Alphalist Data Entry and Validation Module Version 6.1 (New) is now available for Download

The bureau has issued a TAX ADVISORY of the revised Alphalist Data Entry and Validation Module Version 6.1 related to the applicable provisions of the Tax Reform for Accelaration and Inclusion (TRAIN) Law. This module is use for the submission of annual Alphabetical List of Employees/Payees from Taxes Were Withheld (alphalist) as part of the filing of the Annual Information Return which is due every January 31 of the succeeding year.

The annual alphalist shall be submitted either through the eSubmission facility (esubmission@bir.gov.ph) of the Bureau or through the dedicated email account of the Revenue District Office (RDO) having jurisdiciton over the withholding agent's registered address. For the guidance, please see Annex "A" of Revemue Memorandum Circular No. 5-2015 for the list of dedicated email accounts of the RDOs.

To download the Alphalist Data Entry & Validation Module Version 6.1 (New) just click on the following: ZIP: ALPHALIST V6.1 SETUP.ZIP / JOB AID: DATA ENTRY / VALIDATION MODULE

New General Information Sheet (GIS) Form 2019

Security and Exchange Commission (SEC) has announced the use of the new General Information Sheet (GIS) that effective March 01, 2019 the agency will only accept the new GIS form which includes the beneficial ownership.

The new GIS form can be downloaded from the SEC website at the following link: http://www.sec.gov.ph/reportorial-requirements/corporationswith-primary-licenses-2/ 

eBIRForms Package v7.3 is now available for download

Few days ago, the bureau recently announced the new updates of Offline eBIRForms Package from eBIRForms Package v7.2.1 to eBIRForms Package v7.3. 

The new updates includes BIR Form No. 1601Cv2018 (Monthly Remittance Return of Income Taxes Withheld on Compensation), BIR 1602Qv2018 (Quarterly Remittance of Final Income Taxes Withheld on Interest Paid on Deposits Substitutes/Trust/Etc. and BIR 1603Qv2018 (Quarterly Remittance Return of Final Income Taxes Withheld on Fringe Benefits Paid to Employees Other Than Rank and File).

To download the Offline eBIRForms Package v7.3, please click below

http://ftp.pregi.net/bir/ebirforms_package_v7.3.zip

eBIRForms Package v7.2.1 is now available for download

The bureau recently announced the new updates of Offline eBIRForms Package from eBIRForms Package v7.2 to eBIRForms Package v7.2.1. 

The new updates includes BIR Form No. 1601Cv2018 (Monthly Remittance Return of Income Taxes Withheld on Compensation), BIR 1602Qv2018 (Quarterly Remittance of Final Income Taxes Withheld on Interest Paid on Deposits Substitutes/Trust/Etc. and BIR 1603Qv2018 (Quarterly Remittance Return of Final Income Taxes Withheld on Fringe Benefits Paid to Employees Other Than Rank and File).

To download the Offline eBIRForms Package v7.2.1, (new version) please click below

http://ftp.pregi.net/bir/ebirforms_package_v7.2.1.zip 

Guidelines and Procedures for the Processing of the Request for Tax Exemption of Hybrid or Purely Electric Vehicles by the DOE

Revenue Regulations (RR) No. 24-2018 was issued by the bureau amending Section 9 of RR No. 25-2003 Relative to the Determination by the Department of Energy Whether the Automobiles Subject to Excise Tax Exemption are Hybrid or Purely Electric Vehicles pursuant to the Provisions of Republic Act No. 10963, Otherwise known as the "Tax Reform for Acceleration and Inclusion (TRAIN) Law".

SECTION 2. Purpose of Regulations - The purpose of these Regulations is to amend/revise the guidelines and procedures for the processing of the request for tax exemption of Hybrid or Purely Electric Vehicles by the DOE, consistent with the objective of promoting the ease of doing business and efficient delivery of government service under Republic Act (RA) No. 11032. During the inter-agency consultation called by the DOE with representatives from BIR, DOF and BOC, the DOE proposed that the BIR could use as a basis the current Department of Environment and Natural Resources (DENR) system of issuing a Certificate of Conformity (COC) for new motor vehicles in determining with high level of confidence the vehicle classification as Hybrid or Purely Electric Vehicles (HEV/EV) as defined under RA No. 10963. The actual inspection or separate validation of vehicle by the DOE to verify whether the automobile is an HEV/EV is a clear duplication of an existing DENR issuance of COC for new locally manufactured or imported vehicles.

