RMC No. 100-2017: Clarifies the sanctions for non-submission of Alphabetical List of Employees/Payees of income payments

Key points

1. Annual Information Return. Besides remittance returns and payment of taxes withheld, withholding agents submit an Annual Information Return (BIR Form Nos. 1604E and 1604CE) with the Alphabetical List of Employees/Payees. It is a no payment return that contains information such as monthly remittances and a summary of payees.
2. No loss of deductibility. Filing monthly remittance returns and paying the taxes withheld already satisfies the deductibility requirement for expenses subject to withholding. Failure to file the list, or to re-submit a complete and corrected list after BIR validation, does not make the expenses non-deductible.
3. Compromise penalty. A compromise penalty of One Thousand Pesos (P 1,000.00) applies for each failure to make, file or submit the return, up to Twenty-Five Thousand Pesos (P 25,000.00) in aggregate per calendar year, under RMO No. 7-2015. Paying it does not relieve the withholding agent from submitting the required or corrected list.

Who is affected

• Withholding agents