No Cliffhanger Endings: Events Following the Reporting Period
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 [...]
RMC No. 40- 2023: Availability of the Offline electronic Bureau of Internal Revenue Forms (eBIRForms) Package Version 7.9.4
BIR Issued this circular to announce the availability of the Offline eBIRForms Package Version 7.9.4 which can be downloaded from the following websites: www.bir.gov.ph www.knowyourtaxes.ph/ebirforms The Offline eBIRForms Package v7.9.4 now includes the April 2021 version of the following forms: BIR Form No. Description Deadline for Filing and Payment 1707 Capital Gains Tax Return (For Onerous Transfer of Shares of Stock Non-Traded Through the Local Stock Exchange) Within thirty (30) [...]
RMC No. 32-2023: Guidelines in filing of the Annual Income Tax Returns for CY 2022 and payment of Taxes due thereon until April 17, 2023
Filing of Annual Income Tax Returns for Calendar Year 2022 as well as Payment of Taxes Due Thereon Until April 17, 2023 For the information and guidance of all concerned, this Circular is being issued to provide the guidelines in the filing of Annual Income Tax Returns (AITR) for Calendar Year (CY) 2022, as well as the payment of corresponding taxes due thereon, until April 17, 2023. Taxpayers may file [...]
SEC Update: Extension of Deadlines for the 2023 Filing of Annual Financial Statements
SEC Memorandum Circular No. 1 Series of 2023 Extension of deadlines for the 2023 Filing of Annual Financial Statements To demonstrate commitment to ensuring high-quality financial reports, the Commission provides sufficient time for external auditors to complete their statutory audits of the financial statements of corporations amidst recent challenges encountered by the auditing firms. The Commission recognizes the role of external auditors as essential in safeguarding the public interest through [...]
RMC No. 24 – 2023
On February 17, 2023, the BIR Issued the Revenue Memorandum Circular No. 24- 2023 that further clarifies the qualifications of Ecozone Logistics Service Enterprise (ELSE) to the incentives of VAT-Zero Rate on local purchases of goods and services exclusively and directly used in the registered project or activity. ELSE is a Registered Business Enterprise (RBE) supplying production-related raw materials and equipment that caters exclusively to the requirements of export manufacturing [...]
RR No. 1-2023
On January 18, 2023, the BIR issued RR No. 1-2023 that implements the ten percent (10%) discount and the Value-Added Tax (VAT) exemption under Republic Act (RA) No. 11861 (Expanded Solo Parents Welfare Act), to wit: Solo parents that meet all of the following conditions shall qualify for the 10% discount and VAT exemption: Solo Parent has a child/children (as defined in RA No. 11861) with the age of six [...]
SEC Memorandum Circular No. 9 – 2022
SEC Memorandum Circular No. 9 Series of 2022 2023 Filing of Annual Financial Statements and General Information Sheet To maintain an organized and orderly filing of Annual Financial Statements (AFS) and General Information Sheet (GIS), and to comply with the zero-contact policy and automation of business-related transactions mandated by Republic Act No. 11302, otherwise known as the “Ease of Doing Business and Efficient Government Service Delivery Act of 2018”, the [...]
RR No. 15-2022: Relative to some changes in the rate of Creditable Withholding Tax on certain income payments
BIR Issued RR No. 15-2022 amending certain provisions of Revenue Regulations (RR) No. 2-98 as Amended by RR No. 11-2018, which implemented the provisions of Republic Act 10963, otherwise known as Tax Reform for Acceleration and Inclusion (TRAIN) Law, Relative to some changes in the rate of Creditable Withholding Tax on Certain Income Payments These regulations are effective from December 3, 2022. Income payments are subject to Creditable Withholding Tax [...]
Revenue Regulations No. 14-2022: Prescribes the rules and regulations relative to the importation, manufacture, sale, packaging, distribution, use, and communication of Vaporized Nicotine and Non-Nicotine Products, and Novel Tobacco Products
Revenue Regulations No. 14-2022 Prescribes the rules and regulations implementing the provisions of Republic Act (RA) No. 11900, relative to the importation, manufacture, sale of packaging, distribution, use, and communication of Vaporised Nicotine and None-Nicotine Products, and Novel Tobacco Products. There shall be levied, assessed, and collected an Excise tax on Vaporized Nicotine and Non- Nicotine Products at the rate of tax prescribed under RA Nos. 11346 and 11467 as [...]
