REVENUE MEMORANDUM CIRCULAR NO. 28-2018, May 25, 2018

[ REVENUE MEMORANDUM CIRCULAR NO. 28-2018, May 25, 2018 ]

PENALTIES COMPUTED IN BIR FORM NOS. 1602 AND 1603 OF THE ELECTRONIC FILING AND PAYMENT SYSTEM (EFPS)

Adopted: 27 April 2018 Date Filed: 25 May 2018

It has come to our attention that the existing old version of BIR Form Nos. 1602 (Monthly Remittance Return of Final Income Taxes Withheld on Interest Paid on Deposits and Yield on Deposit Substitutes/Trusts/Etc.) and 1603 Quarterly Remittance Return of Final Income Taxes Withheld on Fringe Benefits Paid to Employees Other than Rank and File) loaded in the eFPS is computing penalties for late filing and/or payment. The reason for this is that the deadline in the eFPS is still being updated, to wit:

BIR Form No.

Old Deadline

Updated Deadline under the TRAIN Law

1602 On or before the 10th day of the following month in which withholding is made not later than the last day of the month following the close of the quarter during which withholding was made

1603 On or before the 10th day of the month following the calendar quarter in which the fringe benefits were granted.

In view of the ongoing updates of the Bureau’s eFPS, taxpayers are advised to disregard the penalties computed by the system and pay only the basic tax due, provided that the payment shall be made on or before the last day of the month. Any filing and/or payment beyond the deadline shall be subject to the applicable penalties imposed/computed by the eFPS from updated due date until actually paid.

For the guidance and information of all concerned.

(SGD) CAESAR R. DULAY Commissioner of Internal Revenue