TAX DIGEST
APRIL 2015
A REGULAR PUBLICATION OF ALBA ROMEO & CO
REVENUE
REGULATIONS
NO. 5-2015
SUBJECT: AMENDMENT TO RR NO.
6-2014 DATED SEPTEMBER 5, 2014
AND IMPOSITION OF PENALTIES FOR
FAILURE TO FILE RETURNS UNDER THE
ELECTRONIC SYSTEMS OF THE BIR BY
TAXPAYERS MANDATORILY COVERED BY
EFPS OR EBIRFORMS
DATE: MARCH 17, 2015
The BIR aims to provide taxpayers ease and
convenience in the preparation, filing and
payment of tax returns through the development
of e-services such as the Electronic Filing and
Payment System (eFPS) and the Electronic Bureau
of Internal Revenue Forms (eBIRForms). It assures
accuracy and completeness of information
provided therein which can be used as a reliable
reference for statistics, analysis and studies not
only by the Bureau, but also by other agencies.
Section 1. Scope – Pursuant to the provisions of
Section 244 of the National Internal Revenue
Code (NIRC) of 1997, as amended, in relation to
Section 27 of Republic Act No. 8792, otherwise
known as the “Electronic Commerce Act”, these
regulations are hereby promulgated to require
mandatory use of eBIRForms facility for those
required to do so under Revenue Regulations
6-2014 and to impose penalties for failure to
electronically file returns using the eFPS and
eBIRForms facility.
Section 2. Amendment to RR 6-2014 – The use
of the e-BIRForms facility is mandatory for those
covered by Revenue Regulations No. 6-2014,
in order to clarify this, Section 3 paragraph 2
of Revenue Regulations No. 6-2014 is hereby
amended to read as follows:
•
REVENUE REGULATIONS NO.
5-2015
2. Non-eFPS filers, covered by Section 4
herein, shall mandatorily use the eBIR Forms
facility in electronically submitting and filing all
their tax returns.
•
REVENUE REGULATIONS NO.
6-2015
•
REVENUE REGULATIONS NO.
7-2015
Upon successful validation of the
accomplished tax return, taxpayers shall
receive a system-generated notification e-mail
which acknowledges that the tax return has
been successfully filed. Taxpayer should print
the Filing Reference (FRN) page generated by
the system and the same shall be submitted
to the Authorized Agent Banks (AABs) for the
payment of the taxes due thereon. Sample
printed FRN page is herein attached as Annex
“A”
•
REVENUE MEMORANDUM ORDER
NO. 7-2015
•
REVENUE MEMORANDUM ORDER
NO. 8-2015
•
REVENUE MEMORANDUM ORDER
NO. 10-2015
•
REVENUE MEMORANDUM
CIRCULAR NO. 11-2015
•
REVENUE MEMORANDUM
CIRCULAR NO. 12-2015
•
REVENUE MEMORANDUM
CIRCULAR NO. 13-2015
•
REVENUE MEMORANDUM
CIRCULAR NO. 14-2015
•
REVENUE MEMORANDUM
CIRCULAR NO. 10-2015
“x x x
x x x”
Section 3. Imposition of Penalties – All taxpayers,
under existing issuances, who are mandatorily
covered to file their returns using eFPS or
eBIRForms, who fail to do so, shall be imposed a
penalty of One Thousand Pesos (Php1,000) per
return pursuant to Section 250 of the NIRC of
1997, as amended.
In addition, the taxpayer, shall also be imposed
civil penalties equivalent to 25% of the tax due
to be paid, for filing a return in a manner not
in compliance with existing regulations, thus,
tantamount to wrong venue filing pursuant
to Section 248 (A)(2) of the NIRC of 1997, as
amended.
Moreover, Revenue District Offices are directed
to include these non-compliant taxpayers in their
priority audit program.
TAX DIGEST 2015
REVENUE
REGULATIONS
NO. 6-2015
SUBJECT: IMPLEMENTING REGULATIONS
IMPOSING ADVANCE BUSINESS TAX
(VALUE ADDED TAX OR PERCENTAGE
TAX) PAYMENTS ON SUGAR AND FOR
OTHER RELATED PURPOSES
DATE:
MARCH 31, 2015
Section 3. Requirement to Pay in Advance
Business Taxes, such as VAT or Percentage Tax
on Sale of Raw and Refined Sugar – In general,
the business tax (VAT or Percentage Tax) on
the sale of raw and refined sugar, shall be paid
in advance by the owner/seller before any
warehouse receipt or quedans are issued or
before the sugar is withdrawn from any sugar
refinery/mill.
