Bureau of Immigration (BI) 2021 Annual Report for Registered Expatriate Visa and ACR I-card Holders in Philippines

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By: Deeryl Jade Bantilan Under the Republic Act No. 562 otherwise known as Alien Registration Act of 1950, registered aliens and holders of Alien Certificate of Registration – Identification Card (ACR I-card) are required to report in person with the Bureau of Immigration (BI) in Philippines not later than within first sixty (60) days of the calendar year. On December 07, Bureau of Immigration (BI) issued an advisory requiring all Aliens with Immigrant and Non-immigrant visas to report in person to the BI Main Office at Intramuros, Manila or to the nearest participating BI field, satellite, or extension office within the first sixty (60) days of every calendar year or from January 2021 until March 2021. For aliens below fourteen (14) years old, their respective parent or legal guardian must initiate the reporting while Senior citizens and persons with disability (PWD) are exempted from personal appearance and may file through a

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7 Basic Features of Independent CPA on CTA Tax Cases Philippines

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By: Garry S. Pagaspas, CPA Court of Tax Appeals (CTA) in Philippines, under Republic Act No. 1125, as amended (e.g. by Republic Act No. 9282) is the tax court in the Philippines handling cases on disputed assessments from electronic letters of authority, tax refunds such as on excess input VAT from zero-rating in Philippines filed by the taxpayer as petitioner. Under the Revised Rules of the Court of Tax Appeals (A.M. No. 05-11-07-CTA dated 22 November 2005 or RRCTA), Rule 13 – Trial by Commissioner, appointment of Independent Certified Public Accountant is allowed, and hereunder quoted: “Rule 13 – Trial by Commissioner Section 1. Appointment of Independent Certified Public Accountant (ICPA). – A party desiring to present voluminous documents in evidence before the Court may secure the services of an independent Certified Public Accountant (CPA) at its own expense. The Court shall commission the latter as an officer of the

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8 New Notable 2020 Tax Rules in Philippines under COVID-19 Pandemic

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By: Garry S. Pagaspas, CPA. December 14, 2020 In dealing with the COVID-19 Pandemic, the Philippine legislature passed into law Republic Act No. 11469, otherwise known as “Bayanihan To Heal As One Act” and along with other matters contained therein are tax rules and implications in related dealings. Below are 10 new notable tax rules in the Philippines under COVID-19 Pandemic based on recent issuances (e.g. Revenue Regulations (RR), Revenue Memorandum Circulars (RMC), and Revenue Memorandum Orders (RMO) of the Bureau of Internal Revenue (BIR): 1. Filing extensions under various BIR issuances (RR Nos. 7/8/10/11/12-2020) With the imposition of quarantine since mid-March 2020, work in private and government offices were suspended and mobility was limited prompting the BIR to come up with issuances extending filing deadlines during quarantine. These extensions during the quarantine period cover periodic tax returns and reports filings in Philippines – monthly and quarterly; filing of time-bound

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RMC 111-2020: Clarifications on Certain Issues Relative to VAPP

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This Circular is issued to provide clarifications on the implementation of the Voluntary Assessment and Payment Program (VAPP) under Revenue Regulations (RR) No. 21-2020, to wit: Q1.        Who are qualified to avail of the VAPP? A1.         In general, all persons, natural and juridical, including estates and trusts, are  qualified to avail of the VAPP. Q2.        What is the covered period? A2.         The VAPP covers calendar year 2018 and fiscal year 2018 ending in July, August,September, October, and November 2018, as well as those ending in January, February, March, April, May and June 2019, for availments on the registered tax types of the taxpayer. For one-time transactions (ONETT) of individuals and taxpayers on a calendar year basis, the VAPP covers all transactions from January to December 2018. For taxpayers on a fiscal year basis, the covered ONETT are those within their fiscal year 2018. For example, if the fiscal

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How to Convert the 5-Person Corporation to One Person Corporation?

