TaxInstitute

Asian
Asian Updates
Institute of
of Taxation
Taxation

Atty. Arnold A. Apdua, CPA

Resource Person
January 29, 2016
 Presentation Outline

Exclusion from Gross Income

De Minimis Benefits
Asian
Revised ScheduleInstitute
Asian Institute
of Compromise of
of Taxation
Taxation
Penalties
Rules on Accreditation with the Bureau of Customs
for PEZA Locators
Tax treatment of interest income derived from Long-
Term Deposits or Investment Certificates
Registration of Labor Organization, Association or
Group of Union or Workers
Income Tax Forms
BIR Citizens Charter
 Presentation Outline

Use of Thermal Paper for CRM, POS and others

Amended Senior Citizens Act of 2010
Asian
Asian
Information on theInstitute
CRM and POSof
Institute of Taxation
Taxation
machines
Esales Reporting System
Submission of Inventory List
EBIRForms Version 5.1
Tax Treatment of Land Transportation Business
Processing of Estate Tax Returns on properties
covered by CARP
Exclusion from Gross Income
RR 3-2015

R.A. 10653

NIRC Sec 32 (B)(7)(c) Provided, however, That

the total exclusion under this subparagraph
shall not exceed eighty-two thousand pesos
(P82,000), which shall cover x x x x

Effective January 1, 2015

 Exclusion from Gross Income
RR 3-2015

The amount of P82,000.00 shall ONLY

apply to the 13th month pay and other
benefits specified under the
provisions of Section 2.78.1 (B) (11) of
RR No. 2-98, as amended.
 Exclusion from Gross Income
RR 3-2015

Shall in no case apply to other

compensation received by an
employee under employer-employee
relationship such as basic salary and
other allowances.
 Exclusion from Gross Income
RR 3-2015

Exclusion from gross income is not

applicable to self-employed
individuals and income generated
from business.
 Exclusion from Gross Income
RR 3-2015

The amount of P82,000.00 shall apply to

the 13th month pay and other benefits paid
or accrued beginning January 1, 2015.

It shall be clearly indicated in the

Certificate of Compensation/Tax Withheld
(BIR Form No. 2316)
 Revenue Regulations No. 2-
98

(11) Thirteenth (13th ) month pay and

other benefits.
(a) Thirteenth (13th) month pay equivalent to
the mandatory one (1) month basic salary of
officials and employees of the government,
(whether national or local), including
government-owned or controlled
corporations, and or private offices received
after the twelfth (12th) month pay.
Revenue Regulations No. 2-98

(b) Other benefits such as Christmas bonus,

productivity incentive bonus, loyalty award,
gifts in cash or in kind and other benefits of
similar nature actually received by officials
and employees of both government and
private offices
Revenue Regulations No. 2-98
The above stated exclusions (a) and (b) shall
cover benefits paid or accrued during the
year provided that the total amount shall not
exceed thirty thousand pesos (P30,000.00)
which may be increased through rules and
regulations issued by the Secretary of
Finance, upon recommendation of the
Commissioner, after considering, among
others, the effect on the same of the inflation
rate at the end of the taxable year.
Revenue Regulations No. 10-08

The amount of de minimis benefits

conforming to the ceiling herein prescribed
shall not be considered in determining the
P30,000.00 ceiling of other benefits
excluded from gross income under Section
32 (b) (7) (e) of the Code.
Revenue Regulations No. 10-08

Provided that, the excess of the de minimis

benefits over their respective ceilings
prescribed by these regulations shall be
considered as part of other benefits and the
employee receiving it will be subject to tax
only on the excess over P30,000.00 ceiling.
Revenue Regulations No. 5-
2011

a) Monetized unused vacation leave credits

of private employees not exceeding ten (10)
days during the year;

b) Monetized value of vacation and sick

leave credits paid to government officials and
employees;
Revenue Regulations No. 5-
2011
c) Medical cash allowance to dependents of
employees, not exceeding P750 per
employee per semester or P125 per month;

d) Rice subsidy of P1,500 or one (1) sack of

50 kg. rice per month amounting to not more
than P1,500;

e) Uniform and Clothing allowance not

exceeding P5,000 per annum (RR 8-2012);
 Revenue Regulations No. 5-
2011
(f) Actual medical assistance, e.g.,
medical allowance to cover medical and
healthcare needs, annual medical/executive
check-up, maternity assistance, and routine
consultations, not exceeding P10,000.00 per
annum;

(g) Laundry allowance not exceeding P300

per month;
Revenue Regulations No. 5-
2011
(h) Employees achievement awards, e.g.,
for length of service or safety achievement,
which must be in the form of a tangible
personal property other than cash or gift
certificate, with an annual monetary value not
exceeding P10,000 received by the
employee under an established written plan
which does not discriminate in favor of highly
paid employees;
Revenue Regulations No. 5-
2011
(h) Employees achievement awards, e.g.,
for length of service or safety achievement,
which must be in the form of a tangible
personal property other than cash or gift
certificate, with an annual monetary value not
exceeding P10,000 received by the
employee under an established written plan
which does not discriminate in favor of highly
paid employees;
Revenue Regulations No. 5-
2011

(i) Gifts given during Christmas and major

anniversary celebrations not exceeding
P5,000 per employee per annum;

-Flowers, fruits, books and similar items

given to employees under special
circumstances - Deleted
Revenue Regulations No. 5-
2011

