Prepared by: Hergie Anne C. De Guzman, CPA Bureau of Internal Revenue (BIR) released Revenue Memorandum Circular (RMC) No. 79-2020 on August 6, 2020 setting guidelines for the filing of returns and payment of taxes during the Modified Enhanced Community Quarantine (MECQ) re-implemented for the period covering August 4 to 18, 2020. BIR further issued another RMC, RMC No. 80-2020, amending the covered RDOs. Who are covered? All taxpayers under the jurisdiction of the following Revenue District Offices (RDOs): RDO Nos. 24 to 34 and, RDO Nos. 38 to 57 Guidelines Out-of-district payments of tax returns are allowed. Filing and payment of tax returns may be done in the Revenue Collection Officers (RCOs) of the nearest RDO, even in areas where there are Authorized Agent Banks (AABs). Note: In case of payment in RCOs, Cash payment of taxes shall not exceed PhP20,000.00 Check payment of taxes shall have no limit.
By: Hergie Ann De Guzman The issuance of Revenue Regulations (RR) No. 19-2020 last month created clamor among taxpayers on how they will comply with the BIR Form 1709 or the Related Party Transaction (RPT) Form. To answer the questions of the taxpayers, BIR issued this RMC. Listed below are the highlight discussions in the RMC: Who will need to submit BIR Form 1709? All PH taxpayers, either individual or non-individual (including non-stock non-profit organizations for the activities conducted for profit) with related party transactions (RPTs) shall complete and submit BIR Form 1709. Effectivity of the reporting requirement Basically, BIR Form 1709 is a new attachment in the Annual Income Tax Returns of those with RPTs. The first set of taxpayers to comply with the new reporting are those taxpayers with fiscal year ended March 31, 2020. With this, the deadline for the submission of the RPT Form, together with
By: Garry S. Pagaspas, CPA Philippine manpower is one great economic contributor and no wonder business process outsourcing (BPO) industry is performing well. Notably, a business process outsourcing in the Philippines can be owned 100% by foreign investors provided they export at least 60% of its output to clients/ customers outside Philippines or should they intend to register with Philippine Economic Zone Authority (PEZA) for non-fiscal and fiscal incentives such as income tax holiday (ITH) and/or 5% gross income taxation, they would need to export at least 70% of its output. This allowed foreign ownership explains why business process outsourcing entities in the Philippines could be registered with he Securities and Exchange Commission (SEC) under the Revised Corporation Code (RCC) in a number of legal entities fully owned or controlled by foreign investors, e.g. one-person corporation with foreign investor as single stockholder, Philippine subsidiary, Philippine branch, and regional operating headquarters
By: Deeryl Jade L. Bantilan As the Philippines continues to fight against the COVID-19 pandemic, many organizations and companies may not manage to survive and be forced to cease business operations due severe economic implications of COVID-19. While the government is launching programs and subsidies for these companies and businesses, the magnitude of the impact may have really hard times for them to recover. Accordingly, in this article, let me share insights on some ways to keep employees and business operations amid COVID-19 in Philippines through some labor cost saving devices under existing labor laws, rules, and regulations being implemented by the Department of Labor and Employment (DOLE) and other related agencies. Manpower Reduction The Labor Code of the Philippines recognizes employment dismissal, upon compliance with the substantive and procedural requirements, for authorized causes such as temporary retrenchment or lay-off, redundancy, or closure and cessation of business in order for
REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE REVENUE REGULATIONS NO. 19-2020 dated July 8, 2020 SUBJECT: New BIR Form No. 1709, Replacing Form No. 1702H, Series of 1992 TO: All Internal Revenue Officers and Others Concerned ______________________________________________________________________________ Section 1. Objective Pursuant to Sections 244 and 6(H) of the National Internal Revenue Code of 1997 (“NIRC”), as amended in relation to Section 50 thereof of which was implemented by Revenue Regulations (RR) No. 2-2013, this Revenue Regulations is issued to prescribe the use of the new BIR form No. 1709 or Information Return on Related Party Transactions (Domestic and/or Foreign) (Annex “A”), replacing for this purpose BIR Form 1702H – Information Return on Transactions with Related Foreign Persons, series of 1992. Section 2. Background Through the years, transactions around the world have become more complex and have been subject to abuse by taxpayers with intent to
