Revised BIR Form Nos. 1606 and 1706 Now Available

On 26 January 2023, the Bureau of Internal Revenue (“BIR”) announced the availability of revised BIR Forms No. 1606 and 1706 through Revenue Memorandum Circular (“RMC”) No. 9-2023. 

As per the RMC, BIR Form No. 1606, used in filing the Withholding Tax Remittance Return for onerous transfer of real property other than capital asset, including taxable and exempt, was revised due to the implementation of the Tax Reform for Acceleration and Inclusion (“TRAIN”) Law. BIR Form No. 1706 used in filing the Capital Gains Tax Return for onerous transfer of real property classified as capital asset-both taxable and exempt, was also revised in line with the TRAIN Law.

The said forms, however, are not yet available in the Electronic Bureau of Internal Revenue Forms (“eBIRForms”). Thus, manual and eBIRForms filers are mandated to download the forms from the BIR website, print the PDF version of the forms and fill-out completely all the applicable fields. Otherwise, the said filers shall be subjected to penalties under Section 250 of the Tax Code, as amended. 

Any tax due may be settled thru manual or online payment. Payment can be made manually in any of the Authorized Agent Bank (“AAB”) located within the territorial jurisdiction of the Revenue District Office (“RDO”) where the property being transferred is located. In places where there are no AABs, the return shall be filed and the tax due shall be paid with the concerned Revenue Collection Officer under the jurisdiction of the RDO using the Mobile Revenue Collection Officer System facility. 

Aside from manual payment, the taxpayer has the option to pay online thru the Landbank of the Philippines (“LBP”) Link.Biz Portal, Development Bank of the Philippines’ (“DBP”) PayTax Online or Union Bank of the Philippines (“UBP”) Online/The Portal. The LBP Link.Biz Portal is intended for taxpayers who have Automated Teller Machine (“ATM”) account with LBP and/or holders of Bancnet ATM/Debit Card/Prepaid Card of taxpayer utilizing Philippine Clearing House Corporation PayGate or PESONet facility. This includes depositors of the Rizal Commercial Banking Corporation, Robinsons Bank, Union Bank, Bank of the Philippine Islands, Philippine Savings Bank and Asia United Bank. Meanwhile, the DBP Online Portal may be used by holders of VISA/MasterCard Credit Card and/or Bancnet ATM/Debit Card while taxpayers with an account with UBP or Instapay using UPAY Facility for individual non-account Union Bank holder may use the UBP Portal.

Lastly, in instances of “No Payment Returns”, the taxpayer shall file the return to the RDO having jurisdiction over the place where the property being transferred is located.