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1603 Fringe benefit
 

1603 Fringe benefit

 

1603 Fringe benefit

 

    Login: https://efps.bir.gov.ph/home.html

    1. Go: Start > Programs > eBIRForms > eBIRForms.
      • Login with company TIN number.
    2. Choose "1603" and click "Fill-up".
      • Change the year and quarter covered.
      • In section 4, choose "Yes" or "No".
      • In section 13, click "Private".
    3. Complete the form.
      • Enter amount paid and tax due for fringe benefits during the quarter.
      • Click "Validate" > "Save".
      • Click "Print"
      • Print 3 x "eBIRForms 1603".
      • Click "Submit".
      • Click "File" > "Exit".
    4. Go back to Zipier.
      • Copy in the details you input in eBIRForms.
      • Click "Sign" on the form (see form ➔).
      • Click "Submit" (below), then "Yes".
    5. Wait 15 minutes.
      • Until the BIR email confirmation arrives.
      • Print 3 x "email confirmation".
      • Staple one "email confirmation" to one "eBIRForms 1603" (until you have 3 stapled sets).
    6. Pay at any accredited bank.
      • Get all copies stamped upon payment.
      • The bank keeps 2 copies.
      • Take one stamped copy back and store in your filing.
    7. Go back to Zipier.
      • On "To-Do", find the 1603.
      • Click the blue "Tax form waiting..." icon.
      • Click "Yep, it's sent".
        • When asked for proof of submission, upload a JPG photo of the stamped 1603.
 

    Payable to: (Bank name and branch) FAO Bureau of Internal Revenue IFO: (Taxpayer name or Registered Name) TIN:XXX-XXX-XXX-XXX.
    For example: PhilBank Manila Central FAO: Bureau of Internal Revenue IFO: ABC Company TIN: 123-456-789-000.

    Due:

    • 10th January, 10th April, 10th July and 10th October (10th day of the month following the end of the quarter)
    • If the submission date falls on a Saturday, Sunday or holiday, it must be submitted on the first working day AFTER.
    • The deadline for electronic filing and paying the taxes due via EFPS on or before the fifteenth (15th) day of the month following the end of the calendar.

    Manual

    • By cash or company check at the following accredited banks.
    • If using company check, don't combine multiple payments into one check.
    • Can also pay via GCash.

    Online

    • By cash or company check at the following accredited banks.
    • If using company check, don't combine multiple payments into one check.
    • Can also pay via GCash.
 

    Manual

    • Have the bank teller machine validate or stamp the form as evidence.
    • This form must be submitted even if no wages or tax are due. Submit a zero return and wait for the email confirmation. Keep copies for your own record.
    • If paying by check, the amount on the form must match the amount on the check. Do not submit multiple forms with a single check.
    • If paying late, you must go to the local RDO BIR branch and get your penalty computed by the Officer-In-Charge and pay at any accredited bank agents.

    If the due date falls on a weekend:

    • Filing can be done during the weekend as long as it is confirmed before the closing of the due date.
    • Payment can be made the next working day.

    Online

    1. Download eBIRForms.
    2. Run BIRForms.exe
    • If no wages or tax due, submit a zero return. Keep copies for your own record.
    • If paying late, go to the BIR and get the penalty computed by the Officer of the Day before paying.

    • To file and pay online, go to EFPS for instructions.
 

    To file quarterly withholding tax taken out on fringe benefits granted to higher ranking employees.

 
    Due For period starting
  1. Tue, Jan 10, 2017 Sat, Oct 1, 2016
  2. Mon, Apr 10, 2017 Sun, Jan 1, 2017
  3. Mon, Jul 10, 2017 Sat, Apr 1, 2017
  4. Tue, Oct 10, 2017 Sat, Jul 1, 2017
 
    Due For period starting
  1. Wed, Jan 10, 2018 Sun, Oct 1, 2017
  2. Tue, Apr 10, 2018 Mon, Jan 1, 2018
  3. Tue, Jul 10, 2018 Sun, Apr 1, 2018
  4. Wed, Oct 10, 2018 Sun, Jul 1, 2018
       

 
  • The name of the 1603 is "Quarterly Remittance Return of Final Income Taxes Withheld".

  • The purpose of the 1603 is to file quarterly withholding tax taken out on fringe benefits granted to higher ranking employees.

  • To submit the form 1603, you must: 1. Go: Start > Programs > eBIRForms > eBIRForms.

    • Login with company TIN number.
      1. Choose "1603" and click "Fill-up".
    • Change the year and quarter covered.
    • In section 4, choose "Yes" or "No".
    • In section 13, click "Private".
      1. Complete the form.
    • Enter amount paid and tax due for fringe benefits during the quarter.
    • Click "Validate" > "Save".
    • Click "Print"
    • Print 3 x "eBIRForms 1603".
    • Click "Submit".
    • Click "File" > "Exit".
      1. Go back to Zipier.
    • Copy in the details you input in eBIRForms.
    • Click "Sign" on the form (see form ➔).
    • Click "Submit" (below), then "Yes".
      1. Wait 15 minutes.
    • Until the BIR email confirmation arrives.
    • Print 3 x "email confirmation".
    • Staple one "email confirmation" to one "eBIRForms 1603" (until you have 3 stapled sets).
      1. Pay at any accredited bank.
    • Get all copies stamped upon payment.
    • The bank keeps 2 copies.
    • Take one stamped copy back and store in your filing.
      1. Go back to Zipier.
    • On "To-Do", find the 1603.
    • Click the blue "Tax form waiting..." icon.
    • Click "Yep, it's sent".
      • When asked for proof of submission, upload a JPG photo of the stamped 1603.
  • The form 1603 is to be submitted on the - 10th January, 10th April, 10th July and 10th October (10th day of the month following the end of the quarter)

    • If the submission date falls on a Saturday, Sunday or holiday, it must be submitted on the first working day AFTER.
    • The deadline for electronic filing and paying the taxes due via EFPS on or before the fifteenth (15th) day of the month following the end of the calendar.
  • For the 1603, you must submit 3 copies.