Quality Assurance Review: A Navigator of Sustainable Future
By: Joelex Cortes, CPA The world has been changing a lot and it is a challenge that poses either a threat or opportunities in the present and future days to come. The business perspective is no exception. Since the financial statements are the product of business operations and business transactions evolve dynamically, then there is a real need for the quality of the assurance represented through the reports attached on [...]
RMC No. 142-2022: Prescribing Guidelines on the Registration with BOI of existing RBEs in IT-BPM sector
For the information and guidance of all internal revenue officers, employees, and others concerned, attached is the DTI MC No. 22-19, s. 2022 dated October 18, 2022, prescribing the guidelines on the transfer of RBEs in the IT-BPM sector from their concerned Investment Promotion Agency administering economic or Freeport zone to BOI. This is in view of the Fiscal Incentives Review Board Resolution No. 026-2022 dated September 14, 2022, which [...]
RMC No. 141-2022: Revised contents of eBIRForms email notification or the Tax Return Receipt Confirmation (TRRC)
BIR Issued Revenue Memorandum Circular (RMC) No. 141-2022 to inform eBIRForms users/filers on the revised contents of eBIRForms email notification or the Tax Return Receipt Confirmation (TRRC) The revised email content shall be read as follows: This Confirms receipt of your submission with the following details subject to validation by BIR: File Name: 2222222222- 0605-01182022104744.xml Date Received by BIR: 18 January 2022 Time Received by BIR: 10:47:44 AM Penalties [...]
RR No. 13-2022: Prescribes the guidelines, procedures and requirements for the proper Income Tax treatment of equity based compensation of any kind
On October 7, 2022, BIR issued Revenue Regulation 13- 2022 to prescribe more definitive guidelines, procedures, and requirements for the proper income tax treatment of equity-based compensation. Which shall take effect fifteen (15) days following its publication in the Official Gazette or in a newspaper whichever comes first. For the income tax treatment, base on Section 32 (A) of NIRC of 1997 as amended, defines gross income as all income [...]
SEC Update
Reportorial Requirements Submitted by Corporations shall be accepted and considered complete and accurate. Any Inaccuracy, incompleteness, and/or false or misleading information in the submitted reports shall be penalized accordingly. Pursuant to Sec. 162 of Republic Act No. 11232 otherwise known as the Revised Corporation Code. "Any person who willfully certifies a report required under this Code, knowing that the same contains incomplete, inaccurate, false, or misleading information or statements, shall [...]
RMO No. 43-2022: Prescribes the policies, guidelines and procedures in the issuance and use of Notice to Issue Receipt/lnvoice (NIRI) pursuant to Revenue Regulations No. 10-2019
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 [...]
RMC No. 131-2022: Offline eBIRForms Package Version 7.9.3
On September 28, 2022, the BIR issues the RMC No 131-2022 to announce the availability of Offline eBIRForms Package Version 7.9.3 which can be downloaded from the following sites: www.bir.gov.ph and www.knowyourtaxes.ph/ebirforms The new Offline eBIRForms Package has the following modifications: Additional Alphanumeric Tax Codes (ATCs) in BITR Form No. 0605 to be used by the International Carriers in paying their taxes in reference to Revenue Memorandum Order No. 37-2022, [...]
RMC No. 130-2022: Extension of eFiling/Filing and ePayment/Payment of Taxes due on September 26, 2022
On September 26, 2022, the BIR Issued RMC No. 130-2022 in connection with the Memorandum Circular No. 06 issued by the Office of the President due to the inclement weather brought about by Super Typhoon “Karding”. In this regard, the efiling/filing of returns (BIR Forms 2550M, 2550Q, and 2551Q) and the payment of corresponding taxes due thereon as well as the submission of the reportorial documents that will fall due [...]
RR No. 12-2022
On September 13, 2022, the BIR Issued Revenue Regulation No. 12-2022 which prescribes the policies and guidelines for the availment of incentives under Republic Act No. 9999 (Free Legal Assistance Act of 2010). Lawyers or professional partnerships rendering actual free Legal Services shall be entitled to an allowable deduction from the gross income equivalent to the lower of: The amount that could have been collected for the actual free Legal [...]
