Mandatory Use of Electronic Bureau of Internal Revenue Forms (eBIRForms) as prescribed by RR 6-2014

Philippines – The Bureau of Internal Revenue Issued the Revenue Regulation 6-2014 dated September 5, 2014 (Published in Manila Bulletin on September 9, 2014), prescribing the mandatory use of electronic BIR Forms (eBIRForms) for particular manual filers or specific NON-EFPS filers.

MANDATORY COVERAGE. Only those non-eFPS filers are covered by this Regulations:

1. Accredited Tax Agents/Practitioners and all its client-taxpayers;
2. Accredited Printers of Principal and Supplementary Receipts/Invoices;
3. One-Time Transaction (ONETT) taxpayers;
4. Those who shall file a “No Payment” Return;
5. Government-Owned or -Controlled Corporations (GOCCs);
6. Local Government Units (LGUs), except barangays; and
7. Cooperatives registered with National Electrification Administration (NEA) and Local Water Utilities Administration (LWUA)

The eBIRForms was developed to provide taxpayers particularly the non-eFPS filers with accessible and convenient service through easy preparation of tax returns. The use of eBIRForms will improve the BIR’s tax return data capture and storage thereby enhancing efficiency and accuracy in the filing of tax returns.

Pursuant to the provisions of Section 244 of the National Internal Revenue Code of 1997 (Tax Code) as amended, in relation to Section 27 of Republic Act No. 8792, otherwise known as the “Electronic Commerce Act”, these Regulations are hereby promulgated by making it mandatory for non-eFPS filers or taxpayers to use eBIRForms covering thirty six (36) BIR Forms in the preparation and filing of their returns starting September 01, 2014 relative to existing revenue issuances under RMC No. 61-2012, “Authorizing the Use of eBIRForms Package in Preparation and Filing of Tax Returns” and RMO No. 24-2013, “Prescribing the Guidelines, Policies, and Procedures on the Use of eBIRForms in Relation to RMC No. 61-2012”.

Related Downloads:

• eBIRForms version 4.6 (Unzip then Run as Administrator)
• Revenue Regulations 6-2014

Lessor’s Mandatory Submission of Lessee Information Sheet as Prescribed by RR 12-2011

Lessors are reminded to monitor and submit to BIR a semi-annual Lessee Information Sheet (see image below) as prescribed by Revenue Regulations No. 12-2011 issued on July 25, 2011.

BIR Lessee Information Sheet RR 12-2011

 

The required Lessee Information Sheet (report), which shall be under oath, shall indicate the following information:

1. Building/space lay-out of the entire area being leased with proper  unit/space address or reference;
2. Certified true copy of contract of lease per tenant; and
3. Lessee Information Statement (indicating the registered name of tenant, TIN, ATP for official receipts  and invoices, and POS/CRM permit number, leased area, monthly rental payment, and period of lease)

The Lessee Information Sheet shall be submitted every 31st of January (for tenants as of December 31st of the previous year) and 31st of July (for tenants as of June 30th of the current year).

The Lessee Information Sheet shall be submitted in hard and soft copies (excel format stored in a CD-R) to the Revenue District Office (RDO) where the commercial establishment, building or space is located.

BIR will use the information submitted by lessors to validate the registration profile of the lessees.  The information will also be used for future audit and investigation activities to validate the revenues reported by the lessors.

Penalty provisions.   Lessors who fail to submit the reportorial requirements, or who willfully provide false information  shall be subject to penalties under Sections 255 and 267 of the Tax Code. The regulations also mention that lessors who knowingly transact with taxpayers who are not registered with BIR will also be penalized.

Action points for LESSORS:

1.     Lessors should therefore maintain and update the database of required information from their lessees.
2.    Report accurate information to avoid future issues in tax examinations.
3.    To ensure correctness of the information provided, you are advised to request for the source documents (copy of BIR  registration, etc.)
4.    Ensure the DST on the lease contract has been paid and proof is available.
5.    Advise lessees who are unregistered to process their registration before the semiannual due dates for submission of the Lessee Information Sheet.

Action points for LESSEES:

1.    Ensure that the information to be reported by the lessor on your company is accurate.  These may be used against any future tax examinations.
2.    Process your BIR registration if not yet registered.

Download: RR 12-2011

 

Submission of Hard Copy of BIR Form 2316 Certificate of Compensation Payment/Tax Withheld

CLICK TO DOWNLOAD RR 11-2013

The Bureau of Internal Revenue (BIR) has required all employers to submit the duplicate copy of BIR Form 2316 (Certificate of Compensation Payment/Tax Withheld) of their employees who are qualified for substituted filing to the BIR.

The issuance of the BIR Revenue Regulations (RR) 11-2013 now prescribing the mandatory submission of employers the duplicate copy of the BIR Form 2316 to the BIR not later than February 28 following the calendar year. Failure to submit/file BIR Form 2316 on or before February 28 following the close of the calendar year will merit a penalty of P1,000 for each BIR Form No. 2316 not filed WITHOUT any maximum threshold.

