BIR Form 1601-C – Monthly Remittance Return of Income Taxes Withheld on Compensation
BIR FORM 1601-C
Monthly Remittance Return of Income Taxes Withheld on Compensation
Bureau of Internal Revenue | NIRC Section 79 | TRAIN Law (RA 10963) | Due: 10th (manual) or 15th (eFPS) of the following month
PART I — EMPLOYER INFORMATION
Return Period: [Return Period]
Employer Name: [Employer Name] | TIN: [TIN]
RDO: [RDO Number]
Business Address: [Business Address]
PART II — COMPENSATION AND WITHHOLDING TAX
Number of Employees Withheld From: [Number of Employees]
Total Taxable Compensation (Month): [Total Taxable Compensation]
Total Income Tax Withheld: [Total Withholding Tax]
Adjustments: [Adjustments]
Total Amount Remitted to BIR: [Total Amount Remitted]
Note: At year-end, reconcile all monthly BIR Form 1601-C remittances in the Annual Information Return BIR Form 1604-C (due January 31). Issue BIR Form 2316 to each employee by January 31 of the following year.
CERTIFICATION
I/We declare under the penalties of perjury that this return has been made in good faith, verified by me/us, and to the best of my/our knowledge and belief is true and correct pursuant to Section 267 of the National Internal Revenue Code.
[Employer Name]
Employer / Authorized Representative
Employer / Authorized Representative
________________
Signature
What Is a BIR Form 1601-C – Monthly Remittance Return of Income Taxes Withheld on Compensation?
A BIR Form 1601-C – Monthly Remittance Return of Income Taxes Withheld on Compensation in the Philippines reports the income, deductions and tax due to the revenue authority for the period it covers.
BIR Form 1601-C gives effect to the Pay-As-You-Earn (PAYE) system under Section 79 of the NIRC — employees pay their income tax incrementally through monthly salary withholding rather than in a lump sum at year-end. The employer computes the withholding tax on each employee's monthly compensation using the withholding tax table prescribed by the BIR under Revenue Regulations No. 8-2018 (which implements the TRAIN Law graduated income tax rates), deducts it from the employee's net pay, and remits it to the BIR using BIR Form 1601-C.
BIR Form 1601-C is due on the 10th day of the month following the month when the withholding was made, for manual filers under Section 80(B) of the NIRC. For taxpayers enrolled in the Electronic Filing and Payment System (eFPS), the deadline is extended to the 15th day under BIR Revenue Regulations No. 26-2002. For January — typically the month with the largest withholding tax remittance due to 13th month pay and year-end bonuses processed in December — eFPS group deadlines are staggered from the 11th to 15th day.
At the end of the calendar year, the employer reconciles all monthly BIR Form 1601-C remittances in the Annual Information Return (BIR Form 1604-C), due January 31 of the following year, and issues BIR Form 2316 (Certificate of Compensation Payment/Tax Withheld) to each employee confirming the total compensation paid and tax withheld for the year.
The legal framework governing the BIR Form 1601-C – Monthly Remittance Return of Income Taxes Withheld on Compensation in Philippines draws on several key statutes and regulatory bodies. Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. The Revised Corporation Code (Republic Act No. 11232) regulates corporate entities through the Securities and Exchange Commission (SEC). The Labor Code of the Philippines (Presidential Decree No. 442) and Department of Labor and Employment (DOLE) govern employment matters. The Data Privacy Act of 2012 (Republic Act No. 10173) and the National Privacy Commission (NPC) protect personal data. The Bureau of Internal Revenue (BIR) administers tax obligations under the National Internal Revenue Code. Parties executing a BIR Form 1601-C – Monthly Remittance Return of Income Taxes Withheld on Compensation in Philippines should confirm the document reflects current law, including any amendments enacted since the original drafting date. The National Internal Revenue Code (RA 8424) sets the foundational requirements.
When Do You Need a BIR Form 1601-C – Monthly Remittance Return of Income Taxes Withheld on Compensation?
