Who Are Not Required To File Electronically And To Enroll Online eBIRForms System?

Item No. 9 of Revenue Memorandum Circular No. 19-2015 clarifies that NOT ALL TAXPAYERS ARE REQUIRED TO FILE ELECTRONICALLY. Only taxpayers enumerated in items no. 5 and 6 of the RMC are required/mandated to file electronically. Other taxpayers such as Micro Small Medium Enterprises (MSME) who are filing their own returns and have a tax payment due are not required to file electronically. 

However, nothing prevents them to voluntarily enroll and file using either the eFPS/eBIRForms electronic platform of the BIR. Thus, the exiting procedures on MANUAL FILING shall appy.

Taxpayers enumerated under RMC No. 12-2015 are not mandated to use eBIRForms and electronically filing "no payment returns".

Please refer http://www.bir.gov.ph/images/bir_files/internal_communications_2/rmc_no_19-2015.pdf of the full text of RMC No. 19-2015.

Therefore, those taxpayers who are not mandated to use eBIRForms and eFPS but have a tax due payment due are not required to file electronically and to register with Online eBIRForms System.

P1,000 Penalty Per Return For Failure To eFile Returns Using eBIRForms or eFPS & Civil Penalties Equivalent to 25% Of The Tax Due To Be PaiD

Section 3 of Revenue Regulations (RR) No. 5-2015 refers to the IMPOSITION OF PENALTIES:

All taxpayers, under existing issuances, who are mandatorily covered to file their returns using eFPS or eBIRForms, who fail to do so, shall be imposed a penalty of One Thousand Pesos (P1,000) per return pursuant to Section 250 of the NIRC of 1997, as amended.

In addition, the taxpayer, shall also be imposed civil penalties equivalent to 25% of the tax due to be paid, for filing a return in a manner not in compliance with existing regulations, thus, tantamount to wrong venue filing pursuant to Section 248 (A)(2) of the NIRC of 1997, as amended.

Moreover, Revenue District Offices (RDOs) are directed to include these non-compliant taxpayers in their priority audit program.

Please refer http://www.bir.gov.ph/images/bir_files/internal_communications_1/Full%20Text%20RR%202015/RR%205-2015/RR%205-2015.pdf of the full text RR No. 5-2015.

How To Deal With Tax Problems

It is important for taxpayers or their authorize representatives, officers & employees to know the purposes or objectives of tax planning and management. 

Attending seminars in taxation from educational or training institutions, professional organizations and other BIR-accredited Continuing Professional Education (CPE) providers is necessary to learn more ideas, tax updates, techniques and other related tax matters.

I have learned lately from a seminar that we should learn on how to address or deal with tax problems as follows:

1. Know applicable tax laws and regulations and how these are interpreted by the Bureau of Internal Revenue (BIR), Department of Finance (DOF), and the courts, so that you can be tax-compliant.

2. Learn or familiarize the assessment cycle and handling audits by BIR.

3. Learn or study the legal ways to eliminate or reduce tax liability without violating the laws and regulations.

4. Know the errors and pitfalls committed by the other taxpayers; learn from them and avoid committing the same mistakes.

5. Be aware of the common audit findings of revenue officers that are the sources of deficiency tax assessments.

6. Get professional help from a good tax consultant.

Publication Of Books Are VAT Exempt Transactions

If you are book lover, you have to know that published books purchased are exempt from Value-Added Tax (VAT) as stated in Section 109 (r) of Revenue Regulations (RR) No. 16-2005.

On the part of the seller, sold published books are exempt or not subject to VAT but subject to Income Tax.

My aunt has purchased recently one (1) of Mr. Chinkee Tan Books that are valued around Php300 to Php400 each and not subject to  12% VAT. 

He also offers a CHINK POSITIVE MONEY KIT for a total investment of P2,500 only. But when you buy it now, you will automatically also receive all the books for FREE!