Upon representation by the SRA that raw sugar
classified as “A” and covered by quedans clearly
designating the raw sugar to be classified
as “A” as solely exclusively intended for the
export to the United States of America (USA)
in compliance and fulfillment of our sugar
export quota obligation to the USA, and to
lessen the administrative burden of processing
refunds, no advance VAT shall be collected.
Provided, however, that if upon audit it shall be
discovered that the said raw sugar was:
(a) Not actually exported to the USA as
evidenced by sales invoices, official receipts,
airway bills, bills of lading, inward letters of
credit, landing certificates, export declaration
and other commercial documents, and
(b) No receipts of payments in acceptable
foreign currency or its equivalent in goods
or services and/or it was not accounted for
in accordance with the rules and regulations
of the Bangko Sentral ng Pilipinas (BSP), the
deficiency VAT together with the surcharge and
interest thereon computed from when it should
have been due and paid for shall be collected.
Provided, further, that the exemption herein
shall not include liability from the advance
three percent (3%) percentage tax for non-VAT
taxpayer. With regard to the Raw Sugar “D”
and “E”, these types of raw sugar are subject
to advance payment of VAT subject to refund
upon showing of compliance with requirements
VAT zero-rating, to wit:
- Sale and actual shipment of raw sugar from
the Philippines to a foreign country/territory
as evidence by sales invoices, official receipts,
airway bills, bills of lading, inward letters of
credit, landing certificates, export declaration
and other commercial documents; and
- Payments in acceptable foreign currency
or its equivalent in goods or services, and
accounted for accordance with the rules and
regulations of the Bangko Sentral ng Pilipinas
(BSP).
Moreover, any person whose sales or receipts
are exempt under Section 109 (1)(V) of the
NIRC from the payment of VAT and who is not
a VAT-registered person shall pay an advance
percentage tax equivalent to THREE PERCENT
(3%) of the gross monthly sales or receipts of
sugar, whether raw or refined, and or whatever
classification it might be.
Section 4. Basis for Determining the Amount of
Advance Tax Payment. –
a)Base Price. – The amount of advance VAT
payment shall be determined by applying the
VAT of twelve percent (12%) on the applicable
base price of ONE THOUSAND FOUR
HUNDRED PESOS (P1,400.00) per 50 kg. bag
for refined sugar, and ONE THOUSAND PESOS
(P1,000.00) per 50 kg. bag for all other types of
sugar.
b)Subsequent Base Price Adjustments. - The
base price upon which the advance payment
of VAT will be computed under the preceding
paragraph shall be adjusted when deemed
necessary by the Commissioner, depending on
the prevailing market price of sugar.
c)Advance Percentage Tax – For taxpayers
exempted under Section 109 (1) (V) of the
NIRC from the payment of VAT who are not a
VAT-registered person, the amount of advance
Percentage Tax shall be determined by applying
the Percentage Tax rate equivalent to THREE
PERCENT (3%) of the gross sales or receipts;
provided that cooperatives shall be exempt
from the THREE PERCENT (3%) gross sales or
receipts.
Section 5. Exemption from the Payment of the
Advance VAT. – The following withdrawals shall
be exempt from the payment of the advance
VAT:
(a) Withdrawal of Raw Cane Sugar. – Sale of
raw cane sugar (muscovado) is always exempt
from VAT irrespective of the seller and buyer
pursuant to Sec. 109 (A) of the Tax Code.
