Republic Act No. 10653: Increase of the Total Amount of Exclusion to P82,000.00 for 13th Month Pay and Other Benefits from Gross Income under RR No. 3-2015

Recently, the Bureau of Internal Revenue finally issued the Revenue Regulations No. 3-2015 implementing the Provisions of Republic Act No. 10653. "An act Adjusting the 13th Month Pay and Other Benefits Ceiling Excluded from the Computation of Gross Income for Purposes of Income Taxation.

Amending the provision on Revenue Regulations No. 2-98 - The amount of Thirty Thousand Pesos (P30,000.00), specifically referring to the total amount of 13th month pay and other benefits as one of the exclusions from gross compensation income received by an employee prescribed under the pertinent provisions, including the example computations of revenue Regulations (RR) No. 2-98, as amended, is hereby increased to "Eighty Two Thousand Pesos (P82,000.00)", pursuant to the provisions of RA No. 10653.

The amount of P82,000.00 shall ONLY apply to the 13th month pay and other benefits prescribed under the provisions of section 2.78.1.(B)(11) of RR No. employee under an employer-employee relationship, such as basic salary and other allowances. It must be emphasized that this exclusion from gross income is not applicable to self-employed individuals and income generated from business.

The amount of P82,000.00 shall apply to the 13th month pay and other benefits paid or accrued beginning January 1, 2015.

Please refer http://www.bir.gov.ph/images/bir_files/internal_communications_1/Full%20Text%20RR%202015/RR%20No%20%203-2015.pdf of the full text of Revenue Regulations No. 3-2015.

Checklist and Notice on the Submission of Audited Financial Statements (AFS) at SEC during 2015

Have you read yet about the notice issued by Securities and Exchange Commission (SEC) about the checklist and notice on the submission of Audited Financial Statements (AFS) this year 2015?

It was stated in the notice that no pre-screening shall be done on the General Information Sheet (GIS) and Audited Financial Statements (AFS) submitted at the Central Receiving UNIT (CRU), ERMD.

But, the form and contents of reports shall be subject to review by the Commission which may impose fines and/or penalties for verified violation of existing laws, SEC rules and regulations.

All filers should ensure that the reports submitted is complete.

Checklist for Components of Financial Statements For Stock Corporations:

1. Four (4) copies including Original set

2. Cover Sheet

3. Original BIR / bank stamp "RECEIVED" on: Auditor's Report, Balance Sheet/Statement of Financial Position and Income Statement.

4. BOA registration number of external auditor with expiration date.

5. Statement of Management's Responsibility (SMR) over the Financial Statements signed by ALL of the of the ff: President/Chief Executive Office, Chairman of the Board, Treasurer/Chief Finance Officer and Officer/s holding positions equivalent to the aforementioned as may be authorized in the By-Laws

6. Auditor's Report originally signed

7. Balance Sheet/Statement of Financial Position

8. Income Statement

9. Cash Flow Statement

10. Statement of Changes in Equity

11. Notes to Financial Statements

12. Supplemental written statement of External Auditor on the number of stockholders

13. Soft copy of General Form for Financial Statements (GFFS) or Special Form for Financial Statements (SFFS)

Please refer http://www.sec.gov.ph/docs_home/NOTICE-Checklist.pdf of the full text of the checklist and notice. 

SEC Disclaimer With regards to EMGOLDEX Philippines

The Securities and Exchange Commission (SEC) issued a disclaimer that the Commission has received information about the proliferation of bogus SEC public advisories concerning EMGOLDEX Philippines that bear the SEC logo or appear to have been issued by the Commission or signed by any of its officials.

With this, the public is warned that all other purported public advisories regarding EMGOLDEX that allegedly carry the name of SEC or any of its officials are unauthorized, fictitious and  fabricated, especially if these are not found or posted in sec.gov.ph.

The Commission reiterates its official Advisory, that per existing records, EMGOLDEX Philippines is not a registered corporation or partnership in the Philippines and not also licensed or authorized to solicit investments from the public in the Philippines. Without prior license or permit from SEC is strictly prohibited by law and may be penalized by imprisonment and/or fine whether the investment offering is made through the internet or in a commercial or public place.

