When Payment of Taxes Through Credit/Debit/Prepaid Card is Deemed Made?

Did you know that the CIR of the bureau has issued Revenue Regulations (RR) No. 2-2017 recently amending RR No. 3-2016 particularly Section 4(a) and (b) thereof?

 

The amendment is as follows:

 

SECTION 2. Amendment. - Section 4 of RR No. 3-2016 is hereby amended to read as follows:

 

"SECTION 4. When Payment is Deemed Made. - The payment of taxes through credit/debit/prepaid card shall be deemed made on the date and time appearing in the system-generated payment confirmation receipt issued to the taxpayer-cardholder by the AAB-Aquirer.

 

However, in case of late remittance or non-remittance of taxes to the BIR, despite the timely issuance of a valid confirmation receipt by the AAB-Acquirer to the taxpayer-cardholder, the liability to pay the tax rests upon the AAB-Acquire considering that from the time of issuance of a valid confirmation receipt to the taxpayer-cardholder, the AAB-Acquirer becomes the trustee of the government with the obligation to remit the payment on time to the BIR.

 

Please refer: http://www.bir.gov.ph/images/bir_files/internal_communications_1/Full%20Text%20RR%202017/RR%20No%202-2017.pdf

Acceptance of Tax Returns/Payments of Internal Revenue Taxes by Authorized Agent Banks (AABs) & Extension of Banking Hours

Have you read about the new circular issued by the bureau with regards to the Acceptance of Tax Returns/Payments of Internal Revenue Taxes by Authorized Agent Banks (AABs) and Extension of Banking Hours?

 

The CIR has issued Revenue Memorandum Circular (RMC) No. 12-2017 recently to inform the taxpayers and all concerned in relation with the Acceptance of Tax Returns/Payments of Internal Revenue Taxes by Authorized Agent Banks (AABs) on April 1, 2017 and April 8, 2017 and Extension of Banking Hours from 3:00 P.M. to 5:00 P.M. for the period April 1 to April 17, 2017.

 

This is in connection with the forthcoming tax deadline and pursuant to the Memorandum of Agreement executed by the AABs, the Bureau of Internal Revenue (BIR) and the Bureau of the Treasury (BTr), more particularly item 2.1.2 of the bank obligations which states that:

 

"The AAB shall:

 

1. xxx

 

2. xxx

2.1.1 xxx

2.1.2 To open bank operations two (2) Saturdays immediately prior to April 15 of every year and extend banking hours from 3:00 p.m. to 5:00 p.m. from April 1 to income tax payment deadline."

 

all concerned revenue personnel are hereby informed and guided that all AABs have been reminded to open bank operations on April 1, 2017 and April 8, 2017. Moreover, and considering that April 15, 2017 falls on a Black Saturday, they are also advised to extend the banking hours from 3:00 P.M. to 5:00 P.M. for the period April 1 to April 17, 2017, for purposes of accepting tax payments.

 

Please refer: http://www.bir.gov.ph/images/bir_files/internal_communications_2/RMCs/RMC%20No%2012-2017.pdf of the full text of RMC No. 12-2017.

 

 

Prescribe Format for the Certificate of Availment / Approval and Notice of Denial Relative to Application for Compromise Settlement and / or Abatement of Penalties

The BIR has issued Revenue Memorandum Order (RMO) No. 3-2017 recently amending further the Prescribe Format for the Certificate of Availment / Approval and Notice of Denial Relative to Application for Compromise Settlement and / or Abatement of Penalties Pursuant to Section 204 of the Tax Code, as Amended.

It is stated in the RMO that all approved applications for compromise settlement and / or abatement of penalties shall be issued Certificate of Availment (CA) following the prescribed format as per attached Annexes "A" and "B", while denied applications shall be issued Notice of Denial (ND) following prescribed format as per attached annexes "C" and "D". 

Both CA and ND shall be included as accountable forms of the Bureau.

The RMO dated February 1, 2017 takes effect immediately.

Please refer http://www.bir.gov.ph/images/bir_files/internal_communications_3/Full%20Text%20of%20RMO%202017/RMO%20No.%203-2017.pdf of the full text of RMO No. 3-2017.

File Formats and Submission of Semestral List of Regular Suppliers by Top 20,0000 Private Corporations

Revenue Memorandum Circular (RMC) No. 5-2009 has issued by the bureau to inform the public about the File Formats and  Submission of Semestral List of Regular Suppliers by Top 20,000 Private Corporations per RR 17-2003, as amended by RR 14-2008.

