REVENUE REGULATIONS NO. 2-2006 issued on January 5, 2006 prescribes the mandatory attachments of the Summary Alphalist of Withholding Agents of Income Payments Subjected to Tax Withheld at Source (SAWT) to tax returns with claimed tax credits due to Creditable Tax Withheld at Source and of the Monthly Alphalist of Payees (MAP) whose income received have been subjected to withholding tax to the withholding tax remittance return filed by the withholding agent/payor of income payments. SAWT is a consolidated alphalist of withholding agents from whom income was earned or received and subjected to withholding tax to be submitted by the payeerecipient of income as attachment to its duly filed return for a given period which Summary List contains a summary of information showing, among others, total amounts of income/gross sales/gross receipts and claimed tax credits taken from all Certificates of Creditable Withholding Tax at Source (BIR Form No. 2307) issued by the payors of income payment. MAP is a consolidated alphalist of income earners from whom taxes have been withheld by the payor of income for a given return period and in whose behalf, the taxes were remitted. It contains a summary of information on taxes withheld and remitted through the monthly remittance returns (BIR Form Nos. 1601-E, 1601-F, 1600) showing, among others, total amounts of income/gross sales/gross receipts and taxes withheld and remitted. The following persons are required to submit SAWT: a. All persons claiming for refund or applying their creditable tax withheld at source against the tax due a.1 with not more than 10 withholding agents-payor of income payment per return period – submit SAWT in hard copy as attachment to the required tax return a.2 with more than 10 withholding agents-payor of income payment per return period – submit SAWT electronically in a 3.5 inch floppy diskette following the format to be prescribed by the BIR b. All taxpayers who are required to file through the EFPS, regardless of the number of withholding agents/payor of income, are strictly required to attach the electronic copy of the SAWT to the electronic return. The following persons are required to submit MAP: a. All withholding agents who are required to withhold and remit taxes withheld a.1 who have not more than 10 income payees – income recipient per return period – submit MAP in hard copy as attachment to the required return a.2 who have more than 10 income payees – income recipient per return period – submit MAP in electronic copy in a 3.5 inch floppy diskette following the format to be prescribed by the BIR b. All taxpayers remitting taxes withheld through the EFPS, regardless of the number of income payees/income recipient, are strictly required to attach an electronic copy of the MAP to the electronic return. The following returns are required to be filed with SAWT and Certificate of Creditable Tax Withheld at Source: a. BIR Form No. 1701Q -Individual Quarterly Income Tax Return b. BIR Form No. 1701 -Individual Annual Income Tax Return c. BIR Form No. 1700 -Individual Annual Income Tax Return for Compensation income Earners (for those required to file an ITR) d. BIR Form No. 1702Q -Corporate Quarterly Income Tax Return e. BIR Form No. 1702 -Corporate Annual Income Tax Return f. BIR Form No. 2550Q -Quarterly VAT Return g. BIR Form No. 2550M -Monthly VAT Declaration h. BIR Form No. 2551M -Monthly Percentage Tax Return i. BIR Form No. 2553 -Percentage Tax Return under Special Laws The validation of e-filed returns shall ensure that the total amounts claimed as creditable tax withheld in the return must have the corresponding attached SAWT reflecting total amounts which is equal to the total amounts claimed as credits. The following returns are required to be filed with MAP: a. BIR Form No. 1601-E -Monthly Remittance Return of Creditable Income Taxes Withheld (Expanded Withholding Tax) b. BIR Form No. 1601-F -Monthly Remittance Return of Final Taxes Withheld c. BIR Form No. 1600 -Monthly Remittance Return of Value- Added Tax and Other Percentage Taxes (Under RAs 1051, 4649, 8241 and 8424) A withholding agent/payor may file a consolidated withholding tax return for the head office and all the branches or may file withholding tax returns separately for its head office and each branch and facility. For such decentralized way of filing tax return for the head office, branch or facility, one withholding tax return per tax type per return period shall be filed for each office. For purposes of such filing, a TIN with branch code shall be issued to the branch of the withholding agent/payor, which branch code must be indicated in the return so