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2.1ÌýÌýÌýÌý Withholding of income tax

The following are required to deduct, report and remit taxes withheld on employment income:

1. Ìý

   •ÌýÌýÌýÌý individuals engaged in business or practiced of profession

2. Ìý

   •ÌýÌýÌýÌý non-individuals (corporations, associations, partnership, cooperatives) whether engaged in business or not

3. Ìý

   •ÌýÌýÌýÌý government agencies

4. Ìý

   •ÌýÌýÌýÌý withholding agents – this is any person or entity who is in control of the payment subject to withholding tax

Employers/withholding agents are obliged to:

1. Ìý

   •ÌýÌýÌýÌý register new hires (5.2)

2. Ìý

   •ÌýÌýÌýÌý withhold the tax due from their employees using tax tables (see below)

3. Ìý

   •ÌýÌýÌýÌý report and remit the amount of tax withheld by the due date (1.3)

4. Ìý

   •ÌýÌýÌýÌý perform a year-end adjustment (see below)

5. Ìý

   •ÌýÌýÌýÌý submit annual information return by 31 January following the close of the calendar year (1.3)

6. Ìý

   •ÌýÌýÌýÌý issue the annual certificate of compensation payment/tax withheld to the employees (1.3)

eFPS is the free electronic filing and payment system of the Bureau of Internal Revenue (BIR). It facilitates the reporting and