By: Cecile Maglunob, CPA In this modern world, almost everything is online and Covid-19 seems to highlight this fact as it shaken almost all types of professions globally. Here in the Philippines, many professional practitioners are still in adjustment phase of re-navigating their practice to adopt and survive on the paradigm shift brought by the pandemic. We ourselves are racing for changing our processes and procedures to ensure we keep our wheels running despite the abrupt changes to the business models of the current times. As we move forward in our practice, we feel the need for sharing the advantages of having your own professional website to create a more long -term path. The five points below are not absolute and were just based on our personal experiences as we personally manage our own website for our practice. 1. Global visibility of your profile Business cards for professionals is a
By: Garry S. Pagaspas, CPA Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular No. 60-2020 (RMC No. 60-2020) dated June 1, 2020 entitled “Obligations of Persons Conducting Business transactions Through Any Forms of Electronic Media, and Notice to Unregistered Businesses.” Under RMC No. 60-2020 in Philippines gives due notice to all persons doing business and earning income in any manner or form, specifically those in the digital transactions through the use of any electronic platforms and media, and other digital means to register such business and comply with applicable tax regulations. For reference on registration, RMC No. 60-2020 in Philippines provides basic guidelines and all those online sellers in Philippines who will register their business activity and/ or update their registration status not later than July 31, 2020 ( further extended to September 30, 2020 by RMC 92-20), shall not be penalized for late registration. Within the same period
By: TaxAcctgCenter Ph Bureau of Internal Revenue issued Revenue Memorandum Circular No. 57-2020 (RMC No. 57-2020) dated march 12, 2020 entitled “Streamlining of Business Registration Requirements and Revised Checklist of Documentary Requirements”. Under RMC No. 57-2020 in Philippines, Mayor’s Permit is no longer required as one of the mandatory requirements for BIR registration of taxpayers in Philippines the way it was when the BIR Citizen’s Charter 2019 was published on BIR website. BIR likewise provide for revised checklist of documentary requirements for business registration and other types of applications in the attached Annex “A1-A11” of RMC No. 57-2020 such as on the following applications for registrations: Self-employed individuals, estates and trusts: Corporations and Partnerships; Cooperatives, Associations, GAIs, LGUs, etc.; Branch/ Facility; Employees – local and foreign; One-time T.I.N. under E.O. 398 – local and foreign (individuals and corporations); Under One Time Transactions (ONETT); Books of Accounts; Permit to Use Manual
By: Marie Joy B. Crebillo Among the efforts of Philippine government to attract more investors to invest in the Philippines is the passage of the Revised Corporation Code (Republic Act No. 11232) to ease the process of doing business in Philippines. One of the highlights of the Revised Corporation Code of the Philippines was creation of a legal entity in Philippines, corporation with a single stockholder or also known as the One Person Corporation (OPC) provided under Title III, Chapter III of the Revised Corporation Code Philippines and implemented by SEC Memorandum Circular No. 7 series of 2019. To learn more about the OPC in Philippines, you may read our other article on Features of OPC in Philippines. When OPC registration started, our team has already processed and secured an approval for one of our clients under manual processing. Good thing now because SEC has already provided for an online
By: Azalea Fayugenia T. Chimmin, CPA Filing of Income Tax Return (ITR) is a must for everyone, individual and corporate persons, earning income in the Philippines and they are generally classified into two groups – individual taxpayers and corporate taxpayers in Philippines. We discuss below the four basic key points you need to know in filing the correct 2019 Annual ITR in the Philippines. 1. What BIR 2019 ITR Form in Philippines and version to use There are six (6) Annual ITR Forms in the Philippines and it is important that the taxpayers should be fully aware which annual ITR form to use depending on source of income, method of deduction, and/or taxability such as the following: Individual taxpayers Philippines: BIR Form 1700 – This form is for individual taxpayers earning purely compensation income from an employer-employee relationship. BIR Form 1701A – This form is for individual taxpayers earning income
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