Moreover, two consecutive NONCOMPLIANCE of the submission including the failure to provide accurate information, failure to deduct, withhold, and remit withholding taxes shall be punished by a fine of not less than Ten Thousand Pesos (P10,000.00) and suffer imprisonment of not less than one (1) year but not more than ten (10) years.

Also, failure to furnish BIR Form 2316 shall be grounds for the mandatory audit of payor’s income tax liabilities (including withholding tax) upon verified complaint of the payee. Section 2.83 of Revenue Regulations No. (RR) 2-98, as amended, every employer is required to furnish its employees (including minimum wage earners) BIR Form 2316 on or before January 31 of the succeeding calendar year, or if employment is terminated before the close of such calendar year, on the day on which last payment of compensation is made.

Relevant Downloads:

Transmittal Form Sample

BIR Guidelines and Policies for the Reporting of Casualty Losses

On October 16, 2009, BIR passed a Revenue Memorandum Order No. 31-2009 prescribing the rules and guidelines that shall govern the declaration of Casualty Losses incurred by taxpayers, and the reporting of such losses filed at the concerned Revenue Districts.

REQUIREMENTS FOR THE FILING OF CLAIMS OF CASUALTY LOSSES

1. Sworn Declaration of Loss to be filed within forty-five (45) days after the date of the event.
2. Proof of elements of the loss(es) claimed, such as, but not limited to, the following:

• Photographs of the property(ies) (Before and After the disaster)
• Documentary evidence for determining the cost or valuation of the damaged property(ies), such as but not limited to: cancelled checks,vouchers, receipts, and other documentary evidences
• Insurance policy, in the event that there is an insurance coverage for the property(ies)
• Police report, in case of roberry/theft during the typhoon and/ or as consequence of looting.

REQUISITES OF DEDUCTIBILITY

1. Taxpayer must be engaged in business and casualty loss incurred are actually used in the business enterprise. Personal properties shall therefore not allowed.
2. Properties reported as casualty loss shall be booked or accounted for in the accounting records of the taxpayer indicating the acquisition costs, immediately preceding the occurrence of the loss.
3. The recovery of casualty losses through insurance claims be governed by RR 12-17. Insurance proceeds that exceed the net book value of the damage assets, such excess shall be subjected to the Regular Income Tax, but not to the Value-Added Tax.
4. Accounting for casualty losses must also be observed:

• The deduction of capital losses must be properly recorded in accounting reports, with the adjustment of applicable accounts. The accounting entry to record actual loss of property is as follows:

Particulars	Debit	Credit
Casualty losses	XXX
Accumulated depreciation	XXX
Property/Asset Account		XXX
To record casualty loss…

• The restoration of the damaged property, or acquisition of new property to replace it, must be properly recorded as either: (a) Repairs and maintenance; or (b) a Capital asset.

ADDITIONAL NOTES

The RMO 31-2009 refers to the casualty losses incurred during the typhoon Ondoy and Peping on 2009. However, I believe that such rule is still applicable to the future claims of casualty losses.

Revalidation of Tax Exemption status of Qualified Non-stock, Non-Profit Corporations and Associations as Prescribed by RMO 20-2013

The Bureau of Internal Revenue has issued another set of new rules imposing the additional requirements on the exempt status taxpayers for strict implementation of Non-stock and Not-for-Profit corporations and associations. In its goal to increase tax collections, the Revenue Memorandum Order (RMO) 20-2013 has been passed to regulate taxpayers who were previously granted and will be granted tax exemption.

Objective of RMO 20-2013

1. Ensure compliance with the conditions attached to the tax exemption
2. Ascertain the existence of other income derived from non-exempt activities and provide proper tax treatment thereon
3. Enforce the payment of other taxes for which no exemption was granted under Philippine tax laws (e.g., withholding taxes, fringe benefits tax, and documentary stamp tax)
4. Minimize tax leakages arising from inaccurate interpretation of relevant tax laws and administrative issuances

NEW RULE: Revalidation of tax exemption certificates and application for confirmatory BIR rulings

Tax Exemption Certificates issued prior to June 30, 2013 are only VALID up until December 31, 2013. Hence, all non-stock, not-for-profit organizations with an old tax exemption certificate needs to comply on the new ruling of tax exemption, otherwise, they will lose their exempt status on the start of the year 2014.

NEW RULE: Three (3) Years Validity of the Tax Exemption Status from the date of issuance

A Tax Exempt Status being granted by the Bureau shall be valid for a period of three (3) years from the date of effectivity as specified in the RMO 20-2013 ruling, unless sooner revoked or cancelled. The Tax Exemption Ruling shall be deemed revoked if there are material changes in the character, purpose, or method of operation of the corporation or association which are inconsistent with the basis for its income tax exemption. The revocation takes effect as of the date of the material change.

