Filing of Individual Income Tax Returns by Employed Resident Citizens and Aliens with Purely Compensation Income, and Crediting of Excess Taxes Withheld on Compensation Income Against Tax Due from Business/Professional Income

February 3, 1983 REVENUE REGULATIONS NO. 02-83 SUBJECT : Filing of Individual Income Tax Returns by Employed Resident Citizens and Aliens with Purely Compensation Income, and Crediting of Excess Taxes Withheld on Compensation Income Against Tax Due from Business/Professional Income TO : All Internal Revenue Officers and Others Concerned SECTION 1 . Scope . Pursuant to the provisions of Sections 326 and 45, both of the National Internal Revenue Code, the following regulations are promulgated relative to the filing of income tax returns by resident citizens or aliens deriving purely compensation income and the crediting of taxes withheld on compensation income against tax due business/professional income. aisa dc SECTION 2 . Requirements . (a) Who are required to file . Every resident citizen or alien who earns purely compensation income in a taxable year from one or more employers is required to file a return (BIR Form 1701-A), except where his aggregate gross compensation income as defined in Sec. 28(b) of the National Internal Revenue Code does not exceed his personal exemption of P3,000 if single, P6,000 if married or P4,500 if head of the family. (b) Where and when to file . (1) Taxable returns. The tax due on the return of a filer who has multiple employers or whose employed spouse has a separate employer or the change in his exemption has not been taken into account correctly by his employer or for any reason the amount of credit for tax withheld from his compensation is less than the tax due per his return, the tax shall be paid at the time the return is filed with the Revenue District Officer or Collection Agent of authorized Municipal Treasurer of the municipality in which the filer has his legal residence or place of employment on or before March 18 of the year following the taxable year. If the tax due is in excess of P2,000, the filer may elect to pay the tax in two equal installments, in which case, the amount of credit for income tax withheld from him shall be considered wholly or in part as payment of the first installment. The second installment shall be paid on or before the 18th of July in the year following the taxable year. (2) Even and refundable returns . If the amount of credit for the tax withheld on compensation is equal to the tax due, or when the amount of the tax credit is in excess of the tax due in cases where the employer has ceased to be a withholding agent during the taxable year or where the over-withheld tax for the last quarter of the calendar year has been erroneously remitted to the Bureau, the employee shall file the even or refundable return either directly with the proper internal revenue officers mentioned in the preceding subsection or through the employer, except in the case where the employer has already ceased to be a withholding agent. If the return is filed through the employer, the latter shall transmit the returns to the proper internal revenue officers mentioned in these regulations within the five days from March 18 of the year following the taxable year. cdt The authorized receiving internal revenue officer shall stamp the date of receipt on the returns as if the returns were filed directly and on time with him. Copies of the returns of taxpayers shall be immediately given back to the transmitting employers. SECTION 3 . Application of Excess Credits . In the case of a taxpayer filing BIR Form 1701 for compensation and business/professional incomes, the amount of credit in excess of the tax due from the compensation income may be applied against the tax due from the business/professional income. SECTION 4 . Repealing Clause . Rules and regulations or parts thereof inconsistent with the provisions of these regulations are amended accordingly. SECTION 5 . Effectivity . These regulations shall take effect immediately upon approval thereof. cdt (SGD.) ALFREDO PIO DE RODA, JR. Acting Minister of Finance Recommended by: (SGD.) RUBEN B. ANCHETA Acting Commissioner