Guidelines and Policies for the Monitoring of Service Fees of Professionals

The bureau just issued Revenue Regulations No. 4-2014 in connection with its campaign to promote transparency and to eradicate tax evasion among self-employed professionals which the bureau encouraged them to comply with the BIR's requirements on registration pursuant to section 236 of the National Internal Revenue Code (NIRC) of 1997 as amended and issuance of official receipts and invoices under Sections 113 and 237 of the same code.

Under RR No. 4-2014, the polices and guidelines for the monitoring of service fees of professionals is stated in Section 2 with details as follows:

1. Self-employed professionals shall register and pay the annual registration fee (ARF) with the RDO/LTO having jurisdiction over them. In addition to the requirements for annual registration all self-employed professionals shall submit an affidavit indicating the rates manner of billings and the factors they consider in determining their service fees upon registration and every year thereafter on or before January 31.

2. Self-employed professionals are obligated to register the books of accounts and official appointment books of their practice of profession/occupation/calling before using the same. The official appointment books shall contain only the names of the client and the date/time of the meeting. They are likewise obligated to register their sales invoices and official receipts (VAT or non-VAT) before using them in any transactions.

3. In cases when no professional fees are charged by the professional and paid by client, a BIR registered receipt, duly acknowledged by the latter shall be issued showing a discount of 100% as substantiation of the  "pro-bono' service.

Please refer ftp://ftp.bir.gov.ph/webadmin1/pdf/84365RR%204-2014.pdf of the full text of Revenue Regulations No. 4-2014.