Currently, the Semestral List of Regular Suppliers is submitted through CD at the Bureau of Internal Revenue (BIR) of the Private Corporation's jurisdiction on or before July 31 and January 31 for the first and second semesters of each calendar year, respectively. The company is also required to submit hard copy of the Semestral List of Regular Suppliers.

Taxpayers shall use either excel format or their own extract program which shall pass through the validation module to be issued by the BIR.

Technical Annex "B" - Technical Specification for Top 20,0000 Private Corporations required to submit Semestral List of Regular Suppliers:

Annex "C" - Transmittal Form for CDs. The Transmittal Form is use for the Submission of CD's of the Semestral List of Regular Suppliers.

SOURCE: http://www.bir.gov.ph/images/bir_files/old_files/pdf/43735rmc%20no.%205-2009.pdf

Revised Statement of Management's Responsibility (SMR)

The Securities and Exchange Commission (SEC) has issued notice recently that the Commission en Banc in its meeting held on January 26, 2017 resolved to issue Financial Reporting Bulletin (FRB) No. 20, Revised Statement of Management's Responsibility, the details of which are as follows:

In connection with the adoption of the new and revised auditor reporting standards, the standard form of SMR prescribed under Section 2 (B) of SRC Rule 68, as amended, is hereby revised to read as follows:

STATEMENT OF MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL STATEMENTS

The management of (name of reporting company) is responsible for the preparation and fair presentation of the financial statements including the schedules attached therein, for the year(s) ended (date), in accordance therein, for the year(s) ended (date), in accordance with the prescribed financial reporting framework indicated therein, and for such internal control as management determines is necessary to enable  the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operation, or has no realistic alternative but to do so.

The Board of Directors (Trustees) is responsible for overseeing the Company;s financial reporting process.

The Board of Directors (Trustees) reviews and approves the financial statements including the schedules attached therein, and submits the same to the stockholders or members.

(Name of auditing firm), the independent auditor appointed by the stockholders, has audited the financial statements of the company in accordance with Philippine Standards on Auditing, and in its report to the stockholders or members, has expressed its opinion on the fairness of presentation upon completion of such audit.

Signature ________________________

Printed Name of the Chairman of the Board

Signature ________________________

Printed Name of Chief Executive Officer

Signature ________________________

Printed Name of Chief Financial Officer

Signed this _____ day of ________.

SOURCE: http://www.sec.gov.ph/wp-content/uploads/2017/02/2017NoticeFRBNo.20.pdf

Guidelines in the Application to Print Receipts and Invoices

Did you know that all persons who are engaged in business shall secure from the BIR an Authority to Print receipts or sales or commercial invoice before a printer can print the same?

Taxpayers may consider the guidelines and requirements in the Application to Print Receipts and Invoices from the Bureau of Internal Revenue (BIR) as follows:

TAX FORM

Fill-up BIR Form 1906 (Jan 2000 ENCS) – Application for Authority to Print Receipts and Invoices

DOCUMENTARY REQUIREMENTS

1. Job order

2. Final & clear sample

3. Photo copy of COR/paid ARF of TP & Printer

4. Last booklet or previous ATP

5. Permit to Use Loose-leaf, if applicable

5. Printers’ Certificate of Delivery (PCD)

PROCEDURES

For taxpayers:

a. Accomplish BIR Form 1906 and submit the same together with the documentary requirements to RDO where the HO is located or concerned office under the Large Taxpayer Service;

b. Keep/File PCD and ATP copy duly received/issued by BIR for audit purposes;

c. Taxpayer’s branch office shall furnish its RDO a copy of the ATP issued by the appropriate BIR 

office having jurisdiction over the head office.

For the printer/supplier:

a. Prepare Printer’s Certificate of Delivery (PCD) in five (5) copies and submit to RDO where the place of business is located or concerned office under the Large Taxpayer Service within thirty (30) days from date of ATP and prior to delivery of receipts and/or invoices to taxpayer;

b. Furnish the taxpayer and its branches copy of the received PCD and approved ATP together with the taxpayer’s Sworn Statement within thirty (30) days from the issuance of PCD. One copy thereof shall likewise be submitted to the BIR Office that has jurisdiction over the head office of the printer.

DEADLINES

Secure Application for Authority to Print Receipts and Invoices on or before the commencement of business.

