Presentation of Tax Exemption Certificate or Ruling by Exempt Individuals and Entities

Revenue Memorandum Circular (RMC) No. 8-2014 was issued by the bureau with regards to the presentation of Tax Exemption Certificate or Ruling by Exempt Individuals and Entities.

 

The BIR cited that under the provisions of existing tax laws and administrative issuances, however, some individuals, entities and transactions are considered exempt from imposition of taxes on income and, consequently, from withholding taxes.

 

With this, the concerned withholding agents, the RMC require all individuals and entities claiming such exemption to provide a copy of a valid, current and subsisting tax exemption certificate or ruling, as  per existing administrative issuances and any issuance that may be issued from time to time, before payment of the related income. The tax exemption certificate or ruling must explicitly recognize the grant of tax exemption, as well as the corresponding exemption from imposition of withholding tax.

 

Failure on the part of the taxpayer to present the said tax exemption certificate or ruling herein required shall subject him to the payment of appropriate withholding taxes due on the transaction. On the other hand, the withholding agent's failure to withhold notwithstanding the lack of tax exemption certificate or ruling shall cause the imposition of penalties under Section 251 and other pertinent Sections of the Tax Code.

 

Pursuant to Sections 57 to 59 and Sections 78 to 83 of the Tax Code, in relation to Revenue Regulations (RR) No. 02-1998, as amended, certain items of income are made subject to the payment of withholding taxes (final tax, creditable/expanded withholding tax, withholding tax on compensation) at the rates prescribed therein.

 

It was also mentioned that the Circular revokes all other circulars or issuances inconsistent with it

 

Please refer http://www.bir.gov.ph/images/bir_files/old_files/pdf/82437RMC%20No%208-2014.pdf of the full text RMC No. 8-2014.

Who Else Wants To Avoid Tax Penalties?

Most taxpayers wants to avoid in paying tax penalties with the bureau. In fact, this burden can be avoided by any type or classification of taxpayers by paying the right taxes on time and doing or following the tax obligations with diligence as required by revenue regulations, national internal revenue code and other tax laws.

As a taxpayer, to avoid this tax burdens, I usually keep myself updated with the revenue regulations, national internal revenue code and other tax laws. Tax planning and compliance are one of the measures in avoiding tax penalties. Mastery of these revenue regulations and national internal revenue code can truly help us taxpayers in avoiding tax penalties. 

Businessmen and entrepreneurs usually hires good tax consultants with regards to tax planning, compliance reporting and other services. 

For me, quality service begins with wisdom, perseverance, actions and compliance.    

Offline eBIRForms Package v5.2

The bureau has issued a new version of eBIRForms Package, the Offline eBIRForms Package v5.2 and you can download in the following site(s):

1. http://ftp.pregi.net/bir/ebirforms_package_v5.2.zip

The Electronic Bureau of Internal Revenue Forms (eBIRForms) was developed primarily to provide taxpayers with an alternative mode of preparing and filing tax returns that is easier and more convenient.

The Offline eBIRForms Package is a tax preparation software that allows taxpayers and ATAs to accomplish or fill up tax forms offline. Instead of the conventional manual process of filling up tax returns on pre-printed forms that is highly susceptible to human error, taxpayers/ATAs can directly encode data, validate, edit, save, delete, view, print and submit their tax returns. The package can do automatic computations and has the capability to validate information encoded by taxpayers/ATAs. After filling out the forms in this package, taxpayers/ATAs can submit it to the Online eBIRForms System.

The eBIRForms is a package application covering thirty-six (36) BIR Forms comprised of Income Tax Returns; Excise Tax Forms; VAT Forms; Withholding Tax Forms; Documentary Stamp Tax Forms; Percentage Tax Forms; ONETT Forms and Payment Form.

Updates: http://philippinetaxtalk.blogspot.com/2016/05/ebirforms-package-v61-new-is-now.html


To download the Offline eBIRForms Package v6.1, just click the following link:

http://ftp.pregi.net/bir/ebirforms_package_v6.1.zip

Income Payments On Sugar

Revenue Regulations No. 13-2015 has issued by the CIR of the BIR amending further the provisions of Section 2.57.2 of Revenue Regulations (RR) No. 2-98, as Amended by RR No. 7-2015 dated October 12, 2015.

 

The amendments is stated in the RR with details as follows:

 

SEC. 2. AMENDMENTS. - The pertinent provisions of Section 2.57.2 of RR No. 2-98, as amended by RR No. 7-2015, are hereby further amended to read as follows:

 

"(AA) Income payments on sugar. - On gross payments on purchases of sugar - One percent (1%)

 

1. Proprietors or operators of sugar mills/refineries on their mill share, xxx:

 

1.1 For locally produced raw cane sugar and raw sugar - the composite price, in metric tons, governing the specified crop year of raw cane sugar and raw sugar as reflected in one of the reports (Annex "A") under the weekly Final Sugar Production Bulletin duly issued by the Sugar Regulatory Administration (SRA) on the date of sale, or actual selling price, whichever is higher.

 

It shall be ensured that a copy of the weekly Final Sugar Production Bulletin be officially transmitted by the SRA to the Commissioner of Internal Revenue within twenty four (24) hours from the date of issuance thereof.

 

          XXX          XXX          XXX

 

All existing rules and regulations or parts thereof which are inconsistent with the provisions of these Regulations are hereby modified, amended, revoked or repealed accordingly.

 

The Regulations took effect fifteen (15) days immediately following publication in a newspaper of general circulation.

 

Please refer http://www.bir.gov.ph/images/bir_files/internal_communications_1/Full%20Text%20RR%202015/RR%20No.%2013-2015.pdf of the full text of RR No. 13-2015.