In the Philippines, businesses and other entities are required to withhold taxes from payments made to certain individuals or companies. One of the key forms used to report these withheld taxes is BIR Form 1601-E, which is used for the Monthly Remittance of Creditable Income Taxes Withheld (Expanded).
This form ensures that businesses and withholding agents regularly remit taxes withheld from payments made to suppliers, contractors, and service providers, as required under the expanded withholding tax system.
What Is BIR Form 1601-E?
BIR Form 1601-E is used by businesses, individuals, or entities to remit the creditable income taxes withheld under the expanded withholding tax system. This tax is typically withheld from payments made to non-employees, including contractors, professionals, and other service providers.
This form is filed monthly to report the taxes withheld during the month and remit them to the Bureau of Internal Revenue (BIR).
Who Needs to File BIR Form 1601-E?
Form 1601-E must be filed by businesses and individuals that are required to withhold taxes under the expanded withholding tax system, which includes the following:
Corporations and small businesses
Government agencies that make payments to contractors or service providers
Individuals or partnerships acting as withholding agents for payments subject to expanded withholding tax
If you make payments to contractors or non-employees and are required to withhold a portion of their income as tax, you must use BIR Form 1601-E.
When to File BIR Form 1601-E?
Due Date: The form is due on or before the 10th day of the following month after the month when the withholding tax was made.
For example, for taxes withheld in April, the form and payment must be submitted by May 10.
Note: Form 1601-E is filed monthly, and any delay in filing can result in penalties, surcharges, and interest charges.
How to File BIR Form 1601-E
There are a few ways to file BIR Form 1601-E:
1. eFPS (Electronic Filing and Payment System)
eFPS is required for large taxpayers and certain government entities.
This method allows taxpayers to file and pay electronically.
2. eBIRForms
Businesses and withholding agents can file using the BIR’s eBIRForms system.
Complete the form, print it, and submit it to Authorized Agent Banks (AABs) or online payment portals like GCash, Maya, or UnionBank.
3. Manual Filing (if allowed)
In some cases, businesses may file manually at their designated BIR Revenue District Office (RDO).
You would need to submit the paper form and payment to an AAB.
Key Fields in BIR Form 1601-E
Here are some of the important fields in BIR Form 1601-E:
TIN and RDO Code: Your taxpayer identification number and the specific revenue district office (RDO) code.
Return Period: The month for which you are remitting the taxes (e.g., 04/2025 for April 2025).
Tax Type Codes: The specific Alphanumeric Tax Codes (ATCs), which correspond to the different tax rates, such as EWT (Expanded Withholding Tax).
Amount of Tax Withheld: The total amount of creditable taxes withheld for the period.
Particulars of Payees: Details of the payees (e.g., contractors or service providers), if applicable.
Be sure to also include an Alphalist of payees, detailing the amounts withheld for each payee (if required by BIR).
Common Mistakes to Avoid
Incorrect or missing ATC codes: These codes are crucial for the proper classification of the tax withheld.
Late filing: If you miss the deadline, penalties and interest will accrue.
Failure to submit an Alphalist: The Alphalist of payees must be submitted if required.
Errors in withholding: Ensure that you are applying the correct withholding rates based on the nature of the transaction or payee.
Final Thoughts
BIR Form 1601-E is an essential tool for businesses and individuals required to withhold creditable income taxes under the expanded withholding tax system. By filing it on time and with the correct details, you ensure that your tax obligations are met and avoid unnecessary penalties.
Be sure to stay updated on the tax rates and compliance requirements set by the BIR. If you're ever unsure, consulting a tax professional or accountant can help ensure that you're submitting the form correctly.
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