Please refer http://www.sec.gov.ph/docs_home/SEC_DISCLAIMER(EMGOLDEX%20PHILIPPINES).pdf of the full text SEC disclaimer (EMGOLDEX PHILIPPINES)

SEC Warned the Public Concerning the Investment Taking Activities by ONE LIGHTNING CORPORATION and Its Related Affiliates

The Securities and Exchange Commission (SEC) recently issued an advisory to the warned the public concerning the investment taking activities being undertaken by ONE LIGHTING CORPORATION and its related affiliates. ONE LIGHTING CORPORATION has not been issued by the Commission a secondary license to publicly offer or sell securities and not to solicit investment from the public.

It is stated in the advisory that as part of its modus operandi, the said Company  invites people to invest in its cosmetics and healthcare products by promising huge returns on their investment through what it claims is a revolutionary compensation plan that the Company provides to its distributors which consists of sharing 70% of the Company's profits to investors.

Please refer http://www.sec.gov.ph/docs_home/2015Advisory_One_Lightning_Corp.pdf of the full text of the SEC Advisory.

Amendments to the Mandatory Submission of SAWT, MAP, BIR Form No. 2307 and BIR Form N. 2316 under RR No. 2-2015

The Bureau of Internal Revenue (BIR) recently issued Revenue Regulations (RR) No. 2-2015 to amend the pertinent provisions of RR No. 2-2006 and No. 11-2013 with regards to the submission of copies of BIR Form Nos. 2307 and 2316.

The provisions of Section 2.D. of RR No. 2-2006 are amended as follows:

Section 2. Mandatory Submission of Summary Alphalist of Withholding Agents of Income Payments Subjected To Creditable Withholding Taxes (SAWT) by the Payee/Income Recipient and of Monthly Alphalist of Payees (MAP) Subjected to Withholding Tax by the Withholding Agent/Income Payor as attachment to their filed returns. 

D. Return required to be filed with SAWT and Certificate of Creditable Tax Withheld at Source.

Provided, however, that the SAWT shall be submitted through the applicable modes of submission prescribed under RR No. 1-2014, using the entry and validation module of the BIR. On the other hand, in lieu of the submission of hard copies of Certificate of Creditable Tax Withheld at Source (BIR Form No. 2307) as an attachment to SAWT, the following procedures shall be strictly obeserved:

1. Scan the original copies of BIR Form No. 2307 through a scanning machine of device;

2. Store the soft copies of BIR Form No. 2307 using the "PDF" file format with the file names alphabetically arranged in a Digital Versatile Disk-Recordable (DVR-R). The file name shall contain the following information separated by an underline:

a. BIR-registered name of the taxpayer-payor;

b. Taxpayer Identification Number (TIN), including the head office code or branch of the payor, whichever is applicable; and

c. Taxable Period.

Example: Rizal Mfg. Corp_131885220000_09312014);

3. Label the DVD-R containing the soft copies of the said BIR forms in accordance with the format prescribed in Annex "A" of these Regulations; and

4. Submit the duly accomplished DVR-R to the BIR Office where the taxpayer is duly registered, together with a notarized Certification, using the format in Annex "C" of these Regulations, duly signed by the authorized representative of the taxpayer certifying that the soft copies of the said BIR form contained in the DVD-R are the complete and exact copies of the original thereof.

Please refer http://www.bir.gov.ph/images/bir_files/internal_communications_1/Full%20Text%20RR%202015/RR%202-2015/RR%20No%202-2015.pdf of the full text of Revenue Regulations No. 2-2015.

BIR eREGISTRATION SYSTEM

Have you explored the BIR eREGISTRATION SYSTEM?

The eREGISTRATION (eREG) system is a web application system for various taxpayer registration services that includes TIN issuance, payment of registration fee and issuance of Certificate of Registration.