SECTION 3. Further Amending Section 9(E) of RR. No. 25-2003 - Section 9(E) of RR No. 25-208 is further amended to read as follows:

"SEC. 9. TAX-EXEMPT REMOVALS OF AUTOMOBILES. The following removals of locally manufactured/assembled or release of imported automobiles from the place of production or from customs custody, respectively, are exempt from the payment of the appropriate excise taxes subject to certain conditions.

A. XXX

                                                    XXX     XXX     XXX

E. Purely Electronic Vehicles shall be exempt from the Excise Tax on Automobiles, Hybrid Vehicles shall be subject to Fifty Percent (50%) of the applicable Excise Tax Rates on Automobiles. Prior to the removal of the automobiles from the manufacturing plant or customs custody, the Commissioner of Internal Revenue (CIR), Attention: Chief, Excise Large Taxpayer Regulatory Division (ELTRD) shall require from the Motor Vehicle Manufacturer/Assembles/Importer the Presentation/Submission for the Certificate of Conformity (COC) issued by the DENR-Environment Management Bureau (EMB) which contains information of the vehicle's model/make and other Technical Specification/Information, including the corresponding classification on Fuel Feed from which it can be ascertained whether the Vehicle is a Hybrid Electric Vehicle (HEV).

In case the Subject of the Application for COC is a Purely Electric Vehicle (EV), a Certificate Of Non-coverage (CONC), TNSTEAD of COC, shall be presented to the ELTRD by the Manufacturer/Assembler/Importer, stating therein that the Vehicle applied for COC is a Purely Electric Vehicle (EV) and has no Tailpipe Emission and therefore not covered RA No. 8749 (PHILIPPINES CLEAN AIR Act).

The BIR shall make a determination whether the EV or HEV is Exempt from Excise Tax or Subject to 50% Excise Tax, respectively, on the Basis of the CONC or COC issued by the DENR-EMB as presented by the Manufacturer/Assembler/Importer.

For purposes of validating the Authenticity of the COC OR CONC presented by the Vehicle Manufacturer/Assembler/Importer, The DENREMB shall provide the BIR a Certified True Copy of the COC AND CONC issued to the Manufacturer/Assembler/Importer for New Locally Manufactured or Imported HEV OR EV.

Please refer: https://www.bir.gov.ph/images/bir_files/internal_communications_1/Full%20Text%20RR%202018/RR%20No%2024-2018.pdf

Authorized BIR Facilites for Electronic Tax Filing and Payment

The bureau has issued a memo with regards of the authorized BIR facilities for Electronic Tax Filing and Payment as follows:

The Memorandum is dated April 06, 2018.

Please refer https://www.bir.gov.ph/images/bir_files/internal_communications_1/Advisory/advisory_April%206-eFPS.pdf of the full text of Memorandum.

eBIRForms Package v7.2 is now available for download

In line of the TRAIN Law, the bureau recently announced the new updates of Offline eBIRForms Package from eBIRForms Package v7.1 to eBIRForms Package v7.2. 

The new updates includes BIR Form No. 1601Cv2018 (Monthly Remittance Return of Income Taxes Withheld on Compensation), BIR 1602Qv2018 (Quarterly Remittance of Final Income Taxes Withheld on Interest Paid on Deposits Substitutes/Trust/Etc. and BIR 1603Qv2018 (Quarterly Remittance Return of Final Income Taxes Withheld on Fringe Benefits Paid to Employees Other Than Rank and File).