BIR Form 1601-C must be filed every month by all employers in the Philippines who paid compensation to employees and withheld income tax.
BIR Form 1601-C is required from private corporations registered under the Revised Corporation Code (RA 11232) and partnerships that have one or more employees earning above the PHP 20,833 monthly threshold (below which no withholding is required under the TRAIN Law zero-tax bracket for the first PHP 250,000 annual income).
BIR Form 1601-C is required from sole proprietors (DTI-registered businesses) employing staff, including domestic workers (kasambahay) covered by the Kasambahay Law (Republic Act No. 10361) earning above the applicable minimum wage for their region.
BIR Form 1601-C is required from government agencies, bureaus, and instrumentalities — including national government agencies (NGAs), government-owned and controlled corporations (GOCCs), and local government units (LGUs) — whose disbursing officers are designated as withholding agents under Section 79(B) of the NIRC and BIR Revenue Regulations No. 1-2003.
BIR Form 1601-C is required from multinational corporations' Philippine branches and Representative Offices registered with the SEC under Section 177 of the Revised Corporation Code (RA 11232) that employ Philippine resident employees.
BIR Form 1601-C must be filed even when the withholding amount for the month is zero — for example, when all employees earn below the PHP 250,000 annual threshold and no tax was withheld. A nil or zero return must still be filed to maintain compliance records with the BIR and avoid late-filing penalties under Section 255 of the NIRC.
Parties in Philippines should prepare a BIR Form 1601-C – Monthly Remittance Return of Income Taxes Withheld on Compensation proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. The Revised Corporation Code (Republic Act No. 11232) regulates corporate entities through the Securities and Exchange Commission (SEC). The Labor Code of the Philippines (Presidential Decree No. 442) and Department of Labor and Employment (DOLE) govern employment matters. The Data Privacy Act of 2012 (Republic Act No. 10173) and the National Privacy Commission (NPC) protect personal data. The Bureau of Internal Revenue (BIR) administers tax obligations under the National Internal Revenue Code. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your BIR Form 1601-C – Monthly Remittance Return of Income Taxes Withheld on Compensation
A complete BIR Form 1601-C for the Philippines must include the following essential information for accurate withholding tax remittance.
Employer Identification: Full registered name of the employer (as it appears on the BIR Certificate of Registration), TIN, RDO number, and complete business address. For employers with multiple branches, the head office files a consolidated BIR Form 1601-C unless branch-level filing is required by the specific RDO.
Return Period: The specific month for which withholding was made — e.g., compensation paid in January 2024, with BIR Form 1601-C due by February 10 (manual) or February 15 (eFPS).
Number of Employees: The total number of employees from whom withholding was made during the month, and the total number of employees on payroll (including those below the withholding threshold). This data feeds into the year-end BIR Form 1604-C reconciliation.
Total Taxable Compensation: Aggregate gross taxable compensation paid to all employees during the month — including basic salary, overtime pay, holiday pay, commissions, and bonuses — less non-taxable items (de minimis benefits under BIR Revenue Regulations No. 11-2018 not exceeding PHP 90,000 annual threshold, and mandatory SSS/PhilHealth/Pag-IBIG contributions).
Total Withholding Tax: The aggregate income tax withheld from all employees during the month using the monthly withholding tax table under BIR Revenue Regulations No. 8-2018 (TRAIN Law implementing rules). The monthly withholding tax table converts the TRAIN Law's annual graduated rates (0%–35%) to monthly computation.
Mode of Remittance: Payment accompanies the return through the Authorized Agent Bank (AAB), BIR eFPS, or BIR-accredited online channels (GCash, Maya, Land Bank, DBP). Under Section 80(A) of the NIRC, the remittance must be made simultaneously with the filing of BIR Form 1601-C.