Documentary Requirements:

• Original copy of application letter for issuance of Tax Exemption Ruling. The letter shall cite the particular paragraph of Section 30 of the NIRC, as amended, under which the application for exemption/revalidation is being based;
• Certified true copy of the latest Articles of Incorporation and By-Laws issued by the Securities and Exchange Commission;
• Original copy of Certification under Oath by an executive officer of the corporation or association as to: (i) all previous amendments/changes in the Articles of Incorporation and By-Laws, (ii) manner of activities, and (iii) the sources and disposition of income, if any, of the subject corporation or association. If there are no amendments/changes, the Certification shall state this fact;
• Certified true copy of the Certificate of Registration with the BIR;
• Original copy of the Certification under Oath by the Treasurer of the corporation or association as to the amount of income, compensation, salaries or any emoluments paid by the corporation or association to its trustees, officers and other executive officers. Provided, that, a corporation sole, which, by its nature, does not have trustees, corporate officers or executive officers need not submit the certification required under this subparagraph.
• Original copy of the Certification issued by the RDO where the corporation or association is registered that the corporation or association is not the subject of any pending investigation, on-going audit, pending tax assessment, administrative protest, claim for refund or issuance of tax credit certificate, collection proceedings, or a judicial appeal; or if thereby be any, the Original copy of the Certification issued by the RDO on the status thereof;
• Certified true copies of the Income Tax Returns or Annual Information Returns and Financial Statements of the corporation or association for the last three (3) years; and
• Original copy of a statement under Oath by an executive officer of the corporation or association as to its modus operandi which shall include:
  i. A full description of the past, present, and proposed activities of the corporation or association;
  ii. A narrative description of anticipated receipts and contemplated expenditures; and
  iii. A detailed description of all revenues which it seeks to be exempted from income tax. All other revenues which are not included in the statement/ application shall be subject to income tax.

There are also additional documentary requirements for Educational Institutions as prescribed by the RMO 20-2013.

Notes:

The RMO further provides for the causes of revocation of the tax exemption certificate or ruling. A tax exemption ruling shall be deemed revoked if there are material changes in the character, purpose, or method of operation of the corporation or association which are inconsistent with the basis for its income tax exemption. In addition, non-renewal of the tax exemption ruling and non-revalidation of tax exemption certificate shall revoke the exemption. Further, the income tax — exempt status shall be lost if the corporation or associated which has been issued a tax exemption ruling fails to file an annual information return.

For the guidance of non-stock, non-profit organizations, tax exemption rulings or certificates issued prior to June 30, 2012 shall be valid until Dec. 31, 2013. While those issued after June 30, 2012 shall continue to be valid for a period of three years from the date of issuance unless sooner revoked or cancelled. It is advised that organizations with expiring tax exemption rulings and certificates start the preparation of the lengthy list of requirements to avoid revocation of their exemption.

Non-stock, non-profit organizations are created to achieve a specific purpose other than generating profit. They undertake activities which would otherwise have been the responsibility of the government. As a way of rewarding this social contribution, non-stock, non-profit organizations are given tax exemptions. Under the 1987 Philippine Constitution, charitable institutions, churches and parsonages or convents appurtenant thereto, mosques, non-profit cemeteries, and all lands, buildings, and improvements, actually, directly and exclusively used for religious, charitable, or educational purposes shall be exempt from taxation. For non-stock, non-profit educational institutions, all income and assets used actually, directly and exclusively for educational purposes shall be exempt from taxes and duties.

A grant of tax exemption is provided for in the Tax Code, which states that non-stock, non-profit educational institutions, as well as a non-stock corporation or association organized and operated exclusively for religious, charitable, scientific, athletic, or cultural purposes, or for the rehabilitation of veterans, shall be exempt from tax on income received by them as such. However, that the tax exemption privileges of non-stock, non-profit organizations are not absolute. It does not cover all types of income and activities. In fact, under the Tax Code, income from properties and activities conducted for profit by non-stock, non-profit corporations is subject to income tax. Thus, for proper implementation of this tax exemption, non-stock, non-profit organizations are required to comply with certain regulatory requirements of the BIR and other government agencies. It is not unknown that there have been instances when non-stock non-profit organizations were used to escape taxation. Under Revenue Memorandum Circular No. (RMC) 76-03, the BIR initially provided guidelines for the proper implementation of taxes due to non-stock, non-profit corporations. The said RMC discussed the nature of the income exempt from and subject to tax.

Feedbacks among the organizations is that compliance with this requirement may be difficult, particularly with information pertaining to future income and activities which may or may not push through depending on the circumstances. With the strict requirement that all other revenues not included in the statement shall be subject to income tax, it is possible that some unexpected sources not included in the application will be unreasonably taxed.

On one hand, this issuance would, once and for all, set clear guidelines on the compliance requirements for non-profit organizations. Many times in the past, they fail to avail of their privileges for failure to comply with some requirements which they are not aware of.

