How to File BIR 1601-C Monthly Withholding Tax Return

BIR Form 1601-C is the monthly remittance return for withholding tax on compensation. Every employer in the Philippines who pays wages or salaries must file this form to remit the income taxes withheld from employees' pay. The return is due on or before the 10th of the following month for eFPS filers, or the 15th for manual and eBIR Forms filers. Filing is done through the eFPS (Electronic Filing and Payment System) or eBIR Forms system.

Who Must File BIR 1601-C

All employers — corporations, sole proprietors, partnerships, and individuals — who are registered as withholding agents with the BIR and who have employees from whom tax is withheld must file BIR Form 1601-C monthly. This includes:

• Private sector employers of all sizes
• Government agencies (for contractual employees subject to withholding tax)
• Household employers with domestic workers earning above the tax threshold

Even if no tax was withheld in a given month (e.g., all employees earn below the ₱250,000 annual threshold under the TRAIN Law), the employer should still file a nil return to avoid BIR non-filing penalties.

Filing Deadlines

Filing Method	Monthly Deadline	Authority
eFPS (Electronic Filing and Payment System)	10th of the following month	RR 1-2014
eBIR Forms / Manual	15th of the following month	RR 11-2018

If the deadline falls on a weekend or holiday, the deadline moves to the next business day.

December Adjustment

The December filing is unique because it includes the year-end annualization — the employer reconciles the total tax withheld during January through November against the employee's actual annual tax liability computed under the TRAIN Law graduated brackets. If excess tax was withheld, the employer refunds the difference to the employee and reports the adjusted amount.

Step-by-Step Filing Process

Step 1: Compute Total Compensation and Tax Withheld

For the applicable month, total up across all employees:

• Total taxable compensation paid — gross pay minus non-taxable items (SSS/PhilHealth/Pag-IBIG employee share, de minimis benefits within limits)
• Total withholding tax — computed using the BIR withholding tax table (TRAIN Law graduated rates, Annex B of RR 11-2018)

Step 2: Fill in BIR Form 1601-C

Key fields on the form:

Field	Description
TIN	Employer's Taxpayer Identification Number
Return period	Month and year (e.g., 01/2026 for January 2026)
Total amount of compensation	Gross taxable compensation for the month
Tax withheld for the month	Total tax deducted from all employees
Adjustments	Over-remittance from prior months (if any)
Tax still due	Amount to be remitted
Penalties	Surcharge, interest, and compromise (if filing late)
Total amount payable	Tax due + penalties (if any)

Step 3: File Via eFPS or eBIR Forms

eFPS filers (mandatory for top withholding agents and large taxpayers):

1. Log in to efps.bir.gov.ph
2. Select BIR Form 1601-C
3. Enter the required information
4. Submit and pay electronically through an authorized agent bank (AAB)

eBIR Forms filers:

1. Download and install the eBIR Forms package from bir.gov.ph
2. Fill in BIR Form 1601-C offline
3. Submit the form online
4. Pay at any AAB or through authorized online payment channels (GCash, bank transfer, etc.)

Step 4: Pay the Tax Due

Payment can be made through:

• Authorized Agent Banks (AABs) — with the manually filed return or eFPS payment confirmation
• Online banking — linked to eFPS or eBIR payment portals
• GCash / Maya — for smaller amounts (subject to limits)
• Revenue Collection Officer — at the BIR Revenue District Office (for areas without AABs)

Example: Monthly Withholding Tax Computation

Company: 5 employees with the following monthly taxable compensation after mandatory deductions:

Employee	Monthly Taxable Pay	Monthly Tax Withheld
Employee A	₱35,000	₱2,208.40
Employee B	₱25,000	₱625.05
Employee C	₱20,000	₱0.00
Employee D	₱18,000	₱0.00
Employee E	₱15,000	₱0.00
Total	₱113,000	₱2,833.45

Employee A falls in the ₱33,333-₱66,667 monthly bracket: ₱1,875 + (₱35,000 - ₱33,333) × 20% = ₱2,208.40. Employee B falls in the ₱20,833-₱33,333 bracket: (₱25,000 - ₱20,833) × 15% = ₱625.05. Employees C, D, and E earn below the ₱20,833/month tax-exempt threshold and owe zero tax under the TRAIN Law.

The employer files BIR Form 1601-C reporting ₱113,000 in total compensation and ₱2,833.45 in total tax withheld, then pays ₱2,833.45 to the BIR through the chosen payment channel.

Penalties for Non-Compliance

Penalty	Rate/Amount
Surcharge	25% of the tax due (late filing/payment)
Interest	12% per annum from due date until paid (TRAIN Law, Sec. 249)
Compromise penalty	₱200 to ₱25,000 depending on amount and delay

For willful failure to withhold or remit taxes, criminal penalties may apply under Section 255 of the NIRC: a fine of ₱10,000 to ₱100,000 and imprisonment of 1 to 10 years.

Related Guides

• Tax Calculator (TRAIN Law) — Compute monthly withholding tax for any salary level
• Withholding Tax Guide (TRAIN Law) — TRAIN Law brackets and computation examples
• Government Remittance Deadlines Calendar — All monthly filing deadlines in one calendar
• Philippine Payroll Compliance Guide — End-to-end payroll compliance

Legal References

• National Internal Revenue Code (NIRC), as amended by RA 10963 (TRAIN Law) — Sections 79-83 (Withholding of Tax at Source), Section 249 (Interest), Section 255 (Criminal Penalties)
• BIR Revenue Regulations No. 11-2018 — Revised withholding tax tables under TRAIN Law
• BIR Revenue Regulations No. 1-2014 — eFPS filing requirements
• BIR Form 1601-C — Monthly Remittance Return of Income Taxes Withheld on Compensation
• BIR Form 1604-CF — Annual Information Return of Income Taxes Withheld on Compensation

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This guide is for informational purposes only and does not constitute legal, tax, or financial advice. While we strive for accuracy by citing official Philippine laws and government circulars, regulations change. Consult a qualified professional or the relevant government agency for advice specific to your situation.