"Preservation of Books of Accounts and Other Accounting Records"

The bureau just recently issued the Revenue Regulations No. 5-2014 amending Revenue Regulations No. 17-2013 dealing with the "Preservation of Books of Accounts and Other Accounting Records" as follows:

"SECTION 2. RETENTION PERIODS. - All taxpayers are required to preserve their books of accounts, including subsidiary books and other accounting records, for a period of ten (10) years reckoned from the day following the deadline in filing a return, or if filed after the deadline, from the date of the filing of the return, for the taxable year when the last entry was made in the books of accounts: Provided that, within the first five (5) years reckoned from the day following the deadline in filing a return, or if filed after the deadline, from the date of the filing of the return, for the taxable year when the last entry was made in the books of accounts, the taxpayer shall retain hardcopies of the books of accounts, including subsidiary books and and other accounting records in an electronic storage system which complies with the requirements set forth under Section 2-A hereof.

Please refer http://www.bir.gov.ph/images/bir_files/internal_communications_1/RR%205-2014/RR%205-2014.pdf of the full text of the Revenue Regulations No. 5-2014.