 Notes:

Forms must be submitted in triplicate, portrait, and stapled to the Tax Return Receipt Confirmation.

  • Fringe benefit tax is withholding tax withheld on the monetary value of the fringe benefit granted by the employer to an employee who holds a managerial or supervisory position.

 Notes:

A final withholding tax on the grossed-up monetary value of the fringe benefit granted by the employer to an employee who holds a managerial or supervisory position. FBT is treated as a final income tax on the employee which shall be withheld and paid by the employer on a quarterly basis.

 See also: http://www.bir.gov.ph/info-efps/Form%20Guidelines%20And%20Instructions/Form%201603%20Guidelines%20and%20Instructions.html

 And also: http://www.bir.gov.ph/taxcode/1638.htm

  • Fringe benefit is any good, service or other benefit furnished or granted by an employer in cash or in kind, in addition to basic salaries to employees (except rank and file employees).

  • The following employee fringe benefits are taxable: housing, vehicle, household personnel, interest on loan at less than market rate, leisure club fees, travel and holiday expenses, educational assitance, and insurance.

 Notes:

Fringe benefit means any good, service or other benefit furnished or granted by an employer in cash or in kind, in addition to basic salaries to employees (except rank and file employees) such as, but not limited to the following:

  • Housing.
  • Expense account.
  • Vehicle of any kind.
  • Household personnel, such as maid, driver and others.
  • Interest on loan at less than market rate to the extent of the difference between the market rate and actual rate granted.
  • Membership fees, dues and other expenses borne by the employer for the employee in social and athletic clubs or other similar organizations.
  • Expenses for foreign travel.
  • Holiday and vacation expenses.
  • Educational assistance to the employee or his dependents and.
  • Life or health insurance and other non-life insurance premiums or similar amounts in excess of what the law allows..

 See also: http://www.bir.gov.ph/taxcode/1638.htm

 And also: http://www.bir.gov.ph/info-efps/Form%20Guidelines%20And%20Instructions/Form%201603%20Guidelines%20and%20Instructions.html

  • The following employee benefits are not covered by Fringe Benefit Tax: de minimis benefits, benefits which are given to employees who are involuntarily separated from work, contributions of the employer for the benefit of the employee to retirement, insurance and hospitalization benefit plans, Benefits given to the rank and file.

 Notes:

The following employee benefits are not covered by Fringe Benefit Tax:

  • Fringe benefits which are authorized and exempted from income tax under the Code or under special law. Separation benefits which are given to employees who are involuntarily separated from work are not subject to FBT.
  • Contributions of the employer for the benefit of the employee to retirement, insurance, and hospitalization benefit plans.
  • Benefits given to rank and file employees, whether granted under a collective bargaining agreement or not.
  • De minimis benefits.
  • Benefits granted to employee as required by the nature of, or necessary to the trade, business or profession of the employer.
  • Benefits granted for the convenience of the employer.

Although the benefit may be exempt from FBT, it may, however, still form part of the employee's gross compensation income which is subject to income tax, which is required to be covered by the withholding tax on wages.

 See also: http://www.bir.gov.ph/taxcode/1638.htm

  • The De Minimis benefits are benefits offered by an employer to their employees that are of relatively small value and are offered or furnished by the employer merely as a means of promoting the health, goodwill, contentment, or efficiency of his employees and are exempt from the fringe benefit tax.

 Notes:

The following are considered as 'de minimis' benefits granted to each employee as updated by Revenue Regulation (RR) 5-2011:

  • Monetized unused vacation leave credits of private employees not exceeding 10 days during the year.
  • Monetized value of vacation and sick leave credits paid to government officials and employees.
  • Medical cash allowance to dependents of employees not exceeding P1,500.00 per employee per semester or P250 per month.
  • Rice subsidy of P2,000.00 or one (1) sack of 50-kg rice per month amounting to not more than P2,000.00.
  • Uniforms and clothing allowance not exceeding P6,000 per annum.
  • Actual medical assistance, e.g. medical allowance to cover medical and healthcare needs, annual medical/executive check-up, maternity assistance, and routine consultations, not exceeding P10,000 per annum.
  • Laundry allowance not exceeding P300 per month.
  • Employees achievement awards, e.g., for length of service or safety achievement, which must be in the form of a tangible personal property other than cash or gift certificate, with an annual monetary value not exceeding P10,000.00 received by the employee under an established written plan which does not discriminate in favor of highly paid employees.
  • Gifts given during Christmas and major anniversary celebrations not exceeding P5,000 per employee per annum.
  • Daily meal allowance for overtime work and night/graveyard shift not exceeding 25% of the basic minimum wage on a per region basis.

All other benefits given by employers which are not included in the above enumeration shall not be considered as de minimis benefits, and hence, shall be subject to fringe benefit tax.

 See also: ftp://ftp.bir.gov.ph/webadmin1/pdf/42126rr%20no.%2010-2008.pdf






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