Thursday, August 13, 2015

Inclusion Of Bank of Tokyo-Mitsubishi UFJ, Ltd. In the List Of Authorized Agent Banks

Revenue Memorandum Circular No. 44-2015 just recently issued by the bureau to inform all taxpayers enrolled in the Bureau's eFPS that Bank of Tokyo-Mitsubishi UFJ, Ltd. is now authorized to accept on-line payment of internal revenue taxes thru the eFPS effective July 27, 2015.

The bank stated above is included in the List of Authorized Agent Banks Which are Authorized to Accept Payment of Internal Revenue taxes From Taxpayers Enrolled in the Bureau's Electronic filing and Payment System (eFPS).



Monday, August 10, 2015

Falling Under The Definition Of Raw Cane Sugar, Including Muscovado, Are Exempt From VAT, Or From Percentage Tax

Section 2 (a) of Revenue Regulations No. 8-2015 defines Raw Cane Sugar - the natural sugar extracted from sugarcane through simple mechanical process by pressing for the juice; boiled to crystallize; filtered using centrifuge to separate these crystals, and dried, resulting to crystallize brown sugar (brown color due to natural molasses content present in sugar cane): Provided, that is shall never refer to raw cane sugar produced from conducting only one (1) stage of filtering and centrifugal without any other further process applied thereto, such as but not limited to washing, bleaching, etc.: Provided further, that its color is greater than 800 ICU and that its content of sucrose by weight in dry state corresponds to a polarimeter reading of less than 99.5 degree. 

The  above definition includes muscavado which has standard specifications as produced, namely: Powder Class A - polarization of 86 degree minimum; Powder Class B - polarization of 77 degree minimum; and Lump - polarization of 57 degree minimum.

Thus, only those falling under the above-definition of Raw Cane sugar, including muscovado, are exempt from VAT, or from Percentage Tax, pursuant to Section 109 (1)(A) of the Tax Code.

The Sugar Regulatory Authority represents that it collects on a biweekly basis composite sample from mills for routine quality tests. For further verification that the products produce by mills conform to the definition contained herein, the SRA shall provide the BIR with a copy of the results of said test showing the polarimiter and color reading of the Raw Cane Sugar produced, within 15 days from the end of the calendar month. The SRA shall also insure that they have in place rules and regulations requiring the "RAW CANE SUGAR" be clearly placed on quedans issued for products falling under this definition.



Sunday, August 9, 2015

Operation Of eLounge Facilities in the RDOs of BIR

The operation of eLounge shall be open from 8am to 5pm or beyond office hours depending on the client's need and upon the approval of the head office (RDO), taking into consideration the requirements of the BIR Citizen's Charter and the provisions of Republic Act No. 9485, otherwise known as the Anti-Red Tape Act of 2007; and no personnel shall install programs or configure the default settings of the computers, unless approved by the eLounge Project Manager.

A Systems Restore of the eLounge PCs from the previous and most current Restoration Point shall be used and encouraged at least every week to sustain the maximum performance of the PCs operationability. 



Saturday, August 8, 2015

Establishment Of eLounge Facilities in the RDOs of BIR

The  Establishment of eLounge in the RDo shall be created to provide taxpayers with free electronic or online medium to access the BIR's eServices, including but not limited to the following:

1. eFPS;
2. eBIRForms;
3. eSubmission;
4. eReg;
5. IRSIS
6. eDST;
7. eBROAD;
8. eComplaint
9. eAccreg;
10. eSales;
11. eReportCard;
12. eORB;
13. PAYBIR;
14. eTVCD;
15. Relief Data Entry and Validation Module;
16. Alphalist Data Entry and Validation Module; and
17. Taxpayer Compliance Guide

The eLounge facility shall be established in all Revenue district Offices through the designated eLounge Project Team.

The following are the mandatory requirements for the creation of en eLounge facility;

1. The eLounge shall be set up at or near the client Service Area, (formerly Taxpayer Service Area) at the client Support Section (CSS).
2. The following resources shall provided by the RDOs prior to its implementation:
- modular partition enclosures with table top;
- computer chairs;
- movable printer tables;
- lounge sofas;
- Television (to showcase info media production);
- DVD Player;
- Computers with internet connection;
- Laser Printer; and
- eLounge signage.

For the sustainability of eLounge operations, the RDO shall allocate sufficient funds for Broadband Internet subscription from a third party Internet Service Provider (ISP), office supplies, and materials through their regular funds.

3. Below are the technical specifications required for the Broadband Internet Subscription:
- Unlimited Broadband Internet Connection or Access;
- Downstream Speed of at least 5Mbps; and
- Upstream of at least 1Mbps.

In areas where there are no ISP that can meet the above specifications, the RDO has the option to find available ISP that can provide them the best/fastest connection.

