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 eServiceseBIRForms 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 [email protected] 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: [email protected] 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: [email protected] 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: [email protected] 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: [email protected] 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.