RMC No. 127-2022: Lifts the suspension of the conduct of enforcement activities and operations covered under RMC No. 77-2022
On September 7, 2022, the BIR Issued the Revenue Memorandum Circular (RMC) No. 127-2022 lifting the Suspension of the Conduce Enforcement Activities and Operations Covered by Outstanding Mission Orders (MOs) and Removal of the Prohibition on the Issuance of the New MOs Authorizing such Activities and Operations under Revenue Memorandum Circular (RMC) No. 77-2022 dated 30 May 2022 effective immediately, the following are hereby Lifted and Removed: All field audits [...]
RMC No. 123-2022: Clarifications on the Provisions of Revenue Regulations No. 6-2022 Relative to the Removal of the Five (5) – Year Validity Period on Receipts/Invoices
On August 31, 2022 BIR issued the RMC 123-2022 which clarifies the provisions of Revenue Regulation (RR) No. 6-2022 relative to the removal of the five (5) year validity period on receipts/invoices, which shall tale effect on July 16,202 (15 days from the date of its publication, which was July 1, 2022). All taxpayers who are/will be using Principal and Supplementary Receipts/Invoices shall be covered by the said Regulations or [...]
RMC No. 122-2022: Guidelines for updating of registration information record of Taxpayers
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 [...]
RMC No. 121-2022: Guidelines pursuant to Revenue Memorandum Circular (RMC) No. 77-2022.
On August 22. 2022 the BIR issued the Revenue Memorandum Circular No. 121-2022, which prescribes the guidelines on lifting the suspension of field audit and operations on all outstanding Letters of Authority/Audit Notices and Letter Notices pursuant to Revenue Memorandum Circular (RMC) No. 77-2022. The lifting of the suspension of field audit and operations shall be on per Investigating Office upon approval by the Commissioner of Internal Revenue (CIR) of [...]
RMC No. 82-2022: Clarifies the service of Letter of Authority pursuant to Revenue Audit Memorandum Order No. 1-2000
This circular is issued on June 30, 2022, that clarifies the service of the electronic Letter of Authority (eLA) to the taxpayer within the 30-day period from the date of issuance thereof pursuant to Revenue Audit Memorandum Order (RAMO) No. 1-2000. RAMO No. 1-2000 was already amended by RAMO No. 1-2020, thereby deleting the provision in Item No. VII 2.3 of RAMO No. 1-2000 to read as follows: “ 1. [...]
RR No. 8-2022: Issuance of e-receipts instead of manual receipts and electronic reporting of the sales data to BIR.
Revenue Regulation No. 8-2022 issued on June 30, 2022, prescribes the policies and guidelines for the implementation of the issuance of e-receipts instead of manual receipts and electronic reporting of the sales data to the Bureau. These regulations shall take effect immediately after publication in a newspaper of general circulation. The following taxpayers are mandated to issue electronic receipts or sales/ commercial invoices under Section 237 of NIRC, as amended: [...]
RR No. 6-2022: The Removal of Five(5)-year Validity Period on Receipts/ Invoices
Revenue Regulation No 6- 2022 issued on June 30, 2022, implements the removal of 5 year Validity Period on Receipts/Invoices. This Regulation shall cover taxpayers who will apply the following: ATP Official Receipts, Sales Invoices (SIs), and other Commercial Invoices (CIS); Registration of Computerized Accounting System (CAS)/Component of CAS; and PTU CRMs and POS machines. This shall take effect fifteen (15) days after publication in the Official Gazette or in [...]
RR No. 4-2022: Tax Treatment of Importation of Petroleum Products in Freeport and Ecozone
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 [...]
RMC No. 78-2022 – BIR Clarifies the Tax Treatments and Obligations of the different classifications of Educational Institutions.
On June 9, 2022, BIR issued RMC No. 78-2022 which clarifies the Income Tax Treatment for the different classifications of educational institutions and their tax obligations. Income Tax Treatment: I. Proprietary Educational Institution Domestic Corporation The Income of a proprietary educational institution, as well as Non-stock, Non-Profit educational institution is subject to the ten percent (10%) preferential Income Tax rate under Section 27(B) of the Tax Code. Provided that beginning [...]
RMC No. 77-2022: BIR Suspends All Field Audit Pursuant To LOA/MOA Effective May 30, 2022
On May 30, 2022, BIR Issued the Revenue Memorandum Circular (RMC) No. 77-2022, which suspends all field audits of the BIR covered by Letters of Authority (LOAs)/Mission Orders (MOs) relative to examinations of taxpayers’ books of account and accounting records. As such, no field audit, field operations, or any form of business visitation in the execution of LOAs/MOs should be conducted, nor any new LOAs/MOAs ve further issued, except in [...]