Single Proprietors and Professionals may apply TIN straight to the eTIN. Each user should have a unique and valid email address through which the TIN and other instructions on taxpayer registration shall be sent.

While Employees may secure their TINs from their respective employers who in turn must be enrolled in the eTIN. Empolyers may enroll in the eREG by clicking on Create Employer User Account.

Please visit https://ereg.bir.gov.ph/ereg/welcome.do and https://ereg.bir.gov.ph/ereg/employerterms.do of the full text, instructions and other informations.

SEC i-Register: Web-based Company Registration System of the Philippines Securities and Exchange Commission (SEC)

Have you tried to access the SEC i-Register, the web-based Company Registration System of the Philippines Securities and Exchange Commission (SEC)?

It is a quick, affordable, and user friendly service that is available to the public 24 hours a day, 7 days a week.

With SEC-iRegister, clients can do the following online:

a. Verifying the availability of the desired name for corporation or partnership

b. Reserving the verified name

c. Accomplishing and printing the registration online without the need to buy the SEC forms

Please refer http://www.sec.gov.ph/onlinetransactions/secireg.html of the full text and http://iregister.sec.gov.ph/MainServlet to experience the new SEC i-Register Version 2 facility.

SEC Registration Calculator

The Securities and Exchange Commission (SEC) Registration Calculator is use for the computation of the Approximate Registration Fee of Stock Corporation.

In addition to the above stated, the new corporation has to procure a Stock & Transfer Book (or STB) the cost of which is approximately Php470.00 (The fee includes the registration of the STB.)

Filing fee is 1/5 of 1% of the authorized capital stock or the subscription price of the subscribed capital stock whichever is higher but not less than P1,000.00.

LRF - Legal Research Fee equivalent to 1% of filing fee but not less than P10.00.

I believe that taxpayers should still have the knowledge with regards to the rules and regulations of registration fee and other fees for the registration of a new stock corporation.

Please refer http://www.sec.gov.ph/faq/calculator.html to experience the SEC Registration Calculator.

SEC-Ali Mall Satellite Office is Now Open to Serve the Private and Government Sectors

The Securities and Exchange Commission (SEC) posted a notice through  their website last December 15, 2014 which is favorable for both the agency and private and government business sectors with regards to SEC transactions. 

It was a notice that the SEC-Ali Mall Satellite Office is now open at the 2nd Level Government Center at the Ali Mall, Cubao, Quezon City.

Operation hours are, Mondays to Fridays, from 10:00 a.m. to 6:00 p.m.

The Satellite Office offers the following services:

1. Verification and reservation of corporate and partnership names;

2. Pre-processing of registration applications of corporations and partnerships;

3. Pre-processing of applications for amendments;

4. Monitoring of corporations on their compliance with their reportorial requirements;

5. Releasing of Certificates of Registration and approval; and.

6. Receiving of General Information Sheets (GIS) and Audited Financial Statement (AFS)

Please refer http://www.sec.gov.ph/docs_home/Satellite_Office_Ali_Mall.pdf of the full text of the SEC Notice.

SEC Advisory: High Yield-High Risk Investment Scheme

The Securities  and Exchange Commission certified that the EMGOLDEX PHILIPPINES is not registered corporation or partnership. This is to inform to the public to be cautious in investing their money. 

The agency has received reports that Facebook netizens are being invited or enticed to invest their money in EMGOLDEX PHILIPPINES "Pinoy Style Patak Patak" for a promise of huge profit/high returns where an investment of One Thousand Pesos will earn profits ranging from Five Thousand to Ten Thousand Pesos or a placement of Thirty Five Thousand will yield One Hundred Eighty thousand to Three Hundred Sixty Thousand Pesos (1K=5K to 10K payout or 35K=180K to 360K payout).

You can call the Enforcement and Investor Protection Department of the agency at telephone numbers 584-7187 or 584-7652 of any information regarding the operation of the said entity.

Please refer http://www.sec.gov.ph/notices/advisory/2015_SEC_Advisory_EMGOLDEX_PHILS.pdf of the full text of the sec advisory.