RMO No. 20-2011: Revises the format of the Monthly Report on Registration and Remittance of Withholding Taxes (BIR Form W-7) and the manner and procedures of its preparation

Summary

RMO No. 20-2011 revises the format of the Monthly Report on Registration and Remittance of Withholding Taxes (BIR Form W-7) and how it is prepared, amending RMO No. 72-98.

Key points

1. Schedules in the new format. The revised BIR Form W-7 has schedules covering registration, taxes remitted by type of payor, compensation and tax withheld, creditable and final taxes withheld, remittances using BIR Form 1600, and remittances of top individuals and private corporations, national government agencies, local government units and government-owned and controlled corporations. It also has schedules for BIR Form 1606 remittances on sales of ordinary-asset real properties and for Fringe Benefits Tax remitted.
2. Taxpayer Service Section. The TSS of the RDO prepares Schedule A, columns A to E. It ensures the beginning number of withholding agents per tax type equals the ending number of the preceding month, and new registrants include agents transferred from other RDOs.
3. Document Processing Section. The DPS prepares Schedule B and Schedules C to K. Taxes withheld shown in tax returns are captured, encoded and summarized by nature of income payment (Alphanumeric Tax Code) and by type of withholding agent.
4. Late or returned reports. Call-up letters signed by the Assistant Commissioner of Collection Service go to the Regional Director when RDOs fail to submit the report on time. Returned reports must be acted on, and amended reports submitted, within fifteen (15) days from receipt.

Who is affected

• Revenue District Offices
• Taxpayer Service Section and Document Processing Section of RDOs

Deadlines and effectivity

• Covers reports for May 2011 and onwards
• Returned reports acted on within 15 days from receipt

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.