SOURCE: http://www.bir.gov.ph/index.php/registration-requirements/secondary-registration/application-for-authority-to-print-receipts-invoices.html

Registration of Book of Accounts for Corporations/Partnerships

All corporations, companies, partnerships or persons required by law to pay internal revenue taxes shall keep a journal and a ledger or their equivalents such as subsidiary ledgers, simplified books of accounts.

Newly-Registered (In General)

Tax Form

BIR Form 1903 - Application for Registration for Corporations/Partnerships (Taxable/Non-Taxable) Including GAIs And LGUs

Documentary Requirements

a) Permanently bound books of accounts for registration/stamping or the bound journals and/or ledgers;
b) Proof of Payment of Annual Registration Fee (BIR Form 0605) – current year.

Procedures

a) Submit duly accomplished BIR Form 1903 at the RDO or concerned office under the Large Taxpayer Service having jurisdiction over the place where the head office and branch is located, respectively; and
b) Present the manual books of accounts at the RDO or concerned office under the Large Taxpayer Service where the place of business is located for Stamping and registration purposes.

Deadline

Newly registered taxpayers shall present the manual books of accounts before use to the RDO or concerned office under the Large Taxpayer Service where the place of business is located for approval and registration.

As a general rule, registration of books of accounts shall be simultaneous with the issuance of Certificate of Registration and approved Authority to Print.

Subsequent Registration of Books/Renewal (In General)

Tax Form

BIR Form 1905 - Application For Registration Information Update

Documentary Requirements

a) Photocopy of the first page of the previously registered books;
b) Bound journals and/or ledgers;
c) Proof of Payment Annual Registration Fee (BIR Form 0605) – current year.

Procedure

a) Submit duly accomplished BIR Form 1905 at the RDO or concerned office under the Large Taxpayer Service having jurisdiction over the place where the head office and branch is located, respectively; and
b) Present the manual books of accounts at the RDO or concerned office under the Large Taxpayer 

Service where the place of business is located for Stamping and registration purposes.
Deadline

The registration of a new set of manual books of accounts shall only be at the time when the pages of the previously registered books have all been already exhausted, provided, that the portions pertaining to a particular year should be properly labeled or marked by taxpayer. This means that it is not necessary for a taxpayer to register/stamp a new set of manual books of accounts each and every year.

Note: With the implementation of the E-Commerce Law, the requirement of binding and stamping of computerized books of accounts and/or receipts and invoices generated by a duly approved CAS shall no longer be necessary, provided that:

· Soft copy of the computerized books of accounts and other accounting records/documents in Text File format shall be made available in:
- CD ROM (Read Only)
- Electronically archived information
· A duly notarized certification in the form of an affidavit ascertaining/attesting the accuracy of the number of receipts and invoices used during the year and soft copy of books of accounts and other accounting records/documents in Text File Format stamped received within thirty days (30) from the close of taxable year.

SOURECE: http://www.bir.gov.ph/index.php/registration-requirements/secondary-registration/registration-of-book-of-accounts.html#corporations

Registration of Book of Accounts for Individuals Engaged in Business

All persons required by law to pay internal revenue taxes shall keep a journal and a ledger or their equivalents such as subsidiary ledgers, simplified books of accounts.

Newly-Registered (In General)

Tax Form

BIR Form 1901 - Application for Registration for Self-Employed and Mixed Income Individuals,

Estates and Trusts

Documentary Requirements

a) Permanently bound books of accounts for registration/stamping or the bound journals and/or ledgers;

b) Proof of Payment of Annual Registration Fee (BIR Form 0605) – current year.

Procedures

a) Submit duly accomplished BIR Form 1901 at the RDO or concerned office under the Large Taxpayer Service having jurisdiction over the place where the head office and branch is located, respectively; and

b) Present the manual books of accounts for Stamping and registration purposes.

Deadline

Newly registered taxpayers shall present the manual books of accounts before use to the RDO or concerned office under the Large Taxpayer Service where the place of business is located for approval and registration.

As a general rule, registration of books of accounts shall be simultaneous with the issuance of Certificate of Registration and approved Authority to Print.

Subsequent Registration of Books/Renewal (In General)

Tax Form

BIR Form 1905 - Application For Registration Information Update

Documentary Requirements

a) Photocopy of the first page of the previously registered books;

b) New bound journals and/or ledgers;

c) Proof of Payment Annual Registration Fee (BIR Form 0605) – current year .

