(NAR) VOL. III NO. 3 / JULY - SEPTEMBER 1992
(a) Basic Personal Exemption -The additional exemption for dependents shall be claimed by only one of the spouses in the case of married individuals electing to compute their income tax liabilities separately.(b) Additional Exemption - Taxpayers with dependents - A married individual or a head of family shall be allowed an additional exemption of Five thousand pesos (P5,000) for each qualified dependent child, provided that the total number of dependents for which additional exemptions may be claimed shall not exceed four (4) dependents:
For single individual or married individual judicially decreed as legally separated with no qualified dependents P9,000For head of family P12,000For married individual P18,000Husband and wife electing to compute their income tax separately shall be entitled to a personal exemption of P9,000 each.
c. Special Additional Personal Exemption - If the gross compensation income of a single, married or legally separated individual, or head of family does not exceed the aggregate (combined compensation income of husband and wife) amount of Twenty Thousand Pesos (P20,000), he is further entitled to a special additional personal exemption of Four Thousand Pesos (P4,000).
a. Recomputation of 1991 Income TaxGross compensation income (1991)b. IN THE CASE OF HUSBAND AND WIFE WHO FILED CONSOLIDATED INCOME TAX RETURNS FOR PURELY COMPENSATION INCOME, THE "ADJUSTED TAX DUE" REFERS TO THE TAX DUE OF EACH ON THEIR RESPECTIVE TAXABLE COMPENSATION INCOMES PER CONSOLIDATED RETURN; AND THE "TAX PAID PER 1991 ITR IF ANY," SHALL BE ADDED TO THE EXCESS TAX WITHHELD OR DEDUCTED FROM THE COLLECTIBLE AMOUNT DUE TO/FROM EACH OF THEIR RESPECTIVE TAXABLE COMPENSATION INCOMES. (See Sample Computation, Annex "B"**)
Less: Personal and additional exemptions (use
updated exemptions under RA 7167)
Taxable Income
Adjusted Tax due
Less: tax withheld (1991)
Excess Tax Withheld/collectible amount
Add/Deduct Tax Paid per 1991 ITR, if any
Adjusted, refundable/collectible amount
a. Allow Credit for adjusted refundable amount (excess of taxes withheld over the adjusted tax due and tax paid in 1991) against the tax required to be withheld from the compensation of the employee beginning September, 1992 and the succeeding months.
b. If employee has no tax due to be withheld for 1992 (employee becomes exempt under the new exemptions) refund adjusted refundable amount (excess of taxes withheld over adjusted tax due and tax paid in 1991) to employee immediately but not later than January 10, 1993. In turn, the total amount, actually refunded by the employer to the employee, shall be repaid from the remittable amount of taxes withheld for the current month in which refund was made and in succeeding months until the overwithheld tax is fully repaid.
a. Copy of BIR Form W-3 (ANNUAL RETURN OF INCOME TAX WITHHELD ON COMPENSATION) duly received by the BIR showing details of payment of taxes withheld and remitted for 1991.
b. Copy of monthly Withholding Tax Return (BIR Form 1743W) for September, 1992 where credit of excess taxes withheld for 1991 was initially made duly validated by the bank or in places where there are no accredited banks, a certified copy of the Revenue Official Receipt (ROR).
c. Copy of 1991 income tax returns of employees duly stamped received by the BIR.
a. Receive from withholding agents three 3 copies of Alpha List of Employees in the prescribed format (Annex "A"), together with the required documents specified in paragraph III A, 6 a-c above:
Original - RISSI
Duplicate - RDO file copy
Triplicate - Withholding Tax Division
b. Verify the correctness of the mathematical computation made per Alpha List of Employees;
c. Assess upon review of Alpha List of Employees, taxpayers/withholding agents relative to collectible amounts as a result of withholding agents recomputation;
d. Transmit the original copy of Alpha List of Employees to RISSI not later than November 30, 1992, for date capture/reconciliation. Retain duplicate copy of lists and transmittals for audit/review; furnish Withholding Tax Division, National Office with the duplicate copy of transmittal list and triplicate copy of Alpha List, for monitoring and review.
a. Pre-audit all triplicate copies of refundable, taxable and taxable break-even 1701 returns after classifying and assigning a Document Locator Number (DLN).
b. Prepare Pre-Audit Sheet (Annex "C")* in two copies:
Original - attached to the triplicate copy of 1701 return, for transmittal to RISSI
Duplicate - RDO's file copy, for future reference
NOTE: "OTHER TAX CREDITS" IN THE PRE-AUDIT SHEET SHALL NOW MEAN "TAX PAID PER 1991 ITR", IF ANY.
c. Transmit to the following offices concerned the 1701 returns attached with the corresponding Pre-Audit Sheets:
RISSI - All triplicate copies of refundable 1701 returns
Collection Unit/Branch - triplicate copies of 1701 returns with deficiency tax (for issuance of necessary collection letter)
a. Receive pre-audited refundable 1701 returns together with their corresponding Pre-Audit Sheets (Annex "C"*) from RDO.
b. Conduct computer audit preparatory to the preparation of tax refund;
c. Segregate from the batches, defective refundable returns after computer audit and prepare Report of Defective Refundable Returns;
d. Prepare/Generate the corresponding Tax Refund Notice (TRN) for all refundable 1701 returns and all the necessary reports in accordance with RMO No. 28-89;
e. Forward to the respective RDOs the corresponding triplicate copies of refundable 1701 returns together with the Pre-Audit Sheet for detailed audit;
f. Forward to TC/RD the following:
f.1. Report of Defective Refundable Returns with the corresponding defective returns for appropriate action;
f .2. TRN Transmittal List together with the TRNs and all the necessary reports required under RMO No. 28-89 for review and transmittal to General Services Division (GSD) which will then issue the said TRNs to taxpayer/s.
a. Receive the amended Alpha List for 1991 from various RDOs.
b. Reconcile the amount of 1991 credit/refund show in the amended Alpha List with the credits made against remittances beginning September, 1992 and succeeding months.
c. Print the following not later than December 31, 1992:
c.1. List of employers who filed the amended Alpha List of employees for 1991.
c.2. Statistics showing total amount of Adjustments made by employers in terms of credited/refunded amounts to employees.
c.3. List of discrepancies between credited, refunded amounts and the amount required to be remitted for a particular month.
d. Transmit said lists, as follows:
Original - Administrative Branch, Region
Duplicate - Revenue District Office
Triplicate - Withholding Division