BIR Form 1604-E Annual Information Return EWT
Updated June 13, 2026
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Definition
BIR Form 1604-E is the Annual Information Return of Creditable Income Taxes Withheld (Expanded)/Income Payments Exempt from Withholding Tax. Withholding agents file it with the annual alphabetical list of payees by March 1 of the following year.
BIR Form 1604-E is the annual summary of the expanded withholding tax (EWT) transactions of a withholding agent for the calendar year. During the year, the agent remits EWT monthly using BIR Form 0619-E and files a quarterly return, BIR Form 1601-EQ, with a quarterly alphabetical list of payees. Form 1604-E pulls the year together. The form is required under RR 2-98 as amended by RR 11-2018 and comes with the Annual Alphabetical List of Payees. The list shows each payee's Taxpayer Identification Number (TIN), name, the nature and amount of the income payment, and the tax withheld. The deadline is March 1 of the year after the payments were made (RR 11-2018).
Detailed explanation
Overview
BIR Form 1604-E is the Annual Information Return of Creditable Income Taxes Withheld (Expanded)/Income Payments Exempt from Withholding Tax. Withholding agents, meaning corporations, partnerships, government offices and individuals engaged in business, use it to report the expanded withholding tax (EWT) they withheld during the calendar year and the income payments they made that were exempt from withholding.
Legal Basis
Withholding of creditable tax at source rests on NIRC §57(B), which lets the Secretary of Finance require withholding on income payments at rates of not less than 1% and not more than 15% (as amended by the TRAIN Law, RA 10963). The detailed rules, rates and filing requirements are in RR 2-98 as amended, most recently restated for EWT by RR 11-2018.
Who Must File
Every withholding agent that made income payments subject to expanded withholding during the year files Form 1604-E. This includes:
- Corporations and partnerships paying professionals, contractors and lessors
- Government agencies and instrumentalities
- Individuals engaged in business who are required to withhold EWT
- Hospitals, clinics and HMOs that pay professional fees to medical practitioners
Filing Deadline
Form 1604-E and the Annual Alphabetical List of Payees are due on or before March 1 of the year after the payments were made (RR 11-2018). For example, 2024 payments are reported by March 1, 2025. Final withholding taxes go on a different return, Form 1604-F, due January 31.
Contents and Information Required
The alphalist attached to Form 1604-E shows, for each payee:
- Taxpayer Identification Number (TIN) and registered name
- Nature of the income payment and the applicable tax rate
- Amount of income payments made during the year
- Amount of tax withheld
The annual totals should agree with the quarterly returns (Form 1601-EQ) and the quarterly lists of payees filed during the year.
Common Expanded Withholding Tax Rates
RR 2-98 as amended by RR 11-2018 sets the rates. Common ones are:
- Professional fees paid to individuals: 5% if the payee's gross income for the year does not exceed ₱3,000,000 and the payee gives a sworn declaration, otherwise 10%
- Professional fees paid to juridical persons: 10% if the payee's gross income does not exceed ₱720,000, otherwise 15%
- Rent of real property used in business: 5%
- Payments to contractors: 2%
- Purchases by top withholding agents from regular suppliers: 1% on goods and 2% on services
Interest on bank deposits, dividends and prizes are subject to final tax, which is not reported on Form 1604-E.
Filing Methods
Withholding agents required to use the BIR's electronic systems file there. Others may file through the electronic systems or with an authorized agent bank under their Revenue District Office. Supporting records are kept for five years (NIRC §235, as amended by RA 11976).
Reconciliation with Quarterly Returns
EWT is remitted monthly with Form 0619-E and reported quarterly with Form 1601-EQ. The annual Form 1604-E should match the sum of the quarterly returns. The BIR compares these filings with the payees' own returns, which claim the same amounts as tax credits.
Penalties for Non-Compliance
- Late or missing information return: ₱1,000 per failure, up to ₱25,000 a year (NIRC §250); ₱500 per failure, up to ₱12,500, for micro and small taxpayers
- Tax not withheld or remitted on time: 25% surcharge and 12% interest a year (NIRC §248, §249); 10% and 6% for micro and small taxpayers
- Willful neglect or fraud: 50% surcharge (NIRC §248(B))
- Willful failure to withhold or remit: a criminal penalty equal to the tax not withheld or remitted, in addition to other penalties (NIRC §251)
Withholding Certificates (Form 2307)
Withholding agents give each payee BIR Form 2307 within 20 days after the close of each quarter, or at the time of payment if the payee asks for it. The payee uses Form 2307 to claim the withheld tax as a credit against its own income tax.
