A Newbie's Guide to 1601C Monthly Remittance

by Rosette Apolonio October 11, 2019 at 09:14 AM

We all hate to lose money, time, and energy, and in this time, filing taxes will do that to us. As much as we hate doing our taxes, it is still necessary because if we fail to do so, the repercussions will far outweigh the benefits, and we will be heavily penalized, or worse, imprisoned for not less than 1 year and not more than 10 years. 

 

A Gist on 1601-C

BIR Form No. 1601-C is a Monthly Remittance Return of Income Taxes Withheld on Compensation. Such form is used by the employers when they withhold or remove the applicable withholding tax before making salary payments to their employees. 

 

 

 

Employers who have even just one (1) employee are required to file a 1601-C. 

 

However not all employees are subject to withholding tax under the TRAIN LAW. Minimum wage earners are exempted from income tax and consequently from withholding tax. Those whose annual income does not exceed P250,000 are also not subject to withholding tax.

 

But even then, employers still must file a BIR Form No. 1601-C to report to the Bureau of Internal Revenue that they have employees. The amounts employers pay to their employees are the figures presented in the BIR Form 1601-C; therefore a deductible expense for income tax purposes. 

 

WHO MUST FILE 1601-C

In general, employers who are acting as withholding agents, withhold income taxes from their employees.

 

WHEN TO FILE 1601-C

For Manual Filing:

•  January to November – on or before the tenth day of the following month.

•  December – on or before January 15 of the following year.

 

For Electronic (EFPS) Filing:

•  January to December – varies from 11 to 15 days from the end of the month depending on the grouping set forth in RR No. 26-2002.

 

HOW TO FILE 1601-C

There are 2 ways to file BIR Form No. 1601-C:

 

A. eFPS Filing

Electronic Filing and Payment System or EFPS is maintained and developed by the Bureau of Internal Revenue for Mandated taxpayers who should pay their tax liabilities through the Internet banking facilities of Authorized Agent Banks (AABs).

 

This is only applicable to taxpayers who have bank accounts connected to BIR. How can you do that? You can connect your bank accounts to BIR by:

 

 For Individual Taxpayers

  • Submit a Letter of intent to your RDO, stating your intention to enrol as an eFPS/Voluntary tax payer

  • After getting it stamped by a BIR Agent, you can now enrol to an AABs to connect your bank account to BIR.

  • Complete the necessary required forms given by the bank for eFPS application.

  • After submitting said forms, a notice will be sent to your email from your bank, stating that you are now enrolled with them and you can now file your taxes via BIR eFPS and pay your taxes online.

  • Details and Instructions on how to change your password is also stated in the email.

  • Although, you are not yet done. After receiving the email notice form your bank, you can now enrol to the eFPS website. 

  • There are no fees that must be paid when applying for eFPS. However, some banks charge fees and require you to maintain a minimum Average Daily Balance (ADB).

 

For Private Corporations

  • Same procedure above. EXCEPT: Corporations are required to submit a Secretary’s Certificate. This is a document signed by the secretary of the company and notarised by a notary public, stating that the Board of Director’s of the company authorizes the maker and approver, stated therein, to eFile and ePay the company’s taxes.

 

B. eBIR/Manual Filing

 eBIR is readily available for any taxpayer. This is as easy and simple as creating a Facebook account. Because of its offline feature, you can fill the forms offline, but when you need to submit it, you must be connected to the Internet. 

How to do it:

*Download the recent eBIR application by going to bir.gov.ph.

*Input the necessary details, such as your TIN, RDO Code, Line of Business, etc. 

*Choose the tax return you want to file and click the “Fill Up” button. 

*This will direct you to the tax return form and you can now encode the information and figures or taxable amount/s asked by BIR.

*Click “Validate” and then save.

*After successful validation, click “Submit”. 

*A Tax return receipt confirmation email from BIR will be sent to you. 

*Print three (3) copies of both the email confirmation and the Tax Return form on A4 bond paper and present them to the bank upon payment. 

 

AND YOU’RE DONE. Well, at least for that particular month.

 

Owning a business is never an easy responsibility. Not only do you have to think of the risks and take advantage of the right opportunities, you also have to bear the possibility of losses caused by economic, political, social, and even personal reasons. To be knowledgeable of the compliance procedures and legalities before you launch your business is crucial, but to abide is essential. 

 

Being rich is one thing, but being rightfully educated is another.