Procedures

a) Accomplish BIR Form 1905 at the RDO or concerned office under the Large Taxpayer Service having jurisdiction over the place where the head office and branch is located, respectively;

b) Present the manual books of accounts at the RDO or concerned office under the Large Taxpayer Service where the place of business is located for Stamping and registration purposes.

Deadline

The registration of a new set of manual books of accounts shall only be at the time when the pages of the previously registered books have all been already exhausted, provided, that the portions pertaining to a particular year should be properly labeled or marked by taxpayer. This means that it is not necessary for a taxpayer to register/stamp a new set of manual books of accounts each and every year.

Subsequent Registration of Books/Renewal (In General)

Tax Form

BIR Form 1905 - Application For Registration Information Update

Documentary Requirements

a) Photocopy of the first page of the previously registered books;

b) New bound journals and/or ledgers;

c) Proof of Payment Annual Registration Fee (BIR Form 0605) – current year .

Procedures

a) Accomplish BIR Form 1905 at the RDO or concerned office under the Large Taxpayer Service having jurisdiction over the place where the head office and branch is located, respectively;

b) Present the manual books of accounts at the RDO or concerned office under the Large Taxpayer Service where the place of business is located for Stamping and registration purposes.

Deadline

The registration of a new set of manual books of accounts shall only be at the time when the pages of the previously registered books have all been already exhausted, provided, that the portions pertaining to a particular year should be properly labeled or marked by taxpayer. This means that it is not necessary for a taxpayer to register/stamp a new set of manual books of accounts each and every year.

SOURCE: http://www.bir.gov.ph/index.php/registration-requirements/secondary-registration/registration-of-book-of-accounts.html#individuals

Bookkeeping Requirements of National Government Agencies, Government Agencies and Instrumentalities and Government-Owned and Controlled Corporations

The bureau issued Revenue Memorandum Circular (RMC) No. 10-2017 recently to clarify the Bookkeeping Requirements of National Government Agencies, Government Agencies and Instrumentalities and Government-Owned and Controlled Corporations (GOCCs).

In view of the Section 232. Keeping of Books of Accounts, NGAs, GAIs, and GOCCs fall under the term "corporation" created by special law or charter. Thus, NGAs, GAIs, and GOCCs vested with functions relating to public needs whether governmental or proprietary in nature are required to register and keep their books of accounts.

1. Those who are using the Commission on Audit (COA) - developed Electronic New Government Accounting System (eNGAS) are not required to apply for its Permit to Use. Considering however, the requirement for payment/remittance and verification of tax liabilities, these entities shall submit the eNGAS in electronic format.

2. Those who are using a computerized accounting system and/or components thereof other than the eNGAS are required to apply for Permit to Use and shall submit and register the same in electronic format.

The submission is to the RDO having jurisdiction over the principal place of business or to the LTAD/ELTRD/LTD-Cebu/LTD-Davao where the head office is duly registered within thirty (30) days from the close of each taxable year or within 30 days upon the termination of its use, following the existing revenue issuances on computerized accounting system.

Please refer: http://www.bir.gov.ph/images/bir_files/internal_communications_2/RMCs/RMC%20No%2010-2017.pdf of the full text of RMC No. 10-2017.

Regulations Governing Applications for Value-Added Tax (VAT) Credit/Refund

Revenue Regulations (RR) No. 1-2017 has issued by the bureau recently Prescribing the Regulations Governing Application for Value-Added Tax (VAT) Credit/Refund Filed Under Section 112 of the Tax Code, as Amended, Prior to Revenue Memorandum Circular No. 54-2014 dated June 11, 2014.

 

It is stated in regulations that on August 27, 2003, Revenue Memorandum Circular (RMC) No. 49-2003 dated August 15, 2003, was issued to allow taxpayers to file the complete documents to enable the Commissioner of Internal Revenue to properly process the administrative claims for tax credit or tax refund. It provided that upon filing of his application for tax credit/refund, the taxpayer-claimant is given thirty (30) days within which to complete the required documents unless given further extension by the head of the processing unit but such extension shall not exceed thirty (30) days. The claim shall be officially received only upon submission of complete documents. It is only upon such submission that the 120-day period would begin to run. In this sense, it is the taxpayer "who ultimately determines when complete documents have been submitted for the purpose of commencing and continuing the running of the 120-day period."

 

It is also stated in the regulations the Processing of Administrative Claims.

 

Please refer: http://www.bir.gov.ph/images/bir_files/internal_communications_1/Full%20Text%20RR%202017/RR%20No.%201-2017.pdf of the full text of Revenue Regulations No. 1-2017.