The BIR Form 1604-CF plays an essential role in the Philippine tax system. It is the Annual Information Return that employers and withholding agents file to summarize the income taxes withheld on compensation (salaries and wages) and final withholding taxes for the entire year. This form is vital for ensuring tax compliance and for employers to report to the Bureau of Internal Revenue (BIR) that they have remitted the appropriate taxes on behalf of their employees and payees.
In this blog post, we will explain what BIR Form 1604-CF is, who needs to file it, when it’s due, and the correct procedure for filing it.
What is BIR Form 1604-CF?
BIR Form 1604-CF is the Annual Information Return of Income Taxes Withheld on Compensation and Final Withholding Taxes. This form is used by employers and withholding agents to report the total amount of income taxes withheld throughout the year on compensation (such as salaries, wages, and other forms of remuneration) and final withholding taxes (such as taxes withheld on interest, royalties, dividends, and other payments subject to final tax).
The purpose of Form 1604-CF is to summarize and report the total taxes withheld during the year to ensure that the tax returns filed by employees match with the taxes withheld by their employers. Additionally, it provides the BIR with a comprehensive report of all final taxes withheld by businesses and individuals.
Who Needs to File BIR Form 1604-CF?
BIR Form 1604-CF must be filed by the following:
Employers (both corporate and non-corporate entities) that pay employees and withhold income taxes on compensation.
Withholding agents that remit final withholding taxes on other income payments made to individuals or entities (e.g., payment for services or dividends).
Government agencies that withhold taxes on compensation and other types of income subject to final tax.
Sole proprietors and partnerships that are withholding taxes on their employees' compensation.
In essence, anyone responsible for withholding and remitting taxes on employee compensation or any other types of income subject to final withholding tax must file this form.
When Should You File BIR Form 1604-CF?
Due Date: Form 1604-CF must be filed on or before January 31 of the following year, after the end of the taxable year.
For example, for the year 2025, the annual return must be filed by January 31, 2026.
Note: If January 31 falls on a weekend or holiday, the filing deadline is moved to the next working day.
Employers must submit this return annually, summarizing all the tax withholding done for compensation and final withholding taxes for the entire year.
How to File BIR Form 1604-CF
There are several methods for filing BIR Form 1604-CF, depending on the taxpayer's classification:
1. eFPS (Electronic Filing and Payment System)
Large taxpayers and certain businesses are required to file through eFPS, which is the BIR’s system for electronically filing tax returns.
eFPS allows for filing, payment, and confirmation of tax remittances online. Large corporations, businesses, and government agencies are typically required to use this system.
2. eBIRForms
For taxpayers who are not mandated to use eFPS, they can file BIR Form 1604-CF via eBIRForms, which is another BIR online platform.
After filling out the form, you can print the completed return and submit it to an Authorized Agent Bank (AAB), or pay via online payment methods such as GCash, Maya, or UnionBank.
3. Manual Filing (if applicable)
In some cases, manual filing at the designated Revenue District Office (RDO) may be allowed, though this is generally less common due to the BIR’s push for digital filing.
Ensure you have all necessary copies and documents when filing manually at the RDO.
Key Fields in BIR Form 1604-CF
Here are the most important fields you will need to complete when filing BIR Form 1604-CF:
TIN and RDO Code: Your Taxpayer Identification Number (TIN) and the Revenue District Office (RDO) code to identify the location of the business.
Return Period: The calendar year for which the taxes were withheld (e.g., 2025 for the year 2025).
Tax Type: Indicate the appropriate tax types for the compensation (withholding tax on compensation) and final withholding taxes.
Total Taxes Withheld: This includes the total income taxes withheld on compensation and any other final taxes (e.g., taxes withheld on interest, royalties, and other income).
Tax Due: The total amount of tax that is due, reflecting both compensation and final taxes withheld.
Amount Remitted: Report the amount of tax that has already been paid or remitted to the BIR during the year.
Overpayment or Underpayment: Determine whether you have any overpaid or underpaid taxes for the year.
Common Mistakes to Avoid
Late Filing: Late submission of Form 1604-CF can result in penalties, so be sure to file it before the January 31 deadline.
Incorrect Tax Withheld: Ensure that you’ve accurately calculated the tax withheld on compensation and final taxes. Cross-check with the BIR’s tax tables to ensure accuracy.
Failure to Reconcile with Employees: Make sure that the amounts you report on this form match with what employees report on their individual income tax returns. If discrepancies arise, it may lead to issues during tax filing or audits.
Inaccurate or Missing Information: Ensure the accuracy of TIN, RDO code, and other key details in the form to avoid delays or errors in processing.
Final Thoughts
Filing BIR Form 1604-CF is an essential step for businesses to comply with Philippine tax laws, ensuring that they properly report and remit taxes withheld from employee compensation and other final withholding taxes. This form serves as a way to reconcile what was withheld throughout the year with the BIR and ensures that employees’ tax filings match the amounts reported by their employers.
Failure to file Form 1604-CF correctly and on time could lead to fines, penalties, and other legal issues. If you’re unsure about how to fill out the form or what tax rates to apply, it’s always a good idea to consult a tax professional or accountant.
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