TAXATION

FAR EASTERN UNIVERSITY – MANILA

FRINGE BENEFIT TAX (1601)

GROSS TAXABLE COMPENSATION INCOME

Classification of gross taxable compensation income

1. Regular The fixed amount of remuneration received by the employee every payroll period
compensation
2. Supplemental Other performance based pay to employees with or without regard to the payroll period
compensation
3. 13th month pay and A residual category which generally includes all other taxable benefits
other benefit 1. The amount of 13th month pay and other benefit not exceeding P90,000 is an
exclusion from gross income.
2. The amount of 13th month pay and other benefit exceeding P90,000 is considered as
supplemental compensation

FRINGE BENEFIT

Fringe benefit An employee’s benefit supplementing a money wage or salary

The following fringe Any good and other benefit furnished or granted by an employer in cash or in kind, in
benefit are taxable: addition to basic salaries to employees (except rank and file) such as, but not limited to
the following:
1. Housing
2. Expense account
3. Vehicle of any kind
4. Housing personnel, such as maid, driver and others
5. Interest on loan at less than market rate to the extent of the difference between the
market rate and the actual (12% benchmark rate)
6. Membership fee to professional organization (social and athletic club or other similar
organizations)
7. Expenses for foreign travel
8. Holiday and vacation expense
9. Educational assistance to the employee or his dependents
10. Life or health insurance and other non-life insurance premium or similar amounts in
excess of what the law allows
Rank and file All employees who are holding neither managerial nor supervisory position.
employees
Managerial employees One who is vested with powers or prerogatives to lay down and execute management
policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline
employees.
Supervisory employees Those who, in the interest of the employer, effectively recommend such managerial
actions if the exercise of such authority is not merely routinary or clerical in nature but
requires the use of independent judgment.
Final tax Fringe benefit tax is a final tax
Imposed on the Fringe benefit tax is imposed on the grossed-up monetary value of fringe benefits
grossed-up monetary furnished granted or paid by employer to employee except rank and file employees.
value
Withheld by employer Fringe benefit tax shall be treated as a final tax on the employee, which shall be withheld
and paid by the employer on a calendar quarterly basis.
Tax Treatment of Fringe Benefit
Fringe benefits Part of Taxable Subject to Basic Tax Subject to
given to: Compensation and Creditable FBT
Income Withholding Tax on
Compensation
Rank and file Yes Yes No
Managerial or No No Yes
supervisory
Tax base and tax rate Fringe benefit Employees other NRA-NETB
Tax base and than rank and file
Rate
Monetary value PXX PXX
Divide by Gross 65% 75%
monetary value
factor
Grossed-up PXX PXX
monetary value
X FBT Rate 35% 25%
Fringe Benefit Tax Pxxx Pxxx