On the other hand, while the rules under RMO 20-2013 are necessary to ensure compliance with the conditions attached to the tax exemption, the BIR should ensure that the requirements will not be unreasonably stringent. The BIR should consider that, in addition to its rules, non-stock, non-profit organizations also have to comply with the requirements imposed by other government agencies such as the Department of Education, Department of Finance and Philippine Council for non-government organizations (NGOs).

References:

ftp://ftp.bir.gov.ph/webadmin1/pdf/73171RMO%2020-2013.pdf

http://www.punongbayan-araullo.com/pnawebsite/pnahome.nsf/section_docs/JU015Y_30-7-13

Tax Issues on the Sale of Properties and Equipment

Learning objectives:

• VAT on sale of PPE
• Income Tax on Gain or Loss on Sale of PPE
• Accounting for the sale of PPE

VALUE-ADDED TAX ON THE SALE OF PPE

“RR 16-2005 SEC. 4.106-1. VAT on Sale of Goods or Properties . – VAT is imposed and collected on every sale, barter or exchange, or transactions “deemed sale” of taxable goods or properties at the rate of twelve percent (12%) (starting February 1, 2006) of the gross selling price or gross value in money of the goods or properties sold, bartered, or exchanged, or deemed sold in the Philippines.”

“RR 16-2005 SEC. 4.106-3. Sale of Real Properties . – Sale of real properties held primarily for sale to customers or held for lease in the ordinary course of trade or business of the seller shall be subject to VAT. The fairness of the imposition of VAT on sale of Property and Equipment for businesses registered as VAT taxpayers is logically sound. This reason is because when the taxpayer acquired the property from a VAT seller, it has claimed input VAT credit thereon.

According to Sec 109 of the National Internal Revenue Code, the sale of real properties not primarily held for sale to customers of held for lease in the ordinary course of trade or business is exempt from VAT.

Conversely, RR 04-2007 states that sale of real properties held primarily for sale or held for lease in the ordinary course of trade or business of the seller is subject to 12% VAT.

RR 04-2007 went further stating that even if the real property is not primarily held for sale to customers or held for lease in the ordinary course of trade or business but the same is used in the
trade or business of the seller, the sale thereof is subject to VAT being incidental to the taxpayer’s main activity.

INCOME TAX ON SALES OF PPE

Any gain or (loss) on the sale of the property and equipment are taxable or (deductible) for income tax purposes.

ACCOUNTING FOR THE SALE OF PPE

Example: On December 2, delivery equipment which was originally costing 500,000 (exclusive of VAT) was sold at 112,000.00. The equipment has a 50,000 carrying value on the date of sale.

The accounting entry to record the transaction on Dec 2 is as follows:

Account Name	Debit	Credit
Cash	112,000.00
Accumulated depreciation – Delivery Equipment (500000-50000)	450,000.00
Delivery Equipment		500,000.00
Output VAT* (112000*12/112)		12,000
Gain on sale of fixed assets**		50,000

*Output VAT on the sale of equipment computed as (112000*12/112) should be reported in the VAT returns and VAT alphalist on December.

**Gain on sale of the equipment computed as selling price exclusive of VAT less the net book value (100,000-50,000) should be reported as other income subject to income tax. In case the sale resulted as a loss, the loss on sale is a deductible cost for income tax purposes.

 

 

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Urgent and Must-read Update on the New BIR Rulings on Invoices and Receipts and Online ATP for June 30, 2013

This is to update the public on the new rules and inconsistencies of BIR regarding the so-called “ONLINE ATP” application to be implemented 60 days before June 30, 2013.

Taxpayers, most among the business sectors, applying for the “Authority to Print” is currently experiencing dilemma due to the imposition of a (Php 1,000.00) one thousand pesos penalty for late application of the ATP. Taxpayers, angry and confused, are wondering how come BIR is instructing the applicants for ATP to pay a penalty of P1000.00.

The dilemma is because of the new rules being passed on April and May 2013 that makes the application of ATP confusing to the public. Significant dates we have to note on our calendar are as follows:

1. APRIL 30, 2013 – Around the 3rd week of May 2013, an interoffice memorandum dated APRIL 30, 2013, were circulated among the district offices of BIR, stating that applicants for ATP shall pay a one thousand pesos penalty for the late processing/application of their ATP.
2. JUNE 30, 2013 – Deadline of ATP application (Repealed by April 30, 2013 BIR Inter-office memorandum which were not circulated to the public)
3. JULY 10, 2013 – RMO 12-2013 Title VI Sec. 1.: All unused/unissued principal and supplementary receipts/invoices printed prior to January 19, 2013 (effectivity of RR No. 18-2012) and those printed by printers which are not compliant with this Order shall be valid until June 30, 2013. The taxpayer shall submit an inventory list (see Annex D) of principal and supplementary receipts/invoices and surrender the hardcopies of the receipts/invoices to the RDO/LT Office concerned where the taxpayer is registered on or before July 10, 2013. Branch Office/s shall submit and surrender the same to the RDO/LT Office concerned where the branch is registered.