RMC No. 76-2022: BIR Suspends All Field Audit Pursuant to Special Orders, Operations Memoranda & Other Similar Directives of Special Task Force Effective May 30, 2022
On May 30, 2022 BIR Issued the Revenue Memorandum Circular (RMC) NO. 76-2022, to suspends until further notice all field audit of the BIR pursuant to, and under authority of, all Task Forces, created thru Revenue Special Orders (RSOs), Operation Memoranda (OM), and other similar orders or directives, relative to examinations of taxpayers’ books of account and accounting records effective May 30, 2022. As such, no field audit, field operations [...]
RMC No. 71-2022: BIR Circularizes the Joint Guidelines on the Benefits & Privileges of the Senior Citizens & Persons With Disabilities on their Online Purchases & Phone Calls/SMS
On May 18, 2022 the BIR Issued the Revenue Memorandum Circular No. 71-2022, which circularizes the Joint Memorandum Circular No. 1-2022 entitled “Guidelines on the Provision of the Mandatory Statutory Benefits and Privileges of the Senior Citizens and Persons with Disabilities on their Purchases through Online (E-Commerce) and Phone Call/SMS”. The following were the highlights included in the Joint Memorandum Circular No. 1-2022: Senior Citizens (SC) or a Person with [...]
SEC Report Filing Deadline for Fiscal Year December 31, 2021
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 [...]
RMC No. 46-2022: Clarifications on RMC No. 42-2022 and 44-2022
RMC No. 46-2022: Clarifications on the Deadline of Submission of Attachments to the 2021 Annual Income Tax Return and Other Matters On April 18, 2022, the BIR issued the Revenue Memorandum Circular (RMC) No. 46-2022 in relation to Revenue Memorandum Circular (RMC) No. 42-2022 and 44-2022, particularly on the deadline for the submission of attachments to the 2021 Annual Income Tax Return (AITR). In view thereof, it is hereby clarified [...]
RMC No. 42-2022: Filing Annual Income Tax Return and Payment of Tax Due Deadline
RMC No. 42-2022: Clarifying the Deadline for Filing of Annual Income Tax Return (AITR) for Taxable Year Ending December 31, 2021; Providing Guidelines in the Manner of Filing and Payment thereof; and Non-imposition of Surcharge on Amended Returns On April 12, 2022 BIR has issued the Revenue Memorandum Circular No. 42-2022 in relation to the BIR Advisory dated March 22, 2022 this Circular is hereby issued to reiterate the deadline [...]
RMC No. 36-2022: Uniform Template for VAT Zero Percent (0%) Certification
RMC No. 36-2022: Uniform Template for VAT Zero Percent (0%) Certification BIR Issued RMC No. 24-2022 on March 9, 2022, to clarify issues related to RR No. 21-2021 implementing the amendments to the VAT Zero Rating provisions under Sections 106 and 108 of the National Internal Revenue Code of 1997 (Tax Code). In line with this, on April 6, 2022, the BIR has issued the Revenue Memorandum Circular no. 36-2022 [...]
RMC No. 26-2021: UPDATE on RMC No. 22-2021
RMC No. 22-2021: Reportorial Requirements for DST Exemption By: Hergie Anne C. De Guzman, CPA BIR issued Revenue Regulations (RR) No. 24-2020 on September 30, 2020 to implement the Documentary Stamp Tax (DST) exemption for extended loans or restructured credits due on or before December 31, 2020, as mandated by Republic Act (RA) No. No. 11494 or “Bayanihan to Recover As One Act”. In line with this, BIR has issued [...]
SEC Report Filing Deadline for Fiscal Year December 31, 2020
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 [...]
Extended Submission of Annual Information Returns and Alphalists
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 [...]
RR No. 26-2020: Donations to Public Schools During the Pandemic
By: Hergie Ann De Guzman, CPA The COVID-19 Pandemic undoubtedly affects every aspect of our daily lives - family, work, and especially the students’ means of learning. With the school opening suspended last June, there has been a significant delay in their studies. Finally, this October, classes reopened but in a different setting and mode - the classes went virtual or online. The online classes, I might say, is not [...]
RMC No. 83-2020: Tax Implications of Measures Implemented Due to COVID-19 on Cross-Border Matters
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 [...]