16. FRINGE BENEFIT TAX Page 1 of 9

De minimis benefit
Examples:
The foregoing lists of de
minimis benefits are all
inclusive. Meaning, all
other benefits given by
employers which are not
included in the
enumeration (A-K) on the
right side shall not be
considered de minimis
benefits (RR 8-2012; RR
1-2015)
De minimis benefits not
subject to income tax as
well as withholding tax on
compensation income of
both managerial and
rank and file
employees
*RR 5-2011 (The grant
of meal allowance, if not
for overtime work or
night/graveyard shift,
shall cease to be
considered as de minimis
benefit and should be
subject to income tax.)
Tax exempt meals and
lodging: meal allowance
and lodging furnished by
the employer to the
employees are exempt
from tax if furnished for
the “advantage or
convenience of the
employer”.
16. FRINGE BENEFIT TAX
Small value offer by employer to his employee, means of promoting the health, goodwill,
contentment or efficiency of his employee.
The following are the example of De Minimis Benefit:
a. Monetized unused vacation Private employees: Vacation leave – exempt
leave credits of private up to 10 days
employees
Vacation leave exceeding 10 days as well
as payment of sick leave, regardless of
number of days shall be added to “other
benefits” with a P90,000 ceiling. Any amount
exceeding the P90,000 ceiling shall be subject to
basic and creditable withholding tax on
compensation income (R.R. No. 8-2000)
b. Monetized unused vacation Government employees: Vacation and Sick
and sick leave credits of leave are always tax exempt regardless of the
government employees number of days
c. Medical cash allowance to Not exceeding P750 per semester or P125 per
dependents of employees month
d. Rice subsidy P1,500 or one sack of 50-kg rice per month
amounting to not more than P1,500
e. Uniforms and clothing Not exceeding P5,000 per annum (R.R. 8-2012)
allowance
f. Actual medical assistance, Not exceeding P10,000 per annum
e.g. medical allowance to cover
medical and healthcare needs,
annual medical/executive check
up, maternity assistance, and
routine consultation
g. Laundry allowance Not exceeding P300 per month
h. Employee achievement In the form of tangible personal property other
awards under an established than cash or gift certificate with an annual
written plan which does not monetary value not exceeding P10,000
discriminate in favor of highly
paid employees (e.g. for length
of service or safety
achievement)
i. Gifts given during Christmas Not exceeding P5,000 per employee per annum
and Major Anniversary
Celebrations
j. Daily meal allowance for Not exceeding 25% of the basic minimum wage
overtime work* on a per region basis. (RR. 5-2011)
k. Benefits received by virtue of Not exceeding P10,000 per employee per annum
Collective Bargaining (R.R. 1-2015)
Agreement (CBA) and
productivity incentive scheme
It does seem more likely that the “productivity incentive scheme” could refer to
something that is not captured under the “productivity incentives and christmas bonuses”
covered by the P90,000 ceiling. The term “Productivity Incentives Program (PIP)”
was defined as a formal agreement established by the labor-management committee
containing a process that will promote gainful employment, improve working conditions
and result in increased productivity, including cost savings, whereby the employees are
granted salary bonuses proportionate to increases in current productivity over the
average for the preceding three (3) consecutive years. The agreement shall be ratified by
at least a majority of the employees who have rendered at least six (6) months of
continuous service.
Page 2 of 9
Basic Rules on Fringe • Fringe benefit given to rank and file employee (whether under a collective
Benefit and Fringe bargaining agreement or not) is not subject to fringe benefit tax.
Benefit Tax are: • Fringe benefit given to a supervisory or managerial employee is subject to fringe
benefit tax.
• De minimis benefit, whether given to rank and file or to a supervisory or
managerial is not subject to the fringe benefit tax.
• Any excess in de minimis benefit, whether given to rank and file or to a
supervisory or managerial part of other 13th month pay and other benefits.
Basic Rules on the Imposition of Fringe Benefit tax
Fringe benefit (Rank and File) Fringe benefit (Supervisory and
Managerial)
De minimis?
De minimis?
No
subject to basic and creditable
withholding tax No
subject to fringe benefit tax

Yes
conforming to the ceiling of De

minimis benefits? Yes
conforming to the ceiling of De
• No
part of other 13th month pay minimis benefits?
and other benefits. • No
part of other 13th month pay
• Yes


Exempt from tax and and other benefits.
creditable withholding tax • Yes
Exempt from tax and
creditable withholding tax

Employer Gives Beyond • The amount of de minimis benefits conforming to the ceilings herein prescribed
the Ceiling shall not be considered in determining the P90,000 of other benefits.
• However, if the employer pays more than the ceiling, the excess shall be taxable
to the employee if such excess is beyond P90,000.
13th Month Pay and • (First) Not over P90,000 (13th month pay and other benefits)
Exclusion from
Other Benefits gross income
• In Excess of P90,000
Inclusion from gross income

“Other benefits” include:

• 1. Christmas bonus
• 2. Productivity incentive bonus
• 3. Loyalty awards
• 4. Gifts in cash or in kind and other benefits of similar nature actually received by
officials and employees of both government and private offices
RR 3-2015, emphasized that this exclusion from gross income is not applicable:
1. Self-employed individuals; and
2. Income generated from business
Valuation of fringe • If granted in money, the value is the amount granted.
benefits • If granted in property and ownership is transferred to the employee, the value is
the fair market value of the property.
• If granted in property but ownership is not transferred to the employee, the value
is equal to the depreciation value of the property.
Deductible expense of • If the fringe benefit is given to a rank and file employee, or to a supervisory or
the employer managerial employee, but is not subject to fringe benefit tax, the deduction
for the employer is the monetary value of the fringe benefit.
• If the fringe benefit is given to a supervisory or managerial employee and is
subject to fringe benefit tax, the deduction is the grossed-up monetary
value of the fringe benefit which compose of the fringe benefit expense
and fringe benefit tax.