The eLounge shall be part of the "queuing system" in support of the RDO's mandate to provide fast and accurate frontline service to BIR clients.

An established set of Key Performance Indicators (KPIs) (Annex D) shall be use as a basis for monitoring the utilization of the eLounge facility, and shall be the basis for its retention and budget allocation.

A stand-alone electronic logbook (e-logbook) shall be maintained to monitor the number of client availing the eLounge facility.

Please refer http://www.bir.gov.ph/images/bir_files/internal_communications_3/Full%20Text%20of%20RMO%202015/RMO%20No.%2013-2015%20FT.pdf of the full text of RMO No. 13-2015.



Thursday, August 6, 2015

Non-acceptance of Checks/Drawn Checks from Closed Banks by Revenue Collection Officers

Revenue Memorandum Circular (RMC) No. 43-2015 has issued by the bureau for the information and guidance of all concerned. All Revenue Collection Officers (RCOs)/Special Collection Officers (SCOs)/Collection Officers (COs) are hereby advised no to accept checks, as well as taxpayer's checks drawn from the lists of banks that were ordered closed from January, 2014 to June 30, 2015 (please see Annex "A-1)" and Annex "A-2"), as per reports from the Philippine Deposit Insurance Corporation (PDIC), in payment of internal revenue taxes.

Besides, per Monetary Board Resolutions of the Banko Sentral ng Philipinas (BSP), the said banks and their branches are prohibited from doing business in the Philippines and have all been placed under receivership with PDIC as the designated Receiver.



Sunday, August 2, 2015

Alternative Mode in the filing of Several BIR Tax Returns using eBIRForms eMail Accounts will no longer be available

The bureau just issued an advisory that starting August 1, 2015, the eBIRForms eMail accounts (Alternative Mode in the filing of Several BIR Tax Returns using eBIRForms eMail Accounts)  will no longer be available. 

It was stated in the advisory that it has been observed in the validation of attachments of tax returns submitted through the eBIRForms eMail Accounts that numerous format of BIR Tax Returns were attached by the taxpayers, including eMails with no attachments. 

Taxpayers will received the following email message if they continue using the eBIRForms eMail accounts in submitting their tax returns:

"This tax return submission channel is now unavailable and your submitted tax return will be disregarded. Please download the eBIRForms Package v.5 and follow the procedures per RMC No. 31-2015 to submit your tax returns"







Friday, July 17, 2015

Finance Secretary Of The Philippines And United States Ambassador Of The Philippines Signed An Agreement On FATCA

The Department of Finance of the Philippines represented by Finance Secretary Cesar V. Purisima and U. S. Ambassador to the Philippines Philip S. Goldberg signed a reciprocal intergovernmental agreement (IGA) to implement provisions of the Foreign Account Tax Compliance Act (FATCA) to promote transparency in financial accounts between the two nations for tax purposes.

According to Secretary Purisima, the agreement also eases the compliance burden of Philippine financial institutions, who risked facing a 30 percent withholding tax on certain U. S-sourced income if they failed to comply with FATCA related reporting requirements.

The automatic reporting of financial accounts is premised on the appropriate safeguard measures to ensure confidentiality of information that will be used solely for tax purposes, and the necessary infrastructure to effectively,accurate, and secure.

Please refer http://www.bir.gov.ph/images/bir_files/internal_communications_1/FATCA%20press%20release_10Jully2015.pdf of the full text of the  Press Release of the Department of Finance in the Philippines.


Wednesday, July 15, 2015

Certificate Of Gross Income For The Year - Annex "E" of RR 10-2008


Annex “E”


__________________________________________
(Name of Company)

                                               

________________________
                                                                                                                   (Date)



CERTIFICATE OF GROSS INCOME FOR THE YEAR


This is to certify that Mr./Ms./Mrs _______________________________ received the  amount of _______________________________________  (P                    ) as compensation income for the period _________________________ from this company/enterprise, broken down as follows:

_________________________________________________________
_________________________________________________________
_________________________________________________________


I declare, under the penalties of perjury, that the above information are verified by me, and to the best of my knowledge true and correct.




                                                       ____________________________________________

                                                      (Employer’s Authorized Representative & Designation)              


Tuesday, July 14, 2015

Sworn Declaration And Waiver Of Right To Claim Exemptions Of Qualified Dependent Children - Annex "F" of RR 10-2008


