By: Hergie Anne C. De Guzman, CPA
After the filing of the monthly Expanded Withholding Tax (EWT) returns for the first two month of the quarter, taxpayers should also prepare for the quarterly filing of the BIR Form 1601-EQ covering the entire quarter or 3 months. The return is also known as the Quarterly Remittance Return of Creditable Income Taxes Withheld which was introduced last 2018 through RMC No. 27-2018 dated December 18, 2019. It is a declaration of the quarterly withheld taxes from each income payment subject to EWT.
What are the covered transactions?
In order to know if a certain transaction is subject to EWT, we need to identify the nature of the expense. Common transactions subject to EWT with the applicable tax rates and Alphanumeric Tax Codes are as follows:
Please read How to File BIR Form 0619-E for a detailed discussion of the covered transactions.
How to file BIR Form 1601-EQ
Assuming that you wish to file for the Quarter 2 EWT return of the calendar year 2020, you have to follow the following steps in filing:
The quarterly compliance for the Quarterly EWT does not end in the filing of BIR Form 1601-EQ. Revenue Regulations (RR) No. 11-2018, an amendment to RR No. 2-1998, prescribes that the quarterly return should be accompanied by the Quarterly Alphalist of Payees (QAP). The QAP is submitted by sending the DAT File generated in the BIR Alphalist Data Entry through BIR eSubmission email. Taxpayers receive a Validation Report which should be the proof of the successful submission of QAP.
Deadline for Filing and Payment
The deadline for filing the return and payment of the EWT due thereon, with the required QAP attachment, is on the last day of the month following the close of the quarter. In the example, the deadline (for the 2nd Quarter 2020 EWT) is on July 31, 2020.
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