(j) Daily meal allowance for overtime work

and night/graveyard shift not exceeding
twenty-five percent (25%) of the basic
minimum wage on a per region basis;
Revenue Regulations No. 1-
2015

k. Benefits received by an employee by

virtue of a collective bargaining agreement
(CBA) and productivity incentive schemes
provided that the total annual monetary value
received from both CBA and productivity
incentive schemes combined do not exceed
ten thousand pesos (Php 10,000.00) per
employee per taxable year.
 Sample Computation
Mr. E, married with two qualified dependent
children who received the following
compensation for the year:

Monthly Basic Salary P 45,000.00

Overtime (November) 5,000.00
13th month pay 45,000.00
Productivity Incentive (CBA) 45,000.00
Other Benefits 12,000.00
Annual De Minimis Benefits 50,000.00
 Sample Computation
For the Year Non-Taxable Taxable
Basic Salary (P45,000.00 x 12
mos.) 540,000.00 540,000.00
Overtime (November) 5,000.00 5,000.00
13th month pay 45,000.00 45,000.00
Productivity Incentive 35,000.00 35,000.00
Other Benefits 12,000.00 2,000.00 10,000.00
Productivity Incentive 10,000.00 10,000.00
Annual De Minimis Benefits 50,000.00 50,000.00
Totals 697,000.00 142,000.00 555,000.00
Total Gross Compensation 555,000.00
Less: Deductions
Personal Exemptions 50,000.00
Additional Exemption
(P25,000x2) 50,000.00 100,000.00
Net Taxable Compensation 455,000.00
Tax Due 111,500.00
 Sample Computation
Mr. E, married with two qualified dependent
children who received the following
compensation for the year:

Monthly Basic Salary P 16,000.00

Overtime (November) 5,000.00
13th month pay 16,000.00
Productivity Incentive (CBA) 10,000.00
Other Benefits 12,000.00
Annual De Minimis Benefits 40,000.00
Sample Computation
Revenue Regulations No. 10-
2008

Any reduction or diminution of wages for

purposes of exemption from income tax shall
constitute misrepresentation and therefore, shall
result to the automatic disallowance of expense,
i.e. compensation and benefits account, on the part
of the employer. The offenders may be criminally
prosecuted under existing laws.
Revenue Memorandum Order
No. 7-2015

Revised Consolidated
Schedule Of
Compromise Penalties
Revenue Memorandum Order
No. 7-2015

The internal revenue officers

concerned shall apply the Revised
Schedule of Compromise Penalties to
ensure uniformity of action.
Revenue Memorandum Order
No. 7-2015

In no case shall the compromise penalty

differ in amount from those specified in the
aforementioned Schedule, except when duly
approved by the Commissioner or
concerned Deputy Commissioner, or in
proper cases, by the Regional Directors.
Revenue Memorandum Order
No. 7-2015

Although all amounts of compromise penalties

incident to violations shall be itemized in the
assessment notice and/or demand letter, the
same should not form part of assessment notice
that reflects deficiency basic tax, surcharge and
interest but should appear in a separate
assessment notice/demand letter as the amount
suggested to the taxpayer to pay in lieu of
criminal prosecution.
Revenue Memorandum Order
No. 7-2015

Compromise penalties are only amounts

suggested in settlement of criminal liability.

It may not therefore be imposed or exacted on

the taxpayer. The violation shall be referred to
the appropriate office for criminal action in the
event that a taxpayer refuses to pay the
suggested compromise penalty
Revenue Memorandum Order
No. 7-2015

The schedule of compromise penalties shall not

prevent the Commissioner or his duly authorized
representative from accepting a compromise
amount higher than what is provided hereof.

A compromise offer lower than the prescribed

amount may be accepted after approval by the
Commissioner of Internal Revenue or the
concerned Deputy Commissioner/ Assistant
Commissioner/ Regional Director.
Revenue Memorandum Order
No. 7-2015
Revenue Memorandum Order
No. 7-2015
Revenue Memorandum Order
No. 7-2015
Revenue Memorandum Order
No. 7-2015
Revenue Memorandum Order
No. 7-2015
Revenue Memorandum Order
No. 7-2015
Revenue Memorandum Order
No. 7-2015
Revenue Memorandum Order
No. 7-2015
Revenue Memorandum Order
No. 7-2015
Revenue Memorandum Order
No. 7-2015
 Revenue Memorandum
Circular
No. 4-2015

Rules on Accreditation with the

Bureau of Customs for PEZA Locators
 Revenue Memorandum
Circular
No. 4-2015

Section 1. All locators of PEZA Special Economic

Zones throughout the Philippines, duly registered
with PEZA are exempted from the requirements
of Department Order (DO) 12-2014 as amended by
DO 18-2014, and shall be eligible for accreditation
as importers with the Bureau of Customs
Account Management Office (BOC.AMO).
 Revenue Memorandum
Circular
No. 4-2015

BOC may still require the submission of

documents and information about PEZA locators
prior to granting accreditation.