To download the Offline eBIRForms Package v7.2, please click below

http://ftp.pregi.net/bir/ebirforms_package_v7.2.zip

To download the Offline eBIRForms Package v7.2.1, (new version) please click below

http://ftp.pregi.net/bir/ebirforms_package_v7.2.1.zip 

To download the Offline eBIRForms Package v7.3, (new version) please click below

http://ftp.pregi.net/bir/ebirforms_package_v7.3.zip

The Importance of the Mandatory Statutory Requirement and Function of a Letter of Authority

The bureau has issued Revenue Memorandum Circular (RMC) No. 75-2018  to highlight the doctrinal rule enunciated by the Supreme Court in the case of "Medicard Philippines, Inc. vs. Commissioner of Internal Revenue" (G. R. No. 222743, 05 April 2017) on the mandatory statutory requirement of a Letter of Authority (LOA), for the guidance of all concerned, particularly internal revenue officers tasked with assessment and collection functions and review of disputed assessments.

The summary of judicial ruling is stated as follows:

The judicial ruling , involving a specific statutory' mandate, states that no assessments can be issued or no assessment functions or proceedings can be done without the prior approval and authorization of the Commissioner of Internal Revenue (ClR) or his duly authorized representative, through an LOA. The concept of an LOA is therefore clear and unequivocal . Any tax assessment issued without an LOA is a violation of the taxpayer's right to due process and is therefore "inescapably void."

The Court further emphatically clarified that :

1. The circumstances contemplated under Section 6 of the National Internal revenue Code (NIRC) , as amended, "where the taxpayer may be assessed through best evidence obtainable , inventory-taking or surveillance, among others, have nothing to do with the LOA. These are simply methods of examining the taxpayer in order to arrive at the correct amount of taxes. Hence unless undertaken by

the CIR himself or his duly authorized representatives, other tax agents may not validly conduct any of these kinds of examinations without prior authority."

2. A Letter Notice (LN)" is entirely different and serves a different purpose than an LOA". It is not found in.the NIRC and is not an authority to conduct an audit or examination of the taxpayer leading

to the issuance of deficiency assessments . Due process demands that after an LN has served its purpose , the revenue officer should have properly secured an LOA before proceeding with the further examination and assessment of taxpayer.

To help forestall any unnecessary controversy and to encourage due observance of the judicial pronouncements, any examiner or revenue officer initiating tax assessments or performing assessment functions without an LOA shall be subject to appropriate administrative sanctions.

The provisions of any internal revenue issuance inconsistent herewith are hereby repealed, amended or modified accordingly.

Please refer: https://www.bir.gov.ph/images/bir_files/internal_communications_2/RMCs/2018/RMC%20No%2075-2018.pdf of the full text of RMC No. 75-2018.

Rates on the Excise Tax on Automobiles

Are you planning of investing or buying vehicle today or in the future? Do you consider if it's subject to tax or exempt from tax? May be it is also important to consider the tax matters and other legal transactions in investing or purchasing vehicle.

Few months ago, the bureau has issued Revenue Regulations (RR) No. 5-2018 implementing the Adjustment of Rates on the Excise Tax on Automobiles pursuant to the Provisions of Republic Act No. 10963, otherwise known as the "Tax Reform for Acceleration and Inclusion (TRAIN) Law" amending for the purpose RR No. 25-2003 as follows:

SEC. 3. Section 4 of RR No. 25-2003 is hereby amended as follows:

"SEC. 4. - RATES AND BASES OF THE AD VALOREM TAX ON AUTOMOBILES. There shall be levied, assessed and collected ad valorem tax on automobiles based on the manufacturer's/assembler's or importer's selling price, net of excise tax and value-added tax, in accordance with the following schedule, EFFECTIVE JANUARY 1, 2018:

NET MANUFACTURER'S                                      TAX RATE

PRICE/ IMPORTER'S SELLING

PRICE

UP TO SIX HUNDRED                                              FOUR PERCENT (4%)

THOUSAND PESOS (P600,000.00)

OVER SIX HUNDRED                                              TEN PERCENT (10%)

THOUSAND PESOS (P600,000.00)

TO ONE MILLION PESOS

(P1,000,000.00)

OVER ONE MILLION PESOS                                  TWENTY PERCENT (20%)

(P1,000,000.00) TO FOUR

MILLION PESOS (P4,000,000.00)

