ALBA ROMEO & CO., CPAS
Audit
| Tax
| Consulting
TAX DIGEST
OCTOBER 2015
A REGULAR PUBLICATION OF ALBA ROMEO & CO
REVENUE
MEMORANDUM
CIRCULAR
NO. 57-2015
SUBJECT: ADDITIONAL GUIDELINES
ON THE SUBMISSION OF INVENTORY
LIST AND OTHER REPORTING
REQUIREMENTS
This Circular aims to consistently apply the data
requirements across different sectors with the
peculiarity of the industry where the taxpayers
belong directing the volume of reporting.
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 herein, in hard and soft copies,
using the format as shown in Annex “A” (for
manufacturing /
Merchandising or retail company); Annexes “B”
and “B-1” (for real estate company) and Annex
“C” (for construction industry).Taxpayers not
belonging to the above-described industries
shall adopt the herein prescribed format that is
applicable to their existing inventory.
The submission of the schedules and
inventory list that does not conform to 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 amended.
REVENUE
MEMORANDUM
CIRCULAR
NO. 58-2015
SUBJECT: AVAILABILITY OF
ELECTRONIC BIR FORMS (EBIRFORMS)
PACKAGE VERSION 5.1
The eBIRForms Package Version 5.1 is now
available and downloadable and 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) can
now be submitted online thru the eBIRForms
System.
All 37 tax returns can be filed by clicking
the “SUBMIT” or “FINAL COPY” button and
the taxpayer will receive the corresponding
confirmation thru email notification.
While eBIRForms Package Version 5.0 may
still be used for filing all other BIR Forms not
mentioned in the modifications stated in
above.
•
REVENUE MEMORANDUM
CIRCULAR NO. 57-2015
•
REVENUE MEMORANDUM
CIRCULAR NO. 58-2015
•
REVENUE MEMORANDUM
CIRCULAR NO. 59-2015
•
REVENUE MEMORANDUM ORDER
NO. 20-2015
TAX DIGEST 2015
REVENUE
MEMORANDUM
CIRCULAR
NO. 59-2015
SUBJECT: AVAILABILITY OF THE UPDATE OF EXEMPTION
OF EMPLOYEES (UEE) DATA ENTRY MODULE IN FILING
OF THE BUREAU OF INTERNAL REVENUE (BIR) FORM NO.
2305 (CERTIFICATE OF UPDATE OF EXEMPTION AND
OF EMPLOYERS AND EMPLOYEE’S INFORMATION) AND
2305 BATCH FILE VALIDATION MODULE
The required BIR Form Nos. 2305 shall be electronically filed in the
prescribed format using the following and its requirement:
Prescribed Electronic Format
Option 1: Microsoft Excel CSV
Format
Required to use
2305 Batch File Validation File
Option 2: Taxpayer’s own extract 2305 Batch File Validation File
program
Option 3: BIR’s UEE Data Entry
Module
UUE Data Entry
Both requirements stated above are available at www.bir.gov.ph/
index.php/downloables.html
Taxpayer may generate monthly CSV file report using UEE Data
Entry Module or in “Annex B’) using Option 1 or Option 2 and
transmit to BIRFORM_2305@bir.gov.ph, following the procedures in
the Job Aids (Annex A or B) and process flows (Annex C or D). Those
reports submitted with INVALID ERRORS and INVALID FILES are
considered as non-filing of BIR Form No. 2305.
Employees shall submit the accomplished BIR Form 2305, together
with the required documentary requirements.
Employer shall then validate and ensure completeness of
documents and to submit the following documents on or before the
10th day of the following month:
1.Accomplished BIR Form No. 2305 signed by both the employee
and the employer with complete documentary requirements;
2.System- generated email notification of electronically filed BIR No.
2305;
3.Printed Alphalist of Employees and Information Update (Alpha_1)
(Annex F) report.
Non-Large Taxpayer-Employers shall submit the supporting
documents to the RDO having jurisdiction of the place or office
where the employee is expected to work while Large TaxpayerEmployers shall submit the same documents to the Large Taxpayer
Assistance Division (LTAD), Excise Large Taxpayers Regulatory
Division (ELTRD), Large Taxpayers Division (LTD-Makati/Cebu) having
jurisdiction over the Head Office of the Large Taxpayer-Employer.
PAGE 2
REVENUE
MEMORANDUM
ORDER
NO. 20-2015
SUBJECT: POLICIES, GUIDELINES AND PROCEDURES ON
OF THE REGISTRATION OF EMPLOYEES
Large Taxpayer (LT)- Employers, corporations under the Taxpayer
Account Management Program (TAMP) and those registered/
enrolled in the Electronic Filing and Payment (eFPS) are mandated
to use eRegistration (eREG) System in generating employees Tax
Identification Number (TIN).
Employees shall generally be registered to Revenue District Office
(RDO) where the business address is located or where employer was
registered.