Whenever possible, the BOC shall obtain the

documents and information it needs about PEZA
locators from documents and information already in
the possession of PEZA.
 Revenue Memorandum
Circular
No. 4-2015
PEZA locators that will import goods into the
Philippines will have to comply with the documentary
requirements provided in the relevant rules of
procedure of customs. Failure to do so will subject
them to the sanctions and penalties as provided by
the Tariff and Customs Code of the Philippines, as .
amended and by pertinent customs laws and
regulations.
 Revenue Memorandum
Circular
No. 7-2015

Reiterates the tax treatment of interest

income derived from Long-Term Deposits
or Investment Certificates as described in
RR No. 14-2012 and clarified in RMC Nos.
77-2012 and 81-2012
 Revenue Memorandum
Circular
No. 7-2015

Reiterates the tax treatment of interest

income derived from Long-Term Deposits
or Investment Certificates as described in
RR No. 14-2012 and clarified in RMC Nos.
77-2012 and 81-2012
 Revenue Memorandum
Circular
No. 7-2015
Interest income from long-term deposit or
investment in the form of savings, common or
individual trust funds, deposit substitutes,
investment management accounts and other
investments evidenced by certificates in such
form prescribed by the Bangko Sentral ng Pilipinas
(BSP) to be exempted from income tax, the
following characteristics/conditions must be present:
 Revenue Memorandum
Circular
No. 7-2015
1.The depositor or investor is an individual citizen
(resident or non-resident) or resident alien or non-
resident alien engaged in trade or business in the
Philippines.

2. The long-term deposits or investment certificates

should be under the name of the individual and
not under the name of the corporation or the
bank or the trust department/unit of the bank.
 Revenue Memorandum
Circular
No. 7-2015
3. The long-term deposits or investments must be in
the form of savings, common or individual trust
funds, deposit substitutes, investment management
accounts and other investments evidenced by
certificates in such form prescribed by the Bangko
Sentral ng Pilipinas (BSP).

4. The long-term deposits or investments must be

issued by banks only and not by other entities or
individuals.
 Revenue Memorandum
Circular
No. 7-2015
5. The long-term deposits or investments must have
a maturity period of not less than five (5) years.

6. The long-term deposits or investments must be in

denominations of Ten Thousand Pesos (P10,000)
and other denominations as may be prescribed by
the BSP.
 Revenue Memorandum
Circular
No. 7-2015
7. The long-term deposits or investments should
not be terminated by the original investor before
the fifth (5th) year, otherwise they shall be
subjected to the graduated rates of 5%, 12% or
20% on interest income earnings; and

8. Except those specifically exempted by law or

regulations, any other income such as gains from
trading, foreign exchange gain shall not be covered
by income tax exemption.
 Revenue Memorandum
Circular
No. 7-2015
Interest income derived by individuals investing in common
or individual trust funds or investment management
accounts to be exempt from income tax, the following
additional characteristics/ conditions must ALL be
present:

1. The investment of the individual investor in the common or

individual trust fund or investment management account must
be actually held/managed by the bank for the named
individual at least five (5) years without interruption. The
term "bank" referred to herein are banks duly licensed as
such by the Bangko Sentral ng Pilipinas.
 Revenue Memorandum
Circular
No. 7-2015
2. The underlying investments of the common or individual
trust account or investment management accounts must
comply with the requirements of Section 22(FF) of the NIRC
of 1997, as amended, as well as the requirements mentioned
above;

3. The common or individual trust account or investment

management account must hold on to such underlying
investment in continuous and uninterrupted period for at
least five (5) years.
 Revenue Memorandum
Circular
No. 7-2015
In case of pre-termination, transfer or negotiation of said
long-term deposit or investment by the depositor or investor
before the fifth (5th) year, the interest income shall be
subject to the following graduated rates of Final Withholding
Tax (FWT) on the entire income and shall be deducted and
withheld by the depository bank from the proceeds of the
long-term deposit or investment certificate based on the
remaining maturity thereof as follows:

Four (4) years to less than five (5) years 5%

Three (3) years to less than four (4) years 12%; and
Less than three (3) years 20%.
 Revenue Memorandum
Circular
No. 7-2015
For nonresident alien not engaged in trade or business in
the Philippines, interest income received from long-term
deposit or investment shall be subject to a Final Withholding
Tax (FWT) at the rate of twenty five percent (25%) pursuant
to Section 25 (B) of the NIRC of 1997, as amended.

For nonresident foreign corporation, interest income

received from long-term deposit or investment shall be
subject to a Final Withholding Tax (FWT) at the rate of thirty
percent (30%) pursuant to Section 28 (B) (1) of the NIRC of
1997, as amended.
 Revenue Memorandum
Circular
No. 7-2015
However, interest income from long-term deposit or
investment shall be subject to regular income tax at the rate
of thirty percent (30%) if received by a domestic
corporation and resident foreign corporation pursuant to
Sections 27 (A) and 28 (A) (1) of the NIRC of 1997, as
amended.
 Revenue Memorandum
Circular
No. 7-2015
Examples:

1.An instrument with a maturity period of 10 years was held

by Mr. X (a resident citizen) for 2 years and was transferred to
Mr. Y (a resident alien), who, in turn, held it for 8 years. The
FWT due are as follows:

Mr. X 2 years 20% FWT

Mr. Y 8 years Exempt

 Revenue Memorandum
Circular
No. 7-2015
Examples:

2. An instrument with maturity period of 10 years was held by

Mr. X (a nonresident citizen) for 3 years and transferred it to
Mr. Y (a resident alien). Mr. Y held it for 2 years before
subsequently transferring it to Mr. Z (a resident citizen), who
held it until the day of maturity or for 5 years. The FWT due
are as follows:

Mr. X 3 years 12% FWT

Mr. Y 2 years 20% FWT
Mr. Z 5 years Exempt
 Revenue Memorandum
Circular
No. 7-2015
Examples:

2. An instrument with maturity period of 10 years was held by

Mr. X (a nonresident citizen) for 3 years and transferred it to
Mr. Y (a resident alien). Mr. Y held it for 2 years before
subsequently transferring it to Mr. Z (a resident citizen), who
held it until the day of maturity or for 5 years. The FWT due
are as follows:

Mr. X 3 years 12% FWT

Mr. Y 2 years 20% FWT
Mr. Z 5 years Exempt
 Revenue Memorandum
Circular
No. 7-2015
Examples:

3. An instrument with maturity period of 10 years held by Mr.

X (a nonresident alien engaged in trade or business in the
Philippines) for 3 years and transferred it to Mr. Y (a resident
citizen). Mr. Y held it for 2 years before subsequently
transferring it to Mr. Z (a resident alien), who pre-terminated it
after 4 years. The FWT due are as follows:

Mr. X 3 years 12% FWT

Mr. Y 2 years 20% FWT
Mr. Z 4 years 5% FWT
 Revenue Memorandum
Circular
No. 7-2015

Examples:
4. Mr. X (a resident citizen) appoints Bank A Trust
Department to manage his money created through a trust
agreement. Bank A Trust Department then invests said
money in a 5-year corporate bond.
 Revenue Memorandum
Circular
No. 7-2015
Even if Mr. X does not withdraw his money from such trust
agreement for at least five (5) years, his interest income
from the trust agreement will NOT be exempt from the
final withholding tax (FWT) as the underlying investment is
a corporate bond, even if such corporate bond has a
maturity period of five (5) years.

A bond, promissory note or any other type of debt instrument

issued by a non-bank corporation as an underlying
instrument will not meet the requirements of Section
22(FF) as it is not issued by a bank.
 Revenue Memorandum
Circular
No. 7-2015
If Bank A Trust Department in its own name without
mentioning the particular individual for whom the
investment is being made invests the fund instead in a 10-
year long-term deposit or investment certificate, the long-
term deposits and investments made in the name of a trust
department of a bank are not exempted from the twenty
percent (20%) final withholding tax (FWT).
 Revenue Memorandum
Circular
No. 7-2015
If Bank A Trust Department in its own name without
mentioning the particular individual for whom the
investment is being made invests the fund instead in a 10-
year long-term deposit or investment certificate, the long-
term deposits and investments made in the name of a trust
department of a bank are not exempted from the twenty
percent (20%) final withholding tax (FWT).

Only those made specifically "in trust for the name of

specific and qualified individual investors" may be
exempted from income tax
 Revenue Memorandum
Circular
No. 7-2015
If Bank A Trust Department in the name of Mr. X invests
the fund instead in a 10-year long-term deposit or
investment certificate as defined under Section 22(FF) of
the NIRC of 1997, as amended, Mr. X's interest income
derived from the trust agreement shall be exempt from
income tax.

Provided that Bank A Trust Department in behalf of Mr. X

will hold such deposit or investment in continuous and
uninterrupted period for at least five (5) years. The holding
period for both the individual investor in the trust agreement
and the trust in the underlying instrument must both be at
least five (5) years.
 Revenue Memorandum
Circular
No. 41-2015

Documentary Requirements For The

Registration Of Labor Organization,
Association Or Group Of Union Or Workers
 Revenue Memorandum
Circular
No. 41-2015
Some Revenue District Offices (RDOs) are
not registering labor organization,
association or group of union or workers
without Securities and Exchange
Commission Certificate of Registration.
 Revenue Memorandum
Circular
No. 41-2015

Labor organization, association or group of

union or workers issued with Department of
Labor and Employment (DOLE) Certificate
of Registration acquires legal personality
pursuant to the Labor Code of the Philippines,
as amended.
 Revenue Memorandum
Circular
No. 41-2015
Annex A of RR No. 7-2012

C. Documentary Requirements
Xxx xxx xxx
5. For Labor Organization, Association or Group of
Union or Workers -Copies of Certificate of
Registration issued by the Department of Labor and
Emoloyment (DOLE), and constitution and by-laws of
the applicant union.
 Revenue Memorandum
Circular
No. 10-2015

Asian
Asian Institute
Institute of
of Taxation
Taxation
Filing Of Income Tax Returns
(Bir Form No. 1700) Of
Employees Belonging To The
Employer Identified As Large
Taxpayer
 Revenue Memorandum
Circular
No. 10-2015

All RDOs are hereby directed to

accept/receive BIR Form 1700 filed by
employees employed by LT.
 Revenue Memorandum
Circular
No. 10-2015

Income Tax Returns (ITR) with no tax

payment shall be manually filed using
eBIRForms, in triplicate copies. with the
RDO where the LT employer is
physically situated/located.
 Revenue Memorandum
Circular
No. 10-2015

ITR with payment shall be filed/paid in any

Authorized Agent Banks (AABs)/Revenue
Collection Officers (RCOs), Special
Collecting Officers (SCOs) and other
authorized Collection Officers (Cos) within
the concerned RDO.
 Revenue Memorandum
Circular
No. 10-2015
However, new employees of LT registered where
the LT employer is registered following Revenue
Regulations (RR) 7-2012 and using eTIS1 shall
file their no payment ITR with the concerned
Large Taxpayer Office or pay in any AABs (ITR
with payment) of LT.
 Revenue Memorandum
Circular
No. 10-2015
Required to file BIR Form 1700:

1. Employees deriving compensation income from two or

more employers, concurrently, or successively at any time
during the taxable year;
2. Employees deriving compensation income and the
income tax of which has not been withheld correctly (i.e. tax
due is not equal to the tax Withheld) or

Optional:
Those employees qualified for substituted filing but opted to
file for an ITR for purposes of promotion (PNP/AFP), loans,
foreign travel requirements, etc.
 Revenue Memorandum
Circular
No. 10-2015
However, new employees of LT registered where
the LT employer is registered following Revenue
Regulations (RR) 7-2012 and using eTIS1 shall
file their no payment ITR with the concerned
Large Taxpayer Office or pay in any AABs (ITR
with payment) of LT.
 New Income Tax Forms
RR 2-2014

All taxpayers required to file their ITRs under

Section 51(A)(1) of the Tax Code and those
not required to file under Section 51(A)(2) but
who opted to do so, covering and starting
taxable year ended December 31, 2013
 New Income Tax Forms
RR 2-2014

BIR Form No. 1700 version June 2013 (Annual

Income Tax Return for Individuals Earning Purely
Compensation Income)
 New Income Tax Forms
RR 2-2014

BIR Form No. 1702-RT version June 2013

(Annual Income Tax Return for Corporations,
Partnerships and Other Non-Individual Taxpayers
Subject Only to the REGULAR Income Tax
Rate)
 New Income Tax Forms
RR 2-2014

BIR Form No. 1702-EX version June 2013

(Annual Income Tax Return for Use Only by
Corporations, Partnerships and Other Non-
Individual Taxpayers EXEMPT Under the Tax
Code, as amended, [Sec. 30 and those
exempted in Sec. 27(C)] and Other Special Laws,
with NO Other Taxable Income)
 New Income Tax Forms
RR 2-2014

BIR Form No. 1702-MX version June 2013

(Annual Income Tax Return for Corporations,
Partnerships and Other Non-Individuals with
Mixed Income Subject to Multiple Income Tax
Rates or with Income Subject to
Special/Preferential Rate)
 New Income Tax Forms
RR 2-2014

Rounding Off to the Nearest Peso in the ITR.

The requirement for entering centavos in the ITR

has been eliminated. If the amount of centavos is
49 or less, drop down the centavos.
 New Income Tax Forms
RR 2-2014
SECTION 5 - Mandatory Itemized Deductions.

A. Corporations, partnerships and other non-

individuals are mandated to use the itemized
deductions in the following cases:

1. Those exempt under the Tax Code, as amended

[Section 30 and those exempted under Section 27(C)]
and other special laws, with no other taxable income;

2. Those with income subject to special/preferential

tax rates; and
 New Income Tax Forms
RR 2-2014
3. Those with income subject to income tax rate
under Section 27(A) and 28(A)(1) of the Tax Code, as
amended, and also with income subject to
special/preferential tax rates.

* Juridical entities whose taxable base is the gross

revenue or receipts (e.g., non-resident foreign
international carriers) are not entitled to the itemized
deductions nor to the optional standard deduction
(OSD) under Section 34(L) of the Tax Code, as
amended.
 New Income Tax Forms
RR 2-2014

B. Individual taxpayers who are not entitled to avail of

the OSD and thus use only the itemized deduction
method are as follows:

1. Those exempt under the Tax Code, as amended,

and other special laws with no other taxable income
[e.g. Barangay Micro Business Enterprise (BMBE)];

2. Those with income subject to special/preferential

tax rates; and
 New Income Tax Forms
RR 2-2014

3. Those with income subject to income tax rate

under Section 24 of the Tax Code, as amended, and
also with income subject to special/preferential tax
rates.
 New Income Tax Forms
RR 2-2014

Transitory Provisions

Taxpayers who filed using old forms for their

2013 ITRs (manual and/or electronic) must re-
file using the new income tax forms upon
their availability.
Revenue Memorandum Circular
No. 39-2015

Updated BIR Citizens Charter

as Consolidated
Revenue Memorandum Circular
No. 39-2015

Frontline services under the

Revised BIR Citizens Charter
as of December 2014
 Revenue Regulations
No. 10-2015

Use Of Non-thermal Paper

For All Cash Register
Machines (Crms) / Point-of-
sales (Pos) Machines And
Other Invoice / Receipt
Generating Machine /
Software
 Revenue Regulations
No. 10-2015
Section 1. Section 2 of Revenue
Regulations No. 17-2013 is hereby
amended to read as follows:

Section 2. RETENTION PERIODS. All

taxpayers are required to preserve
their books of accounts, including
subsidiary books and other accounting
records, for a period of Ten (10) years
reckoned from the day following the
deadline in filing a return, of if filed
after the deadline, from the date of
the filing of the return, for the taxable
 Revenue Regulations
No. 10-2015

The term other accounting records

includes the corresponding invoices,
receipts, vouchers and returns, and
other source documents supporting
the entries in the books of accounts.
They should also be preserved for a
period of Ten (10) years counted from
the date of last entry in the books to
which they relate.
 Revenue Regulations
No. 10-2015

Section 5.2 of Revenue Regulations

No. 11-2004, which states that: 5.2
For Cash Register Machines: xxx

Provided, that all tape receipts

issued, and the data printed on the
receipts, are of a quality that can be
preserved for a period within which
the Commissioner is authorized to
make an assessment and collection of
taxes, as prescribed in Sections 203
 Revenue Regulations
No. 10-2015

SECTION 3. NEW BUSINESS

REGISTRANTS WITH
CRM/POS/OTHER SIMILAR
MACHINES/SOFTWARE.

