RMC No. 100-2017 — Clarifies the sanctions for non-submission of Alphabetical List of Employees/Payees of income payments Digest | Full Text

RI-,I)L]BLI(] OF I HE PHILIPPINES DEPARTN4 I-\T OF F'IN ANC. E BTII{EAT I OFQJl\rTezIo,IntIL.!lt)AT- REVEN T i II- December 18.2011 N - REVENUE MEMORANDUM CIRCULAR NO. I 2O I 7 SUBJECT clarifying the sanctions for the Non-Submission of Alphabetical List of TO Em ployees/Payees of Income Payments All Internal Revenue Officers and Others Concerned Section 57 and 79(A) of the Tax Code of I997. as implemented b1' Revenue Regulations No. 2-9g, as amended. require the withholding of taxes by the pavor ol incorne/employer (withholding agept) on cetlain income payments and on salaries and wages of employees, respectively. Such taxes withheld shall then be remitted by the withholding agent to the BIR by' filing the monthly remittance returns (BIR Form 1601E, 1601F. 1601C) and paying the corresponding tax due. In addition to the filing of remittance returns and payment of the taxes withheld, withholding agents are likewise required. pursuant to Section 58(C) and 83(B) of the same Code, to submit to the BIR an Annual Information Return (BIR Form 1604E. l604CF) together with the Alphabetical List of payees/ Employees. Such return is a no payment return. instead. it coniains. among others. the information regarding the monthly remittance of taxes withheld and the summary of payees from whom taxes were withheld and already remitted to the BIR during the taxable year. With the filing of monthly remittance returns and pavment of the taxes withheld, the requirement for the deductibility of expenses which have been subjected to withholding tax were already complied. Thus, failure to file the Alphabetical List of Payees/Employees or failure to re-submit the complete and corrected alphabetical list after the validation process conducted by the BIR shall not resuli to the non- deductibiliti'of the expenses considering that the taxes corresponding thereto were ajready withheld and remitted. However, considering that failure/non-filing of alphabetical list of pal,ees/employees or the failure to submit the complete or corrected one is a violation of the provisions of the Tax Code and existing issuances, a compromise penalty of One Thousand Pesos (P1,000.00) shall be imposed for each failure to make. file or submit the said information return which aggregate amount to be imposecl for such failures during the calendar year shall not exceed Twenty Five Thousand Pesos (P25,000.00), pursuant to Revenue Memorandum Order No. 7-2015. Payment of the compromise penalty shal1. in no wav, relieve the withholding agent from the submission of the required Alphabetical List or the complete or correcred alphabetical Iist. This Circular supersedes Revenue Memorandum CircularNo. 5-2014. in so far as ltem No. l5 is concerned. and al1 other issuances inconsistent herer.vith. All concerned are hereby enjoined to give this Circular a wide publicity as possible. ,. ,f.,j._j*gl NMEen,ft../nJ nEti:lECf.iE.i /tr4"'-t**V .i.--OR.DS CAESAR R. DLILAY e i:n/:t" C-t9E; sClgllfi Commissioner of Internal Revenue REcE trvWfr" 012 0 0 1