Tax Treatment of Certain Persons Engaged in the Business of Land Transportation

Revenue Memorandum Circular No. 70-2015 has recently issued by the bureau to reiterate the Tax Treatment of Certain Persons Engaged in the Business of Land Transportation.

This Circular deals with the tax incidence of the business of land transportation, specifically transport network companies (TNCs), such as but not limited to the likes of UBER, GRAB TAXI, their Partners/suppliers and similar arrangements. A TNC is a pool of land transportation vehicles whose accessibility to the riding public is facilitated through the use of a common point of contract which maybe in the form of text, telephone and/or cellular calls, email, mobile applications or by other means.

The TNC may or may not have been granted a Certificate of Public Convenience (CPC). If it is a holder of a valid and current CPC, it is known as a common carrier and its gross receipts are subject to the Three Percent (3%) common carriers tax under Section 117 of the National Internal Revenue Code of 1997 as amended (NIRC). Otherwise, it is classified as a land transportation service contractor and is subject to the Twelve Percent (12%) Value Added Tax (VAT) under the NIRC.

Please refer http://www.bir.gov.ph/images/bir_files/internal_communications_2/RMC%20No%2070-2015.pdf of the full text of RMC No. 70-2015.

Extension In Procuring, Reconfiguring Machines And Sytems Of The Use of Non-thermal Paper For All CRMs, POS Machines And Other Invoice/Receipt Generating Machine/Software

The CIR of the bureau has issued Revenue Regulations No. 12-2015 to amend Section 8 of RR No. 10-2015 as follows:

 

SECTION 2. AMENDMENT. Section 8 of RR No. 10-2015, is hereby amended to be read as follows:

 

"XXX          XXX         XXX

 

SECTION 8. TRANSITORY PROVISIONS. - In order to provide ample time in procuring, reconfiguring machines and systems, to comply with Section 5, adjustments shall be undertaken on or before October 31, 2015. Any extension due to enhancements of systems required to be undertaken abroad shall seek the approval from the concerned Regional Director or ACIR, Large Taxpayer Service which shall not longer than six (6) months from the effectivity of these Regulations.

 

XXX         XXX         XXX"

 

The provisions of these Regulations was took effect immediately last September 29, 2015.

 

Please refer http://www.bir.gov.ph/images/bir_files/internal_communications_1/Full%20Text%20RR%202015/RR%20No.%2012-2015.pdf of the full text of Revenue Regulations No. 12-2015. 

Requisites For The Valid Claim Of Input Tax Credit By VAT-Registered Taxpayer Of The Receipts/Invoices Generated From CRM/POS Machines

Revenue Memorandum Circular (RMC) No. 64-2015 has recently issued by the CIR of the bureau to reiterate the information requirements that must be shown on receipts/invoices/other commercial invoices generated from CRM/POS/software pursuant to Revenue Regulations (RR) No. 10-2015 and RR No. 11-2004, in relation to RR No. 16-2005 regarding the Value-Added Tax (VAT) receipts/invoices.

 

Pursuant to Section 113(B) of the Tax Code, as amended and Sec. 4.113-1 (B) of RR No. 16-2005, the following information of purchases, customer or client must be indicated on the VAT receipts/invoices, in the case of sales amounting to One thousand pesos (P1,000.00) or more and the sale is made to a VAT-registered person:

 

1. Name of purchaser, customer or client;

2. Address;

3. Taxpayer Identification Number (TIN); and

4. Business style, if any.

 

If the CRM/POS is not capable of showing the said requirements, a manually pre-printed receipts/invoices with approved Authority to Print (ATP) must be issued to the purchaser, customer or client based on the existing provisions of the Bureau.

 

Any purchase of goods/services with receipts/invoices generated from CRM/POS/software are mandated to show the said requisites for the valid claim of input tax credit by VAT-registered taxpayer, as provided by Section 4-110-8 of RR No. 16-2005 and in reference to Section 113 and 237 of the Tax Code.

 

Please refer http://www.bir.gov.ph/images/bir_files/internal_communications_2/RMC%2064-2015.pdf of the full text of the RMC No. 64-2015.

Amendment on Section Of RR No. 10-2015, Also Known As The Use of Non-thermal Paper For All CRMs, POS Machines And Other Invoice/Receipt Generating Machine/Software

Revenue Regulations (RR) No. 12-2015 has recently issued by the CIR of the BIR for the amendment of Section 8  of RR No. 10-2015 with details as follows:

 

SECTION 2. AMENDMENT. Section 8 of RR No. 10-2015, is hereby amended to be read as follows:

 

"XXX     XXX     XXX

 

SECTION 8. TRANSITORY PROVISIONS. - In order to provide ample time in procuring, reconfiguring machines and systems, to comply with Section 5, adjustments shall be undertaken on or before October 31, 2015. Any extension due to enhancements of systems required to be undertaken abroad shall seek the approval from the concerned Regional Director or ACIR, Large Taxpayer Service which shall not be longer than six (6) months from the effectivity of these Regulations.

 

XXX     XXX     XXX"

 

SECTION 3. EFFECTIVITY. The provisions of these Regulations shall take effect immediately.

 

Please refer: http://www.bir.gov.ph/images/bir_files/internal_communications_1/Full%20Text%20RR%202015/RR%20No.%2012-2015.pdf of the full text of RR No. 12-2015.

Identification Document or Proof Of Being A Senior Citizen Which May Be Used For The Availment Of Benefits And Privileges

The CIR of the BIR just recently issued Revenue Regulations No. 11-2015, amending Sections 2 and 7(6) of Revenue Regulations (RR) No. 07-2010, as Amended by RR No. 08-2010 as follows:

 

"Section 2. Definitions. - For purposes of these Regulations, the following terms and phrases shall be defined as follows:

 

XXX          XXX          XXX

 

n. Identification Document - any document or proof of being a senior citizen which may be used for the availment of benefits and privileges under these Rules. It shall be any of the following:

 

i. Senior Citizens' Identification Card issued by the Office of Senior Citizens Affairs (OSCA) in the city or municipality where the elderly resides:

 

ii. The Philippine passport of the elderly person or senior citizen concerned; and

 

iii. Government-issued identification card (ID) which reflects on its face the name, picture, date of birth and nationality of the senior citizen which includes any of the following:

 

1) Digitized Social Security System ID

2) Government Service Insurance System ID

3) Professional Regulation Commission ID

4) Integrated Bar of the Philippines ID

5) Unified Multi-Purpose ID (UMID)

6) Driver's License"

 

Please refer http://www.bir.gov.ph/images/bir_files/internal_communications_1/Full%20Text%20RR%202015/RR%20No.%2011-2015.pdf for the Tax Treatment of the Discount Granted to Senior Citizens and full text of RR No. 11-2015.