Imposition of Advance Business Tax (Value-Added Tax [VAT] or Percentage Tax) on Raw Sugar and Refined Sugar

Last month, there was an increase of retail prices of sugar in the market due to the the issuance of Revenue Regulations (RR) No. 6-2015 dated March 31, 2015 and other related factors.

After the issuance of the regulations, Revenue Memorandum Circular (RMC) No. 25-2015 was recently issued by the Bureau of Internal Revenue (BIR) to clarify, through questions and answer, certain issues.

One of the questions was:

1. What is the advance business tax (VAT) or percentage tax) treatment on the physical inventories of raw sugar and refined sugar held in possession by the miller/sugar refinery at the time of effectivity of RR No. 6-2015 on May 1, 2015?

Answer.: The physical inventories of raw sugar and refined sugar covered by Quedans dated before May 1, 2015 are not subject to the imposition of the advance business tax (VAT or percentage tax).

Please refer http://www.bir.gov.ph/images/bir_files/internal_communications_2/RMC%20No%2025-2015.pdf of the other questions and answers and the full text of RMC No. 25-2015.

Facilities and Privileges of Relatively Small Value

Per Revenue Regulations (RR) No. 2-98, Sec. 2.78.1 (A) (3),:

Facilities and privileges of a relatively small value. - Ordinarily, facilities and privileges (such as entertainment, medical services, or so called "courtesy"discounts on purchases), furnished or offered by an employer to his employees generally, are not considered as compensation subject to withholding if such facilities or privileges are relatively small value and are offered or furnished by the employer merely as a means of promoting the health, goodwill, contentment, or efficiency of his employees.

Steps In Enrolling eBIRForms System

Taxpayers who are mandated to use eBIRForms under Items No. 5 and 6 of Revenue Memorandum Circular (RMC) No. 20-2015 are required to enroll with the eBIRForms System.

Steps in Enrolling eBIRForms System is with details as follows:

Step 1:Access BIR website at www.bir.gov.ph using your internet browser.
Step 2: Click eServices.
Step 3: Click eBIRForms
Step 4: Click Online eBIRForms System https://ebirforms.bir.gov.ph/
Step 5: eBIRForms online enrollment form appears. Click Sign-up and complete the required fields on the Enrollment Form Page. Then, click on the "Submit" button.
Step 6. Print the email enrollment notification.
Step 7. Go to your Revenue District Office (RDO) and present account activation requirements (printed e-mail enrollment notification, 2 valid IDs and Letter of Intent)

Are Only Taxpayers Duly Registered With The Large Taxpayers Service (LTS) Required To Comply With The Requirements of RR No. 2-2015?

Revenue Memorandum Circular (RMC) No. 24-2015 was issued by the BIR for the clarification on the Pertinent Provisions of Revenue Regulations (RR) No. 2-2015 More Particularly On the submission of Scanned Copies of BIR Form Nos. 2307 and 2316.

One of the questions of the circular was, are only taxpayers duly registered with the Large Taxpayers Service (LTS) required to comply with the requirements of RR No. 2-2015?

Answer: No. Sec. 3 of RR No. 2-2015 clearly states that any non-LTS taxpayer duly registered under the RDO may, at its/his/her option, comply with the said requirements. However, the non-LTS registered taxpayer shall no be allowed thereafter to submit, in hard copies, BIR Form Nos. 2307 and 2316 once the said taxpayer opted to adopt the requirements persecribebe under RR No. 2-2015.

Please refer http://www.bir.gov.ph/images/bir_files/internal_communications_2/RMC%20No%2024-2015.pdf of the full text in PDF format of RMC No. 24-2015.

Submission of Attachments (DAT Files) For MAP, SAWT, Annual Alphalist, SLSP On eBIRForms Online Filing

Revenue Memorandum Circular No. 19-2015 was issued by the BIR to clarify the Frequently Asked Questions (FAQs) Relative to 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.

Some of the questions was:

Do you still need to submit the printed form after eFiling to the RDO or AAB? How about attachment?

Answer. If you electronically file and electronically pay using eBIR Forms or eFPS without any attachments required, you don't need to submit anything to the RDO/LTDO/LT Office. However, if there are required attachments in your income tax returns, you shall submit to the RDO/LTDO/LT Office within fifteen (15) days from the date of eFiling.

For eFPS: a. Printed copy of Tax Returns with Filing Reference Number (FRN) Page; and b. Required attachments

For eBIRForms: efile and ePay (upon availability) / eFile and manually pay: a. Printed copy of the return with the eMail Notification Page received; and b. Required attachments

If there are other attachments to be submitted such as Summary Alphalists of Withholding Tax (SAWT), Monthly Alphalists of Payees (MAP) required under BIR Form Nos. 1600, 1601E, 1601F, it shall prepared using the Data Entry Module or Summary List of Sales/Purchases/Importation (SLSP) for all VAT taxpayers in BIR Form No. 2550@ prepared using the RELIEF of the BIR and submitted via email to: esubmission@bir.gov.ph

Please refer http://www.bir.gov.ph/images/bir_files/internal_communications_2/rmc_no_19-2015.pdf of the full text of RMC 19-2015.

However, the hard copies of BIR Form No. 2307 - Certificate of Creditable Tax Withheld At Source should be kept in your file that will be use as a proof of evidence for such Tax Credits in case of investigation. 

Alternative Mode In The Filing of Several BIR Returns Using The ELECTRONIC PLATFORMS Of The BIR and Re-efiling Of All Other Forms

Revenue Memorandum  Circular No. 26-2015 was issued by the Bureau of Internal Revenue (BIR) to provide guidelines in the filing of various BIR Forms listed below using the ELECTRONIC PLATFORMS of the BIR who are mandated to use eBIRForms System.

