Reminder on issuance of withholding tax statement

The BIR reminded all withholding agents on their obligation to issue withholding tax statement on income payments subjected to final or creditable withholding taxes.

Based on Section 2.58(B) of RR 2-98, as amended, the withholding tax statement (BIR Form 2307) is required to be submitted within 20 days following the close of taxable quarter employed by the payee in filing his/its quarterly income tax return. The payor is required to retain a copy of the duly issued BIR Form 2307. Failure to furnish the same shall be grounds for the mandatory audit of payor’s income tax liabilities (including withholding tax) upon verified complaint of the payee.

For final withholding taxes, the withholding tax statement should be given to the payee on or before January 31 of the succeeding year or upon request of the payee.

(Revenue Memorandum Circular No. 85-2012, December 26, 2012)

Tax Brief – January 2013

Punongbayan and Araullo