It is under the responsibility of the new employer to transfer the
registration of their new employees. Submission of BIR Form
1905 (Application for Registration Information Update) can be
accomplished through a fax copy of the said form with signature
and shall be accepted by the RDOs or LT-Assistance Division (LTAD)/
Excise LT Regulatory Division (ELTRD)/LT Division (LTD)- Makati/ LTDCebu.
Taxpayers with the following circumstances may not be registered
using the eReg System, thus, they shall personally appear in the RDO
or the LT-Employer and to submit a written request for TIN issuance
to the LTAD/ELTRD/ LTD-Makati/LTD-Cebu:
a.Those with incomplete data on the basic taxpayer information
form;
b.Those with similar or found to have matching records of the BIR
that fall under any of the following validation rules:
1.same last name, first name and middle name
2.same last name, first name and middle name
3.same last name, middle name and birth name
4.for a married female whose civil status entered in eREG is married,
the entered middle name, first name and birth date has respectively
matching last name, first name and birth date of a female in the BIR
database.
Large Taxpayer (LT) that cannot register its new employees thru
the eREg system, shall secure its employees’ TINs in LTAD/ELTRD/
LTD-Makati/LTD-Cebu where the LT-Employer is duly registered.
Provided, LT –Employer shall submit a written request with
corresponding transmittal list of his new employees who filed BIR
Form No. 1902 (Application for Registration for Individual Earning
Purely Compensation Income and Non-Resident Citizens/ Resident
Alien Employee) for the Tin issuance of any form of communication
such as letter, fax and email attachment together with the
prescribed registration form and eReg System message.
LT Employer shall submit a written request for the issuance of TIN
cards of employees to the concerned LTAD/ELTRD/ LTD-Makati
.LTD-Cebu, attaching thereto the list of newly registered employees
TAX DIGEST 2015PAGE 3
in batches of twenty (20), citing their full name (surname,
first name, middle name), birthdate, address and the date of
registration of date of TIN issuance, together with BIR No. 1902
and the printed eReg Confirmation Page, only if registered using
the eReg System.
Employee with concurrent multiple employment shall secure
TIN at the RDO having jurisdiction over his principal or main
employer.
In the event that the eREG System cannot process the TIN
issuance of employees, the Client Support Section shall
accommodate these employees. Employee shall request for
the issuance of TIN card to the RDO having jurisdiction over the
employer’s business address or any computerized RDOs.
All new employees with existing TIN shall apply for Update
of Registration Information by submitting their accomplished
BIR Form No. 2305 to their employer. Update of Exemption of
Employee’s Information shall be done by the employer using
the Update of Exemption of Employee Data Entry Module (BIR
Form No. 2305 Data Entry Module) or Taxpayer Registration
Information Update System when available.
Employers who are required to us the eReg System but are
instructing its new employees to visit the RDOs or LTAD/ELTRD/
LTD-Makati/LTD-Cebu with photocopied alleged eReg System
message presented, shall be imposed a penalty of P1,000.00 per
employee pursuant to Section 275 of the Tax Code, as amended.
A penalty of P1,000.00 for every instance but not to exceed
P25,000.00 shall be imposed on the users of the eReg System
and Update of Exemption of Employee Data Entry Module who
supplied erroneous/invalid information.
TAX DIGEST 2015PAGE 4
LOCATIONS
Makati
Bacolod
7/F Multinational Bancorporation Centre 6805 Ayala Avenue,
Makati City 1226 Philippines
Telephone (+63 2) 844 2016
Fax
(+63 2) 844 2045
Email address: cpas@bdoalbaromeo.ph
Cebu
3/F Capitol Subdivision Building
15th Lacson Street, Bacolod City 6100 Philippines
Telephone (+63 34) 433 3878
(+63 34) 435 8386
(+63 34) 709 1796
Fax
(+63 34) 433 3879
Email address: bacolod@bdoalbaromeo.ph
Cagayan de Oro
2/F Block A, Mactan Marina Mall MEPZ 1, Ibo
Lapu-Lapu City, Metro Cebu 6015 Philippines
Telephone (+63 32) 340 4037
(+63 32) 494 0306
Fax
(+63 32) 340 4033
Email address: cebu@bdoalbaromeo.ph
2/F Leonila Neri Building Don Apolinar Velez & C. Pacana
Streets, Cagayan de Oro City 9000
Philipppines
Telephone (+63 88) 856 4532
(+63 88) 852 4214
(+63 88 22) 727 431
Fax
(+63 88 22) 725 082
Email address: cdo@bdoalbaromeo.ph
This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover
specific situations, and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact
Alba Romeo & Co. to discuss these matters in the context of your particular circumstances. Alba Romeo & Co., its partners, employees and agents do not accept or assume any
liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or any decision based on it.
Alba Romeo & Co., CPAs, a Philippine professional partnership, is a member of BDO International Limited, a UK
company limited by guarantee, and forms part of the International BDO network of independent member firms
BDO is the brand name for the BDO network and for each of the BDO member firms.