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By: Cecile S. Maglunob, CPA The Revised Corporation Code of the Philippines or Republic Act No. 11232 Title XIII of Chapter III allowing the conversion of the Ordinary Stock Corporation (OSC) to One Person Corporation (OPC) has sparked the interest of many business entities wanting to simplify corporate matters by adopting the OPC set-up. SEC has finally issued the guidelines on the conversion process through SEC Memorandum Circular 27-2020.  There could be a number of advantages to justify conversion of your regular 5-person corporation to OPC in the Philippines, such as simplified management having a single stockholder who is at the same time the director and the President, lesser corporate documentation as there is no need for By-laws, and could be faster decision making process as compared to a regular corporation which has to undergo a Board Meeting and in some instance, stockholders confirmation.   Below are sample steps on how

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RR No. 26-2020: Donations to Public Schools During the Pandemic

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The COVID-19 Pandemic undoubtedly affects every aspect of our daily lives – family, work, and especially the students’ means of learning. With the school opening suspended last June, there has been a significant delay in their studies. Finally, this October, classes reopened but in a different setting and mode – the classes went virtual or online. The online classes, I might say, is not for everyone especially to those who cannot afford to purchase the necessary gadgets for this platform. Another thing is not every school is fully equipped with the proper learning materials and technology. Good thing that there are kindhearted individuals and institutions who are donating for the schools. But how can the government repay for this generosity? BIR issued Revenue Regulations (RR) No. 26-2020 to implement Section 4 (zzz) of Republic Act (RA) No. 11494 or the Bayanihan to Recover as One Act. Under the RR,  all

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How to File BIR Form 2550Q (Quarterly VAT Return)?

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VAT Compliance includes filing the monthly and quarterly using BIR Form 2550M and 2550Q, respectively.

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How to File BIR Form 1709?

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By: Hergie Ann De Guzman, CPA With the release of the Revenue Regulations No. 19-2020, prescribing the use of the BIR Form 1709 or the Information Return on Transactions with Related Party, taxpayers are now faced with an additional report to their list of annual compliance requirements. To guide you with the filing of the said return, we have summarized below the details needed which may help you with filling-out the return. How to File? The following details are needed in filing the BIR Form 1709: Accounting Year-end (Calendar or Fiscal) Year ended – the reporting year (e.g. 2020) Number of Sheets Attached – number of pages of the attachments Part I – Background Information Tax Identification Number (TIN) RDO Code Taxpayer’s Name Registered Address Contact Number Email Address Part II – Summary of Related Party Transactions A. Foreign Related Party Transactions Particulars Remarks Required Attachments Nature of Transaction/Related Account

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RMC 98-20: Extension of BIR Form 1709

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By: Hergie Ann De Guzman, CPA Bureau of Internal Revenue (BIR) issued on September 15, 2020 Revenue Memorandum Circular (RMC) No. 98-2020 to extend the deadline for compliance of the filing of BIR Form 1709 or the Related Party Transaction (RPT) Form, together with its attachments. The compliance is hereby extended as follows: Fiscal Year End Extended Deadline For Fiscal Year Ending March 31, 2020 and April 30, 2020 December 29, 2020 For Fiscal Year Ending May 31, 2020 and June 30, 2020 January 31, 2021 For Fiscal Year Ending July 31, 2020 and August 31, 2020 March 1, 2021 For Fiscal Year Ending September 30, 2020 and October 31 March 31, 2021 For Fiscal Year Ending November 30, 2020 and Calendar Year Ending December 31, 2020  April 30, 2021 To know more about BIR Form 1709 compliance, you may check our previous articles as follows: Revenue Regulations No. 19-2020:

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RR 21-20: Voluntary Assessment and Payment Program (VAPP)

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By: Hergie Ann De Guzman, CPA The Bureau of Internal Revenue (BIR) issued Revenue Regulations (RR) No. 21-2020 on September 4, 2020 to prescribe the guidelines on the implementation of the Voluntary Assessment and Payment Program (VAPP). What is VAPP? VAPP is one of the programs implemented by the BIR to provide funding for the needs of the Government during the current COVID-19 Pandemic. With the name itself, it is a scheme where taxpayers are encouraged to voluntarily pay taxes. The program is crafted to benefit both the taxpayers and the BIR. Taxpayers who will avail of the VAPP will be given the privilege of “no audit” for the year whereas the BIR will significantly reduce its administrative costs due to decrease in audit. BIR is expecting for a successful implementation and outcome of this program as it can significantly help our Government cope up with the negative economic effects

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