Revenue Regulation 16-2008 as amended by
Revenue Regulation 2-2010
1.
Individuals:
Resident Citizen
ii. Non-resident Citizens
iii. Resident Alien
iv. Taxable estates and trusts
i.
1.
Corporation:
Domestic Corporation
ii. Resident foreign corporation
i.
For individual taxpayers:
40% of GROSS SALES OR GROSS RECEIPTS
For Corporation:
40% of GROSS INCOME
For trading & manufacturing concern:
Invoice cost;
Import duties;
Freight-in; and
Insurance while the goods are in transit.
For manufacturing concern:
Raw materials used;
Direct labor;
Manufacturing overhead;
Freight cost;
Insurance; and
Other costs.
For sellers of services:
All direct costs and expenses necessarily incurred
to provide the services including:
▪ Salaries & employees benefits of personnel, consultants
and specialists; and
▪ Cost of facilities directly utilized in providing the service
such as depreciation or rental of equipment used and
cost of supplies.
* Interest expense not allowed as deduction from gross receipts except
in the case of banks and other financial institutions.
Pursuant to Sec. 26 of the Code, a GPP is not
subject to income tax. However, the partners
shall be liable to pay income tax on their
separate and individual capacities for their
respective distributive share in the net
income of the GPP.
For the purposes of computing the
distributive share of the partners, the net
income of the GPP shall be computed in the
same manner as a corporation. As such a
GPP may claim either itemized deduction or
OSD.
The net income determined by either
claiming itemized deduction or OSD from
GPP’s gross income is the distributable net
income from which the share of each partner
is to be determined. Each partner shall report
as gross income his distributive share,
actually or constructively received, in the net
income of the partnership.
The following shall govern the claim of the partners of
deductions from their share in the net income of
partnership, viz:
1.
If the GPP availed of the itemized deduction in computing
its net income, the partners may still claim itemized
deductions from the said share. However, the partners
cannot avail of OSD.
2.
If the GPP avails of OSD in computing its net income, the
partners comprising it can no longer claim further
deduction from their share in the said net income.
3.
Since one-layer of income tax is imposed on
the income of the GPP and the individual
partners where the law had placed the
statutory incidence of tax in the hands of the
latter, the type of deduction chosen by the
GPP must be the same type of deduction
that can be availed of by the partners.
If the partner also derives other gross income
from trade, business or profession apart and
distinct from his share in the net income of
the GPP who opts for the OSD, the individual
partner may still claim OSD but not to include
his share from the net income of the GPP.
A taxpayer who elected to avail of the OSD:
Shall signify in his/its return such intention,
otherwise he/it shall be considered as having
availed himself of the itemized deduction.
Once the election to avail of the OSD or
itemized deduction signified in the return, it
shall be irrevocable for the taxable year.
The election to claim either OSD or the itemized
deduction for the taxable year must be signified
by checking the appropriate box in the income
tax return filed for the first quarter of the
taxable year.
Once the election is made, the same type of
deduction must be consistently applied for all
the succeeding quarterly returns and in the
final income tax return for the taxable year.
A taxpayer who fails to an income tax return
for the first quarter of the taxable year, shall
have to claim itemized deductions for the rest
of the year.
An individual taxpayer who is entitled to and
claimed OSD shall not be required to submit
with his tax return such financial
statements otherwise required under the
Code.
End of presentation
Revenue Regulation 12-2011
These Regulations are hereby promulgated to
ensure that all owners or sub-lessors deal only
with BIR-registered taxpayers, to establish the
procedure for the submission of essential
information by the owners of commercial
establishments/buildings/spaces, and to impose
the appropriate sanctions to ensure observance
and compliance thereof.
It shall be the primary responsibility of all
owners
or
sub-lessors
of
commercial/buildings/spaces to ensure that
the person intending to lease their
commercial space is a BIR- registered
taxpayer.
* A BIR-registered taxpayer should have TIN, a BIR
Certificate of Registration and duly registered receipts,
sales or commercial invoice.
Every 31st of January of the CY (for tenants as
of Dec. 31st of the previous year) and 31st of
July of the CY (for tenants as of June 30th of
the CY), all owners or sub-lessors who are
leasing or renting out such commercial space
to any person doing business therein are
hereby required to submit to the BIR Revenue
District Office (RDO) the following
information, under oath, in hard and soft
copies:
Building / space layout of the entire area being
leased with proper unit/space address or
reference;
Certified True Copy of the Contract of Lease per
tenant; and
The lesee Information Statement shall be
presented in the prescribed format, as follows:
(Using excel format: printed copy & soft copy
stored in a CD-R)
Lessee Information Statement (for initial Filing):
Name of owner/Lessor_____________________________________ TIN: ____________________________
Address:_________________________________________________________________________________
Tenant’s Profile
As of {June 30, _______} or { Dec. 31, ________}
Location of Building/Space for commercial lease:________________________________________________
Location
Flr/Unit #
Name of Total Leased Monthly Start of
Tenant
Area
Rental
Lease
Duration
/Period of
BIR-Registration Profile
TIN No. Authority to POS/CRM
Permit No.*
Print No.
* For taxpayers also using Point of Sale (POS) / Cash Register Machine (CRM) in dispensing receipts.
Lessee Information Statement (for Subsequent Filing):
Name of owner/Lessor_____________________________________ TIN: ____________________________
Address:_________________________________________________________________________________
Tenant’s Profile
For the period {January 1, ___ to June 30,____} or { July 1, ____ to Dec. 31, _____}
Location of Building/Space for commercial lease:________________________________________________
i. NEW TENANTS
Location
Flr/Unit #
Name of Total Leased
Tenant
Area
Monthly Start of
Rental
Lease
Duration
/Period of
BIR-Registration Profile
TIN No. Authority to POS/CRM
Print No.
Permit No.*
* For taxpayers also using Point of Sale (POS) / Cash Register Machine (CRM) in dispensing receipts.
ii. Terminated Tenants
Location
Flr. / Unit #
Name of Tenant
TIN
Total Leased Area
Date of lease ended
* Lessors may seek assitance with the Revenue District
Officer to verify the correctness of TIN submitted by their
tenants.
The first filing of tenants profile will cover tenants as of
July 31, 2011. All owners/ sub- lessors are required to
comply with these regulations by submitting the ff.
Documents on or before September 1, 2011:
Building / space layout of the entire area being leased with
proper unit/space address or reference;
Certified True Copy of the Contract of Lease per tenant;
and
The lesee Information Statement shall be presented in the
prescribed format, as follows: (Using excel format:
printed copy & soft copy stored in a CD-R)
Name of owner/Lessor_____________________________________ TIN:
____________________________
Address:_____________________________________________________________________________
____
Tenant’s Profile
As of July 31, 2011
Location of Building/Space for commercial
lease:______________________________________________
Location Name of Total Leased
Flr/Unit # Tenant
Area
POS/CRM
Monthly Start of
Rental
Lease
Duration
/Period of
BIR-Registration Profile
TIN No. Authority to
Print No.
Permit No.*
* For taxpayers also using Point of Sale (POS) / Cash Register Machine (CRM) in dispensing receipts.
END OF
PRESENTATION