                                                                                                                                                                Annex “F”
SWORN DECLARATION AND WAIVER OF RIGHT
TO CLAIM EXEMPTIONS OF QUALIFIED DEPENDENT CHILDREN

In accordance with the provisions of Section 29 (1) (2) (A) of the National Internal Revenue Code, as amended, I Mr. _________________________________________________, hereby voluntarily depose and say:
1.        That my wife and I are both income earners;
2.        That we file a joint income tax return on our taxable income;
3.        That I am a (check pls): ___ self employed: ___ engaged in business; ___ practice profession;
4.        That this waiver will be effective for the taxable year _______ and shall continue for the succeeding years unless sooner revoked;
5.        That I hereby waive my right to claim the additional exemption for all our qualified dependent children in favor of my wife presently employed with:
Name of wife: ___________________________________________________________________________________
Name of wife’s employer __________________________________________________________________________
Address of employer ______________________________________________________________________________
TIN of employer ________________________ Tel No. _____________________ Fax No. ______________________


Name of qualified dependent child(ren)
Date of Birth (mm/dd/yyy)
1


2


3


4



I hereby declared under penalties of perjury that the foregoing representations are true and correct and that the waiver of right is voluntarily and knowingly made in accordance with the provisions of the National Internal Revenue Code, as amended.

_________________________________                 ____________________                      _______________________
(Signature of husband over printed name)                                 TIN                                                         Date
________________________________________________________________________________________________
ACKNOWLEDGEMENT OF HUSBAND’S EMPLOYER

Name of husband’s employer________________________________________________________________________
Address of employer ______________________________________________________________________________
TIN of employer________________________ Tel No. __________________ Fax No. _________________________

____________________________________________                                         ___________________________
(Signature over printed name of husband’s employer/                                                       Date (mm/dd/yyy)
 Chief Accountant/Head, Personnel Office)
________________________________________________________________________________________________
ACKNOWLEDGEMENT OF WIFE’S EMPLOYER
This is to acknowledge receipt of the above waiver of right to claim additional exemptions of Mr. _______________________________________________________ in favor of his wife Mrs/Ms. _____________________________________________ who shall be entitled to claim the additional exemptions for all their qualified dependent children effective ______________________           ________________.
                                                                                   (Month)                                  (taxable year)

Name of wife’s employer ___________________________________________________________________________
Address of employer ______________________________________________________________________________
TIN of employer _______________ Tel No.____________ Fax No.______________

_________________________________________                                              ___________________________
(Signature over printed name of wife’s employer/                                                           Date (mm/dd/yyy)
 Chief Accountant/Head, Personnel Office)

Note:       If husband engaged in business, disregard the portion on Acknowledgement of Husband’s Employer.
Must be signed by both employers of husband and wife before effecting changes in the payroll of their respective employers.
                Must be attached to BIR Form No. 2305 or BIR Form No. 1902.




Saturday, July 4, 2015

Gross Receipts From Rentals of Residential Units Not Exceeding The Threshold Amount Per Month Per Unit Shall Be Exempt From VAT Regardless Of The Aggregate Annual Gross Receipts

Section 3 VAT EXEMPT TRANSACTIONS (q) of  Revenue Regulations (RR) No. 16-2011 stated that Lease of residential units with a monthly rental per unit not exceeding Twelve Thousand Eight Thousand Eight Hundred Pesos (P12,800.00), regardless of the amount of aggregate rentals received by the lessor during the year; Provided, every three (3) years thereafter, the amount shall be adjusted to its present value using the Consumer Price Index, as published by the NSO; Provided, further, that such as adjustment shall be published through revenue regulations to be issued not later than March 31 of each year;

The foregoing notwithstanding, lease of residential units where the monthly rental per unit exceeds Twelve Thousand Eight Hundred Pesos (P12,800.00) but the aggregate of such rentals of the lessor during the year do not exceed One Million Nine Hundred Nineteen Thousand Five Hundred Pesos (P1,919,500.00) shall likewise be exempt from VAT, however, the same shall be subjected to three percent (3%) percentage tax.

In cases where a lessor has several residential units for lease, some are leased out for a monthly rental unit per unit of not exceeding P12,800.00 while other are leased out for more than P12,800.00 per unit, his tax liability will be as follows:

1. The gross receipts from rental not exceeding P12,800.00 per month per unit shall be exempt from VAT regardless of the aggregate annual gross receipts.

2. The gross receipts from rentals exceeding P12,800.00 per month per unit shall be subject to VAT if the aggregate annual gross receipts from said units only (not including the gross receipts from units leased from not more than P12,800.00) exceeds P1,919,500.00. Otherwise, the gross receipts will be subject to the 3% tax imposed under Section 116 of the Tax Code.

The term 'residential units' shall refer to apartments and houses & lots used for residential purposes, and buildings or parts or units thereof used solely as dwelling places (e.q., dormitories, rooms and bed spaces) except motels, motel rooms, hotels, hotel rooms, lodging houses, inns and pension houses.

The term 'unit' shall mean an apartment unit in the case of apartments, houses in the case of residential houses; per person in the case of dormitories, boarding houses and bed spaces; and per room in case of rooms for rent.

The regulations was took effect dated January 1, 2012.

Hence, Gross receipts from Rentals of Residential Units are subject to Income Tax as well.