All new business registrants with

CRM / POS / other similar
machines/software with built-in
printer for their transactions shall
use non-thermal paper only.
 Revenue Regulations
No. 10-2015

SECTION 4. EXISTING REGISTERED

TAXPAYERS WITH CRM/POS/OTHER
SIMILAR MACHINE/SOFTWARE
USING THERMAL PAPER.

A tiered compliance structure is

hereby put in place to allow
concerned taxpayers to meet
compliance requirements over a
three (3) year-period (3 years
depreciable life).
 Revenue Regulations
No. 10-2015

All existing taxpayers with

CRM/POS/other similar
machines/software using thermal
paper subject to staggered
implementation dates:
 Revenue Regulations
No. 10-2015

INFORMATION THAT SHALL

APPEAR AT THE OFFICIAL
RECEIPTS/SALES INVOICES /
OTHER COMMERCIAL INVOICES
(ORS/SIS/CIS) GENERATED
FROM CRM / POS / OTHER
SIMILAR MACHINES /
SOFTWARE.
 Revenue Regulations
No. 10-2015
1. Taxpayers (TP) Registered Name;
2. TPs Business Name/style (if any);
3. A statement that the taxpayer is VAT
or Non VAT registered followed by
the Taxpayers Identification
Number (TIN) and 4-digit Branch
Code.(Example: VAT Registered TIN
123-456-789-0000);
4. Machine Identification Number
(MIN);
5. Detailed Business address where
such ORs/SIs/CIs shall be
 Revenue Regulations
No. 10-2015
6. Date of transaction;
7.Serial Number of the OR/SI/CI printed
prominently;
8. A space provided for the Name,
Address and TIN of the buyer;
9. Description of the items/goods or
nature of service;
10. Quantity;
11. Unit cost;
12. Total cost;
13. VAT amount (if transaction is
subject to 12% VAT);
 Revenue Regulations
No. 10-2015

14. If the VAT taxpayer is engaged in

mixed transactions, the amounts
involved shall be broken down to:
VATable Sales, VAT Amount, Zero
Rated Sales, and VAT Exempt Sales;
 Revenue Regulations
No. 10-2015
15. For Non-VAT ORs/SIs and other CIs
(VAT or Non-VAT) such as delivery
receipts, order slips, purchase
orders, provisional receipts,
acknowledgment receipts, collection
receipts, credit/debit memo, job
orders and other similar documents
that form part of the accounting
records of the taxpayer and/or
issued to their customers, in
addition to the above-enumerated
applicable information, the phrase
 Revenue Regulations
No. 10-2015

16. Taxpayers whose transactions are

not subject to VAT or Percentage Tax
shall issue non-VAT principal
receipts/invoices indicating
prominently at the face of such
receipts/invoices the word
EXEMPT.
 Revenue Regulations
No. 10-2015

17. If the taxpayer is subject to

percentage tax under Title V of the
NIRC, as amended, but also sells
goods/services under Section 109
(A) to (W), excluding (E) of the same
Code, as amended by Republic Act
No. 10378, the non-VAT principal
receipts/invoices shall indicate the
breakdown of Sales Subject to
Percentage Tax (SSPT) and Exempt
 Revenue Regulations
No. 10-2015

The following information shall be

printed at the bottom portion of the
OR/SI/CI:
1. Name, address and TIN of the
accredited supplier of
CRM/POS/other similar
machines/software;
2. Accreditation number and the date
of accreditation (date issued
mm/dd/yyyy and valid until
mm/dd/yyyy) of the accredited
supplier;
 Revenue Regulations
No. 10-2015

For taxpayers transacting with Senior

Citizen/s (SC/s) and/or Person/s With
Disability (PWD), in addition to the
information enumerated above, a
space for the following shall also be
required:
1. Senior Citizen/PWD TIN;
2. OSCA ID No./PWD ID No.;
3. Senior Citizen Discount/PWD
Discount (show detailed breakdown
of 20% discount and/or 12% VAT
 Revenue Regulations
No. 10-2015
SECTION 6. TAXPAYERS USING
CRM/POS LINKED TO
COMPUTERIZED ACCOUNTING
SYSTEM (CAS) WITH OPTION TO
SEND ELECTRONIC MAIL TO CLIENT-
TAXPAYERS.

All existing taxpayers using

CRM/POS/other similar machine/software
(using thermal paper or otherwise),
including those connected to a network
or linked to CAS or component(s),
 Revenue Regulations
No. 10-2015
SECTION 6. TAXPAYERS USING
CRM/POS LINKED TO
COMPUTERIZED ACCOUNTING
SYSTEM (CAS) WITH OPTION TO
SEND ELECTRONIC MAIL TO CLIENT-
TAXPAYERS.

All existing taxpayers using

CRM/POS/other similar machine/software
(using thermal paper or otherwise),
including those connected to a network
or linked to CAS or component(s),
 Revenue Regulations
No. 10-2015
SECTION 8. TRANSITORY PROVISIONS. -
In order to comply with Section 5,
adjustments shall be undertaken on
or before October 1, 2015.