that remittance shall be posted accordingly. Such policy shall also apply to government agencies and instrumentalities, political subdivisions (provincial, city, municipal, barangay), government owned or controlled corporations for their respective branches, regional, provincial, district offices and implementing units where such reporting entity is using decentralized accounting. For the centralized way of filing withholding tax returns, the head office of withholding agents/payors using centralized accounting (e.g. Large Taxpayers, etc.) shall file a consolidated withholding tax return per tax type per return period; Provided, however, that a withholding agent/payor enrolled under EFPS shall e-file the electronic copy of the MAP together with the return. The SAWT and MAP must contain the following information: a. Sequence Number b. TIN including branch code of payor for SAWT or payee for MAP c. Registered name of payor for SAWT or name of payee for MAP d. Tax type e. Period covered f. Nature of income payment g. Alphanumberic Tax Code (ATC) h. Tax base or amount of income payment or gross sales or gross receipts, whichever is applicable (net of VAT or exclusive of VAT for VAT registered taxpayers or Gross Income/gross sales/gross receipts for Non-VAT registered taxpayers) i. Applicable rate j. Amount of tax withheld k. Total amount of income payment or gross sales or gross receipts, whichever is applicable l. Total amount of tax withheld The rules in the presentation of the required information in the SAWT and MAP are specified in the Regulations. The SAWT/MAP shall be submitted/attached to the return and shall contain all the required information in the prescribed electronic format using any of the following options: Option 1 Microsoft Excel Format; Option 2 Taxpayer’s own extract program; or Option 3 Data Entry module developed by the BIR that will be available upon request or downloadable from the BIR’s website at http://www.bir.gov.ph with the corresponding job aid to be provided by the BIR. For those who will choose option 1 or 2, they are required to use a validation module of the BIR, which can either be downloaded from the BIR web or made available in diskette form upon request. Only readable diskettes/CD shall be considered as duly filed or attached to the required return. The Revenue District Office(RDO)/Large Taxpayers Service(LTS)/Large Taxpayers District Office (LTDO) shall upload the contents of all the diskettes received within 30 days from receipt of the return. A person who fails to file, keep or supply a statement, list, or information required on the date prescribed shall pay, upon notice and demand by the Commissioner of Internal Revenue (CIR), an administrative penalty of P1,000.00 for each such failure, unless it is satisfactorily shown that such failure is due to reasonable causes and not due to willful neglect. For this purpose, the failure to supply the required information shall constitute a single act or omission punishable. However, the aggregate amount to be imposed for all such failures during the year shall not exceed P25,000.00. In addition to the imposition of administrative penalty, willful failure by such person to keep any record and to supply the correct and accurate information at the time required shall be subject to criminal penalty under the relevant provisions of the Tax Code of 1997, upon conviction of the offender. The imposition of any of the penalties under the Tax Code of 1997 and the compromise of the criminal penalty on such violations shall not, in any manner, relieve the violating taxpayer from the obligation to submit the required documents. The corresponding administrative penalty shall be imposed on every violation of the provisions of these Regulations, upon due notice and demand by the CIR. A subpoena duces tecum for the submission of the required documents shall be issued on the second offense. A third offense shall set the motion for a criminal prosecution of the offender. In cases where a violation is allowed to be compromised, the submission of the unsubmitted lists should always form part of the obligation of the taxpayer to be embodied in the compromise agreement. For purposes of initial implementation and in order to give ample time to retrieve and prepare the requirements in filing of returns with the attached MAP/SAWT and adjust computerized systems, the specified requirements shall apply to transactions beginning January 1, 2006. The filing of the Annual Information Return (BIR Form No. 1604-E with attached Alphalist of payees) shall still be filed on or before March 1 of the following year in accordance with existing issuances.