YEA-Annualized Method

Report
PURPOSE:
◦
TAX DUE = TAX WITHHELD
WHEN:
◦ On or before the end of the calendar year, prior to
the payment of compensation for the last payroll.
◦ If terminated, on the day on which the last
payment of compensation is made.
STEP 1 -
Determine
the taxable regular and
supplementary compensation paid to the
employee for the entire calendar year;
STEP 2 - If the employee has previous employment/s
within the year, add the amount of taxable
compensation paid to the employee by the
previous employer.
STEP 3 -
Deduct from the aggregate amount of
compensation computed in Step 2 the amount
of the total personal and additional exemptions
of the employee;
Personal Exemptions:
Single P50,000
Married
P50,000
Additional Exemption:
P25,000 for each qualified dependent
STEP 4 - Deduct the amount of premium payments on
Health and/or Hospitalization Insurance of
employees who have presented evidence that
they have paid the same during the taxable
year.
Note: The deductible amount shall not exceed
P2,400/annum or P200/month whichever is
lower and total family gross income does not
exceed P250,000 for the calendar year.
STEP 6 - Determine the deficiency or excess, if any, of
the tax computed in Step 5 over the
cumulative
tax
already
deducted
and
withheld since the beginning of the current
calendar year.
Gross Compensation (prev. + present)
Less:Non-Taxable/Exempt Compensation
a)13th month pay & other benefits
b)Other non-taxable benefits
c)SSS, GSIS, PHIC, Pag-ibig and
Union Dues (Employees share only)
Less: a) Personal and additional exemption
b) Health/Hosp. Premium payment
Taxable Compensation Income
Tax due
xxx
xxx
xxx
xxx
xxx
Pxxx
xxx
xxx
xxx
xxx
xxx
OVER BUT NOT OVER AMOUNT RATE OF EXCESS OVER
Not over
10,000
30,000
70,000
140,000
250,000
500,000
10,0000
30,000
70,000
140,000
250,000
500,000
over
5%
500 + 10%
10,000
2,500 + 15%
30,000
8,500 + 20%
70,000
22,500 + 25%
140,000
50,000 + 30%
250,000
125,000 + 34%
500,000
33% in 1999
32% in 2000 and thereafter
Compensation Income-net
Less: Exemption (single)
Taxable Income
Tax Due
Less: Tax Withheld Jan-Nov
EVEN
PAYABLE
REFUNDABLE
Compensation Income-net
A
B
C
230,000
230,000
230,000
50,000
50,000
50,000
180,000
180,000
180,000
32,500
32,500
32,500
32,500
0__
30,000
2,500
34,500
(2,000)
Mr. Dexter, head of the family with a qualified
dependent brother receives P12,166.67 (net of SSS,
Philhealth,
HDMF)
as
monthly
regular
compensation starting January 1, 2002, he filed his
resignation effective June 30, 2002. The tax
withheld from January to May was P2,900.
Total compensation (Jan. - June)
Less: Personal Exemption
Net Taxable Compensation
P73,000.00
50,000.00
P23,000.00
Tax Due
Tax Withheld from Jan. to May
To be refunded on or before 6/30/02
P 1,800.00
2,900.00
(P1,100.00)
Mr. Jacob, married with 2 qualified
dependent children received P18,500 monthly
compensation (net of SSS, Philhealth, HDMF
employees contributions). Taxes withheld from
Jan. to Nov. were P8,158.00.
Total Compensation (Jan - Nov)
Add: Dec. compensation
Gross Compensation
Less: Personal/additional exemption
Total Compensation
Tax due
P
Less: Tax Withheld
Collectible W/tax for Dec. salary
P203,500.00
18,500.00
P222,000.00
150,000.00
P 72,000.00
8,900.00
8,158.00
P
742.00


Manual Submission - 3 copies of 1604CF/1604E
Including the alphalist of employees and income
payees.
Diskette/CD & email Submission thru
[email protected]
Where to file?
BIR
Revenue District Office
West- Bonifacio St. Davao City
East – Torres St., Davao City
WAGES
1604CF
+ alphalist
EXPANDED
1604 E
+ alphalist

What to use:

When to submit: On or before
Jan. 31 ff year
on or before
March 1 ff year

Where to submit:
RDO
RDO

Retention
3 yrs
same
THE END

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