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Income Tax

REVENUE MEMORANDUM CIRCULAR NO. 12-2024

2024-02-08T15:25:23+08:00

Clarifies the treatment of foreign currency transactions for financial reporting and internal revenue tax purposes.   The Table below shows the differences between the foreign exchange (forex) gains/losses recognized in the financial statements prepared under the Philippine Financial Reporting Standards (PFRS)/Philippine Accounting Standards (PAS) and the forex gains/losses as income or allowable deduction for Income Tax purposes.  PARTICULARS  PFRS  CURRENT TAX TREATMENT  Initial measurement of foreign currency transactions  All foreign currency transactions are recorded in the entity’s functional currency using the spot rate of exchange at transaction date.  Foreign currency transaction are translated into Philippine Peso using the prevailing interbank reference [...]

REVENUE MEMORANDUM CIRCULAR NO. 12-20242024-02-08T15:25:23+08:00

REVENUE MEMORANDUM CIRCULAR NO. 11-2024

2024-02-08T13:32:51+08:00

For Income Tax purposes, an operating lease is defined as a contract under which the asset is not wholly amortized during the primary period of the lease, and where the lessor does not rely solely on the rentals during the primary period for his profits, but looks for the recovery of the balance of his costs and for the rest of his profits from the sale or re-lease of the returned asset of the primary lease period.   "Finance lease" or full payout lease, on the other hand, is a contract involving payment over an obligatory period (also called primary or [...]

REVENUE MEMORANDUM CIRCULAR NO. 11-20242024-02-08T13:32:51+08:00
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