipalay, Binalbagan, Candoni, Cauayan, Hinigaran, Hinoba-an, Ilog, Isabela, La Castellana, Moises Padilla, Pontevedra, Pulupandan, San Enrique, and Valladolid, all in Negros Occidental. ||