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CHINK+ MONEY KIT CONSIST: * CHINK+ Money Kit Guide: Manual (on paper format for step by step instructions) / Instructional Video with Chinkee Tan (on DVD format for more interactive instructions)* CHICK+ Accordion folder* CHICK + Accordion Folder* CHICK+ Expenditures Envelope (12 pcs.)* CHICK+ Savings Envelope (4 pcs.) – Green* CHINK+ Positive Buying Envelope (4 pcs.) – Yellow* CHINK+ Investment Envelope (4 pcs.) – Red* CHINK+ Debt Repayment Plan Worksheet (5 pcs.)* CHINK+ Financial Obligations Worksheet (5 pcs.)* CHINK+ Pen* Free Till Debt Do Us Part Book* Free Budgeting Software

For those who do something and successfully purchased the CHINK POSITIVE MONEY KIT of Mr. Chinkee Tan, a wealth and life coach by profession, will received a CHINK POSITIVE T-Shirt:

If you want to receive the free T-shirt being offered on this blog, just fill up this form to reserve (DO THIS FIRST). You will receive an opt-in confirmation email to ensure you are not being added without your consent. Once you confirm, you will get an email that has the links to purchase Chinkee Tan's Money kit

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Alternative Mode in the Filing of BIR Form Nos. 2551M, 2551Q, 2550M & 2550Q Using The ELECTRONIC PLATFORMS OF BIR and Other Concerns

Revenue Memorandum Circular (RMC) No. 21-2015 was issued by the bureau to provide guidelines in filing BIR Form Nos. 2551M, 2551Q, 2550M and 2550Q, using the ELECTRONIC PLATFORMS specifically those taxpayers filing with payment or no payment using the Offline eBIRForms of the said forms, shall follow the same procedures in Annex D of RMC 14-2015 and efiled by attaching xml file to email.

After validating the tax return, click "FINAL COPY", open the directory "C:\eBIRForms\IAF_RDO_Copy\" in the computer. Look for the xml file of the encoded tax return form with the following naming convention:

Print eMail Notification as evidence of efiled return from the BIR and the tax return, then proceed to Authorized Agent Bank/collection agent for manual payment following existing procedures.

Taxpayers mandated to used eFPS after several attempts of unsuccessful efiling, must print evidence/proof thereof (print screen with the message as given by the system). To protect them from penalties to be imposed in the future, they should:

a Report/call HELPDESK and get Trouble Ticket Log, or

b. Report to BIR CONTACT CENTER 981-8888 and get Reference Number of the call.

After that, they should manually file and manually pay following existing procedures. They should file on or before the due dates of the respective returns and attach the proof of unsuccessful eFPS attempts, then, RE-FILE ELECTRONICALY not later than thirty (30) days after the deadline.

Please refer http://www.bir.gov.ph/images/bir_files/internal_communications_2/RMC%2021-2015.pdf of the full text of RMC No. 21-2015.

Trouble Ticket No. From BIR For eFPS Taxpayers of Unsuccessful eFiling of ITRs Due To Failure of Server Will Protect From Penalties To Impose In The Future But Should Have Filed or Paid Manually the ITRs Within The Due Date

It was in the evening of April 14, 2015 when I initially experienced the unsuccessful efiling of Annual Income Tax Returns (ITRs) for Taxable Year 2014 due on April 15, 2015 thru BIR eFPS. I have to file ITRs with and without payment during that night.  I tried to file several times until midnight but was unsuccessful. 

In the morning of April 15, 2015, I tried to file again the ITRs thru BIR eFPS but still unsuccessful due to maintenance of  the server of BIR with screen shot as follows:

Eventually, before lunch of that date, I decided to proceed to the Revenue District Office (RDO) where the Companies registered and reported to the person in-charged of BIR eFPS system and asked the remedies of taxpayers with regards to the situation.  She advised us taxpayers who went there in the RDO to write down the Company Name, Taxpayer Identification No. (TIN), Contact Person and Email (to send the Trouble Ticket No.) and to manually file and pay the Annual ITRs.

With this, the companies were successfully filed and paid manually the ITRs on time last April 15, 2015. Eventually, we have received the Trouble Ticket No. last April 17, 2015.

With expectation, Revenue Memorandum Circular No. 20-2015 was issued by the bureau that taxpayers mandated to use EFPS (e,g, TAMP) after several attempts of unsuccessful efiling should:

a. Print evidence/proof (PRINT SCREEN ON THE MESSAGE given by the system) that EFPS were tried several times but unsuccessful

b. Report/call HELPDESK and get trouble ticket log 981-7050/ 9817051/9817107/9817108

c. Report to BIR CONTACT CENTER 981-8888 and get reference number of the call to protect them from penalties to be imposed in the future. Thereafter, manually file and manually pay following existing procedures. file on or before APRIL 15, 2015 attaching the proof of unsuccessful eFPS, then RE-FILE ELECTRONICALLY on or before June 15, 2015.