16. FRINGE BENEFIT TAX Page 3 of 9

 PROBLEMS
Problem 1: In the blank provided for, indidicate whether the specified benefit or remuneration is an item of:
RC- regular compensation FB – fringe benefit
SC – supplemental compensation OB – 13th month pay and other benefits
DM – de minimis benefits EB – exempt or non-taxable benefits

Rank and file Manager or

Benefits or remuneration employee Supervisor
1 Basic salary RC RC
2 Commissions SC SC
3 Emoluments and honoraria SC SC
4 Stock bonus SC SC
5 Medical benefits DM DM
6 Excess de minimimis benefits OB fb???? (oB)
7 13th month pay OB OB
Excess 13th month pay and other benefit over
8 P90,000 SC SC
9 Used sick leave credit RC RC
10 Monetized unused sick leave-private OB fb???? (oB)
11 Monetized unused sick leave-government EB EB
EB and ob eb and Fb???
12 Monetized unused vacation leave- private excess (0b)
13 Monetized unused vacation leave-government EB EB
14 Christmas bonus - government OB OB
15 Christmas gift - private DM DM
16 Anniversarry gift DM DM
17 Rice allowance DM DM
18 Uniform allowance DM DM
19 Fixed monthly RATA - government RC RC
20 Additional compensation allowance-government OB OB
21 Shuttle allowance for distant facilities EB EB
Educational assistance to employee under
22 employment bond EB EB
23 Profit sharing and performance bonus SC SC
24 Productivity incentive DM DM
25 Other employee personal expenses paid by employer OB FB

Problem 2: A Corp., a regional operating headquarters of a multinational corp. established in the Phils. Provided its
employees cash and non-cash fringe benefits in 20X1 as follows:
Total amount of fringe benefits P1,000,000
60% of said amount was given to rank and file employees
40% of said amount was given to corporate officers as follow:
To resident citizens 45%
To non resident aliens not engaged in business in the Phils 55%
Required: The fringe benefits tax due is_____

Problem 3: (Journal Entry) The books of accounts of ABC Company showed the following:
Fringe benefits expense P250,000
Fringe benefits tax expense 25,490
Required:
1. How much is the grossed-up monetary value of the fringe benefits given to managers and supervisors?
2. How much is the monetary value of fringe benefits given to managers and supervisors?
3. How much is the value of the fringe benefits given to rank and file?
4. How much is the total amount of deductions?

16. FRINGE BENEFIT TAX Page 4 of 9

Problem 4: Assuming that the employee is a private employee with a basic salary of P300 per day in a region with a
minimum wage of P250 per day, indicate the annual limit and compute the annual excess de minimis benefits in the
space provided for.
De minimis benefits Limit Exces De minimis benefits Limit Excess
1. P8,000 monetized value of 15 0 6,000 6. P2,000 quarterly uniform 5,000 3,000
days sick leave creadits allowance
2. P8,000 monetized value of 15 7. P500 monthly laundry allowance 500 3,000
days vacation leave
3. P2,000 monthly rice allowance 1,500 6,000 8. P10,000 achievement award in 0 10,000
cash
4. P15,000 medical benefits 10,000 5,000 9. P4,000 anniversary gift and 5,000 4,000
P5,000 christmas ift
5. P1,000 monthly medical 125 10,500 10. P100 per meal for 158 62.5 5925
allowance to dependents of overtime days during the year
employees

Expense Account
Taxable as fringe benefits 1. Expenses incurred by employees but paid by employer
2. Expenses by employees reimbursed by employer
3. Personal expenses of the employee (e.g. groceries) paid for or reimbursed by
employer whether or not receipted in the name of the employer
Not taxable as fringe Items 1 and 2 above are not taxable as fringe benefits when receipted in the
benefits name of the employer and do not partake the nature of personal expense
attributable to employee
Not treated as taxable Representation and transportation allowance given regularly on a monthly basis
fringe benefits but taxable
as compensation income **BIR Ruling No. DA-250-04: pre-computed on a daily basis and which are paid
under Sec. 24 (A) to any employees while on assignment or duty. Such allowance should not be
considered compensation subject to withholding tax.

Representation and
Transportation Allowance For private It's generally taxable as part of their gross
(RATA) employees: compensation income.

It doesn't matter if the allowance is fixed or

not. It is, however, exempt from tax if the
following conditions are present:
1.) The expenses are ordinary and
necessary in the pursuit of trade, business
or profession.
2.) The employee is required to
account/liquidate for the said expenses.