BIR should be aware that the time the taxpayers were troubled when they learned about the new invoicing requirements. Aside from the tedious requirements of BIR, this also brought sacrifices of economic resources of the part of the taxpayers by shouldering the costs of printing the new invoices and discarding the unused invoices/official receipts.

Now, with the inconsistent dates of imposition of charges and deadlines, we would like BIR to know that they are already harassing the taxpayers, which is, in fiction, their BIG BOSS.

You may also like to visit our older post related to the BIR invoicing requirements:

http://gvacpas.com/2013/05/09/guide-to-birs-new-invoicing-requirements-effective-june-30-2013/

http://gvacpas.com/2013/05/07/bir-new-invoicing-requirement-effective-june-30-2013/

Guide to BIR’s New Invoicing Requirements effective June 30, 2013

All business establishments should be aware on the new regulations on commercial invoices, official receipts, and other business documents being set by the tax authorities in the Philippines.

The BIR, in Revenue Regulations No. 18-2012, is requiring taxpayers to secure new ATP  and print new invoice/receipt and all commercial documents being issued to customers as the existing documents are valid only up to June 30, 2013.

Relative to said regulations prescribing the new rules in processing of Authority to Print (ATP) of Official Receipts, Sales Invoices and Other Commercial Invoices, the following must be noted:

1. All applications must be done through on-line ATP systems.
2. Not just principal receipts/invoices such as VAT SI/VAT OR/Non-VAT SI/Non-VAT OR are required to be registered before printing but also supplementary receipts/invoices such as delivery receipt, order slip, debit/credit memo, purchase order, provisional/temporary receipt, acknowledgement receipt, collection receipt, cash receipt, bill of lading, billing statement, statement of account, any other documents being used in the business and issued to customer.
3. Approved ATP is valid upon full usage of the serial numbers or five (5) years from issuance, whichever comes first.
4. All existing unused/unissued receipts/invoices shall be valid until June 30, 2013. The unused receipts/invoices shall be surrendered to BIR for destruction.
5. Application for new ATP shall be 60 days prior to actual expiry.

The BIR, in issuing the above new regulations, aims to regulate further the printing of all invoices, set validity period, and generate reports relative to the ATP.

To give you a more detailed information, the following issuances of BIR regulations and memorandums has been provided for your references.

Issuance	Description	Date of Issue	Parties of interest
BIR RR 18-2012	Prescribes the policies and guidelines in the processing of Authority to Print (ATP) Official Receipts, Sales Invoices and other Commercial Invoices using the online ATP System and provides for the additional requirements in the printing thereof. (Published in Manila Bulletin on January 3, 2013) | Digest | Full Text	December 28, 2012	All business establishments, taxpayers, government, practitioners, printers, etc.
BIR OPM No.: 13-02-005	Prescribes the validity period of Receipts/Invoices to be printed by deemed accredited printers prior to the approval of the Revenue Memorandum Order on the Work-around Procedures on the processing of the Authority to Print Receipts/Invoices.	February 18, 2013	All business establishments, taxpayers, government, practitioners, printers, etc.
BIR RMO No. 12-2013	Prescribes the work-around guidelines and procedures in the processing of Authority to Print (ATP) Official Receipts, Sales Invoices and other Commercial Invoices in the interim period until the online ATP System is fully developed | Full Text – Click to download the RMO 12-2013 | Annex A – Click to download the BIR form 1906 otherwise known as the Application for | Annex B – Click to download the BIR Form 1921 otherwise known as the Authority to Print Receipts and Invoices | Annex C – Click to download the sample invoices, official receipts, and other supplementary documents as prescribed by the Bureau. | Annex D – Click to download the format of the list of unused/expired invoices or official receipts |Annex E – Click to download the format of the Printers’ Quarterly Report	May 3, 2013	All business establishments, taxpayers, government, practitioners, printers, etc.
BIR RMO No. 13-2013	Prescribes the work-around procedures in the accreditation of printers as a prerequisite to the printing of Official Receipts, Sales Invoices and other Commercial Receipts and/or invoices | Full Text | Annex A | Annex B, D, E, F, J | Annex C |Annex G | Annex H | Annex I	May 3, 2013	Printers

SAMPLE VAT/ NONVAT OFFICIAL RECEIPTS

SAMPLE VAT/NONVAT INVOICES

SAMPLE SUPPLEMENTARY DOCUMENTS

To download all sample invoices and official receipts as prescribed by BIR, please refer to the Annex C of RMO 12-2013.

Most taxpayers and practitioners are confused with the new ruling of the BIR regarding the invoices. Others are still unaware of the ruling and current developments of such imposition. This blog post was created to disseminate information to the public and to facilitate researches regarding this topic. Hoping that in this simple information, you will be able to comply with the new rulings of invoices and official receipts and avoid penalties in the future.