Please refer http://www.bir.gov.ph/images/bir_files/internal_communications_2/RMC%20No%2020-2015.pdf of the full text of RMC No. 20-2015.

Who Are Those Taxpayers Not Mandated To Use eBIRForms and eFile?

Revenue Memorandum Circular (RMC) No. 12-2015 was issued by the bureau to clarify Section 4(3) of Revenue Regulations Nos. 6-2014 and RR 5-2015, mandating the use of eBIRForms and electronically filling "no payment returns". 

The following taxpayers may file manually "no payment returns" to the Revenue District Office (RDO) where registered using officially printed forms/photocopied or electronic/computer-generated returns:

1. Senior Citizen (SC) or Persons with Disabilities (PWD) filing for their own return;

2. Employees deriving purely compensation income and the income tax of which has been withheld correctly showing tax due is equal to the tax withheld whether single or multiple employers (with two or more employers concurrently and successively at anytime during the taxable year);

3. Employees qualified for substituted filing under RR 2-98 Sec. 2.83.4, as amended, but opted to file for an Income Tax Return (ITR) and are filing for purposes of promotion (PNP/AFP), loans, scholarship, foreign travel requirements, etc.

But the above-taxpayers are encourage to use offline eBIRforms for ease and convenience in the preparation, validation, computation rules and efficiently check for completeness and correctness of taxpayers input.

Please refer http://www.bir.gov.ph/images/bir_files/internal_communications_2/RMC%20No%2012-2015.pdf of the full text of RMC No. 12-2015.

Who Are Those Mandated To Use eFPS, eBIRForms and eFile under RMC No. 19-2015

Revenue Memorandum Circular (RMC) No. 19-2015 has issued by the bureau for the clarifications/resolutions on issues and concerns to the Frequently Asked Questions (FAQs) in connection with the implementation of the Electronic Platform in Filing Tax returns under eFPS or eBIRForms for filing Income Tax Returns for Calendar Year 2014 Due on or before April 15, 2015, and others.

Those mandated to use eFPS are the following:

1. Taxpayer Account Management Program (TAMP) Taxpayers (RR No. 10-2014)

2. Accredited Imported and Prospective Imported required to secure the BIR-ICC & BIR-BCC (RR No. 10-12014)

3. National Government Agencies (NGAs) (RR No. 1-2013)

4. All Licensed Local Contractors (RR No. 10-2012)

5. Enterprised Enjoying Fiscal Incentives (PEZA, boi, Various Zone Authorities, Etc.) (RR No. 1-2010)

6. Top 5,000 Individual Taxpayers (RR No. 6-2009)

7. Corporations with Paid-Up Capital Stock of P10 Million and above (R No. 10-2007)

8. Corporations with Complete Computerized Accounting System (CAS) (RR No. 10-2007)

9. Procuring Government Agencies with respect to Withholding of VAT and Percentage Taxes (RR No. 3-2005)

10. Government Bidders (RR No. 3-2005)

11. Insurance companies and Stock brokers (RMC No. 71-2004)

12. Large Taxpayers (RR No. 2-2002, as amended)

13. Top 20,000 Private Corporation (RR No. 2-98, as amended)

Those mandated to use eBIRForms and eFile (RR 6-2014) are the folowing:

1. ACCREDITED TAX AGENTS/PRACTITIONERS & all its client-taxpayers who authorized them to file in their behalf

2. ACCREDITED PRINTERS of Principal and Supplementary Receipts/Invoices

3. One-Time Transaction (ONETT) taxpayers

4. Those engaged in business, or those with mix (both compensation and business income) who shall file a "NO PAYMENT" Return (exception under RMC No. 12-2015)

5. Government-Owned or Controlled Corporations (GOCCs)

6. Local Government Units (LGUs), except barangays

7. Cooperatives, registered with National Electrification Administration (NEA) and Local Water Utilities Admnistrations (LWUA)

For the systems requirements, browser requirements, those exempted and may file manually, steps in enrolling and other concerns please refer http://www.bir.gov.ph/images/bir_files/internal_communications_2/rmc_no_19-2015.pdf of the full text of RMC No. 19-2015.