(b) Withdrawal of Sugar by Duly Accredited
and Registered Agricultural Cooperative of
Good Standing. – In the event the sugar is
owned and withdrawn from the Sugar Refinery/
Mill by an agricultural cooperative of good
standing duly accredited and registered with
the Cooperative Development Authority
(CDA), the withdrawal of sugar for sale to
members is not subject to advance VAT. The
same shall also not be subject to advance
Percentage Tax. Provided, however, withdrawal
of sugar for sale to non-members is subject
to payment of Advance VAT or percentage
PAGE 2
tax, if the agricultural cooperatives is not the
producer of sugar. Provided, however, any
quedan or evidence of ownership showing
the name of the cooperative together with
another entity, natural or juridical, shall not be
considered sales by an agricultural but by the
other entity named therein, and are therefore
not covered herein and are subject to advance
business tax required under this Regulation. A
cooperative must be a holder of a valid, current
and subsisting Certificate of Tax Exemption
which is issued in accordance with Revenue
Memorandum Order No. 76-2010 dated
September 27, 2010.
(c) Withdrawal of Sugar by Duly Accredited
and Registered Agricultural Cooperative which
is sold to another Agricultural cooperative. –
If the owner of the sugar as reflected in the
quedan is an agricultural cooperative, the sale
of the resulting sugar to another agricultural
cooperative is not subject to VAT pursuant to
Sec. 109 (L) of the Tax Code. It shall also not be
subject to advance Percentage Tax.
Thus, if the seller-cooperative is not an
agricultural producer but merely purchases
the sugar cane or the raw cane sugar from
planter, whether members or non-members,
or transfer the raw cane sugar to cooperative
through assignment, its sale of the resulting
sugar to another agricultural cooperative shall
be subject to VAT or percentage tax and its
withdrawal from the Sugar Refinery/Mill will
only be allowed upon payment of the advance
VAT or percentage tax in the RDO having
jurisdiction over the place of business of the
cooperative.
Any quedan or evidence of ownership issued
to a cooperative together with another entity,
natural or juridical, shall not be considered
sale by the cooperative, but the entity named,
therein, and are therefore not exempted from
the advance business taxes required under this
Regulation.
TAX DIGEST 2015PAGE 3
Section 6. Withdrawal or Transfer of
Ownership of Sugar. – The proprietor of
a Sugar Refinery/Mill shall not allow the
issuance of quedan/warehouse receipts
or other evidence of ownership or allow
any withdrawal of sugar from its premises
without proof of payment of advance
VAT/Percentage Taxes required in these
Regulations. Any person making the
withdrawal or transfer shall submit proof of
such payment or exemption from payment
thereof.
Section 7. Credit for Advance Tax Payments.
– In addition to the input tax credits allowed
under Section 110 of the Code, the amount
of advance payment of VAT made by sellers
of sugar under these regulations shall be
allowed as credit against the output tax
based on the actual gross selling price of
sugar. The Certificate of Advance Payment
of the VAT and a copy of the payment form
shall be attached to the Monthly/Quarterly
return to support the claim for credit of
advance VAT/Percentage Tax payment.
Section 8. Unutilized Advance Tax Payment.
– The advance tax payments made by
the seller/owner of sugar which remain
unutilized at the end of taxpayer’s taxable
year where the advance payment was made,
which is tantamount to excess payment,
may, at the option of the owner/seller, be
available for the issuance of TCC.
Unutilized advance tax payments which
have been the subject of an application for
the issuance of TCC shall not be allowed as
carry-over nor credited against the output
tax/percentage tax of the succeeding month/
quarter/year.
Issuance of TCC shall be limited to the
unutilized advance tax payments and shall
not include excess input tax. Issuance of TCC
for input tax attributable to zero-rated sales
shall be covered by a separate application for
TCC following applicable pertinent rules.
REVENUE
REGULATIONS
NO. 7-2015
SUBJECT: AMENDING FURTHER
THE PROVISION OF SECTION 2.57.2
OF REVENUE REGULATIONS NO.
2-98, AS AMENDED, PARTICULARLY
SUBSECTION (AA) AS INTRODUCED
BY REVENUE REGULATIONS NO.
11-2014, RELATIVE TO THE INCOME
PAYMENTS ON LOCALLY PRODUCED
RAW SUGAR
DATE: MARCH 31, 2015
SEC. 2. AMENDMENTS. – Section 2.57.2
(AA) of RR No. 2-98, as amended, is hereby
further amended to read as follows:
“(AA) Income payments on sugar. – On
gross payments on purchases of sugar - One
percent (1%)
1.Proprietors or operators of sugar mills/
refineries on their mill share, and buyers of
Quedans or Molasses Storage Certificates
from the sugar planters on locally produced
raw cane sugar, raw sugar and molasses
shall withhold the creditable income
tax and remit the same to the BIR based
on the following, subject, however, to
adjustment, when deemed necessary by the
Commissioner, depending on the prevailing
market price of cane sugar raw sugar and
molasses:
1.1 For locally produced raw cane sugar and
raw sugar - base price of ONE THOUSAND
PESOS (P1,000.00) per FIFTY (50) kilogram
(kg.) bag or actual selling price, whichever is
higher.
