Remittance of Income Tax Withheld and GSIS Contribution by Local Treasurers

January 6, 2000 BLGF MEMORANDUM CIRCULAR NO. 001-00 TO : All Bureau Officials and Personnel; Regional Directors for Local Government Finance; District Treasurers of Metropolitan Manila; Provincial, City and Municipal Treasurers; and Others Concerned SUBJECT : Remittance of Income Tax Withheld and GSIS Contribution by Local Treasurers For the information and guidance of all concerned, quoted below is the full text of DOF Memorandum Circular No. 2-99 dated December 21, 1999 of the Secretary of Finance on the above subject matter, to wit: "Reports have been received that some local government units (LGUs) have not remitted regularly income tax withheld and GSIS contributions collected by them. "Local treasurers therefore are hereby instructed to remit immediately and regularly to the BIR and GSIS said income tax withheld and GSIS contributions. GSIS contributions must be remitted immediately within ten (10) days following the month to which the contributions apply, pursuant to Sec. 3.4 of the Rules and Regulations implementing the GSIS Act of 1997. While income tax withheld must be remitted within ten (10) days immediately following the month in which withholding was made, to any authorized agent bank within the Revenue District Office or in placed where there are no agent banks, to the Revenue District Officer of the City or Municipality where the Withholding Agents/Employers legal residence or place of business or office is located. Provided however, That taxes withheld from the last compensation (December) for the calendar year shall be paid not later than January 25 of the succeeding year as stipulated in Sec. 8 of Revenue Memorandum Circular No. 28-94 of the BIR. ESITcH "Violation of withholding tax provision by a government officer shall upon conviction, be fined in a sum not less than five thousand pesos but not more than fifty thousand pesos or imprisoned for a term of not less than six months and one day but not more than two years, or both, for each act or omission, pursuant to Sec. 12B(3) of the abovementioned Revenue Memorandum Circular. "Interest shall also be assessed and collected on any unremitted income tax withheld and/or GSIS contributions in accordance with applicable circulars, rules and regulations. "Failure to remit on time as per the specified schedules, the treasurers concerned in addition to the abovementioned sanctions, shall be under obligation to explain in writing the reasons or grounds for such failures. "Strict observance/compliance is hereby enjoined on all local treasurers." In view of the foregoing, you are hereby directed to submit to this Office monthly report after every monthly remittance of the withholding taxes to the BIR and the GSIS contributions. Strict observance and compliance with the provisions of the aforequoted circular are hereby enjoined, attention being invited to the sanctions imposed on the non-remittance of withholding taxes and GSIS contributions. The District Treasurers of Metropolitan Manila and all Provincial Treasurers are hereby instructed to disseminate this Circular to all Municipal Treasurers within their respected jurisdictions. (SGD.) ANGELINA M. MAGSINO Deputy Executive Director Officer-in-Charge December 21, 1999 DOF MEMORANDUM CIRCULAR NO. 2-99 TO : All Regional Directors of the Bureau Local Government Finance (BLGF); District Treasurers of Metropolitan Manila; Provincial, City and Municipal Treasurers; and Others Concerned. SUBJECT : Remittance of Income Tax Withheld and GSIS Contributions by Local Treasurers. Reports have been received that some local government units (LGUs) have not remitted regularly income tax withheld and GSIS contribution collected by them. Local treasurers therefore are hereby instructed to remit immediately and regularly to the BIR and GSIS said income tax withheld and GSIS contributions. GSIS contributions must be remitted immediately within ten (10) days following the month to which the contributions apply, pursuant to Sec. 3.4 of the Rules and Regulations implementing the GSIS Act of 1997. While income tax withheld must be remitted within ten (10) days immediately following the month in which withholding was made, to any authorized agent bank within the Revenue District Office or in placed where there are not agent banks, to the Revenue District Officer of the City or Municipality where the Withholding Agents/Employees legal residence or place of business or office is located. Provided however, That taxes withheld from the last compensation (December) for the calendar year shall be paid not later than January 25 of the succeeding year as stipulated in Sec. 8 of Revenue Memorandum Circular No. 28-94 of the BIR. ACaEcH Violation of withholding tax provision by a government officer shall upon conviction be fined in a sum not less than five thousand pesos but not more than fifty thousand pesos or imprisoned for a term of not less than six months and one day but not more than two years, or both, for each act or omission, pursuant to Sec. 12B(3) of the abovementioned Revenue Memorandum Circular. Interest shall also be assessed and collected on any unremitted income tax withheld and/or GSIS contributions in accordance with applicable circulars, rules and regulations. Failure to remit on time as per the specified schedules, the treasurers concerned in addition to the abovementioned sanctions, shall be under obligations to explain in writing the reasons or grounds for such failures. Strict observance/compliance is hereby enjoined on all local treasurers. (SGD.) EDGARDO B. ESPIRITU Secretary