The excess of the actual payments over the

advances are taxable if they're not returned
to the owner. Also, reasonable amounts of
reimbursements or advances computed daily
and paid to the employee while on
assignment/duty don't need to be subjected
to substantiation requirements and
withholding.
For government The RATA (Representation and
employees: Transportation Allowance) and PERA
(Personnel Economic Relief Allowance)
of government personnel are considered
reimbursement for expenses incurred while
performing government duties and are
therefore income tax-exempt.

RATA granted under section 34 of the

General Appropriation Act to certain officials
and employees of the government:

Considered reimbursements for the

expenses incurred in the performance
one’s duties rather than as additional
compensation. However, the excess of
RATA, if not returned to the employer,

16. FRINGE BENEFIT TAX Page 5 of 9

 constitutes taxable compensation income of
the employee.

(RMO 23-2014) The ACA (Additional

Compensation Allowance) of
government personnel are treated as
"other benefits" together with the Christmas
bonus, 13th month pay and productivity
incentives. Therefore, the excess of the
P90,000 limit is taxable as part of income
tax.
.
Communication Allowance Communication allowance (phone allowance) granted to employees are not subject to
fringe benefit tax and tax on compensation on the basis the communication allowance
is deemed required by the nature of the job of the employees and deemed necessary
to business and redounds to the convenience and benefit.
Premiums on Life Premiums on life insurance covering the life of an employee paid by the employer is
Insurance taxable income to the employee, where the insured employee, directly or indirectly is
the beneficiary under the policy.

Deductible expense of the Any amount given by the employer as benefits to its employees, whether classified as
employer de minimis benefits or fringe benefits shall constitute as deductible expense upon
such employer

Household expenses
Taxable as fringe benefits Expenses of employees borne by employer for household personnel such as salaries
of household help, personal driver, or other similar personal expenses (e.g. payment
for homeowners association dues, garbage dues etc)

Interest on loan at less than market rate

Benchmark interest rate 12% until revised
Taxable fringe benefit The taxable fringe benefit interest foregone by the employer or the difference of the
interest assumed by the employee and the rate of 12%

Membership dues or fees

Taxable fringe benefit Membership dues or fees of employees borne by employer in social and athletic clubs
or other similar organizations

Expenses for foreign travel of employee paid by employer

Taxable as fringe benefit 1. First class ticket – 30% is presumed fringe benefit. ( 30% of the cost of first
class airplane ticket shall be subject to fringe benefit tax).
Notes: 2. Traveling expenses of family member’s of employees paid for by employer shall
1. Business meetings – must be treated as taxable fringe benefit.
be supported by official 3. In the absence of documentary evidence, showing that the employee travel
communication from business abroad was in connection in business, the entire cost of ticket including cost of hotel
associates abroad indicating accommodations and other expenses shouldered by employer shall be treated as
purpose of the meeting. taxable fringe benefits.

2. Business conventions –
official invitation or
communication from the host
organization or entity abroad.

3. Expenses for the family

members of employee
shouldered by the employer are
taxable fringe benefit in full.
Fringe Benefits that are not
subject to fringe benefit tax
1) Expenses in connection with attending business meeting or convention (except
lodging cost in a hotel) at an average of $300 per day are considered reasonable
expenses and shall not be subject to fringe benefit tax. Examples: food,
beverage and local transport.
2) Lodging costs
3) The cost of economy and business class airplane ticket shall not be subject
to fringe benefit tax
4) 70% of the cost of first class airplane ticket shall not be subject to fringe
benefit tax

Holiday and Vacation expenses

Taxable as fringe benefit Holiday and vacation expenses of the employee borne and paid by his employer shall

16. FRINGE BENEFIT TAX Page 6 of 9

 be treated as taxable fringe benefit

Educational Assistance
Taxable as fringe benefit Cost of educational assistance to employee or his dependents is treated as taxable
fringe benefit
Fringe Benefits that are Cost of educational assistance is not treated as taxable fringe benefit:
not subject to fringe 1. When the study is directly connected with the employer’s trade, business, or
benefit tax profession and there is a written contract (i.e. employee bond) between the
employee and employer that the former is under obligation to remain in the employ of
the employer for a period of time

2. When given to employee’s dependents through a competitive scheme under

scholarship program of the company

Life or health insurance and either non-life insurance premiums or similar amounts in excess of what the
law allows
Taxable as fringe Life or health insurance and other non-life insurance premium are treated as taxable
benefit fringe benefit
Fringe Benefits that are The following shall not be treated as taxable fringe benefits:
not subject to fringe 1. Contributions under SSS law
benefit tax 2. Contributions under GSIS law
3. Similar contributions under existing laws
4. Premiums for group insurance of employees

Computation of Monetary Value of Benefit of Housing Privilege and Motor Vehicle

Basic Rules a. In case of housing privilege and motor vehicles:

1. If there is no transfer of ownership, the monetary value of benefit is
50% of the value of benefit
2. If there is transfer of ownership, the monetary value of the benefit is
the same as the value of the benefit

b. In case of other fringe benefits – the monetary value of the benefit is the
same as the value of the benefit

Fringe Benefits Explained

Housing Privilege
Employer leases residential
property for the use of the
employee
Employer owns residential
property which was assigned to
an officer for his use as residence
Employer purchases residential
property on the installment basis
and allows the employee to use
the same as his residence
Employer purchases a residential
property and transfer the
ownership in the name of the
employee
Employer purchases a residential
property and transfer ownership
to his employee for the latter’s
residential use at a price less
than the employer’s acquisition
Fringe Benefits that are not
subject to fringe benefit tax
NOTES:
1. (Acquisition cost > FMV/ZV)
Value of the Benefit Monetary Value of the Benefit
Rental paid 50% of the value of the benefits
5% of the (FMV in the real 50% of the value of the benefits
property declaration or Zonal
Value, whichever is higher) of the
land and improvements
5% of the acquisition cost exclusive 50% of the value of the benefits
of interest
The higher between the acquisition Entire value of the benefit
cost or zonal value as determined by
the CIR
Higher*** xxx Entire value of the benefit
Less: Payment by employee (xxx)
Value of benefit xxx
*** Higher between the FMV in the
real property declaration and zonal
value as determined by the CIR
The following housing benefits are not considered as taxable fringe benefits:
1) Housing privilege of military officials of AFP consisting of officials of
Philippines Army, Philippines Navy and Philippines Air Force.
2) Housing unit which is situated inside or adjacent to the premises of a
business or factory (within the maximum of 50 meters from the perimeter of
the business premises).
3) Temporary housing for an employee who stays in a housing unit for 3
months or less.

16. FRINGE BENEFIT TAX Page 7 of 9

 • In cases where the basis of fringe benefit tax is the Zonal Value or FMV per current real property tax
declaration, the value of fringe benefit is not deductible.
• It is presumed to have been tacked on or actually claimed as depreciation expense by the employer.
2. ( Acquisition cost < FMV/ZV)
• If the zonal value per BIR or the FMV per current real property tax declaration of the property is greater
than its cost subject to depreciation,
• The amortized excess amount shall be allowed as a deduction from employer’s gross income as fringe
benefit expense.

PROBLEMS
Problem 1: (Rental) During the year 20X1, ABC Corporation paid for the monthly rental of a residential house of
its branch manager, Mr. L, amounting to P68,000.
Required: Prepare the necessary journal entries.

Problem 2: (Acquisition Cost > FMV) XYZ Corp. owns a condominium unit. During the year 20X1, the said
corporation furnished and granted the said property for the residential use of its Assistant Vice President. The fair
market value of the property per BIR amounts to P10,000,000 while its fair market value as shown in its current Real
Property Declaration amounts to P8,000,000. (Assuming the acquisition cost of the residential property is
P15,000,000).
Required: Prepare the necessary journal entries.

Problem 3: (Acquisition Cost < FMV) Using the same data in problem no. 2) above and assuming that the
acquisition cost of the residential property is P7,000,000 and the remaining useful life is 15 years.
Required: Prepare the necessary journal entries.

Problem 4: (Transferred: Selling Price < FMV) In 20X1, MNO Corporation purchased a residential house and
lot for P2,300,000. The property was sold to the President of the corporation for P1,980,000. The fair market value
per BIR and per Assessor’s Office were P2,500,000 and P2,607,000 respectively.
Required: How much was fringe benefits tax, if any?

Problem 5: (Transferred: No Consideration) A house and lot were owned by PQR Laundry Corporation. The
ownership of the said house and lot was transferred to its President S, in 20X1. The following data were made
available:
Cost P5,000,000
Fair market value per BIR 4,500,000
Fair market value per Assessor’s Office 3,000,000
Required: How much was the fringe benefits tax?