Why it matters
Filing Form 1604-E is critical for withholding agents to maintain compliance with BIR requirements and avoid penalties. For payees, the form ensures that withheld taxes are properly credited against their annual income tax liability. Accurate reporting protects both parties from audit exposure and ensures the integrity of the Philippine tax system. Non-compliance can result in substantial penalties, interest, and reputational damage.
How it works
Identify Withholding Obligations
The withholding agent reviews payments made during the year to find those subject to EWT under RR 2-98 as amended, such as professional fees, rentals and payments to contractors. The rate depends on the type of payment and the payee: for example 5% or 10% on professional fees paid to individuals, 5% on rent of real property, and 2% on payments to contractors.
Calculate and Remit EWT
For each payment, the agent computes the EWT, deducts it, and remits it. Remittance for the first two months of a quarter uses BIR Form 0619-E; the quarterly return, BIR Form 1601-EQ, is filed by the last day of the month after the quarter with a quarterly list of payees (RR 11-2018).
Issue Withholding Certificates
Within 20 days after the close of each quarter, or upon the payee's request at the time of payment, the agent gives each payee BIR Form 2307 showing the income paid and the tax withheld. The payee uses it to claim the tax credit on its own income tax return (RR 2-98, as amended by RR 11-2018).
File Annual Form 1604-E
By March 1 of the following year, the agent files Form 1604-E with the Annual Alphabetical List of Payees. The annual figures should agree with the four quarterly returns, and the supporting records are kept for audit.
Examples
Manufacturing Company Paying a Building Contractor
ABC Manufacturing Corp. paid ₱500,000 to Juan dela Cruz, a general building contractor, for a warehouse renovation in 2024. Payments to contractors are subject to 2% EWT, so ABC withheld ₱10,000, remitted it, and gave Juan a Form 2307. ABC listed the payment and the ₱10,000 in the alphalist attached to its 2024 Form 1604-E, due March 1, 2025.
Company Paying Office Rent
XYZ Inc. paid ₱2,000,000 in rent for its office space in 2024. Rent of real property used in business is subject to 5% EWT, so XYZ withheld ₱100,000 during the year and gave its landlord a Form 2307 each quarter. The landlord and the ₱100,000 appear in XYZ's Form 1604-E alphalist.
Bank Paying Interest to Depositors
Metro Bank paid ₱150,000 in interest to Maria Santos on her savings account in 2024. Bank deposit interest is subject to a 20% final tax, so the bank withheld ₱30,000. Final taxes are reported on Form 1602 and the annual Form 1604-F, not on Form 1604-E, which covers creditable withholding only.
Professional Services Firm with Multiple Clients
Consulting firm DEF Solutions paid ₱3,000,000 in professional fees to individual freelance consultants in 2024. Each consultant gave DEF a sworn declaration that his or her gross income for the year would not exceed ₱3,000,000, so DEF withheld 5%, or ₱150,000 in total; without the declaration the rate would have been 10%. DEF issued Form 2307 to each consultant and listed them all in its Form 1604-E alphalist.
Late Filing with Penalty
GHI Corp. filed its 2024 Form 1604-E on June 15, 2025, after the March 1 deadline. Failure to file an information return on time is penalized ₱1,000 per failure, up to ₱25,000 a year (NIRC §250); micro and small taxpayers pay ₱500 per failure, up to ₱12,500 (RR 6-2024). Any EWT not remitted on time also carries a surcharge and interest (NIRC §248, §249).
Common misconceptions
- Myth: Form 1604-E is only required if the withholding agent withheld a lot of tax.
- Fact: Form 1604-E is filed by every withholding agent that made income payments subject to expanded withholding, whatever the amount withheld. It also covers income payments exempt from withholding (RR 11-2018).
- Myth: Monthly and quarterly EWT returns make the annual Form 1604-E unnecessary.
- Myth: The withholding agent can claim the EWT as a tax credit on their own return.
- Fact: EWT is a credit of the payee, the person whose income was subjected to withholding, not of the withholding agent. The agent only deducts and remits the tax (NIRC §57, §58).
- Myth: Form 1604-E and Form 2307 serve the same purpose.