1.2 For Molasses- base price of FOUR
THOUSAND PESOS (P4,000.00) per metric
ton or actual selling price, whichever is
higher.
2.Buyers of refined sugar, whether locally
produced or imported, shall withhold the
creditable income tax based on the actual
selling price thereof.
For purposes of this subsection, the following
terms shall have the following meaning:
xxx xxx xxx
(ix) sugar –refers to raw cane sugar, raw
sugar and refined sugar.
The Regional Director/Revenue District
Officer, which has jurisdiction over the
physical location of the sugar mills/
refineries, shall issue the Authority to
Release Locally Produced Raw Sugar/
Raw Cane Sugar/Molasses (Annexes “A”
or “B”, or “C” as applicable) or Authority
to Release Locally Refined Sugar (Annexes
“D” or “E” as applicable) to the proprietors
or operators, for purposes of allowing the
transfer/withdrawal of their mill share, or to
the buyers of Quedans or Molasses Storage
Certificates on the locally produced sugar;
Provided, however, That, copies of proofs of
payment of the creditable withholding tax
due thereon (i.e., duly validated Monthly
Remittance Return of Creditable Income
Taxes Withheld (Expanded) [BIR Form No.
1601-E] and Bank Payment/Deposit Slip/
Revenue Official Receipt [BIR Form No.
2524]) shall have been submitted and
attached to the written request for said
authorization.
PAGE 4
SEC. 3. REGISTRATION AND BOOKEEPING
RULES FOR SUGAR OWNERS WHO ARE
SMALL SUGAR PLANTERS – Any sugar
owners who plants their own sugar whose
gross receipts for a year does not exceed
Three Hundred Thousand Pesos (PHP
300,000.00) shall be required to comply
with the following simplified rules of
registration and bookkeeping :
a.Exemption from the payment of
registration fee as prescribed under Section
236(B) of the NIRC upon registration with
the BIR after submission of the following
minimal basic documentary requirements:
i. Sworn Statement of Income for the year,
and
ii. NSO Certified Birth Certificate.
b.Exemption from compliance with the
issuance of registered receipts or sales/
commercial invoices prescribed under
Section 237 of the NIRC;
c.Exemption from the requirement of
maintenance of books of accounts;
d.Exemption from attaching Financial
Statements of Account Information Form to
the filed Income Tax Return;
e.Exemption from filing of monthly
percentage tax, the advance Percentage Tax
collected from the sale of their sugar shall
be considered substantial compliance for the
filing of the monthly percentage tax required
under the NIRC. Provided, however, the said
sugar owner are required to file their Income
Tax Return on the date required under the
NIRC.
REVENUE
MEMORANDUM
ORDER NO. 7-2015
SUBJECT: THE REVISED
CONSOLIDATED SCHEDULE OF
COMPROMISE PENALTIES FOR
VIOLATIONS OF THE NATIONAL
INTERNAL REVENUE CODE
DATE: JANUARY 22, 2015
This Order is issued for the purpose of
adopting and implementing a uniform
application of the compromise penalties
involving violations of the National Internal
Revenue Code of 1997 (Tax Code) and
updating the Schedule of Compromise
Penalties specified under RMO No. 19-2007
and deleting certain acts commonly resorted
to by taxpayers as a means of tax evasion
from the coverage.
The following guidelines and procedures
TAX DIGEST 2015
should be followed:
1. The Internal Revenue officers concerned
shall apply the Revised Schedule of
Compromise embodied in Annex “A” to
ensure uniformity of action.
2.Cases involving fraud shall be referred to
the concerned Division having jurisdiction
over the case, for the institution of the
corresponding criminal action.
3.In no case shall the compromise penalty
differ in amount from those specified in the
aforementioned Schedule, except when duly
approved by the Commission or concerned
Deputy Commission, or in proper cases, by
the Regional Directors.