Any extension due to enhancements of

systems required to be undertaken
abroad shall seek the approval from the
concerned Regional Director or ACIR,
Large Taxpayer Service which shall not
be longer than six (6) months from the
 Revenue Regulations
No. 14-2015
SECTION 8. TRANSITORY PROVISIONS. - In
order to provide ample time in
procuring, reconfiguring machines and
systems, to comply with Section 5,
adjustments shall be undertaken on or
before December 31, 2015.

Any extension due to enhancements of

systems required to be undertaken
abroad shall seek the approval from the
concerned Regional Director or ACIR,
Large Taxpayer Service which shall not
 Revenue Regulations
No. 11-2015

Amending Sections 2 and 7(6)

of Revenue Regulations
(RR) No. 07-2010, as
Amended by RR No. 08-
2010.

SENIOR CITIZENS ACT OF 2010

 Revenue Regulations
No. 11-2015

Amending Sections 2 and 7(6)

of Revenue Regulations
(RR) No. 07-2010, as
Amended by RR No. 08-
2010.

SENIOR CITIZENS ACT OF 2010

 Revenue Regulations
No. 11-2015

Identification Document -any

document or proof of being
a senior citizen which may
be used for the availment
of benefits and privileges.
 Revenue Regulations
No. 11-2015

i. Senior Citizens Identification Card

issued by the Office of Senior Citizens
Affairs (OSCA) in the city or municipality
where the elderly resides;

i. The Philippine passport of the elderly

person or senior citizen concerned; and
 Revenue Regulations
No. 11-2015
iii. Government-issued identification card
(ID) which reflects on its face the name,
picture, date of birth and nationality of
the senior citizen such as:

1) Digitized Social Security System ID

2) Government Service Insurance System
ID
3) Professional Regulation Commission ID
4) Integrated Bar of the Philippines ID
5) Unified Multi-Purpose ID (UMID)
 Revenue Regulations
No. 11-2015
SECTION 7. Tax Treatment of the Discount
Granted to Senior Citizens.

Xxx xxx xxx

The business establishment giving sales

discounts to qualified Senior Citizens is
required to keep a separate and accurate
record of sales, which shall include the
name of the Senior Citizen,
Identification Document, gross
sales/receipts, sales discount granted,
 Revenue Memorandum
Circular
No. 64-2015

Reiteration on the Information

Reflected on Receipts/ lnvoices
/ Other Commercial lnvoices
Generated from Cash Register
Machine (CRM)/Point-of-Sale
(POS) Machines/Software
 Revenue Memorandum
Circular
No. 64-2015

The information of purchaser,

customer or client must be
indicated on the VAT
receipts/invoices, in the case of
sales amounting to One thousand
pesos (P1,000.00) or more and the
sale is made to a VAT-registered
person:

1. Name of purchaser, customer or

 Revenue Memorandum
Circular
No. 64-2015

The Information must also be

reflected on the receipts/invoices
generated from CRM/POS
machines.

If the CRM/POS is not capable of

showing the said requirements, a
manually pre-printed
receipts/invoices with approved
Authority to Print (ATP) must be
 Revenue Memorandum
Circular
No. 64-2015

Any purchase of goods or

services with receipts/invoices
generated from
CRM/POS/software are
mandated to show the said
requisites for the valid claim of
input tax credit by VAT-
registered taxpayer.
 Revenue Memorandum
Circular
No. 64-2015

The Information must also be

reflected on the receipts/invoices
generated from CRM/POS
machines.

If the CRM/POS is not capable of

showing the said requirements, a
manually pre-printed
receipts/invoices with approved
Authority to Print (ATP) must be
 Revenue Memorandum
Circular
No. 56-2015

Submission of Monthly
Esales Report Via
Electronic Sales (Esales)
Reporting System
 Revenue Memorandum
Circular
No. 64-2015

Any amendment in the amount of

monthly sales reported, shall
require a written justification
addressed to the concerned LTS
Investigating Office / Revenue
District Office (RDO) with
corresponding adjusting entries
properly recorded in the Books of
Accounts.
 Revenue Memorandum
Circular
No. 64-2015

Monthly eSales report shall be

subjected to validation/verification
by the concerned offices, provided
that no electronic Letter of
Authority (eLA)/ Letter Notice (LN)
has been issued covering the said
particular month. Otherwise, an
incident report on the post
validation/inspection conducted
shall be consolidated with the
 Revenue Memorandum
Circular
No. 64-2015

Taxpayers who failed to comply

with the foregoing requirements
shall be included in the priority
audit program of the concerned
investigating offices.
 Revenue Memorandum
Circular
No. 57-2015

Submission of Inventory List

and Other Requirements
 Revenue Memorandum
Circular
No. 57-2015

Additional reports or schedules to be

submitted and filed with the annual
inventory list shall cover companies
maintaining inventory of stock-in-
trade, raw materials, goods in
process, supplies and other goods
such as manufacturing,
wholesaling, distributing/retailing
sectors including real estate
dealers/developers, service
 Revenue Memorandum
Circular
No. 57-2015

The data/information contained in

the said schedules/lists should
be reconciled with the amount
declared in the financial
statements and annual income
tax returns.
 Revenue Memorandum
Circular
No. 57-2015

All taxpayers with tangible asset-

rich balance sheets, often with
at least half of their total
assets in working capital
assets, e.g., accounts
receivable and inventory, shall
submit, in addition to the
annual inventory list,
schedules/lists prescribed
 Revenue Memorandum
Circular
No. 57-2015

