BIR Form 1601-EQ Quarterly EWT Remittance
Updated October 16, 2026
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Definition
BIR Form 1601-EQ is the quarterly return used by withholding agents to report and remit Expanded Withholding Tax (EWT), the creditable tax withheld from income payments such as professional fees, rentals and payments to contractors and suppliers, during a calendar quarter.
BIR Form 1601-EQ is the quarterly remittance return for Expanded Withholding Tax. Withholding agents, meaning businesses, government offices and other payors required to withhold under Revenue Regulations No. 2-98 as amended, use it to report the total EWT withheld during each calendar quarter and pay the balance to the Bureau of Internal Revenue. The return is due on or before the last day of the month following the close of the quarter. Taxes withheld in the first two months of the quarter are remitted monthly on BIR Form 0619-E by the 10th day of the following month (15th for eFPS filers); the 1601-EQ then covers the whole quarter. It is accompanied by the Quarterly Alphabetical List of Payees (QAP), which lists each payee's name, TIN, income payments per month and tax withheld (RR 11-2018). Each payee receives a BIR Form 2307 within 20 days after the close of the quarter, or with the payment if the payee asks. The payee credits the tax shown on Form 2307 against its own income tax.
Detailed explanation
Download or check the form through the official BIR form (PDF).
Overview
BIR Form 1601-EQ is the quarterly return withholding agents use to declare and remit Expanded Withholding Tax (EWT) withheld during a calendar quarter. Under NIRC Sec. 57(B) and its implementing regulations, payors withhold a creditable tax on payments such as professional fees, commissions, rentals, payments to contractors, and purchases by top withholding agents and government offices. Form 1601-EQ reports these for the quarter.
Legal Basis
Form 1601-EQ is required under NIRC Sec. 57(B) and 58 and Revenue Regulations No. 2-98 as amended, mainly by RR 11-2018, which introduced the quarterly return together with the monthly Form 0619-E. From 2019, creditable withholding rates set by regulation must be between 1% and 15% of the income payment (NIRC Sec. 57(B), as amended by RA 10963).
Who Must File
Every withholding agent that made income payments subject to EWT during the quarter files Form 1601-EQ. Withholding agents include:
- Government offices, national and local, including GOCCs
- Corporations and partnerships making income payments subject to EWT
- Individuals engaged in business or the practice of a profession, for payments covered by the regulations
- Top withholding agents designated by the BIR, for purchases from regular suppliers
- Hospitals, clinics and HMOs, for professional fees they pay or collect for doctors
Micro-taxpayer status alone does not exempt a payor from creditable withholding: the proposed exemption was vetoed. Apply the withholding rules for the payment and payor concerned.
EWT Coverage and Rates
Common EWT categories reported on Form 1601-EQ (RR 2-98, Sec. 2.57.2, as amended by RR 11-2018):
- Professional fees, talent fees and commissions to individuals: 5% if the payee's gross income for the year does not exceed ₱3,000,000 and the payee has given a sworn declaration; otherwise 10%
- Professional fees and commissions to juridical persons: 10% if the payee's gross income does not exceed ₱720,000; otherwise 15%
- Rentals: 5% on gross rentals of real property used in business, and of personal property where annual rentals exceed ₱10,000
- Payments to contractors: 2% on gross payments to contractors such as building, engineering and specialty contractors
- Purchases by top withholding agents and government offices: 1% on goods and 2% on services bought from regular suppliers
Final withholding taxes, such as the 20% tax on bank deposit interest, are not part of EWT and are reported on separate returns.
Filing Requirements and Deadlines
Form 1601-EQ is filed, and the tax paid, on or before the last day of the month following the close of each calendar quarter:
- Q1 (Jan to Mar): Due by April 30
- Q2 (Apr to Jun): Due by July 31
- Q3 (Jul to Sep): Due by October 31
- Q4 (Oct to Dec): Due by January 31 of the following year
For the first two months of each quarter, the tax withheld is remitted on Form 0619-E by the 10th day of the following month, or the 15th for eFPS filers (RR 11-2018).
Form Structure and Attachments
Form 1601-EQ includes:
- Withholding agent's TIN, name and address
- Quarter and year covered
- Income payments and taxes withheld by alphanumeric tax code (ATC)
- Monthly remittances already made on Form 0619-E
- Tax still due for the quarter, and any penalties
It is accompanied by the Quarterly Alphabetical List of Payees (QAP), which shows each payee's name, TIN, monthly income payments and tax withheld, including payments not subjected to withholding because of an exemption.