- Fact: Form 2307 is issued to individual payees to document their withheld tax; Form 1604-E is the annual summary filed by the withholding agent to report all EWT withheld during the year. Both are required and serve different functions.
- Myth: Withholding agents can file Form 1604-E anytime during the year.
- Fact: Form 1604-E is due on or before March 1 of the following year (RR 11-2018). Late filing is penalized under NIRC §250.
Questions people ask
What is the deadline for filing Form 1604-E?
On or before March 1 of the year after the payments were made. For example, 2024 withholdings are reported by March 1, 2025 (RR 11-2018). Late filing of the return is penalized under NIRC §250.
Who is required to file Form 1604-E?
Every withholding agent that made income payments subject to expanded withholding tax during the year, including corporations, partnerships, government offices and individuals engaged in business (NIRC §57, RR 2-98 as amended).
What documents must accompany Form 1604-E?
Form 1604-E is filed with the Annual Alphabetical List of Payees, listing each payee's TIN, name, income payments and tax withheld. Copies of the Forms 2307 given to payees and the supporting invoices and payment records are kept by the agent. Books and records are kept for five years under NIRC §235 as amended by RA 11976.
Can a tax practitioner file Form 1604-E on behalf of the withholding agent?
Yes, an authorized representative such as a CPA or tax agent can file on the agent's behalf with written authority from the withholding agent. The withholding agent remains responsible for the accuracy and timeliness of the filing.
What happens if the annual Form 1604-E does not match monthly EWT remittals?
Differences between the annual return and the quarterly returns can lead to BIR inquiries or an audit. The withholding agent must reconcile them. Tax found to be underwithheld or unremitted is assessed with a surcharge and interest (NIRC §248, §249).
Is Form 1604-E required if no EWT was withheld during the year?
Form 1604-E also covers income payments exempt from withholding tax, so a withholding agent reports the payments it made even when no tax was withheld on them. The quarterly list of payees likewise includes payments not subjected to withholding because of an exemption (RR 11-2018).
How do payees use Form 2307 in relation to Form 1604-E?
Payees receive Form 2307 from the withholding agent, showing the income paid and the EWT withheld. They claim the tax as a credit on their quarterly and annual income tax returns (Forms 1701Q, 1701, 1701A or 1702). The withholding agent reports the same payments on Form 1604-E, so the BIR can match the two.
What penalties apply for failing to file Form 1604-E?
Failure to file Form 1604-E on time is penalized ₱1,000 per failure, up to ₱25,000 a year (NIRC §250), or ₱500 per failure, up to ₱12,500, for micro and small taxpayers. Tax that should have been withheld or remitted is assessed with a 25% surcharge and 12% interest a year (10% and 6% for micro and small taxpayers), and a willful failure to withhold or remit carries a criminal penalty equal to the tax not withheld or remitted (NIRC §251).
In practice
- Construction, real estate and professional services businesses usually have long Form 1604-E alphalists, because many of their payments to contractors, lessors and professionals are subject to EWT.
- The BIR cross-references Form 1604-E filings with individual income tax returns to verify that payees have claimed withheld tax credits, detecting underreporting and fraud.
- Each withholding agent files its own Form 1604-E under its own TIN; a parent company does not report the withholding of its subsidiaries, which are separate taxpayers.
- Withholding agents who fail to issue Form 2307 to payees or file Form 1604-E face audit and penalty exposure, often discovered during routine BIR compliance checks or when payees file income tax returns without corresponding withholding certificates.
- Withholding agents required to use the BIR's electronic filing systems file there; others may file with an authorized agent bank under their Revenue District Office (RR 11-2018).
Next steps
Learn more
EWT Calculator Compute Expanded Withholding Tax Rates
Annual Tax Calculator Include EWT Credits In Tax Computation
Penalty Calculator Calculate Late Filing Penalties
BIR Form 1601 EQ Quarterly Remittance Return Of Creditable Income Taxes Withheld (Expanded)
BIR Form 2307 Certificate Of Creditable Tax Withheld At Source
BIR Form 0619 E Monthly Remittance Form Of Creditable Income Taxes Withheld (Expanded)
Complete Guide To Expanded Withholding Tax (EWT)
How To File BIR Forms Online Via EFPS
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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 1604-E (Annual Information Return: Expanded Withholding).” bir.gov.ph. Bureau of Internal Revenue, BIR Form 1604-E. Source checked .