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 efile by the 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:

If return is with payment, print eMail Notification as evidence of efiled return from the BIR and the tax return, then proceed to Authorized Agent Bank (AAB)/Collection Agent for manual payment following existing procedures.

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

a. Report/call HELPDESK and get Trouble Tocket Log on or before the due date; or

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

But, they should manually file and manually pay on o before the due date 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 ELECTRONICALLY within fifteen (15) days after the statutory deadline set for  the relevant returns starting return period April 2015 which will be filed May 2015. 

Please refer http://www.bir.gov.ph/images/bir_files/internal_communications_2/RMC%20No%2026-2015.pdf of the full text of RMC 26-2015.

SEC Satellite Office - SM City Manila Is Now Open

Did you know that the Securities and Exchange Commission (SEC) Satellite Office-SM City Manila is now open at the 4th Floor Government Service Express Center, SM City Manila?

Based on SEC Notice, operation hours is from Mondays to Fridays from 10:00 a.m. to 6:00 p.m. and offer 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 Informal Sheets (GIS) and Audited Financial Statements (AFS).

Please refer the http://www.sec.gov.ph/docs_home/Satellite_Office_SM_Manila.pdf of the SEC NOTICE.

Steps On How To Create An XPS Document In Offline eBIRForms Package

Taxpayers who are mandated to use eBIRForms are required to register to eBIRForms System and eFile and ePay or Manually Pay the BIR Returns.

If one of those taxpayers opted to save the BIR Returns files to PC or USB or Other Storage Devices, such taxpayers has other options to save it or transfer the files from other PC or Other Devices and print the BIR Returns.

In deed, we can create an XPS Document in Offline eBIRForms Package. 

An XML Paper Specification (XPS) document is a document format you can use to view, save, share, digitally sign, and protect your document's content. It is like an electronic sheet of paper: You can't change the content on a piece of paper after you print it, and you can't edit the contents of an XPS document after you save it in the XPS format. (http://windows.microsoft.com/en-ph/windows/xps-documents-faq#1TC=windows-7)

The steps on how create an XPS document in Offline eBIRForms Package is with details as follows:

Step 1. Open the eBIRForms Program.

Step 2. Open the BIR Form Return you want to create to an XPS document. (Ex. BIR Form No. 1601-E)

Step 3. Click the File menu, and then click Print Preview. Next, click the File menu, and then click Print. 

Step 4. In the Print dialog box, select Microsoft XPS Document Writer from the list of available printer, and then click Print.

Step 5. In the Save the file as dialog box, name your XPS document, and then click Save

You can view the the saved file using the XPS Viewer or PDF and ready to print the BIR Return.

eTIS-1 (ELECTRONIC TAX INFORMATION SYSTEM)'s Taxpayer Registration System Is Now Live in Makati and Other Pilot Sites

Last February 12, 2015, the Taxpayer Registration System (TRS) of the Electronic Tax Information System or (eTIS-1) was rolled out in two pilot offices of the Bureau of Internal Revenue (BIR). 

The two pilot office are Revenue District Office No. 50-South Makati, headed by RDO Maridur V. Rosario, and Large Taxpayers Division, headed by OIC-Chief Edralin M. Silario. Eventually, it was replicated in RD 44-Taguig-Peteros (headed by OIC-RDO Rodolfo G. Mendoza last February 23, 2015.

eTIS-1 is a web-based application that uses a modern platform consisting of eight (8) functions, namely: Taxpayer Registration System (TRS), Returns Filing and Processing (RFP), Collection, Remittance and Reconciliation (CRR), Audit, Case Management System (CMS), Taxpayer Accounts System (TAS), Batch Architecture Module (BAM) and System Administration Management (SAM).

eTIS-1 will have a central database that will fully intereface with and combine the information in various BIR systems, such as eFPS, eREG, eLAMS, eSALES, MR-COS and ARMS, among others.

In eTIS-1, an audit case is accessible not only by the case officer (Revenue Officer-Assessment) but also by the team lead (Group Supervisor) and all those who have reviewing and monitoring functions and access. All case management details, as defined by the user, will be accessible in one file. This will make it easier for al users of eTIS-1 to track down the activities. There will also be controls to prevent unauthorized access by end user not involved in the audit process.

Besides, auditing decisions will be determined based on criteria and audit cases assigned automatically and anonymously that will lead to greater transparency and ocjectivity in the auditing process and decisions.

Please refer http://www.bir.gov.ph/images/bir_files/internal_communications_1/Programs/eTIS%20Updates_Feb.%202015.pdf of the full text related to eTIS-1

Hope That The Taxes On Earnings of Manny Pacquiao From Mayweather Fight Will Be Used To Promote The General Welfare And Protection Of Its Citizens

The countrymen of the Philippines will give their full support to Manny Pacquiao in his fight against Floyd Mayweather in the world welterweight unification bout on May 2 in Las Vegas (May 3 in the Philippines).

With this, we expect that the earnings of Manny Pacquiao from Mayweather fight will be subject to taxes and hope that the collections will be properly used to promote the general welfare and protection of its citizens.

I was invited to watch the greatest event thru live pay per view in Sparks (Sports Bar) somewhere in Quezon City this coming May 3, 2015.

Manny Pacquiao is now part of the Philippine history and of world sports history. It is not only the Filipinos who supports Manny Pacquiao but also even of the different races in the world.

God bless you Mr. Manny Pacquiao!