Revised Quarterly and Annual Returns for Taxes Withheld on Interest Paid by Banks and Quasi Banks

January 5, 1984 REVENUE REGULATIONS NO. 01-84 SUBJECT : Revised Quarterly and Annual Returns for Taxes Withheld on Interest Paid by Banks and Quasi Banks TO : All Internal Revenue Officers, Withholding Agents and Others Concerned SECTION 1 . Scope . Pursuant to Section 326 in relation to Section 54 of the National Internal Revenue Code, these regulations are prescribed to integrate and simplify the quarterly and annual returns of taxes withheld on interest paid by banks and quasi banks. SECTION 2 . Section 6 of Revenue Regulations No. 12-80 is hereby amended to read as follows: "Sec. 6. Return and payment of taxes . Every bank, non-bank financial intermediary, and other institutions required to withhold the tax on interest on bank deposits and yield or any other monetary benefit from deposit substitutes and from trust fund and similar arrangements, and every person subject to the percentage tax shall file a return in duplicate and pay the tax as follows: "(a) Quarterly "(1) Quarterly Return and Remittance of Income Tax Withheld on Interest . Taxes withheld on interest from bank deposits and yield or any other monetary benefit from deposit substitutes and from trust funds and similar arrangements shall be declared in BIR Form No. 1745 (Quarterly Return of Taxes Withheld on Interest Paid by Banks or Quasi Banks). The return shall be filed in duplicate with, and the income tax withheld remitted to the Revenue District Officer, Collection Agent or authorized Treasurer of the city or municipality where the principal place of business of the bank or quasi bank, or its registered branch is located, on or before the 25th day of the month after the close of each calendar quarter." "(2) Return and Payment of Percentage Taxes . Dealers in securities, lending investors, banks and non-bank financial intermediaries shall, within 20 days after the end of each calendar or fiscal quarter, as the case may be, file a quarterly declaration of its gross income actually received. "(b) Annually "(1) Final Annual Percentage Tax . On or before the 20th day of February following the close of the taxable year, every person liable to the percentage tax under these Regulations shall file a final percentage tax return covering the gross income or earnings actually received during the preceding calendar or fiscal year. If the sum of the quarterly tax payments made is not equal to the total tax due for that year, the taxpayer shall either pay the tax still due or the excess tax shall be allowed as tax credit against the quarterly percentage tax liabilities for the taxable quarters of the succeeding taxable year. "(2) Annual Return of Income Tax Withheld on Interest by Banks and Quasi Banks . Every bank or quasi bank required to remit taxes under BIR Form 1745 in paragraph a-1 hereof, shall also file a reconciliation statement of quarterly payments (BIR Form 1745A), in duplicate, with the internal revenue officers mentioned in said paragraph a-1 on or before the 31st day of January of the following year. SECTION 3 . Effectivity . These Regulations shall take effect immediately upon approval. CESAR E. A. VIRATA Minister of Finance Recommending Approval: RUBEN B. ANCHETA Acting Commissioner