Additional compliance elements for a BIR Form 1601-C – Monthly Remittance Return of Income Taxes Withheld on Compensation used in Philippines include: Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. The Revised Corporation Code (Republic Act No. 11232) regulates corporate entities through the Securities and Exchange Commission (SEC). The Labor Code of the Philippines (Presidential Decree No. 442) and Department of Labor and Employment (DOLE) govern employment matters. The Data Privacy Act of 2012 (Republic Act No. 10173) and the National Privacy Commission (NPC) protect personal data. The Bureau of Internal Revenue (BIR) administers tax obligations under the National Internal Revenue Code. Forms-legal.com provides this template as a starting point for Philippines-compliant documentation.
Cite this page
Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). BIR Form 1601-C – Monthly Remittance Return of Income Taxes Withheld on Compensation (Philippines) [Legal document template]. Forms Legal. https://forms-legal.com/philippines/government/tax-forms/bir-form-1601c-philippines
"BIR Form 1601-C – Monthly Remittance Return of Income Taxes Withheld on Compensation (Philippines)." Forms Legal, 2026, https://forms-legal.com/philippines/government/tax-forms/bir-form-1601c-philippines.
@misc{formslegal-bir-form-1601c-philippines,
author = {{Forms Legal}},
title = {BIR Form 1601-C – Monthly Remittance Return of Income Taxes Withheld on Compensation (Philippines)},
year = {2026},
howpublished = {\url{https://forms-legal.com/philippines/government/tax-forms/bir-form-1601c-philippines}},
note = {Free legal document template. Based on National Internal Revenue Code (RA 8424)}
}Frequently Asked Questions
Every employer in the Philippines who pays compensation to one or more employees is required to file BIR Form 1601-C monthly under Section 79(A) of the National Internal Revenue Code (NIRC, Republic Act No. 8424 as amended by TRAIN Law, Republic Act No. 10963, 2017). The definition of 'employer' for withholding tax purposes under the NIRC is broad: it includes private corporations, partnerships, sole proprietors, non-profit organizations, government agencies (national and local), government-owned and controlled corporations (GOCCs), international organizations with tax exemption agreements, and individual employers of domestic workers (kasambahay under RA 10361). An employer must file BIR Form 1601-C even for months when zero withholding tax was collected — for example, when all employees earn within the zero-tax bracket (annual income not exceeding PHP 250,000 under TRAIN Law). Failure to file — even a nil return — is penalized under Section 255 of the NIRC with fines of PHP 1,000 to PHP 25,000 per violation, plus the responsible corporate officer may face criminal liability under Section 253 of the NIRC.
BIR Form 1601-C applies the monthly income tax withholding table prescribed by the BIR under Revenue Regulations No. 8-2018 (TRAIN Law implementing rules), which converts the TRAIN Law's annual graduated income tax rates into monthly withholding amounts. The TRAIN Law rates under Section 24(A)(2)(a) of the NIRC are: 0% on annual taxable income up to PHP 250,000 (PHP 20,833 monthly); 15% on the excess over PHP 250,000 up to PHP 400,000; 20% on the excess over PHP 400,000 up to PHP 800,000; 25% on the excess over PHP 800,000 up to PHP 2,000,000; 30% on the excess over PHP 2,000,000 up to PHP 8,000,000; 35% on the excess over PHP 8,000,000. For employees receiving supplemental compensation (bonuses, commissions, 13th month pay in excess of PHP 90,000), the withholding is computed at 35% on the supplemental compensation amount under BIR Revenue Regulations No. 8-2018. Employers use the BIR's withholding tax calculator on the BIR website or apply the monthly tax table in Annex A of BIR Revenue Regulations No. 8-2018 to compute the monthly withholding for each employee.
