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Busy as bees, words best to describe the financial statement preparers during this audit and tax season. As bookkeepers and accountants are in the process of summarizing those financial records for its presentation, interpretations are done by Ph government tax and regulatory agencies and other users of the financial statements. External auditors, on the other hand,  as part of their engagement quality control review procedures, check details in accordance with applicable financial reporting and auditing standards to ensure that the components of the financial statements are complete and contain necessary disclosure so that end users of the financial statements gain more [...]

On September 29, 2022, the BIR issued RMO No. 43-2022 prescribing the policies, guidelines, and procedures in the issuance and use of Notice to Issue Receipt/Invoice (NIRI) and defining the duties and responsibilities of all the offices involved in the issuance of NIRI that shall take effect immediately.   Policies: This covers all new business owners (NBR) head offices and branches by the Revenue District Office (RDO) where the taxpayer is registered; Online sellers and merchants, vloggers, social media influencers, and online content creators earning income from the platform and/on advertising. “Ask for Receipt” shall still be valid until June 30, [...]

On August 22, 2022, the BIR issued RMC No. 122-2022 prescribes the guidelines for updating of registration information record of taxpayers who will enroll in the Bureau's Online Registration and Update System (ORUS). What is ORUS?  According to the BIR, ORUS is a web-based system that taxpayers can use to register with the BIR and Update their taxpayer registration information Online, anytime with real-time access to their registration records. All taxpayers who intend to transact online with the Bureau thru the ORUS, once available, and those who are currently transacting manually for their registration-related transactions, shall update their registration records, such [...]

Implementing Section 295(F), in relation to Section 2994, both of the National Internal Revenue Code of 1997, as Amended by Republic Act (RA) No. 11534. Otherwise known as the “Corporate Recovery and Tax Incentives for Enterprise Act” (CREATE Act), on the Tax Treatment of the Importation of Petroleum Products into, and Subsequent Transfer, Transport and/or Withdrawal through and from Freeport Zones and Economic Zones. Section 1- Scope Upon the effectivity of the CREATE Act, the importation of petroleum and petroleum products into the Freeport Zones and Economic Zones is already subject to applicable taxes. These Regulations are hereby issued in order [...]

On February 8, 2022, SEC released the SEC Memorandum Circular No. 2 series of 2022 for the schedules for filing of Annual Financial Statements and General Information Sheet for all concerned corporations. Audited Financial statements of companies whose fiscal year ends on December 31, 2021: All corporations, including branch offices, representative offices, regional headquarters, and regional operating headquarters of foreign corporations shall file their AFS depending on the last numerical digit of their SEC registration or license number in accordance with the following schedule through the eFAST: July 1-15 : 1 and 2 July 16-31 : 3 and 4 August 1-15 [...]

Corporations with fiscal year ending December 31, 2020 should observe the following filing deadlines of the Financial Statements with the SEC based on last numerical digit of their SEC registration or license number:  1 : June 1 to 30  2 : July 1 to 31 3 and 4 : August 1 to 31  5 and 6 : September 1 to 30  7 and 8 : October 1 to 30  9 and 0 : November 1 to 30 Financial Statements of corporations whose fiscal year ends on a date other than December 31 should be filed within 120 days from the end [...]

By: Hergie Anne De Guzman, CPA The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 17-2021 to extend the filing from January 31, 2021 to February 28, 2021, of the Annual Information Return of Income Taxes Withheld on Compensation (BIR Form 1604C) and Annual Information Return of Income Payments Subjected to Final Withholding Taxes (BIR Form 1604F) and the submission of the related attachments, Annual Alphabetical List of Employees/Payees from Whom Taxes Were Withheld, using the new Alphalist Data Entry and Validation Module (Version 7.0). Moreover, the deadline of submission of the Quarterly Alphalist of Payees (QAPs) for [...]

By: Hergie Anne C. De Guzman, CPA The Philippine Government has been undertaking measures to prevent the spread of the COVID-19. This includes implementing a series of quarantines and restricting local and foreign travels, especially unnecessary travels. With the implementation of these, there are affected foreign individual or cross-border employees stranded in the Philippines and thereby causing issues and concern with regard to their taxability. Revisiting Rules of Taxability of Income from Employment Generally, the residence state has the power to tax the employment income of its resident taxpayers except when the employment is exercised in another State. Exception to this [...]

The Securities and Exchange Commission (SEC) announced just last week the temporary closure of the SEC Main Office in Philippine International Convention Center (PICC), Pasay City to give way for the office disinfection due to the initial positive COVID-19 test result of four SEC employees. SEC resumed their operations last July 1, 2020 after the said employees tested negative on the confirmatory tests. SEC shall likewise resume accepted Annual Financial Statements (AFS) and General Information Sheet (GIS). Below are the modes of submissions allowed and the prescribed adjusted filing schedules: Modes of Submission of Reports Through Courier Services or Registered Mail [...]

By: Seala Marie Asis, CPA Wrapping the financial year ending December 31, 2019 could have been one of the most common works of Philippine accountants this first quarter of 2020.  In this article, let's deal about one of the most important reports, every SEC registered entities in the Philippines must properly comply with - the Annual Financial Statements. The Securities and Exchange Commission (SEC) through SEC Memorandum Circular No. 2 Series of 2020 issued on January 21, 2020 has prescribed the related guidelines on filing of the Annual Financial Statements (AFS) of entities registered in the Philippines. Who are covered by SEC [...]