The soft copies of the inventory

list including other applicable
schedules shall be
stored/saved in Digital
Versatile Disk-Recordable
(DVD-R) properly labeled and
submitted, together with a
notarized certification.
 Revenue Memorandum
Circular
No. 57-2015

For initial filing using the herein

prescribed format, the
schedules and inventory list
shall be submitted on or
before September 30, 2015
covering ending inventory as
of December 31, 2014, and
thereafter every 30th day
following the close of the
 Revenue Memorandum
Circular
No. 57-2015

The submission of the schedules

and inventory list that does
not conform with the herein
prescribed format shall be
deemed not received by the
concerned office of the BIR and
shall be considered as grounds
for the imposition of penalties
under the NIRC of 1997, as
 Revenue Memorandum
Circular
No. 57-2015

For initial filing using the herein

prescribed format, the
schedules and inventory list
shall be submitted on or
before September 30, 2015
covering ending inventory as
of December 31, 2014, and
thereafter every 30th day
following the close of the
 Revenue Memorandum
Circular
No. 61-2015

To extend the deadline, initially

set on or before September 30,
2015 per Revenue
Memorandum Circular (RMC)
No. 57-2015 to on or before
October 31, 2015.
 Revenue Memorandum
Circular
No. 58-2015

Availability of Electronic Bureau

of Internal Revenue Forms
(eBIRForms) Package
Version 5.1
 Revenue Memorandum
Circular
No. 58-2015
The new eBIRForms package has the
following modifications:

1.BIR Form No. 1707-A (Annual Capital Gains

Tax Return for Onerous Transfer of Shares of
Stock Not Traded Through the Local Stock
Exchange) is included in the package and
thirty seven (37) returns are now available in
eBIRForms;
2.BIR Form Nos. 1601E, 1702-MX and 2000
were enhanced; and
3.Annual Income Tax Returns (BIR Form Nos.
1700, 1701, 1702-EX, 1702-MX & 1702-RT)
 Revenue Memorandum
Circular
No. 70-2015

Reiterating the Tax Treatment of

Certain Persons Engaged in the
Business of Land Transportation
 Revenue Memorandum
Circular
No. 70-2015

Reiterating the Tax Treatment of

Certain Persons Engaged in the
Business of Land Transportation
 Revenue Memorandum
Circular
No. 70-2015

Tax incidence of the business of land

transportation, particularly transport
network companies (TNCs), such as but
not limited to the likes of UBER, GRAB
TAXI, their Partners/suppliers and similar
arrangements.
 Revenue Memorandum
Circular
No. 70-2015

A TNC is a pool of land transportation

vehicles whose accessibility to the riding
public is facilitated through the use of a
common point of contact which maybe in
the form of text, telephone and/or
cellular calls, email, mobile
applications or by other means.
 Revenue Memorandum
Circular
No. 70-2015
TNC may or may not have been granted a
Certificate of Public Convenience (CPC).
If it is a holder of a valid and current CPC, it
is known as a common carrier and its gross
receipts are subject to the Three Percent
(3%) common carriers tax under Section
117 of the National Internal Revenue Code
of 1997, as amended (NIRC).
 Revenue Memorandum
Circular
No. 70-2015
TNC may or may not have been granted a
Certificate of Public Convenience (CPC).
If it is a holder of a valid and current CPC, it
is known as a common carrier and its gross
receipts are subject to the Three Percent
(3%) common carriers tax under Section
117 of the National Internal Revenue Code
of 1997, as amended (NIRC).

Otherwise, it is classified as a land

transportation service contractor and is
 Revenue Memorandum
Circular
No. 77-2015

Clarifying the Procedures in the

Processing of Estate Tax Returns
for Agricultural Properties
Covered by the Comprehensive
Agrarian Reform Program
(CARP)
 Revenue Memorandum
Circular
No. 77-2015

Joint Department of Agrarian Reform (DAR)-

Department of Finance (DOF)-Department of
Justice (DOJ)-Land Bank of the Philippines
(LBP) Administrative Order (JAO) No. 1,
Series of 2013, was issued to streamline
the procedures in the release of
unclaimed land compensation due to
unpaid and outstanding estate and
other related taxes.
 Revenue Memorandum
Circular
No. 77-2015

In the said Administrative Order, the BIR

shall assess the corresponding estate
tax (with penalties and surcharges
waived) on the CARPcovered
landholdings belonging to the
deceased landowners estate, and that
upon receipt of the heirs undertaking to pay
the computed estate tax, the LBP shall
deduct the same from the landowners
compensation and remit said taxes
 Revenue Memorandum
Circular
No. 77-2015

The concerned RDO shall determine the

value of the gross estate based on
existing provisions of the National
Internal Revenue Code at the time of
death of the decedent and compute the
corresponding estate tax liability, without
imposing interest, surcharge and
compromise penalties on the taxable
estate pertaining to the CARP-covered
landholdings.
 Revenue Memorandum
Circular
No. 77-2015

In case the decedents estate includes

other properties which are not covered
by the CARP, the portion of the estate tax
applicable to the non-CARP properties shall
be increased by the penalties imposed
under the Tax Code of 1997, as amended,
applicable at the time of filing of the return.
 Thank you!!!

Atty. Arnold A. Apdua, CPA

Email: arnoldapdua@gmail.com
Contact Number: 0917-5655199