DEPARTMENT OF FINANCE
The Department of Finance (DoF) issued Revenue Regulations (RR) No. 16-2018, 30 April 2018, which amended RR No. 10-2015 as amended by RR Nos. 12-2015, 14-2015 and 06-2016 relative to the use of non-thermal paper for all Cash Register Machines (CRMs)/Point of Sales (POS) Machines and other invoice/receipt generating machine or software.
All taxpayers using CRM/POS machines or other invoice/receipt generating machine/software shall have the option to use the type of paper depending on their business requirements, subject to the retention and prevention of accounting records for a period within which the Commissioner of Internal Revenue (CIR) is authorized to make an assessment and collection of taxes as provided under the 1997 National Internal Revenue Code of the Philippines, as amended (Tax Code).
The tape receipt to be issued by the seller should show all the required information as enumerated in the RR. Further, buyers or customers who need proof of payment to be able to claim an expense (for income tax purposes) or input tax (for VAT purposes) may return the issued tape receipt to the seller and request for the issuance of a manual invoice/receipt. The seller should issue the manual invoice/receipt when so requested by the buyer or customer.
Sales generated from CRM/POS machines where tape receipts issued where replaced by manual invoice/receipt shall be deducted from the sales to be reported in the eSALES system of the BIR, which deduction shall be reflected as an adjustment in the CRM Sales Book/Back end report. The said sales shall still be included, but separately indicated, in the Summary List of Sales (SLS) required to be submitted by VAT registered taxpayers.
BUREAU OF INTERNAL REVENUE
The Bureau of Internal Revenue (BIR) issued the following:
Revenue Memorandum Circular (RMC) No. 43-2018, 18 May 2018, regarding the creation of fast lane for all One-Time Transactions (ONETT) Involving Simple Transaction.
There will be a fast lane that will cater to individuals or corporations filing Capital Gains Tax or Donor's Tax Returns with only one (1) Deed of Sale/Exchange/Donation involving one (1) to three (3) properties. These transactions shall be processed and the corresponding Electronic Certificate Authorizing Registration (eCARs) released within three (3) working days upon submission of complete documentary requirements.
The ONETT under the fast lane shall be processed by the Group Supervisor of the Assessment Section assigned as Officer of the Day and approved by the Assistant Revenue District Officer/ Revenue District Officer (RDO). The submission of the complete documentary requirements should include a Certificate from the Bank signed by the Cashier and countersigned by the Manager with bank seal that will be secured by the taxpayer immediately after payment for cash transaction from the Authorized Agent Bank (AAB).
RMC No. 42-2018, 25 May 2018, suspends the use of the Update of Exemption of Employees (UEE) Data Entry Module in filing of the BIR Form No. 2305 (Certificate of Update and Exemption and of Employer’s and Employee’s Information) and 2305 Batch File Validation Module.
The suspension is pursuant to the Tax Reform for Acceleration and Inclusion (TRAIN) Law, effective 01 January 2018, where taxpayers with dependents are no longer required to update their additional exemptions by filing the BIR Form No. 2305. Change of civil status and employee’s information shall now be done manually using BIR Form No. 1905 (Application for Registration Information Update).
RMC No. 41-2018, 23 May 2018, in relation to Revenue Memorandum Order (RMO) No. 30-2005, to clarify the policies on the issuance of Tax Identification Number (TIN) to corporations that reached its corporate life stated in its Articles of Incorporation. Pursuant to Section 11 of the Corporation Code of the Philippines. The BIR clarifies that the following policies be adopted:
RMC No. 39-2018, 08 May 2018, to emphasize that goods or properties originally intended for sale or use in business, including capital goods, disposed of or existing as of the date of change in or cessation of status of a taxpayer from VAT to Non-VAT are subject to VAT under Section 106(C) of the Tax Code, as amended, as implemented by Section 4.106-8 of RR No. 16-2005. Hence, taxpayers are required to file the quarterly VAT return covering the period when the change of status transpired and pay the corresponding VAT due thereon.
RMC No 36-2018, 07 May 2018, amends RMC No. 55-2016 to extend the Validity Date on the Certificate of Accreditation Issued to Developers/Dealers/Suppliers/Vendors/Pseudo-Suppliers of CRM, POS Machines and/or Other Sales Machine/Receipting Software. The said RMC was issued to extend the validity of all valid Certificate of Accreditation of all developers/dealers/suppliers/vendors/pseudo-suppliers of CRM, POS, and/or other Sales Machine/Receipting Software. The pertinent provisions are as follows:
a. All valid Certificate of Accreditation issued on or before 31 July 2015 shall be valid until 31 July 2020; and
b. All valid Certificate of Accreditation issued on 01 August 2015 onwards shall follow the five-year validity period based on the actual date of issuance.
Further, the said RMC provides that both primary and supplementary invoices/receipts must reflect the corresponding date of issuance and validity period of accreditation as provided above.
RMC No. 34-2018, 17 May 2018, to advise that the Convention between the government of Philippines and Sri Lanka for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income has entered into force on 14 March 2018.
The Convention shall have effect on the income sourced in the Philippines by nonresidents beginning 01 January 2019 pursuant to Paragraph 2, Article 29 (Entry of Force) of the said Convention.
Tax Treaty Relief Applications (TTRA) invoking the Philippines-Sri Lanka Double Taxation Agreement should be filed with and addressed to the International Tax Affairs Division (ITAD) at Room No. 811, BIR, National Office Building, Diliman, Quezon City Philippines. The concerned Sri Lankan resident and income earner, or his duly authorized representative, should file a duly accomplished Application for Relief from Double Taxation (BIR Form No. 0901) or Certificate of Residence for Tax Treaty Relief (CORTT Form), whichever is applicable, together with the required documents, pursuant to RMO Nos. 72-2010 and 08-2017, respectively. RMC No. 33-2018, 17 May 2018, to advise that the Renegotiated Convention between the government of Philippines and Thailand for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income has entered into force on 05 March 2018.
The Renegotiated Convention shall have effect on the income sourced in the Philippines by nonresidents beginning 01 January 2019 pursuant to Paragraph 2, Article 28 (Entry of Force) of the said Renegotiated Convention.
TTRA invoking the Philippines-Thailand Double Taxation Convention should be filed with and addressed to the ITAD at Room No. 811, BIR, National Office Building, Diliman, Quezon City Philippines. The concerned Thai resident and income earner, or his duly authorized representative, should file a duly accomplished BIR Form No. 0901 or CORTT Form, whichever is applicable, together with the required documents, pursuant to RMO Nos. 72-2010 and 08-2017, respectively.
RMC No. 30-2018, 03 May 2018, amends the Documentary Requirements for New Business Registrants specifically Annexes A1 to A3 of RMC No. 93-2016 removing the Books of Accounts (BOA) as a requirement in securing a COR and Authority to Print (ATP). The salient changes involves the following:
RMO No. 24-2018, 24 February 2018, to define the policies and procedures in the use of social media by the BIR, define the roles and responsibilities of concerned BIR offices in the maintenance and regulation of the social media sites of the BIR, provide additional platform in tax information dissemination to increase taxpayer awareness on tax processes, procedures, programs, policies, and provisions of the Tax Code, as amended, and improve delivery of taxpayer services and compliance through information dissemination and education.
RMO No 20-2018, 19 March 2018, provides the revised guidelines, policies and procedures in processing the request for conversion of Tax Credit Certificate (TCCs) into cash refund. The important provisions of the RMO are the following:
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