4.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. If paid, the compromise
penalties shall be collected and accounted
for under the usual procedures, as internal
revenue collection.
5.Since compromise penalties are only
amounts suggested in settlement of criminal
liability, and 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.
6.The schedule of compromise penalties
herein prescribed shall not prevent the
Commissioner or his duly authorized
representative from accepting a compromise
amount higher than what is provided. 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. 8-2015
SUBJECT: PRESCRIBING
THE POLICIES, GUIDELINES
AND PROCEDURES IN THE
IMPLEMENTATION OF THE
COLLECTION RECONCILIATION
SYSTEM
DATE: MARCH 12, 2015
The Collection Reconciliation System (CRS)
aims to standardize and streamline the
processes in the reconciliation of internal
revenue collections across all modes and
channels between the records of the BIR
with that of the Bureau of Treasury (BTr),
Bangko Sentral ng Pilipinas (BSP), Accredited
Agent Banks (AABs) and the Authorized
Government Depository Banks (AGDBs).The
system was developed primarily to address
the perennial problems in the reporting of
tax collection performance by the Revenue
District Offices (RDOs) and Regional Offices
(ROs), including all the concerned offices
under the Large Taxpayers Service (LTS),
in their respective Consolidated Monthly
Statistical Reports (BIR Form 12.09). The
system also provides the facility to reconcile
tax collections uploaded in the Bureau’s
Integrated Tax System – Collection and Bank
Reconciliation (ITS-CBR) against the tax
collections credited to the account of the BIR
by the BTr.
REVENUE
MEMORANDUM
ORDER NO. 10-2015
SUBJECT: SUBMISSION OF LIST
OF MANUALLY/ELECTRONICALLY
ISSUED CERTIFICATE AUTHORIZING
REGISTRATION (CAR/ECAR) TO
REGISTER OF DEEDS (RD)
DATE: MARCH 24, 2015
This Order is issued to prevent the transfer
of ownership of real properties without the
proper and accurate payment of transfer
taxes, and to stop the usage of spurious
CARs/eCARs for said transfer of ownership.
The following are the Policies and
Guidelines:
PAGE 5
1.All Revenue District Officers (RDOs)
shall furnish the concerned Register of
Deeds (RDs) with a list of all manually and
electronically issued CARs/eCARs that are
still valid for transfer as of March 20, 2015
following the format prescribed in Annex “A”
hereof on or before March 27, 2015.
2.Starting March 23, 2015, a weekly list of
all manually issued CARs and electronically
issued CARs using the prescribed format in
Annex “B” shall be provided to the respective
RDs on the following working day afer each
week until the Bureau of Internal Revenue/
Land Registration Administration CAR
Verification System (BIR/LRA CVS) has been
implemented.
3.The said weekly list of manually issued
CAR/eCARs, duly received by the concerned
RD, shall be submitted in hard and soft
copies to the Offices of the Deputy
Commissioners of the Operations Group and
the Legal and Inspection Group a day after
the receipt of RD.
4.Any CARs not included in the list of
manually issued CARs/eCARs as provided to
the concerned RDs are deemed spurious, and
not issued by the Bureau.
REVENUE
MEMORANDUM
CIRCULAR NO.
11-2015
SUBJECT: CLARIFICATION ON
REVENUE REGULATIONS NO.
6-2014 ON TAX PRACTITIONERS/
AGENTS MANDATED TO USE THE
ELECTRONIC BUREAU OF INTERNAL
REVENUE FORMS (EBIRFORMS)
DATE: MARCH 27, 2015
This Circular is issued to clarify Section 4(1)
of Revenue Regulations No. 6-2014 which
states, to wit:
“Section 4. Mandatory Coverage. Only
those non-eFPS filers are covered by these
Regulations:
1.Accredited Tax Agents/Practitioners and all
its client-taxpayers;”
The term “Client-Taxpayers” abovementioned
shall mean those taxpayers who are
otherwise authorizing their tax agents/
practitioners to file on their behalf. Thus,
client-taxpayers whose tax agents/
practitioners only sign the audit certificate
but have no authority to file the returns
in their behalf are not covered by the said
TAX DIGEST 2015
Revenue issuance. The linking module of
authorization by the client-taxpayer to his/
her tax agent/practitioner is available online
via eBIRFORMS. It shall be noted, however,
that the taxpayer may cancel anytime his/
her authorization prior to the termination
of their client-agent relationship. Tax
agents/practitioners should encourage their
client-taxpayers to use the electronic filing
and payment facilities of the Bureau via
eBIRFORMS and eFPS.
