Removal of the Five (5) - Year Validity Period on Receipts/ Invoices

As part of the Taxpayers Ease of Doing Business in the community, the CIR of the Bureau has issued Revenue Regulations (RR) No. 6-2022 in relation with the Removal of the Five (5) - Year Validity Period on Receipts/ Invoices. But was clarified through the issuance of Revenue Memorandum Circular (RMC) No. 123-2022 to address and provide uniform answers to the numerous issues and concerns of both internal and external stakeholders of the following:

Please refer: RMC No. 123-2022.pdf (bir.gov.ph) of the full text of Revenue Memorandum Circular (RMC) No. 123-2022.

New Offline eBIRForms Package v7.9.2.1

The Bureau of Internal Revenue (BIR) has issued the new  Offline eBIRForms Package v7.9.2.1 to update the previous Offline eBIRForms Package v7.9.2 for the enhancement and convenient online filing of BIR Returns by the Taxpayers in the business community.

To download Offline eBIRForms Package v7.9.2.1

https://www.bir.gov.ph/images/bir_files/ebirforms/ebirforms_package-v7.9.2.1.zip

Tax on Persons Exempt from VAT

SEC.4-116 of Sections 2. Amendments under Revenue Regulations (RR) No. 4-2021 refers of the Tax on Persons Exempt from VAT. 

Under these regulations, any person whose sales or receipts are exempt under Section 109(I)(CC) of the Tax Code from the payment of VAT and who is not a VAT-registered person shall pay a tax equivalent to three percent (3%) of his gross quarterly sales or receipts. Provided, however, that the following shall be exempt from the payment of three percent (3%) percentage tax:

1. Cooperatives; and

2. Self-employed individuals and professionals availing of the 8% tax on gross sales and/or receipts and other non-operating income, under Sections 24(A)(2)(b) and 24(A)(2)(c)(2)(a) of the Tax Code.

Provided, further, that effective July 1, 2020 until June 30, 2023, the rate shall be one percent (1%).

XXX          XXX          XXX"

Please refer https://www.bir.gov.ph/images/bir_files/internal_communications_1/Full%20Text%20RR%202021/RR%20NO.%204%20-%202021.pdf of the full text of RR No. 4-2021.

Offline Electronic Bureau of Internal Revenue Forms (eBIRForms) Package Version 7.9.2

The new Offline Electronic Bureau of Internal Revenue Forms (eBIRForms) Package Version 7.9.2 is the updated version of eBIRForms 7.9.1, issued by the bureau under Revenue Memorandum Circular (RMC) No. 111-2021, which is downloadable from the sites: www.bir.gov.ph and www.knowyourtaxes.ph.

The new Offline eBIRForms Package includes the January 2018 version of the following forms:

1. BIR Form No. 2552 - Percentage Tax Return for Transactions Involving Shares of Stock Listed and Traded Through the Local Stock Exchange or Through Initial and/or Secondary Public Offering.

2. BIR Form No. 1600-VT - Monthly Remittance Return of Value-Added Tax Withheld

3. BIR Form No. 1600-PT - Monthly Remittance Return of Other Percentage Taxes Withheld

4. BIR Form No. 1707 - Capital Gains Tax Return for Onerous Transfer of Shares of Stocks Not Traded Through the Local Stock Exchange

5. BIR Form No. 2200-C - Excise Tax Return for Cosmetic Procedures

6. BIR Form No. 1702-MXv2018

7. BIR Form No. 1702-MXv2018C

Please refer: RMC No. 111-2021.pdf (bir.gov.ph) to read the full text of the RMC No. 111-2021.

New Offline eBIRForms Package v7.9.1 is now Available for Download

The team of the bureau has recently issued the New Offline eBIRForms Package v7.9.1 and available for download in relation with new regulations issued and in compliance with the ease of doing business in the community.

Just click the link: https://www.bir.gov.ph/images/bir_files/ebirforms/ebirforms_package_v7.9.1.zip to download the New Offline eBIRForms Package v7.9.1 Available for Download to comply in the submission and payment of returns with or without tax dues.

BIR Issued a Circular of Filing of Returns as Well as Payment of Taxes Due Thereon Falling Within the Period March 22, 2021 to April 30, 2021

In relation with the Bureau of Internal Revenue (BIR) Revenue Memorandum Circular Number (RMC) No. 41-2021 dated March 22, 2021 which refers to the Filing of Returns as Well as Payment of Taxes Due Thereon Falling Within the Period March 22, 2021 to April 30, 2021, taxpayers and all concerned persons will prepare themselves and adjust accordingly of this circular as being issued in order to provide relief to all involve in relation to the current stage in COVID-19 cases that is affecting the entire nation which has prompted establishments to operate at half their manpower capacity.

In this regard, filing of returns as well as payment of taxes due thereof falling within the period March 22, 2021 to April 30, 2021 may be made anywhere, even outside the jurisdiction of the Revenue District Office where they are registered.

Taxpayers who are not mandated to use the eFPS and eBIRForms Systems are encouraged to electronically file their returns through the eBIR Forms Facility and pay the corresponding taxes due thereon through any ePayment channels.

However, may taxpayers are still waiting the guidelines with regards of the due date of filling of Individual and Corporate Annual Income Tax Returns 2020. Hopefully, the bureau will issue a regulations to adjust, postpose, extend or reschedule the due date of filing and payment of ITRs 2020 to give ample time of the prepares and taxpayers amidst of the ECQ COVID-19 Pandemic.

REFERENCE: Revenue Memorandum Circular (RMC) N. 41-2021.

Availability of the Offline Bureau of Internal Revenue Forms (eBIRForms) Package Version 7.8

In reference with the Revenue Memorandum Circular (RMC) No. 33-2021, is being issued by the bureau to disseminate the availability of the updated (new) Offline eBlRForms Package Version 7.8, which is downloadable from the following sites:

l. www.bir.gov.ph; and

2. www.knowyourtaxes.ph

The new Offline eBIRForms Package now includes the January 2018 version of the following forms:

1. BIR Form.No. 800 -  Donor's Tax Refurn

2. BIR Form No. 801 - Estate Tax Return

3. BIR Form No. 2000-OT -  Documentary Stamp Tax Declaration/Return (One-Time Transactions)

The BIR Form Nos. 1800 and 1801 shall be filed within thirty (30) days after the gift (donation) is made and one (l) year from the decedent's death, respectively. On the other hand, BIR Form No. 2000-OT shall be filed and the tax paid within (5) days after the close of the month when the taxable document was made, signed, issued, accepted or transferred.

Payments of the taxes due thereon, if any, shall be made thru:

a.) Manual Payment - Authorized Agent Bank (AAB) located within the territorial jurisdiction

of the Revenue District Officer (RDO) having jurisdiction, as follows:

BIR Form No./ Place of Filing/Payment: 

BIR Form No. 1800 - over the domicile of the donor at the time of donation or if there is no legal residence in the Philippines, with the Office of the Commissioner, (Revenue District office No. 39, South Quezon City). 

BIR Form No. 1801 - over the domicile of the decedent at the time of death or if the decedent has no legal residence in the Philippines, with the Office of the Commissioner, (Revenue District office No. 39, South Quezon City). 

BIR Form No. 2000-OT - where the seller/transferor/donor is required to be registered or where the property is located in case of sale of real property.

In places where there are no AABs, the return shall be filed and the tax due shall be paid with the concerned Revenue Collection Officer (RCO) under the jurisdiction of the RDO using MRCOS facility. 

b.) Online PaYment

- Thru Mobile Payment (GCash/PayMaya);

- Landbank of the Philippines (LBP) Link.BizPortal - for taxpayers who have

ATM account with LBP and/or holders of Bancnet ATIWDebit card;

- Development Bank of the Philippines (DIP) Tax^ Online - for taxpayersholders of visa/Master credit caid and/or Bancnet ATM Debit card;

- Union Bank Online Web and Mobile Payment Facility - for taxpayers who

have account with Union Bank; or

- PESONet through LBP Link.BizPortal - for taxpayers who have account with

RCBC and Robinsons Bank.

The RMC No. 30-2021 is dated March 2, 2021.

Offline eBIRForms Package v7.7 is New Version ready for download

In line with the ease of doing business in the community, the bureau has updated the version of Offline eBIRForms Package from Offline eBIRForms Package v7.6.1 to Offline eBIRForms Package v7.7 with new necessary updates with ease and seamless filing of BIR Tax Returns without compromising the going concern of the business operations of the business people in the community. 

Maintenance of system is an important measure to minimize and avoid technical difficulties in compliance with the requirements of its offline and online system of eco modern technologies this day.

To download the Offline eBIRForms Package v7.7, clink the link below: 

 http://ebirforms-ftp.bir.gov.ph/ebirforms_package_v7.7.zip

Period of Validity, Conversion and Revalidation of Unutilized Tax Credit Certificate

Revenue Regulations (RR) No. 14-2020 dated January 30, 2020 was issued by the bureau amending the Pertinent Provisions on Cash Conversion of Unutilized Tax Credit Certificate (TCC) under RR No. 5-2000. TCC represents the amount due to a taxpayer resulting from an overpayment of a tax liability or erroneous payment of a tax due. It may be applied for by the taxpayer instead of filing a claim for refund with the Bureau of Internal Revenue (BIR). It may be used as payment of any tax liability by way of applying for Tax Debit Memo (TDM) or may be converted into a cash, in case the taxpayer-owner has no longer use for it.

Period of Validity, Conversion and Revalidation

a. Vality Period - Any TCC issued which remains unutilized after five (5) years from the date of issue shall, unless revalidated before the end of the fifth year, be considered invalid. This means that the TCC shall not be allowed for use in payment of any taxpayer's internal revenue tax liability nor allowed to be transferred and the unutilized amount thereof shall revert to the General Fund of the National Government. (RR No. 5-2000) 

b. Conversion Period - Any request for conversion into cash refund of unutilized tax credits may be allowed during the validity period of the TCC. Provided, however, that the original copy of the Tax Credit Certificate showing a creditable balance is surrendered to the Asst. Commissioner, Collection Service or other duly authorized Revenue Officer for verification and cancellation. Provided, further, that a refund check of treasury warrant issued in accordance with the pertinent provisions of the Tax Code of 1997, as amended, which shall remain uncashed or unclaimed within five (5) years from the date of issue, mailing or delivery, whichever comes later, shall be forfeited in favor of the Government and the amount thereof shall revert to the general fund.

Provided furthermore, that, any TCC which remains unutilized for more than one (1) year at any given interval of time during its validity shall be converted into cash with prior written notice by the BIR, subject to the availability of funds in accordance with the procedural requirements that will be issued by the BIR for this purpose.

c. Revalidation Period - The revalidated TCC shall be valid for a period of five years from the date of issue. (RR No. 5-2000).

All TCCs which are already expired upon the effectivity of this Regulations shall be automatically cancelled by the BIR, except those TCCs which are with the BIR, for purposes of utilization thru TDM, conversion or revalidation, before the expiration of their respective dates of validity: Provided, however, that the list of expired TCCs and names of its taxpayers-owners shall be circularized/posted with the BIR's official website, within thirty (30) days from the date of effectivity of these Regulations. The said ciruclar or posting of the list is deemed a sufficient notice to the concerned taxpayer-owner of the TCC.

REFERENCES: 

RR No. 5-2000; RR No. 14-2020.

Extending the Deadline for Business Registration (activity and/or updates) of those into Digital Transactions

In relation with the global COVID-19 pandemic and when most citizens are into home quarantine while the business of selling goods and services through online network has been observed to be experiencing an increase growth in the community, the Bureau reminded the Deadline for  Business Registration of those into Digital Transactions. 

Revenue Memorandum Circular (RMC) No. 75-2020 is being issued extending the Deadline for Business Registration of those Transaction under RMC 60-2020 until August 31, 2020, specifically for the registration of the activity and/or updates and those who shall voluntarily declare their past transactions subject to pertinent taxes and pay the taxes due when declared and paid on or before the said date shall not be subject to corresponding penalty for late filing and payment.