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
By: Seala Marie O. Asis, CPA Filing income tax returns in Philippines is a recurring obligation of every taxpayer and made quarterly and annually for registered individuals in trade or business or practice of profession/ sole proprietorship or freelancers in Philippines (BIR Form No. 1701Q and/or 1701 ) and corporations that includes partnerships, one person corporations, resident foreign corporations, etc. (BIR Form No. 1702Q or 1702). Notably, annual ITR for corporations have made variations for regular (BIR Form No. 1702RT), exempt (BIR Form No. 1702EX), and those with incentives or mixed (BIR Form 1702MX) but this article would concentrate more on regular taxation for corporations or BIR Form No. 1702RT. Needless to say, accounting entries are more for accounting rules than for tax rules but could relate to taxpayer’s internal rules and preferences. Under this filing and payment periods, a bookkeeper in Philippines would have to make corresponding journal entries
By: Garry S. Pagaspas, CPA With the passage of Revised Corporation Code in Philippines or Republic Act No. 11232 (RA No. 11232) sometime February 2019, One Corporations Corporation (OPC) in Philippines is conceptualized to provide an additional legal structure to facilitate ease of doing business in the Philippines at par with other countries and jurisdictions. Relatively, legal provisions on One Person Corporation Philippines are found in Chapter III of Title VIII of Republic Act No. 11232 and is being implemented by SEC Memorandum Circular No. 7 series of 2019 and going through these rules, features of the One Person Corporation in Philippines could be enumerated as follows: 1. Single stockholder corporation As the name implies, this corporation is owned by a single stockholder, a natural person of legal age, trust or estate as compared to a now two (2) to fifteen (15) regular domestic corporation in Philippines under the Revised
By: Garry S. Pagaspas, CPA 1. Natural person only incorporators, majority Ph residents Under the old rules (Batas Pambansa Blg. 68 or BP 68), incorporators must be natural persons only and majority of such incorporators must be residents of the Philippines. This has been changed under the Revised Corporation Code or Republic Act No. 11232 (RA No. 11232) as incorporators of local corporation could now be natural personals and/or juridical persons – local or foreign. Philippine residency requirement is no longer required. This however, is subject to foreign investment rules for foreign ownership. Please refer to SEC MC No. 19 series of 2019 for incorporator guidelines. 2. At least five (5) natural person incorporators It takes at least five (5) to fifteen (15) natural person incorporators, majority of which are Philippine residents, to register a local domestic corporation in the past. Under the Revised Corporation Code, at least two (2)
By: Hergie Ann De Guzman (Update as of March 23, 2020) The entire Luzon was placed under Enhanced Community Quarantine as declared by President Rodrigo R. Duterte on March 16, 2020, for the prevention of the continuous spread of the Novel Corona Virus Disease (NCOV-19). While the Community Quarantine was being implemented, business owners and taxpayers are left with very limited actions for the continuance of their usual business and for the compliance of the statutory deadlines of certain returns and reports. To address these concerns, different government agencies such as Bureau of Internal Revenue (BIR), Securities and Exchange Commission (SEC), and Philippine Economic Zone Authority (PEZA) have released issuances and advisories. Below are the issuances/ advisories from each agency: Revenue Issuance Description RMC Date Date of Issuance RMC 25-2020 No Extension for the Filing and Payment of 2019 Income Tax Return March 16, 2020 March 17, 2020 RMC 26-2020
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