What do you need to know about BIR form 0619E?
- The purpose of the form
- The entities who are required to file the form
- Deadline of submission
- Place/s to submit the form
- Penalties for improper filing
The Comprehensive Tax Program (CTRP) aims to change the country’s tax system. Its goal is to make it simpler, fairer, and more efficient. This should promote investment, create jobs, and reduce poverty. New tax laws were implemented within the past few years starting with the Tax Reform for Acceleration and Inclusion (TRAIN) Law. It introduced significant tax rates and filing changes which greatly altered how people do their tax computations in the Philippines.
Different guidelines for tax filing are not the only things that come with these new tax laws. Quite a number of new and updated forms have also been released by the Bureau of Internal Revenue (BIR). These new forms come out in packages, with the latest one being BIR Forms package version 7.1. The 3 different forms released on May 2018 were 0619E, 0619F, and updated 1701Q.
The addition of these new forms entails several changes that we can’t enumerate in a single article so. For now, we’ll be focusing on BIR Form 0619E. We’ll tell you everything there is to know about this form to help you avoid making any mistakes as you file your taxes!
Purpose of the Form
BIR Form 0619E is also called Monthly Remittance Form of Creditable Income Taxes Withheld (Expanded). You can use this to file creditable or expanded withholding taxes. These taxes are prescribed on specific incomes (e.g. professional talent fees, rental income, and payment to contractors).
It’s easy to interchange expanded withholding taxes and withholding tax on compensation. But one thing you have to remember is that there is no employee-employer relationship present in the former. An example of this is a lawyer-client relationship wherein the lawyer offers his/her services without being an employee.
Entities Required to File
The entities required to file these taxes are the withholding agents. These are the people who deduct and withhold these taxes on income payments. They must remit whatever amount they get to the government.
Self-employed individuals also file this form since they are not a part of any employee-employer relationship. All income they gain from engaging in the practice of their profession is subject to 8% tax rate as opposed to the previous 10% – 15%. Mixed income individuals (as in those who run a separate business outside work) are also required to file their expanded taxes using this form.
Other entities that need to file this form are corporations, government agencies or instrumentalities, and authorized representative and accredited tax agent that are hired to file taxes on behalf of a taxpayer.
Deadline of Submission
The form must be filed for the first two months of each calendar quarter. The deadlines for the submission of BIR Form 0619E are the 10th and the 15th of the following month in which withholding was made for physical filing and electronic filing, respectively. If you have a withheld amount for December, you must file it on the 10th or 15th of January.
Take note that you cannot file this form during the months of March, June, September, and December. You will have to use the BIR Form 0619F instead, which is for your final withholding tax.
Place/s to Submit the Form
The BIR Form 0619E must be filed with an Authorized Agent Bank (AAB) of the Revenue District Office (RDO). They have the jurisdiction over the withholding agent’s place of business. If there are no AABs within the area, then the form must be filed with a Revenue Collection Officer (RCO) of the RDO who will issue an Electronic Revenue Official Receipt (eROR).
If you’re planning on filing with an AAB, then make sure to accomplish and submit a BIR-prescribed deposit slip to validate your remittance. Bank tellers use a machine to do this and also stamp the form with the word ‘received’ as evidence.
Penalties for Improper Filing
Individuals, who fail to submit this form or who purposely violate any withholding tax provisions, will receive penalties. These will take in the form of heavy fines depending on the gravity of the activity.
Failure to file any form and pay any amount – installment or due – on or before the deadline will receive a surcharge of 25%. The same penalty is imposed for filing a form with an individual that is not authorized to perform such actions and for failure to remit the deficiency tax within the time prescribed. A surcharge that amounts to 50% is imposed upon individuals who neglect to file the form or commit tax fraud.
There are other penalties, but it’s best to avoid them altogether and file your expanded withholding taxes appropriately.
Many changes are happening in the country’s tax system. It is crucial to read up on them so you won’t have any run-ins with the law. Keep in mind that they can also affect the way you file your taxes and do your tax computations in the Philippines!