P.S.: Don’t get SICK! “Surcharges, Interests, Compromises, KICKBACK” Please hit like and share. Thank you.

BIR New Invoicing Requirement Effective June 30, 2013

The BIR, in Revenue Regulations No. 18-2012, is requiring taxpayers to secure new ATP  and print new invoice/receipt and all commercial documents being issued to customers as the existing documents are valid only up to June 30, 2013

Relative to said regulations prescribing the new rules in processing of Authority to Print (ATP) of Official Receipts, Sales Invoices and Other Commercial Invoices, the following must be noted:

1. All applications must be done through on-line ATP systems.
2. Not just principal receipts/invoices such as VAT SI/VAT OR/Non-VAT SI/Non-VAT OR are required to be registered before printing but also supplementary receipts/invoices such as delivery receipt, order slip, debit/credit memo, purchase order, provisional/temporary receipt, acknowledgement receipt, collection receipt, cash receipt, bill of lading, billing statement, statement of account, any other documents being used in the business and issued to customer.
3. Approved ATP is valid upon full usage of the serial numbers or five (5) years from issuance, whichever comes first.
4. All existing unused/unissued receipts/invoices shall be valid until June 30, 2013. The unused receipts/invoices shall be surrendered to BIR for destruction/
5. Application for new ATP shall be 60 days prior to actual expiry.

The BIR, in issuing the above new regulations, aims to regulate further the printing of all invoices, set validity period, and generate reports relative to the ATP.

To get a copy of the revenue regulation 18-2012, click ftp://ftp.bir.gov.ph/webadmin1/pdf/67524RR%2018-2012.pdf

Mandatory Attachment of BIR Form 1702 (ITR for Corporations): Itemized Deductions

The Bureau of Internal Revenue has posted in its website  a one page mandatory attachment to the 2012 corporate ITR requiring a breakdown of the regular itemized deductions claimed in their income tax return.  This attachment is to be used when the taxpayer chose itemized deductions as its method of deduction and shall form part of BIR Form No. 1702 (November 2011 ENCS). This form shall reflect the breakdown of the Regular Itemized Deductions found in Item 22 of BIR Form No. 1702. The total amount indicated in this form should be the same amount reflected in the said income tax return.

Click the links below to download the required attachments directly from BIR in excel and pdf format.

ftp://ftp.bir.gov.ph/webadmin1/others/68245attachment%20to%201702.xls

ftp://ftp.bir.gov.ph/webadmin1/pdf/68245attachment%20to%201702.pdf

2012 Year-End Deadlines for Philippine Business Establishments

Happy new year and happy 2012 balance sheet as well!

The calendar year 2012 has just ended and this means another year of accounting period for most businesses. The end of a year as well as the start of another year requires several things that needs to be accomplish. An example of it is the annual business registrations of most business establishments to the local government. Almost, if not all, government requirements are mandatory. That, it MUST be done.

With the on-going day-to-day business operations, sometimes its difficult to keep our minds ahead of the government requirements and deadlines. This article will provide you a simple reminder regarding the government requirements and deadlines so that you can do the right thing for your business organization and you won’t miss or forget a significant event. Because it is always cheaper to comply with the requirements than not complying at all. Stated otherwise, “COMPLIANCE is COSTLY, but NONCOMPLIANCE is even worst.”

Provided below are the events and requirements for your business undertakings as a result of the start of a new calendar year and the end of an accounting period. This does not however mean that you have to file all of the following items, but only choose what is applicable to your company or organization.

Disclaimer: The list is very general and incomplete. Some deadlines to government compliance may have been excluded or omitted. We advise you to check your requirements as it suits your company.