Revenue Regulations No. 19-2020: Use of BIR Form 1709 or Information Return on Related Party Transactions
The Bureau of Internal Revenue (BIR) released on July 10, 2020 Revenue Regulations (RR) No. 19-2020 to prescribe the use of BIR Form No. 1709 or the Information Return on Related Party Transactions (International and/or Domestic) and the submission of its attachments. The form will be used by the taxpayers with related party transactions for the proper disclosures and as support in the implementation of Philippine Accounting Standards (PAS) 24 [...]
SEC ADJUSTED DEADLINES FOR ANNUAL REPORTS AND MODES OF SUBMISSION
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 [...]
RMC 49-2020: The New Normal on ITR and Related Attachments Submission
Long queues for the stamping of the Annual Income Tax Returns (ITR) and Financial Statements (FS) has been a norm in most BIR Revenue District Offices (RDOs) specially on the actual deadline. However, this burdensome practice is expected to finally come to an end as the taxpayers are provided with other options for submission. BIR issued Revenue Memorandum Circular (RMC) No. 49-2020 on May 22, 2020, laying down the following [...]
Guidelines on Filing of Audited FS After ECQ
The Philippines is still struggling to win the battle against Covid-19. After almost two (2) months of putting the whole country under quarantine measures, the government has taken gradual steps to open the essential businesses as well as government offices to cope with the declining economy. Philippine Securities and Exchange Commission (SEC) together with other government offices has extended the submission of reports such as the Audited Financial Statements (AFS) [...]
RMC No. 47-2020: Compliance with the Receipting/Invoicing Requirements During ECQ
Issues in Invoicing During ECQ Due to the strict implementation of the Enhanced Community Quarantine (ECQ), many taxpayers experience difficulties when it comes to the issuance of receipts/invoices to their customers. Manual receipts with Authority to Print (ATP) and computer-generated receipts with duly approved Permit to Use (PTU) or Acknowledgment Certificate are not accessible due the closure of most business establishments. Sending or mailing of the actual receipts/invoices through postal [...]
SEC ONLINE FILING OF CERTAIN APPLICATIONS DURING COVID-19 OUTBREAK
By: Hergie Ann De Guzman The pandemic we are facing now is a challenge to everyone, including the business owners for the continuance of their business operations. Moreover, governing bodies, such as the Philippine Securities and Exchange Commission (SEC ) are also faced with the challenge to effectively continue catering the needs of the companies and new business registrants. Company Registrations The SEC continues to accept online applications for the [...]
SEC Extension on Reportorial Requirements Submission During COVID-19 Outbreak
By: Hergie Ann De Guzman The Philippine Securities and Exchange Commission (SEC), amid the COVID-19 pandemic and implemented Community Quarantine, has been continuously providing the public with convenient ways on how companies could comply with the SEC’s reportorial requirements without compromising the public’s health condition. Below are the policies implemented by the SEC to ensure proper compliance of registered companies even during the pandemic. Covered Reports Audited Financial Statements [...]
Further BIR Deadline Extensions Related to Covid-19
By: Hergie Ann De Guzman, CPA The Bureau of Internal Revenue (BIR) has issued last April 30, 2020 Revenue Regulations (RR) No. 11-2020 dated April 29, 2020 to further extend the deadline of filing/submission of returns/reports and payment of taxes due to the extended Enhanced Community Quarantine (ECQ). Taxpayers who will file their tax returns within the original deadline or prior to the extended deadline can amend their tax returns [...]
Updates on the Remittance of Government Contributions Amidst COVID-19 Pandemic
By: Arianne Keith Velasquez, CPA Battling with the unseen opponent due to the COVID-19 is the greatest struggle Philippines and the rest of the world has been dealing with the past months which sprouted to different socio-economic problems especially those in the business sector. Employers are in constant search of the best formula to meet the needs of its employees without compromising the continuance of the business in a long [...]
Five Ways Young Professionals Can Deal With Failure
By: Michael John D. Natabla, CPA Have you ever experienced to commit yourself in something, to give your 100% and more, but still you haven’t received the result that you have expected? Or, have you ever had countless sleepless nights just to submit your deliverable on time but despite your best effort, you still haven’t met the deadline? One way or another, it happens to all of us. As [...]
2020 Guidelines on Submission of Annual Financial Statements of Philippine Registered Entities
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 [...]
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