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.

Tax Treatment of VAT on Government Money Payments for OECF Funded Projects

The bureau has issued recently the Revenue Memorandum Circular (RMC) No. 8-2017 to clarify the Tax Treatment of Value-Added Tax (VAT) on Government Money Payments for OECF Funded Projects under Exchange of Notes Between Republic of the Philippines and the Government of Japan.

This is related to the Exchange of Notes between the Republic of the Philippines and the Government  of Japan for OECF- Funded Projects ("Exchange of Notes") undertaken in the Philippines, the standard clauses pertaining to the tax treatment of participating Japanese suppliers, contractors and nationals clearly state that the Japanese suppliers, contractors or nationals engaged in OECF-Funded projects in the Philippines shall not be required to shoulder any fiscal levies and/or taxes associated with the project.

Applied to VAT, the 12% VAT under Section 106 and Section 108 of the Tax Code, as amended, imposed on all sales of goods and services, including sales of goods and services to the Government, shall be assumed by the Philippine Government or its executing agencies pursuant to the Exchange Notes.

It is stated in the circular that an y ruling or revenue issuance is inconsistent with this is hereby amended, repealed or modified accordingly.

Please refer: http://www.bir.gov.ph/images/bir_files/internal_communications_2/RMCs/RMC%20No%208-2017.pdf of the full text of RMC No. 8-2017.

BIR's CY 2017 Priority Programs

Revenue Memorandum Circular (RMC) No. 5-2017 has issued by the bureau recently to published the Bureau's CY 2017 Programs and shall address the Bureau's three (3) principal objectives:

1. Attain collection targets

1.1 Comprehensive Profiling and industry Benchmarking
1.2 Oplan Kandado Program
1.3 Updating of Schedules of Zonal Value
1.4 Broadening of the Tax Base
1.5 Implementation of Centralized Arrears Management in Regional Offices
1.6 Run After Tax Evaders (RATE) Program
1.7 Exchange of Information (EOI) - Foreign Acount Tax Compliance Act (FATCA)
1.8 Expansion of Compromise Settlement Program (LTS audit cases)

2. Improve taxpayer satisfaction

2.1 Review of Revenue Issuances
2.2 Review of Tax Rulings
2.3 TP Segmentation (Large, Medium, Small)
2.4 Simplification of Tax Forms
2.5 Expansion of e-FPS Facilities
2.6 Additional Options/ Facilities for Payment of Taxes
2.7 Development of Tax Clearance Processing System
2.8 Enhancement of Electronic Registration System
2.9 Electronic Tax Information System (eTIS)
2.10 In-house enhancement of Electronic Certificate Authorizing Registration (eCAR) System
2.11 Geographical Information Systems (GIS)
2.12 Enhancement of Electronic Official Registry Book (eORB)
2.13 Internal Revenue Stamps Integrated System (IRSIS) for Alcohol Products-Distilled Spirits.

3. Protect revenues and recapture public trust

3.1 Integrity Management Program (IMP)
3.2 Revalidation/ Audit of tax assessent
3.3 Salary Standardization Law
3.4 Expedite recruitment of personnel
3.5 Use of Case Monitoring System (CMS)/ eLAMS

Please refer: http://www.bir.gov.ph/images/bir_files/internal_communications_2/RMCs/RMC%20No%205-2017.pdf and http://www.bir.gov.ph/images/bir_files/internal_communications_2/RMCs/2017%20Programs.pdf the full text of RMC No. 5-2017 and ANNEX 

How To Secure Replacement of Certificate of Registration (COR)

Application for Replacement of Certificate of Registration (COR) is under the Application for Registration Update of Primary Registration with the Bureau of Internal Revenue (BIR).

Taxpayers secure for replacement of COR due to updates of tax details to be filed, taxpayer, information, re-issuance and other related updates.

For the Application for Replacement of COR, it is important to consider the following;

Tax Form

BIR FORM 1905 – Application for Registration Information Update

Documentary Requirements

a) Old Certificate of Registration, for replacement;

b) Affidavit of Loss, if lost; and

c) Proof of Payment of Certification Fee and Documentary stamp- to be submitted before the issuance of the New Certificate of Registration

Procedure

Taxpayer applicant submits duly accomplished BIR Form 1905 to RDO/LTAD I or II/LTDO where he is registered together with the required attachments.

Source: http://www.bir.gov.ph/index.php/registration-requirements/primary-registration/application-for-registration-update.html#afrocor