OVER FOUR MILLION PESOS                                FIFTY PERCENT (50%)

(P4,000,000.00)

PROVIDED, THAT HYBRID VEHICLES SHALL BE TAXED AT FIFTY PERCENT (50%) OF THE APPLICABLE EXCISE TAX RATES ON AUTOMOBILES SUBJECT TO THE CONDITIONS IN SECTION 9(E) OF THIS REGULATIONS: PROVIDED, FURTHER, THAT IN THE CASE OF IMPORTED AUTOMOBILES NOT FOR SALE, THE TAX IMPOSED HEREIN SHALL BE BASED ON THE TOTAL LANDED VALUE, INCLUDING TRANSACTION VALUE, CUSTOMS DUTY AND ALL OTHER CHARGES."

It also stated in the regulations of vehicles exempt from the excise tax on automobiles as follows:

SEC. 4. Section 9 is hereby amended as follows:

"SEC. 9. TAX-EXEMPT REMOVALS OF AUTOMOBILES. The following removals of locally manufactured/assembled or release of imported automobiles from the place of production or from customs' custody, respectively, are exempt for the payment of the appropriate excise taxes subject to certain conditions.

a. xxx 

xxx xxx xxx 

E. PURELY ELECTRIC VEHICLES SHALL BE EXEMPT FROM THE EXCISE TAX ON AUTOMOBILES. HYBRID VEHICLES SHALL BE SUBJECT TO FIFTY PERCENT (50%) OF THE APPLICABLE EXCISE TAX RATES ON AUTOMOBILES. PRIOR TO THE REMOVAL OF THE AUTOMOBILES FROM THE MANUFACTURING PLANT OR CUSTOMS CUSTODY, THE DEPARTMENT OF ENERGY (DOE) SHALL DETERMINE WHETHER THE AUTOMOBILES ARE HYBRID VEHICLES OR

PURELY ELECTRIC VEHICLES, AND FURNISH THE COMMISSIONER OF INTERNAL REVENUE, ATTENTION: CHIEF EXCISE LARGE TAXPAYERS REGULATORY DIVISION (ELTRD), CERTIFIED COPIES OF THE RESULTS OF SUCH EXAMINATION OR ENDORSEMENT TO THAT EFFECT. 

F. PICK-UPS."

Please refer: https://www.bir.gov.ph/images/bir_files/internal_communications_1/Full%20Text%20RR%202018/RR%20No.%205-2018.pdf of the full tax of RR No. 5-2018.

Use of Invoices / Receipts Registered from VAT to Non-VAT

Who else wants to know the guidelines of the Use of Invoices / Receipts Registered from VAT to Non-VAT?

Revenue Regulations (RR) No. 13-2018 was issued by the bureau amending RR No. 13-2018 Particularly on the Use of Invoices / Receipts of Previously Registered VAT Taxpayers who are now Non-VAT Taxpayers Pursuant to Section 84 of Republic Act (RA) No. 10963, or the "Tax Reform for Acceleration and Inclusion (TRAIN) Law".

It is stated in these regulations to read as follows:

SECTION 2. AMENDED. - Section 13 of RR No. 13-2018 is hereby amended providing deadline on the use of stamped Non-VAT invoices/receipts to read as follows:

"SECTION 13. TRANSITORY PROVISIONS. - 

XXX           XXX          XXX

A number of unused invoices/receipts, as determined by the taxpayer with the approval of the appropriate BIR Office, may be allowed for use, provided the phrase "Non-VAT registered as of (dated of final application for updated of registration). Not valid for claim of input tax." shall be stamped on the face of each and every copy thereof, until new registered non-VAT invoices or receipts have been printed and received by the taxpayer or until August 31, 2018, whichever comes first. Upon receipt of newly-printed registered non-VAT invoices or receipts, the taxpayer shall submit, on the same day, a new inventory list of, and surrender for cancellation, all unused previously-stamp invoices/receipts.

Please refer: https://www.bir.gov.ph/images/bir_files/internal_communications_1/Full%20Text%20RR%202018/RR%20No.%2019-2018.pdf of the full text of RR No. 13-2018.