Common Errors and Compliance Issues
Frequent mistakes include:
- Applying the wrong rate, such as 5% instead of 10% to a payee without a sworn declaration
- Missing or incorrect payee TINs in the QAP
- Late filing or remittance (25% surcharge plus 12% annual interest under NIRC Sec. 248 and 249)
- Quarterly totals that do not match the Form 0619-E remittances
- Late issuance of Form 2307 to payees
Books and records must be kept for five years from the day after the return's deadline (NIRC Sec. 235, as amended by RA 11976).
Integration with Annual Returns
The four quarterly Forms 1601-EQ must reconcile with Form 1604-E, the Annual Information Return of Creditable Taxes Withheld (Expanded), filed with the annual alphalist of payees on or before March 1 of the following year (RR 11-2018). Discrepancies between quarterly and annual filings draw BIR inquiries.
Source: BIR Tax Code notes on the vetoed micro-taxpayer withholding exemption.
Why it matters
Withholding agents must file Form 1601-EQ to comply with NIRC Sec. 57(B) and Sec. 58 and to avoid surcharge and interest. Taxes withheld are held in trust for the government. Accurate quarterly reporting also lets payees claim the tax withheld as a credit against their annual income tax.
How it works
Identify Withholding Obligations
Review payments made during the quarter and classify each by EWT category (professional and talent fees, commissions, rentals, payments to contractors, purchases by top withholding agents and government offices). Apply the rate set in RR 2-98 as amended by RR 11-2018.
Compute and Withhold Tax
Withhold when the income becomes payable. For example, a ₱100,000 professional fee paid to an individual who has given the sworn declaration of gross receipts of ₱3,000,000 or less is subject to 5% EWT (₱5,000). Without the declaration, or above ₱3,000,000, the rate is 10%.
Remit Monthly and Prepare Form 1601-EQ
Remit the tax withheld in the first two months of the quarter on Form 0619-E by the 10th of the following month. At quarter-end, prepare Form 1601-EQ and the Quarterly Alphabetical List of Payees, and reconcile them with the monthly remittances and your payment records.
File and Remit the Quarter
File Form 1601-EQ and pay the balance on or before the last day of the month following the quarter, through the BIR's electronic channels or an authorized agent bank. Issue Form 2307 to each payee within 20 days after the quarter ends and keep copies for audit.
Examples
Top withholding agent buying raw materials
ABC Manufacturing Co., a BIR-designated top withholding agent, buys ₱500,000 of raw materials from a regular supplier in Q1. EWT at 1% on purchases of goods is ₱5,000. ABC withholds ₱5,000, issues Form 2307 to the supplier, and reports it on Form 1601-EQ due April 30 (RR 2-98, Sec. 2.57.2(I), as amended by RR 11-2018).
Company paying an individual consultant
XYZ Corp. pays ₱150,000 to Maria Santos, a management consultant who submitted her sworn declaration of gross receipts not over ₱3,000,000, in Q2. EWT at 5% is ₱7,500. XYZ withholds ₱7,500, issues Form 2307, and reports it on Form 1601-EQ due July 31 (RR 11-2018).
Tenant withholding on office rent
A tenant company pays ₱200,000 monthly rent for office space in Q3. EWT at 5% is ₱10,000 a month, or ₱30,000 for the quarter. The tenant remits July and August on Form 0619-E and files Form 1601-EQ for the quarter by October 31 (RR 2-98, Sec. 2.57.2(B), as amended).
Government office paying a contractor
A government agency pays ₱2,000,000 to a construction contractor for services in Q4. Government offices withhold 2% on payments for services, so EWT is ₱40,000. The agency issues Form 2307 and files Form 1601-EQ by January 31 (RR 2-98, Sec. 2.57.2(J), as amended by RR 11-2018).
Late filing and surcharge scenario
A withholding agent files Form 1601-EQ 20 days late with ₱50,000 of EWT unpaid. Surcharge is 25% × ₱50,000 = ₱12,500 and interest at 12% a year for 20 days is about ₱329, for a total of about ₱62,829. A micro or small taxpayer pays a 10% surcharge and 6% interest instead, about ₱55,164 in total (NIRC Sec. 248 and 249; RR 6-2024).
Common misconceptions
- Myth: Form 1601-EQ is only for large corporations; small businesses are exempt.
- Fact: Any withholding agent that made income payments subject to EWT files Form 1601-EQ. Micro-taxpayer status alone does not exempt a payor from creditable withholding: the proposed exemption was vetoed. Apply the withholding rules for the payment and payor concerned.
