Filing of a Withholding Return and Payment Thereof

July 12, 1960 BIR RULING NO. 300-60 Mr. Johnny S. Roman 1487 Franco Street Tondo, Manila S i r : Reference is made to your letter dated May 4, 1960 stating the following: prcd " . . . It has been customary on our part to make the quarterly payment of taxes withheld from the salaries of the employees until the taxes withheld reached the amount of P200.00. We have been charged penalty, compromise and interest for late payment. "Now, we would like to refer this matter of paying the withheld taxes especially if the amount has reached P200.00. Could you clarify us on this matter?" In reply, I have the honor to inform you that Article 4 of Republic Act No. 590, otherwise known as the Withholding Tax Law, requires of every employer who deducts and withholds taxes on the wages of employees to file a return for said withholding and to make payment within 25 days from the close of each calendar quarter to the treasurer of the province, city or municipality in which the employer resides, irrespective of the amount withheld. A violation of this requirement would subject the employer to a penalty of 5% surcharge and 1% monthly interest for late payment as prescribed under Art. 7, par. 2 of the said law. On the other hand, Revenue Regulations No. V-8-A of the Department of Finance which implements the provisions of the said Withholding Tax Law provides in section 22 that every employer who withheld taxes of P200.00 or more during the month, should pay within ten (10) days after the close of that particular calendar month to the persons authorized by law to receive payment. As a rule, therefore, payment should be made under the provisions of Art. 4 of the Withholding Tax Law except where the amount withheld for a particular month is P200.00 or more in which case payment is governed by the provisions of section 22 of Revenue Regulations No. V-8-A of the Department of Finance. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue