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.


Thursday, July 2, 2015

Documentary Requirements For Certificate of Registration - Non-Individual (BIR Form 1903) With BIR

Checklist Of Documentary Requirements (CDR) for Certificate of Registration - Non-Individual with BIR:

1. Copy of SEC Registration and Articles of Incorporation/Articles of Partnerships, as the case maybe.
2. Copy of Mayor's Business Permit or duly received Application for Mayor's Business Permit, if the former is still in the process with the LGU.

Other Documents for Submission (Only If Applicable):

1. Contract of Lease
2. Certificate of Authority, if BMBE-registered only
3. Franchise Agreement
4. License to DO Business in the Philippines, in case of resident foreign corporation
5. Proof of Registration/Permit to Operate with BOI, BOI ARMM, SBMA, BCDA, PEZA

Processing of transaction commence only upon submission of complete requirements. In all instances wherein photocopies are submitted, the original must be presented for authentication.


Wednesday, July 1, 2015

Mandatory One-Time Submission of Inventory List of All Cash Register Machines (CRMs), Point of Sales (POS) Machines, Special Purpose Machines (SPMs) and/or Any Other Similar Machines Generating Sales Invoices/Receipts

The bureau just issued Revenue Memorandum Circular No. 36-2015 prescribing the Mandatory One-time Submission of Inventory List of All Cash Register Machines (CRMs), Point of Sales (POS) Machines, Special Purpose Machines (SPMs) and/or any other similar Machines Generating Sales Invoices/Receipts.

This Circular is hereby issued to require the submission by all concerned taxpayers of Inventory List, as of June 30, 2015, of all CRMs/POS/SPMs and/or any other similar Machines Generating Sales Invoices/Receipts used by business establishments in business operations or otherwise, and are physically located in said business premises, for purposes of validation.

In submitting the inventory list, the following procedures shall be strictly observed:

1. the inventory list shall be submitted in hard and soft copies using the herein attached prescribed schedule in Excel format (Annex "A"), and shall be saved/stored in a Digital-Recordable (DVD-R) which shall be labeled in accordance with the format prescribed in Annex "B" of this Circular.

2. A notarized Sworn Declaration shall also be submitted using the format in Annex "C" of this Circular, duly signed by the taxpayer/authorized representative certifying as to the veracity of the data/information being submitted.

3. The inventory list, the label of the DVD-R and the Sworn Declaration shall be signed by any of the PRINCIPAL OFFICER duly designated through a Board Resolution issued for the purpose, and sworn to by such office and by the Corporate Treasurer or Assistant Treasurer. On the other hand, with respect to individual taxpayers, the said individual taxpayer shall sign the inventory list, the DVD-R label and the Sworn Certification . In case the individual taxpayer duly authorized another person to be his or her attorney-in-fact such shall be evidenced by a Notarized Special Power of Attorney (SPA) issued for the purpose by the said individual taxpayer.

4. The hard copies of the inventory list together with the DVD-R and the Sworn Declaration shall be submitted on or before July 31, 2015 to the Large Taxpayers Assistance Division (LTAD), Excise Large Taxpayers Regulatory Division (ELTRD), Large Taxpayers Division (LTD-Makati/Cebu), in case the taxpayer is duly registered with the Large Taxpayers Service (LTS), or to the concerned Revenue District Office (RDO), Revenue Region (RR) where the non-large taxpayer is duly registered.

5. The Large Taxpayers Assistance Division (LTAD), Excise Large Taxpayers Regulatory Dividiosn (ELTRD), Large Taxpayers Division (LTD-Makati/Cebu) and the concerned Revenue District Office (RDO), Revenue Region (RR) where the non-large taxpayer is duly registered shall cause the immediate verification and approval of pending applications for cancellation/withdrawal for use, either by retirement or sale of the machines, to ensure the achievement of the purpose of this one-time validation/updating of the inventory of the machines.



Monday, June 29, 2015

Revised Consolidated Schedule of Compromise Penalties for Violations of the National Internal Revenue Code

Revenue Memorandum Order (RMO) No. 7-2015 was issued by the bureau to adopt and implement a uniform application of the compromise penalties involving of the National Internal Revenue Code of 1997 (Tax Code), as amended, as well as to update the Schedule of Compromise Penalties specified under RMO No. 19-2007 and further deleting from the coverage thereof certain acts commonly resorted to by taxpayers as means of tax evasion.



Documentary Requirements For Registration Of Branches/Facility Type - Non-Individual With BIR

Taxpayer should consider the Checklist of Documentary Requirements (CDR) for the Certificate of Registration of Branches/Facility Type - Non-Individual  with the Bureau of Internal Revenue (BIR) as follows:

1. Copy of the Certificate of Registration (COR) of the Head of Office for the facility types to be used by the Head Office and COR of the branch for facility types to be used by a particular branch.

2. Mayor's Business Permit or duly received Application for Mayor's Business Permit, if the former is not yet available.

3. Contract of Lease, if applicable.

Processing of transaction commence only upon submission of complete requirements. In all instances wherein photocopies are submitted, the original must be presented for authentication.




Saturday, June 27, 2015

Mandatory Payment Of Premium Contributions Of Employers And Employees In PhilHealth Accredited Collecting Agents

Philhealth Circular No. 009-2015 was issued by PHILHEALTH to informed all employers in the government and private sectors that effective July 1, 2015 covering the applicable period of June 2015, all premium contributions of employers and their employees in the government and private sectors shall be made at any of PhilHealth's accredited collecting agents (ACAs) or through e-Payment facilities. A complete list of all accredited collecting agents can be accessed through www.philhealth.gov.ph. Only premiums from micro-films, employers with less than 11 employees and Kasambahay's shall be accepted at PhilHealth offices.

Please refer http://www.philhealth.gov.ph/circulars/2015/circ009-2015.pdf of the full text of the circular issued.


Payment and Reporting of Premium Contributions of Employers and Employees

Philhealth Circular No. 004-2015 was issued to informed all employers in the government and private sectors that pursuant to Section 6.f of the Revised Implementing Rules and Regulations of the National Health Insurance Act of 2013, PhilHealth is mandated to "establish and maintain an updated membership and contribution database."

With this, the following shall be implemented effective the applicable period of April 2015:

1. On payment of premium contributions, all employers in the government and private sectors are strongly encourage to pay at PhilHealth's accredited collecting agents (ACAs) or through e-Payment facilities. With the continuous endeavour to improve its business processes, the corporation ensures a more efficient posting of premium payments.

2. On the reporting of premium payments, all employers in the Formal Economy shall adopt the electronic Premium Reporting System (EPRS) as the mode of preparation and transmission of all remittance reports (RF-1). However, this remains optional for employers of Kasambahays.

The Circular took effect fifteen (15) days after its publication in any newspaper of general circulation and deposited with the National Administrative Register at the University of the Philippines Law Center.

Please refer http://www.philhealth.gov.ph/circulars/2015/circ004-2015.pdf of the full text of the circular.