REVENUE
MEMORANDUM
CIRCULAR NO.
12-2015
of taxpayer input. However, they are
encouraged as much as possible to file their
returns electronically to avoid the crowd
and long lines. It is further clarified that all
business taxpayers with no payment returns
mandated to use eBIRForms/eFPS must
electronically file the return.
REVENUE
MEMORANDUM
CIRCULAR NO.
13-2015
SUBJECT: FURTHER AMENDING
REVENUE MEMORANDUM CIRCULAR
(RMC) NO. 57-2011, AS AMENDED
BY RMC NOS. 21-2013 AND 9-2014,
ENTITLED “REVISED FORMS NO.
1700, 1701, AND 1702.”
DATE: MARCH 31, 2015
SUBJECT: CLARIFICATION ON
THE FILING OF NO PAYMENT
RETURNS IN RELATION TO REVENUE
REGULATIONS (RR) NOS. 6-2014
AND RR 5-2015 MANDATING THE
USE OF THE ELECTRONIC BUREAU
OF INTERNAL REVENUE FORMS
(EBIRFORMS)
DATE: MARCH 27, 2015
This Circular is issued to clarify Section 4(3)
of Revenue Regulations Nos. 6-2014 and RR
5-2015, mandating the use of eBIRForms and
electronically filing “no payment returns”.
The following taxpayers may file manually
“no payment returns” to the Revenue District
Office (RDO) where registered using officially
printed forms/photocopied or electronic/
computer-generated returns:
1.Senior Citizen (SC) or Persons with
Disabilities (PWD) filing for their own return;
2.Employees deriving purely compensation
income and the income tax of which has
been withheld correctly showing tax due
is equal to the tax withheld whether single
or multiple employers (with two or more
employers concurrently and successively at
anytime during the taxable year);
3.Employees qualified for substituted filing
under RR 2-98 Sec. 2.83.4, as amended, but
opted to file for an Income Tax Return (ITR)
and are filing for purposes of promotion
(PNP/AFP), loans, scholarship, foreign travel
requirements, etc. The above-taxpayers are
encouraged to use offline eBIRForms for
ease and convenience in the preparation,
validation, computation rules and efficiently
check for completeness and correctness
The first and second paragraphs of RMC No.
57-2011, as amended by RMC Nos. 21-2013
and 9-2014, are hereby further amended to
read as follows:
“This circular further amends BIR Forms No.
1700, 1701, and 1702, previously amended
under Revenue Memorandum Circular No.
40-2011. The amendment consists mainly
in making the disclosure of Supplemental
Information under BIR Form Nos. 1700 and
1701 optional on the part of the taxpayer
for income tax filing covering and starting
with calendar year 2014 due for filing on or
before April 15, 2015, x x x.Individual income
tax filers using Forms No. 1700 and 1701 are
however advised that for income tax filing
covering and starting with calendar year
2015, the disclosures required under the
Supplemental Information portion of the said
forms will be mandatory. Thus, the taxpayers
are advised to demand from their payors, and
properly document their BIR Form No. 2307
and other pieces of evidence for final taxes
withheld. Likewise, said taxpayers should
properly receipt and book their tax-exempt
income.”
PAGE 6
TAX DIGEST 2015
detailed guidelines shown in Annex C.
REVENUE
MEMORANDUM
CIRCULAR NO.
14-2015
SUBJECT: GUIDELINES IN THE FILING,
RECEIVING AND PROCESSING
USING THE ELECTRONIC PLATFORM
OF BIR FOR TAXABLE YEAR 2014
INCOME TAX RETURNS (ITRS)
BIR FORM NOS. 1700, 1701, 1702RT, 1702-EX AND 1702-MX, ALL
JUNE 2013 ENCS VERSION UNDER
REVENUE REGULATIONS NO. 2-2014
DATE: MARCH 30, 2015
This Circular is issued to provide guidelines
in the filing, receiving and processing, using
the Electronic Platform of BIR for 2014 ITRs
(BIR Form Nos. 1700, 1701, 1702-RT, 1702-EX
and 1702-MX), as well as define policies for
the filing of ITRs which are due on or before
April 15, 2015. This Circular does not cover
taxpayers who are not mandated to use
eFPS/eBIRForms and who have not opted
to file electronically, and thus, the existing
procedures on manual filing shall apply.
