Complete Guide to BIR Form 1601C and 0619E Philippines for Small Business Owners
If you are a business owner, freelancer with staff, or startup founder, you've probably heard about withholding taxes. Learn everything about BIR Form 1601C and 0619E to stay compliant and avoid costly mistakes.
What you'll learn in this BIR Form 1601C and 0619E guide
This complete guide to BIR Forms 1601C and 0619E explains monthly withholding tax filing obligations for Filipino small business owners, including expanded withholding tax, filing deadlines, and common mistakes to avoid.
For related tax filing guides, see our BIR Form 1701 vs 1701A vs 1701MS Guide, BIR Form 1701Q Filing Guide, BIR Tax Deadlines 2026 Guide, and BIR Penalties 2026 Guide.
Understanding BIR Withholding Tax Obligations
If you are a business owner, freelancer with staff, or startup founder, you've probably heard about withholding taxes. Many people get confused about what to file, when to file, and which form to use.
Understanding BIR Form 1601C and 0619E Philippines rules is very important for compliance. These forms are part of your BIR monthly withholding tax filing obligations. Filing the wrong form — or missing the deadline — can result in penalties.
This guide explains everything in simple terms so you can stay compliant and avoid costly mistakes.
What is BIR Form 1601-C?
BIR Form 1601-C is the Monthly Remittance Return of Income Taxes Withheld on Compensation.
In simple terms, this is the form you file when you withhold tax from your employees' salaries. This is called withholding tax on compensation.
Who Must File BIR Form 1601-C?
You must file this form if:
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You are a business owner with employees
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You are a freelancer or sole proprietor with staff
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You are a corporation or partnership paying salaries
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You withhold tax from employee compensation
💡 Important: Even if you only have one employee, you are required to file.
What Payments Are Covered?
BIR Form 1601-C covers:
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Basic salary
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Overtime pay
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Holiday pay
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Bonuses (taxable portion)
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Commissions
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Taxable allowances
⚠️ Important: If the employee's income is subject to withholding tax based on BIR withholding tables, you must deduct tax and remit it to the government.
How to Compute Withholding Tax on Compensation
Computation is based on:
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1Employee's taxable income
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2Applicable withholding tax table (issued by BIR)
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3Payroll period (monthly, semi-monthly, etc.)
Basic process:
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Compute gross income
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Deduct mandatory contributions (SSS, PhilHealth, Pag-IBIG)
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Determine taxable income
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Apply withholding tax table
💡 Tip: Your payroll system usually does this automatically.
Filing Deadline
BIR Form 1601-C must be filed on or before the 10th day of the following month.
Example:
- • January payroll → file on or before February 10
⚠️ Note: If filing through EFPS, deadlines may vary slightly based on your industry classification.
How to File BIR 1601C
If you are wondering how to file BIR 1601C, here's the simple process:
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1
Download and open eBIRForms
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2
Fill out BIR Form 1601-C
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3
Validate the form
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4
Submit electronically
Pay through:
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Authorized Agent Banks (AABs)
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Online banking
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GCash/Maya (if applicable)
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EFPS (for enrolled taxpayers)
📋 Always keep: Email confirmation, Payment receipt, Validated form copy
What is BIR Form 0619-E?
BIR Form 0619-E is the Monthly Remittance Form of Creditable Withholding Tax (Expanded).
This applies to expanded withholding tax Philippines transactions.
Unlike 1601-C, this is NOT about employees. This is about taxes you withhold from suppliers, contractors, professionals, and service providers.
Who Must File BIR Form 0619-E?
You must file if:
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Your business pays professional fees
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You pay rental income
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You pay commissions
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You pay contractors or consultants
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You are required to withhold expanded withholding tax
💡 Important: Even sole proprietors are required to file if they withhold tax.
What is Expanded Withholding Tax?
Expanded Withholding Tax (EWT) means:
You deduct a percentage of payment to a supplier or professional and remit it to BIR.
