RR No. 2-2006: Prescribes the mandatory attachments of the Summary Alphalist of Withholding Agents of Income Payments Subjected to Tax Withheld at Source to tax returns with claimed tax credits due to Creditable Tax Withheld at Source and of the Monthly Alphalist of Payees whose income received have been subjected to withholding tax to the withholding tax remittance return filed by the withholding agent/payor of income payments

Summary

RR No. 2-2006 requires the Summary Alphalist of Withholding Agents (SAWT) to be attached to returns claiming creditable withholding tax credits, and the Monthly Alphalist of Payees (MAP) to withholding tax remittance returns.

Key points

1. Who submits SAWT. Persons claiming a refund or applying creditable tax withheld against tax due submit it in hard copy if they have not more than 10 withholding agents per return period. If they have more than 10, they submit it electronically on a 3.5 inch floppy diskette. EFPS filers always attach the electronic copy.
2. Who submits MAP. Withholding agents with not more than 10 income payees per return period attach it in hard copy. Those with more than 10 submit an electronic copy on a 3.5 inch floppy diskette. Taxpayers remitting through EFPS always attach the electronic copy.
3. Returns covered. SAWT goes with BIR Form Nos. 1701Q, 1701, 1700, 1702Q, 1702, 2550Q, 2550M, 2551M and 2553. MAP goes with BIR Form Nos. 1601-E, 1601-F and 1600.
4. Format and submission. The lists are submitted in Microsoft Excel format, through the taxpayer’s own extract program, or through the BIR Data Entry module. Users of the first two options must use the BIR validation module. Only readable diskettes or CDs count as duly filed.
5. Penalties. Failure to file, keep or supply the required list or information carries an administrative penalty of P1,000.00 per failure, with a yearly aggregate of P25,000.00, unless due to reasonable cause and not willful neglect. A subpoena duces tecum is issued on the second offense and a third offense sets the motion for criminal prosecution.
6. Head office and branches. A withholding agent may file one consolidated return or file separately for the head office and each branch. Separate filings use a TIN with branch code. The Annual Information Return (BIR Form No. 1604-E) is still filed on or before March 1 of the following year.

Who is affected

• Persons claiming refund or applying creditable tax withheld against tax due
• Withholding agents required to withhold and remit taxes
• EFPS filers

Deadlines and effectivity

• Applies to transactions beginning January 1, 2006
• BIR Form No. 1604-E on or before March 1 of the following year
• RDO/LTS/LTDO uploads diskette contents within 30 days from receipt of the return

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