- Myth: EWT withheld on a payment is the final tax; no further income tax is owed.
- Fact: EWT is creditable, not final. Payees include the income in their returns and credit the tax withheld; any excess over the tax due is refundable and any shortfall is paid (NIRC Sec. 58(E)).
- Myth: If a payee has no TIN, the withholding agent is not required to withhold.
- Fact: The obligation to withhold arises when the income becomes payable (NIRC Sec. 58(C)). The payee's missing TIN does not remove it.
- Myth: Form 1601-EQ and the annual information return are separate, so discrepancies do not matter.
- Fact: The quarterly Forms 1601-EQ must agree with the annual Form 1604-E and its alphalist of payees. Mismatches draw BIR inquiries.
Questions people ask
What is the deadline for filing Form 1601-EQ?
Form 1601-EQ is due on or before the last day of the month following the close of each calendar quarter. Q1 is due April 30, Q2 July 31, Q3 October 31, and Q4 January 31 of the following year (RR 11-2018).
Can Form 1601-EQ be filed electronically?
Yes. Withholding agents mandated to use the BIR's electronic system must file through it; others may file electronically or with an authorized agent bank in their Revenue District Office's area (RR 11-2018).
What happens if a withholding agent files Form 1601-EQ late?
Late filing and payment incur a 25% surcharge on the unpaid tax plus interest at 12% a year (NIRC Sec. 248 and 249). For example, ₱50,000 of EWT paid 30 days late carries a ₱12,500 surcharge and about ₱493 of interest. Micro and small taxpayers pay a 10% surcharge and 6% interest instead.
Must a withholding agent remit EWT at the same time as filing Form 1601-EQ?
The tax for the third month of the quarter is paid with Form 1601-EQ. The tax for the first two months is remitted earlier, on Form 0619-E, by the 10th of the following month (15th for eFPS filers), even if nothing was withheld (RR 11-2018).
What supporting documents must be retained for Form 1601-EQ audit?
Keep invoices, contracts, proof of payment, the Quarterly Alphabetical List of Payees and copies of the Forms 2307 issued. Books and records must be preserved for five years from the day after the return's deadline, or from the filing date if filed late (NIRC Sec. 235, as amended by RA 11976).
If a payee has no TIN, can the withholding agent skip withholding?
No. The duty to withhold arises when the income becomes payable (NIRC Sec. 58(C)), whatever the payee's registration status. Payees are required to have a TIN (NIRC Sec. 236), and the Quarterly Alphabetical List of Payees reports each payee's TIN.
How does Form 1601-EQ relate to the annual Form 1604-E?
Form 1604-E is the Annual Information Return of Creditable Taxes Withheld (Expanded), filed with the annual alphalist of payees on or before March 1 of the following year (RR 11-2018). The totals on Form 1604-E must agree with the four quarterly Forms 1601-EQ. Form 1601-C is a different return, for tax withheld on employees' compensation.
Are there any transactions exempt from EWT reporting on Form 1601-EQ?
Some payees and payments are exempt from withholding, for example income payments to persons exempt from income tax. Income payments subject to withholding are still listed in the Quarterly Alphabetical List of Payees even when no tax was withheld because of an exemption (RR 11-2018).
In practice
- Withholding agents keep an EWT register listing each payment, payee, TIN, rate and tax withheld so the Quarterly Alphabetical List of Payees and Form 1604-E reconcile.
- Form 0619-E is filed for the first two months of each quarter even when no tax was withheld, and Form 1601-EQ covers the full quarter.
- Payees often ask for Form 2307 with each payment; RR 11-2018 requires the payor to furnish it on request, or within 20 days after the quarter ends.
- Late remittance of withheld tax incurs a 25% surcharge plus 12% annual interest (10% and 6% for micro and small taxpayers).
- Government offices and top withholding agents withhold 1% on purchases of goods and 2% on purchases of services from regular suppliers, which makes them heavy users of Form 1601-EQ.
Next steps
Learn more
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Quarterly Tax Calculator
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BIR Form 2307
BIR Form 1604 E
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Expanded Withholding Tax Guide
Quarterly Filing Requirements
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Sources & References (1)
Primary sources and the laws, regulations, and official issuances this page relies on. Links open the recorded source documents or references.
- Bureau of Internal Revenue. “BIR Form 1601-EQ (Quarterly Remittance of Creditable/Expanded Withholding).” bir.gov.ph. Bureau of Internal Revenue, BIR Form 1601-EQ. Source checked .