Late filing or late remittance of BIR Form 1601-C in the Philippines exposes the employer to significant penalties under the National Internal Revenue Code. Under Section 248(A) of the NIRC, a 25% surcharge on the unremitted withholding tax is imposed for failure to pay on time — this is the most common penalty for BIR Form 1601-C delinquency. Additionally, Section 249 of the NIRC imposes 12% annual interest on the unpaid withholding tax from the due date until the date of full payment. Compromise penalties under BIR Revenue Memorandum Order No. 7-2015 range from PHP 200 to PHP 50,000 depending on the amount of unremitted withholding tax. Criminal liability: under Section 253(d) of the NIRC, an employer who willfully fails to withhold and remit income taxes on compensation may be imprisoned for 6 months to 10 years and fined PHP 10,000 to PHP 200,000. The responsible corporate officers (President, Treasurer, General Manager) are personally liable for the penalties — the corporate entity defense does not shield individuals from criminal liability under the NIRC, as held by the Supreme Court in CIR v. Antonio (G.R. No. 147392, February 25, 2004).
BIR Form 1601-C and BIR Form 2316 are companion documents in the Philippine employer withholding tax compliance system. BIR Form 1601-C (Monthly Remittance Return) is filed by the employer to the BIR monthly — it is the payment voucher that accompanies the remittance of withheld income tax. BIR Form 2316 (Certificate of Compensation Payment/Tax Withheld) is the annual certificate issued by the employer to each individual employee by January 31 of the following year, certifying the total compensation paid to that employee during the taxable year and the total income tax withheld. BIR Form 2316 is issued to every employee — those who qualify for substituted filing (single employer, correctly withheld) and those who do not. For substituted filers, the employer also submits copies of all BIR Form 2316 certificates to the BIR's electronic BIR Form 1604-C (Annual Information Return) by January 31, which the BIR treats as the employees' ITR substitute under Section 51-A of the NIRC and BIR Revenue Regulations No. 3-2002. The monthly BIR Form 1601-C remittances are summarized and reconciled in the annual BIR Form 1604-C.
A BIR Form 1601-C – Monthly Remittance Return of Income Taxes Withheld on Compensation does not legally require a lawyer in Philippines, and individuals and businesses may draft and execute the document independently. The National Internal Revenue Code (RA 8424) does not mandate legal representation for the creation or signing of this type of document. However, seeking independent legal advice from a qualified Philippines lawyer is recommended for transactions involving substantial financial value, complex regulatory requirements, or cross-border elements where multiple legal jurisdictions may apply. A lawyer can verify that the document complies with all applicable statutory requirements, identify potential risks specific to the transaction, and confirm that the terms adequately protect the interests of all parties involved. The Supreme Court of the Philippines has jurisdiction over disputes arising from this type of document, and Securities and Exchange Commission (SEC Philippines) may impose additional compliance obligations depending on the nature of the underlying transaction. Professional legal review is particularly advisable where the document will be submitted to government agencies or used as evidence in legal proceedings.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
Found an error? Let us knowRelated Documents
You may also find these documents useful:
BIR Form 1902 – Application for Registration (Employees / Compensation Income)
BIR Form 1902 is the Application for Registration of individuals earning purely compensation income (employees) with the Bureau of Internal Revenue (BIR) of the Philippines. Required under Section 236 of the NIRC and BIR Revenue Regulations No. 11-2018. Filed by new employees upon hiring to obtain a TIN. Employers are required to assist employees in registration.
BIR Form 1700 – Annual Income Tax Return (Compensation Income)
BIR Form 1700 is the Annual Income Tax Return for individuals earning purely compensation income from two or more employers, or whose income tax was not correctly withheld. Required under Section 51 of the NIRC, as amended by TRAIN Law (RA 10963). Due April 15 of the following year. Applies TRAIN Law graduated rates from 0% to 35%.
BIR Form 0619-E – Monthly Remittance of Creditable Income Taxes Withheld (Expanded)
BIR Form 0619-E is the monthly remittance form for Expanded Withholding Tax (EWT) withheld on professional fees, rent, commissions, and other income payments in the Philippines. Filed under Section 57 of the NIRC and BIR Revenue Regulations No. 11-2018. Due on the 10th day (manual) or 15th day (eFPS) of the following month. Covers the first 2 months of each quarter.