Guideline in Preparing BIR Form 1604E and Alphalist of Payees

Tax Form

BIR Form 1604E: Annual Information Return of Creditable Income Taxes Withheld (Expanded)/ Income Payments Exempt from Withholding Taxes

Description

This return is filed by every withholding agent/payor who is either an individual, estate, trust, partnership, corporation, government agency and instrumentality, government-owned and controlled corporation, local government unit and other juridical entity required to deduct and withhold taxes on income payments subject to Expanded Withholding Taxes, or making income payments not subject to withholding tax but subject to income tax.

BIR 1604E is annual tax return that summarizes the BIR Form 1601E – Monthly Remittance Return of Creditable Income Taxes Withheld (Expanded) paid/filed by the taxpayer within the taxable year (January to December).

Deadline of Filing

On or before March 1 of the year following the calendar year in which the income payments subject to expanded withholding taxes or exempt from withholding tax were paid or accrued.

Who are Required to File

Every withholding agent/payor who is either an individual or non-individual required to deduct and withhold taxes on income payments subject to Expanded/Creditable Withholding Taxes.

Taxpayer with WITHHOLDING TAX – EXPANDED in their BIR For 2303 – Certificate of Registration (COR)

Documentary Requirements/Attachments

  1. Alphalist of Payees subjected to Expanded Withholding Tax (Schedule 4 of BIR Form 1604E)
  2. Alphalist of Other Payees Whose Income Payments Are Exempt from Withholding Tax but subject to Income Tax (Schedule 3 of BIR Form 1604E)
  3. Return previously filed and proof of tax payment for amended return

Note: Above alphalists are to be submitted in accordance with RR 1-2014 as amended. Either as attachment to eFPS or emailed to esubmission@bir.gov.ph for eBIR filing.

How to Prepare the BIR Form 1604E

  1. Collect and Record all BIR Form 1601E filed/paid for the month of January to December of the applicable year
    • Record the details of the BIR Form 1601E from January to December of the applicable year in the BIR Form 1604E, as follows:
      • Date Remitted
      • Month
      • Year
      • Bank — it’s the bank where the payment was made. If no payment, put “Not Applicable”
      • ROR — put the Reference Number of Filing or Payment. If no reference number, put “Not Applicable”.
      • Tax Withheld – is the amount of withholding tax paid for the applicable return
      • Penalties – if there is penalty paid
  2. Review and finalize the BIR Form 1604E for the applicable year
  3. Prepare the Alphalist of Payees (Schedule 3 and Schedule 4) for the applicable year using the BIR Alphalist Data Entry (click here to download)
    • Record each payee and their corresponding amount in the Alphalist Data Entry
    • Generate and save the “dat file” in file server together with the BIR Form 1604E
  4. Test the “dat file” in BIR Alphalist Validation Module to identify any errors. If no errors, proceed to filing in BIR.

How to File the BIR Form 1604E and the Alphalist of Payees to BIR

There’s three (3) ways to file the BIR Form 1604E:

  1. Electronic Filing Payment System (eFPS)
    • Alphalist of Payees (dat file) is then attached to the eFPS Form
    • If cannot be attached via EFPS, emailed to esubmission@bir.gov.ph
  2. Electronic BIR Form (eBIR Form) – for non-efps
    • Alphalist of Payees (dat file) is emailed to esubmission@bir.gov.ph
  3. Manual Filing of BIR — kindly check with your RDO if they still accept manual filing of BIR Form 1604E.

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Disclaimer: The content of this article may become outdated because of changes in the rules and regulations over time. It does not substitute the need for inquiring professional advice.