For expediency, ease and convenience in
filling-up the ITRs, all taxpayers mandated
to use eFPS and eBIRForms are advised to
use the latest version of Offline eBIRForms
Package which can be accessed from the
BIR website (www.bir.gov.ph) through the
eServiceseBIRForms link. Taxpayers using
the said package can directly encode data,
validate the entries as it can do automatic
computations, edit, save, delete, view, print
and submit their tax returns following the
steps below:
Step 1. DOWNLOAD AND INSTALL the
Offline eBIRForms Package;
Step 2. Select the form and FILL-UP by
encoding data in the ITR;
For the purpose of determining the date
when the returns are filed, it shall be the date
the original eFiling was duly submitted.
Taxpayers mandated to use eBIRForms and
file electronically who had ALREADY FILED
MANUALLY, are MANDATED TO RE-FILE
ELECTRONICALLY on or before April 15,
2015. Those who re-file electronically on or
before April 15, 2015 shall not be subject to
the P1,000.00 compromise penalty and 25%
surcharge for wrong venue.
The accompanying schedules and manual
attachments (i.e. Financial Statements,
Statement of Management Responsibility
(SMR), DVD-R with sworn declaration per RR
No. 2-2015 [BIR Form Nos. 2307/2316], etc.)
shall still be manually filed within fifteen (15)
days after the electronic filing of the return,
to the concerned LT Office/RDO where
they are registered. Together with the said
schedules and attachments, the taxpayers
shall also submit the duly accomplished
signed hardcopy of the ITR with printed email
notification received from eBIRForms facility.
The Summary Alphalist of Withholding Tax
(SAWT) using the Data Entry Module of the
BIR shall be emailed to esubmission@bir.
gov.ph. Juridical entities/corporations and
individuals enrolling online their authorized
representative need to submit to BIR a
certification authorizing a maximum of three
(3) personnel to file returns under Section
52A of the NIRC (President or Authorized
Representative and/or Treasure/Asst.
Treasurer of the Corporation). Individuals
enrolling online for themselves shall be
automatically approved without submitting
any documents to BIR.
REVENUE
MEMORANDUM
CIRCULAR NO.
10-2015
Step 3. VALIDATE after completely encoding
all necessary information. You may still
update/modify by clicking EDIT if needed,
and indicate correct entries. Then click
Validate again;
SUBJECT: FILING OF INCOME TAX
RETURNS (BIR FORM NO. 1700) OF
EMPLOYEES BELONGING TO THE
EMPLOYER IDENTIFIED AS LARGE
TAXPAYER
Step 4. Click FINAL COPY (This is not
applicable for eFPS);
DATE: MARCH 23, 2015
Step 5. SUBMIT the accomplished tax return.
An email message will be received by the
taxpayer.
Process Flow for electronic platform in Annex
A. For eFPS, follow the detailed guidelines
shown in Annex B. For eBIRForms, follow the
While the Large Taxpayer Offices of the
Bureau has limited accessibility in processing
transactions of employees of Large Taxpayer
(LT) and the existing registration records
of employees are still with the Revenue
District Office (RDO) where the LT is
physically located/situated, all RDOs are
hereby directed to accept/receive BIR Form
1700 filed by employees employed by LT.
The 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. On the other hand, 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.
Also, for taxpayers’ convenience, they are
encouraged to e-file and/or e-pay using eFPS.
However, new employess 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.
Only employees not qualified for the
substituted filing pursuant to RR 3-2002,
such as employees deriving compensation
income from two or more employers,
concurrently or successively at any time
during the taxable year; 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)
are required to file BIR Form 1700; or those
employees qualified for substituted filing
but opted to file for an ITR for purposes of
promotion (PNP/AFP), loans, foreign travel
requirements, etc.
PAGE 5
TAX DIGEST 2015
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.