Due Date	Govt. Agency	Form	Required Action	Risk of Noncompliance
December 31, 2012	BIR		Registration of the manual books of accounts	Late registration are subject to fines and penalties
January 15, 2013	BIR	BIR Form 1601C	File and pay taxes withheld from employees	Late filing are subject to penalties. Noncompliance will create an open case subject to penalties.
January 15, 2013	BIR	BIR Form 1601E with MAP	File and pay taxes withheld from suppliers	Late filing are subject to penalties. Noncompliance will create an open case subject to penalties.
January 15, 2013	BIR		Registration of the loose-leaf bound books of accounts	Late registration are subject to fines and penalties
January 20, 2013	BIR	BIR Form 2551 (For NON-VAT)	File and pay percentage taxes	Late filing are subject to penalties. Noncompliance will create an open case subject to penalties.
January 25, 2013	BIR	BIR Form 2550Q with SLSP	File and pay value-added taxes	Late filing are subject to penalties. Noncompliance will create an open case subject to penalties.
January 30, 2013	BIR		Registration of computerized Books of Accounts	Late registration are subject to fines and penalties
January 31, 2013	BIR	BIR Form 1604 CF with the Alphalist of Employees	File or submit the annual information return of employees or alphalists. Release any tax refunds to the employees and distribute the income tax Form 2316 of the employees	Late filing are subject to penalties. Noncompliance will create an open case subject to penalties.
January 31, 2013	BIR	Inventory list as of December 31, 2012	Submit to BIR the inventory list valued at cost exclusive of VAT	Late filing are subject to penalties. Noncompliance will create an open case subject to penalties.
January 31, 2013	LGU	Business permits	Secure all necessary permits and licenses from the local government	Late filing are subject to penalties. Noncompliance will create an open case subject to penalties.
January 31, 2013	BIR	BIR Form 0605 (RF)	Pay the annual BIR registration fee	Late filing are subject to penalties. Noncompliance will create an open case subject to penalties.
January 31, 2013	BIR		Submit or file the lessee information sheet (For Lessors Only)	Late filing are subject to penalties. Noncompliance will create an open case subject to penalties.
March 1, 2013	BIR	BIR Form 1604E with the Alphalist of Suppliers	FIle or submit to BIR the 1604E together with the Alphalist of Payees or suppliers	Late filing are subject to penalties. Noncompliance will create an open case subject to penalties.
April 15, 2013	BIR	BIR Form 1700, 1701, or 1702 (Annual Income Tax Return with the SAWT)	File and pay income tax For corporations, an Audited Financial Statement should be filed together with the annual income tax return	Late filing are subject to penalties. Noncompliance will create an open case subject to penalties.
April 15, 16, 7, 18, and 19, 2013	SEC	AAFS	Submit an Annual Audited Financial Statement (For corporations with an SEC Registration Number that ends with “1” and “2”)
April 22, 23, 24 ,25, and 26, 2013	SEC	AAFS	Submit an Annual Audited Financial Statement (For corporations with an SEC Registration Number that ends with “3” and “4”)
April 29 and 30, May 2 and 3, 2013	SEC	AAFS	Submit an Annual Audited Financial Statement (For corporations with an SEC Registration Number that ends with “5” and “6”)
May 6, 7, 8, 9 and 10, 2013	SEC	AAFS	Submit an Annual Audited Financial Statement (For corporations with an SEC Registration Number that ends with “7” and “8”)
May 14, 15, 16, 17	SEC	AAFS	Submit an Annual Audited Financial Statement (For corporations with an SEC Registration Number that ends with “9” and “0”)
May 20, 21, 22 ,23 and 24, 2013	SEC	AAFS	Late submission of an Annual Audited Financial Statement (For corporations that failed to submit on the prescribed dates as stated by SEC Memo Circ 2-2013
Qualified date	SEC	GIS	Within 30days from the date of the annual stockholder’s meeting as stated in the by-laws (For corporations only)

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BIR Registration of Manual Books: Things you don’t know might hurt you.

The Bureau of Internal Revenue issued a Revenue Memorandum Circular 82-2008 to simplify the registration of manual books of accounts and to establish uniformity of procedures among the BIR district offices.

It has been observed that the different Revenue District Offices (RDOs) of the Bureau adopt differing rules and procedures with respect to the registration of the manual books of accounts. In some RDOs, before a new set of books of accounts is registered, taxpayers are still required to first present the previously registered books of accounts regardless of whether or not the pages thereof have all been filled up. On the other hand, in other districts, a photocopy of the stamped front page of these previously registered books of accounts is the document being required in order to approve the registration of the new set of books. Apparently, these differing rules observed by the RDOs have caused frustration and exasperation to the taxpayers which eventually resulted to an indifferent attitude towards compliance.

Despite of the issuance of the RMC 82-2008, many taxpayers are still unaware of the provisions of the memorandum circular. Infact, even the personnel of the Bureau are not implementing its own set of rules or circular. We have observed, only this January 2013, that the BIR personnel incharge of the verification of TIN expressly telling to the taxpayers that they have not yet registered its books and were instructed to pay a penalty for its late registration of the manual books.

It is very frustrating to observe or learn that taxpayers were being imposed with unnecessary penalties just because of being ignorant to their rights with regards to the registration of their manual books of accounts. But it is also the responsibility of the government to impose only just and rightful fines and penalties to the taxpayers if they were not really compliant to the rules imposed by the Bureau.

The excerpts of the RMC 82-2008 in a bullet presentation are as follows:

1. Taxpayers are not required to register a new set of books every year unless all pages were fully utilized.
2. The revenue officer has no authority to examine whether the previously registered books are complete or updated.
3. There are no deadlines of registering the manual books of accounts, but the manual books of accounts should be registered before it is used.

The BIR issuance of the RMO 82-2008 has been greatly appreciated by most taxpayers, public practitioners, and tax consultants who are aware of the provisions stated therewith. This  has provided  relief for those who know about the provisions of the memorandum circular. At least, taxpayers has the weapon to contest or protest any unjust imposition of penalties by the Bureau in cases of late registration of the manual books of accounts. But, mere issuance of the Bureau of the RMC is WORTHLESS without the proper implementation of its rules and regulations.