"No Payment" Annual Income Tax Returns (ITRs) 2014 and Quarterly ITRs may be Filed Manually On or Before April 15, 2015 Thru The Use Of The Official Printed Forms or the Offline eBIRForms Package But Shall Be Re-filed Electronically On or Before June 15, 2015

With the help of PICPA, ACPAPP, SENATORS, CONGRESSMEN and Other Personalities to the taxpayers and practitioners with regards to the issues for the implementation of Revenue Regulation (RR) No. 6-2014 as amended by RR No. 5-2015, the Commissioner of Internal Revenue has issued Revenue Memorandum Circular (RMC) No. 18-2015 for the Deferment of Implementation on eFiling of "No Payment" Income Tax Returns (ITRs) and Other Concerns.

"No Payment" Returns may be filed manually on or before April 15, 2015 with the Revenue District Office where they are registered, thru the use of the official printed forms or the offline eBIRForms Package listed below:

1. BIR Form No. 1700 - Annual Income Tax Return for Individuals Earning Purely compensation Income (Including Non-business/Non-Profession Income)

2. BIR Form No. 1701 - Annual Income Tax Return for Self-Employed Individuals, estates and Trusts

3. BIR Form No. 1701Q - Quarterly Income Tax Return for Self-employed Individuals, Estates, and Trust (Including Those with both Business and Compensation Income)

4. BIR Form No. 1702-RT - Annual Income Tax Return for Corporation, Partnership and Other Non-Individual Taxpayers Subject Only to REGULAR Income Tax Rate Description

5. BIR Form No. 1702-MX - Annual Income Tax Return for Corporation, Partnership and Other Non-Individual with MIXED Income Subject to Multiple Income Tax Rates or with Income Subject to SPECIAL/PREFERENTIAL RATE

6. BIR Form No. 1702-EX - Annual Income Tax Return for Use ONLY by Corporation, Partnership and Other Non-Individual Taxpayer EXEMPT under the Tax Code, as Amended, (Sec. 30 and those exempted in Sec. 27(C) and Other Special Laws, with NO Other Taxable Income

7. BIR Form No. 1702Q - Quarterly Income Tax Return for Corporations, Partnerships and Other Non-Individual Taxpayers

"No Payment" Returns filed manually shall be re-filed electronically on or before June 15, 2015. 

Penalties imposed under RR No 5-2015 on filing using a mode/venue different from that prescribed shall be waived provided the subject ITRs have been re-submitted electronically in the BIR's systems on or before June 15, 2015.

Please refer http://www.bir.gov.ph/images/bir_files/internal_communications_2/rmc_no_18-2015.pdf

of the full text of RMC No. 18-2015.

Email Submission of 2014 ITR is Allowed Whether Enrolled or Not To eBIRForms System But Those Who Are Not Yet Enrolled Will Subsequently Enroll After eFiling

The BIR just recently issued Revenue Memorandum Circular No. 16-2015 to provide alternative modes of obtaining Offline eBIRForms Package of which the taxpayers have the following options:

1. Download from any of the following:

1.1 www.knowyourtaxtes.ph;

1.2 http://www.dof.gov.ph/?page_id=11827

1.3 Dropbox using this link: http://bit.ly/1ImuMLj

1.4 Direct link using:http://ftp.pregi.net/bir/ebirforms_package_v4.07.07_ITRv2013.zip

2. Copy through taxpayer's USB flash drive from the RDO e-Lounge

Moreover, taxpayers using the Offline eBIRForms Version 4.7.07 can easily submit the 2014 ITR via email, and subsequently enroll (https://ebirforms.bir.gov.ph/)  after eFiling. Thus, email submission of 2014 ITR is allowed whether enrolled or not to eBIRForms System.

Please refer http://www.bir.gov.ph/images/bir_files/internal_communications_1/rmc_no_14-2015.pdf . Taxpayers can resend the generated ITR2014 to BIR through your email. The following is the sample eMail Subject:

Please refer http://www.bir.gov.ph/images/bir_files/internal_communications_2/RMC%20No%2016-2015.pdf of the full text of RMC No. 16-2015