Problem 6: (Purchase on installment for the use other than rank and file) TUV Corporation bought a
residential property in installment for the use of its President. The total amount paid by the corporation was
P5,500,000 (inclusive of P500,000 interest.).
Required: How much was the fringe benefits tax?

Fringe Benefits Explained

Vehicle of Any Kind
Employer owns and maintains a
fleet of motor vehicles for the use
of the business and employees
Employer leases and maintains a
fleet of motor vehicles for the use
of the business and the
employees
Employer purchases the motor
vehicle in the name of the
employee
Employer provides the employee
with cash for the purchase of a
motor vehicle in the name of the
employee
Employer shoulders a portion of
the amount of the purchase price
of a motor vehicle in the name of
the employee
Employer purchases the car on
installment in the name of the
employee
Use of yacht, whether owned and
maintained or leased by employer
Value of the Benefit Monetary Value of the Benefit
Acquisition cost of all motor vehicles 50% of the value of the benefit
not normally used for business
divided by 5 years
Amount of rental payments for motor 50% of the value of the benefit
vehicle not normally used for
business purposes
Acquisition cost Entire value of the benefit
Amount of cash received by the Entire value of the benefit
employee
Amount shouldered by the employer Entire value of the benefit
Acquisition cost exclusive of interest Entire value of the benefit
divided by 5 years
Depreciation of a yacht at an Entire value of the benefit
estimated useful life of 20 years

16. FRINGE BENEFIT TAX Page 8 of 9

Vehicle of Any Kind Value of the Benefit Monetary Value of the Benefit
Fringe Benefits that are not Use of aircraft and helicopters owned and maintained by the
subject to fringe benefit tax employer (treated as business expense)

PROBLEMS
Problem 1: (Acquired by company and used by Manager or Supervisor) . In 20X1, W Shop, sole
proprietorship, purchased a motor vehicle for the use of its Manager, Dr. Y. It was registered in Dr. Y’s name. The cost
of the vehicle was P400,000. The vehicle was used partly for the benefit of the company. Required: How much is the
fringe benefits tax?

Problem 2: (Vehicles not used in Business) Z Drop, maker of the best-selling ice cream, owns a fleet of motor
vehicles for use of the business and its employees. One of the motor vehicles costing P450,000 is not used for
business purposes, but for the employees’ personal needs.
Required: How much is the annual fringe benefits tax?

Problem 3: (Yacht, Helicopter and Airplane Benefits) XYZ Group of Corporation owns and maintains a yacht, a
helicopter and an airplane which are used by its five members of the board of directors for pleasure and business
purposes. Some data available are as follows:
Acquisition cost Estimated life
Yacht P17,000,000 30 years
Helicopter 5,440,000 25 years
Airplane 8,840,000 30 years
Required: How much is the amount of annual fringe benefits tax for each director?

Remittance Of Final Income Taxes Withheld On Fringe Benefits Paid To Employees Other Than Rank And
File
Tax Form BIR Form 1603 - Quarterly Remittance Return of Final Income Taxes Withheld on Fringe
Benefits Paid to Employees Other than Rank and File.
Who Are Required To Every withholding agent/payor who is either an individual or non-individual required to
File deduct and withhold taxes on fringe benefits furnished to employees other than rank and
file subject to Final Withholding Tax.
Documentary Return previously filed and proof of tax payments , if amended return.
Requirements
Procedures a. Fill-up BIR Form 1603 in triplicate copies.
Note: Submit to the BIR the duplicate copy and one copy to taxpayer, receiving
(Manual Filing) copy.

b. If there is tax required to be remitted:

1. Proceed to the nearest Authorized Agents Banks (AAB’s) of the Revenue District
Office where you are required to register and present the duly accomplished BIR Form
1603, together with the required attachments and your payment.

2. In places where there are no AAB’s proceed to the Revenue Collection Officer or

3. Duly Authorized City or Municipal Treasurer located within the Revenue District
Office where you are required to register and present the duly accomplished BIR Form
1603, together with the required attachments and your payment.

- Receive your copy of the duly stamped and validated form from the teller of the
AAB’s/Revenue Collection Officer/duly Authorized City or Municipal Treasurer.

c. If there is no tax required to be remitted:

Proceed to the Revenue District Office where you are required to register and present
the duly accomplished BIR Form 1603, together with the required attachments.

- Received your copy of the duly stamped and validated form from the RDO representative.
Deadline Quarterly filing and payment on or before the last day of the month following the
close of the calendar year

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