It is advised all taxpayers to know their rights to defend themselves against the incompetent, unjust and unscrupulous  practices of some of the government personnel. This is also a wake-up call to the responsible officials to let them implement rightfully the imposition of their charges to the taxpayers.

The Philippine Calendar of Business Activities

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BIR Electronic Forms (eBIRForms), version 1.0

Overview

The Electronic Bureau of Internal Revenue Forms (eBIRForms) Package is developed primarily to provide taxpayers with accessible and convenient service through easy preparation. eBIRForms is an alternative mode of preparing tax returns which deviates from the conventional manual process of filling up tax returns on pre-printed forms that are highly susceptible to human error. The package allows the taxpayers to accomplish or fill up the forms offline. Taxpayers can directly encode data, validate, edit, save, delete, view and print their tax returns. The package has automatic computations and has the capability to validate information inputted by the taxpayers.

Coverage

Form No.		Latest Revision Date	Form Name
1	0605	July 1999 (ENCS)	Payment Form
2	1600	September 2005 (ENCS)	Monthly Remittance Return of Value-Added Tax and Other Percentage Taxes Withheld
3	1600WP	September 2005 (ENCS)	Monthly Remittance Return of Value-Added Tax and Other Percentage Taxes Withheld
4	1601-C	July 2008 (ENCS)	Monthly Remittance Return of Income Taxes Withheld on Compensation
5	1601-E	August 2008 (ENCS)	Monthly Remittance Return of Creditable Income Taxes Withheld (Expanded)
6	1601-F	September 2005 (ENCS)	Monthly Remittance Return of Final Income Taxes Withheld
7	1602	August 2001 (ENCS)	Monthly Remittance Return of Final Income Taxes Withheld on Interest Paid on Deposits and Yield on Deposits Substitutes/Trusts/Etc.
8	1603	November 2004 (ENCS)	Quarterly Remittance Return of Final Income Taxes Withheld on Fringe Benefits Paid to Employees Other than Rank and File
9	1604-CF	July 2008 (ENCS)	Annual Information Return of Income Taxes Withheld on Compensation and Final Withholding Taxes
10	0604-E	July 1999 (ENCS)	Annual Information Return of Creditable Income Taxes Withheld (Expanded)/Income Payments Exempt from Withholding Tax
11	1606	July 1999 (ENCS)	Withholding Tax Remittance Return For Onerous Transfer of Real Property Other than Capital Asset (Including Taxable and Exempt)
12	1701Q	July 2008 (ENCS)	Quarterly Income Tax Return For Self-Employed Individuals, Estates and Trusts (Including those w/ both Business and Compensation Income)
13	1702Q	July 2008 (ENCS)	Quarterly Income Tax Return For Corporations, Partnerships and Other Non-Individual Taxpayers
14	1704	May 2001	Improperly Accumulated Earnings Tax Return
15	1706	July 1999 (ENCS)	Capital Gains Tax Return For Onerous Transfer of Real Property Classified as Capital Asset (both Taxable and Exempt)
16	1707	July 1999 (ENCS)	Capital Gains Tax Return for Onerous Transfer of Shares of Stock Not Traded Through the Local Stock Exchange
17	1800	July 1999 (ENCS)	Donor’s Tax Return
18	1801	July 2003 (ENCS)	Estate Tax Return
19	2000	June 2006 (ENCS)	Documentary Stamp Tax Declaration/ Return
20	2000-OT	June 2006 (ENCS)	Documentary Stamp Tax Declaration/ Return (One-Time Transactions)
21	2200A	May 2006 (ENCS)	Excise Tax Return for Alcohol Products
22	2200AN	August 2003 (ENCS)	Excise Tax Return for Automobiles & Non-Essential Goods
23	2200M	September 2005 (ENCS)	Excise Tax Return for Mineral Products
24	2200P	September 2005 (ENCS))	Excise Tax Return for Petroleum Products
25	2200T	May 2006 (ENCS)	Excise Tax Return for Tobacco Products
26	2550M	February 2007 (ENCS)	Monthly Value-Added Tax Declaration
27	2550Q	February 2007 (ENCS)	Quarterly Value-Added Tax Return
28	2551M	September 2005 (ENCS)	Monthly Percentage Tax Return
29	2551Q	February 2002 (ENCS)	Quarterly Percentage Tax Return
30	2552	July 1999 (ENCS)	Percentage Tax Return For Transactions Involving Shares of Stock Listed and Traded Through the Local Stock Exchange or Through Initial and/or Secondary Public Offering
31	2553	July 1999 (ENCS)	Return of Percentage Tax Payable Under Special Laws

 Click the image to download the eBIRForm System.

Outline: Philippine Tax Administration

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