Examples:
- Professional fees → 5% or 10%
- Rental payments → 5%
- Contractor payments → 2%
- Commissions → 5%
⚠️ Important: The withheld amount becomes a tax credit for the supplier. You must issue BIR Form 2307 as proof.
How to Compute BIR 0619-E
Example:
Filing Deadline
BIR Form 0619-E must be filed on or before the 10th day of the following month.
💡 Same deadline rule as 1601-C.
How to File BIR 0619E
If you're asking how to file BIR 0619E, follow these steps:
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1
Open eBIRForms
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2
Select BIR Form 0619-E
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3
Enter total taxable base and withholding amount
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4
Validate form
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5
Submit electronically
Pay via:
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Authorized banks
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Online payment facilities
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EFPS (if enrolled)
⚠️ Important: Don't forget to issue BIR Form 2307 to your supplier.
📊 Key Differences Between 1601-C and 0619-E
| Feature | BIR 1601-C | BIR 0619-E |
|---|---|---|
| Type of tax | Withholding Tax on Compensation | Expanded Withholding Tax |
| Who it applies to | Employees | Suppliers, professionals, contractors |
| Filed by | Employers | Businesses acting as withholding agents |
| Covers | Salaries and wages | Professional fees, rentals, commissions, services |
| Tax credit given to | Employee | Supplier/service provider |
In short:
1601-C = Employees
0619-E = Suppliers and professionals
Do not mix them up.
Step-by-Step: BIR Monthly Withholding Tax Filing Process
Here's a simple checklist for proper BIR monthly withholding tax filing:
1. Compute Withholding Tax
• Payroll → use compensation tax table
• Supplier payments → check applicable EWT rate
2. Prepare the Correct Form
• Employees → 1601-C
• Suppliers/Professionals → 0619-E
3. Validate via eBIRForms
• Fill up form carefully
• Click "Validate"
• Fix any errors
4. Submit and Pay
Choose payment channel:
• Authorized Agent Bank
• Online banking
• GCash/Maya
• EFPS (if applicable)
5. Keep Proof of Payment
Save:
• Email confirmation
• Bank receipt
• Screenshot of transaction
💡 Record keeping is part of small business tax compliance PH requirements.
⚠️ Common Mistakes Small Businesses Make
Here are frequent errors I see as a tax consultant:
Forgetting to Withhold Tax
Many small businesses forget to withhold 5% or 10% from professional fees.
This can make the business liable for the tax that should have been withheld.
Mixing Up 1601C and 0619E
• Some businesses file 0619-E for employee salaries.
• Others forget to file 1601-C for payroll.
Always remember:
Employees → 1601-C
Suppliers → 0619-E
Using the Wrong Tax Rate
Expanded withholding tax rates vary:
2%
5%
10%
Using the wrong rate causes underpayment.
Not Issuing BIR Form 2307
If you withhold tax under 0619-E, you must issue Form 2307.
Suppliers need this to claim tax credits.
Failure to issue can lead to complaints and penalties.
Missing Deadlines
Even one day late can result in:
- • Surcharge
- • Interest
- • Compromise penalty
Always set calendar reminders.
Penalties for Late or Incorrect Filing
The BIR imposes penalties under the Tax Code.
Surcharge
- • 25% of unpaid tax (late filing/payment)
- • 50% if fraudulent or willful neglect
Interest
- • 12% per annum
- • Computed from due date until full payment
Compromise Penalty
- • Fixed amount depending on tax due
- • Even small unpaid taxes can trigger compromise penalties
Example:
If you fail to remit ₱10,000 on time:
Penalties add up quickly.
Final Reminder: Withholding Tax Is Not Your Money
Whether it's:
-
Withholding tax on compensation
-
Or expanded withholding tax Philippines
That money is held in trust for the government. It does not belong to the business.
Proper filing of BIR Form 1601C and 0619E Philippines requirements is part of responsible small business tax compliance PH practice.
If you are unsure:
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Consult a CPA
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Review BIR issuances
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Keep proper accounting records
Staying compliant protects your business from audits, penalties, and unnecessary stress.