Foundation Which Does Not Withhold Taxes Not Required to File BIR Form 1604

October 15, 1999 BIR RULING NO. 161-99 RR 2-98-000-00-161-99 Philippine Council for NGO Certification (PCNC) 4/F MSCB Bldg., 4718 Eduque Street, Makati City, Philippines Attention: Ms . Fely I . Soledad Executive Director Gentlemen : This refers to your letter dated September 13, 1999 requesting for a ruling on the following "If the salaries of a foundation's employees are being paid by the mother company, and therefore no separate BIR Form 1604 is being filed by the foundation since it does not withhold taxes, anyway, would we still require BIR Form 1604?" In reply, please be informed that Sec. 2.83.2 of Revenue Regulations No. 2-98 provides that every employer or other person required to deduct and withhold the tax shall, on or before January 31 of the succeeding year, file with either the Collection Agent or Authorized Municipal Treasurer or Revenue District Officer or Commissioner the Annual Information Return of Income Tax Withheld on Compensation (BIR Form No. 1604), to be submitted with an alphabetical list of employees, both in duplicate copies. Since the Mother Company (Founding Company) of a foundation is paying the salaries of those performing service, it is the one which is charged with the duty to deduct, withhold and remit the withholding tax due from the compensation paid to its employees and necessarily to file BIR Form No. 1604. It follows that the foundation which does not withhold taxes is not required to file said BIR Form No. 1604 as additional document for purposes of securing a Certificate of Accreditation from the Philippine Council for NGO Certification (PCNC). LexLib Please be guided accordingly. Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue