New 2013 Income Tax Returns – ITR Philippines

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By: Tax and Accounting Center Philippines Few months prior to the last day of filing calendar year annual income tax return for taxable year 2013, the Bureau of Internal Revenue (BIR) issued Revenue Regulations No. 2-2014 dated 24 January 2014 entitled “New Income Tax Forms”. New Annual Income Tax Returns Philippines Starting the taxable year 2013, the following new income tax returns in the Philippines shall be used by those taxpayers who are mandatorily required to file annual income tax returns, and those not required to file but opted to file the same: 1. Individual Income Tax Returns Philippines BIR Form No. 1700 version June 2013 – Annual income tax return for individuals earning purely compensation income; and, BIR Form No. 1701 version June 2013 – Annual income tax returns for Self-employed individuals, estates, and trusts. 2. Corporate Income Tax Returns Philippines BIR Form No. 1702-RT version June 2013 –

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2014 Filing of Audited Financial Statements with SEC Philippines

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By: Tax and Accounting Center Philippines For corporations and companies in the Philippines, filing of the audited financial statements with the Securities and Exchange Commission (SEC) for calendar year ending December 31, 2013 is past approaching. As such, we would wish to share some matters related to the filing of the audited financial statements with the SEC for reference and guidance as follows: When to file audited financial statements with SEC? Under SEC Circular number 16 series of 2013 dated 13 September 2013, the SEC prescribed the 2014 filing of the 2013 audited financial statements.  All corporations, including Philippines branch offices, representative offices, regional headquarters, and regional operating headquarters of foreign corporations that file their audited financial statements at the SEC Head office or at SEC Extension Offices in Davao, Cebu, Ilo-ilo and Baguio shall file their 2013 audited financial statements based on the last digit of its SEC registration

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Van and Car for Rent Philippines

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By:  Pagaspas Mini Transport  Summer time is upcoming and timely for company outing, group outing, family outing or reunion, and barkada tripping.  Going through public transportation is less costly but may not be convenient as to time and space. Cars or vans for rent in the Philippines is a good choice for the luxury of time and convenience of space. Plan your target venue for summer fun or out-of-town trip, get your head count, and choose the appropriate unit for your trip! The more the merrier and the cheaper for more pockets will share! Hereunder are our available units under car or van for hire Philippines for routes with chauffeur or driver within Metro Manila, Baguio, La-Union, Isabela, Ilocos, Laguna, Batangas, Bicol, and other parts of the Philippines! 1. Toyota Hi-Ace Commuter 2014 Model – Diesel Philippines Capacity: 14 seater plus driver Color: White Track record: Tacloban City after Yolanda,

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Requirements for BIR Tax Exemption of Non-stock, Non-profit in Philippines

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By: Tax and Accounting Center Philippines Under Revenue Memorandum Order No. 20-2013 (RMO 20-2013) dated July 22, 2013 entitled “Prescribing the Policies and Guidelines in the Issuance of Tax Exemption Rulings to Qualified Non-Stock, Non-profit Corporations and Associations under Section 30 of the National Internal Revenue Code of 1997, as amended”, non-stock, non-profit corporations are required to secure BIR Tax Exemption Ruling. Hereunder are the general requirements for the application for BIR Tax Exemption Ruling: Application Letter for Tax Exemption citing the particular paragraph under Section 30 of the National Internal Revenue Code, as amended (NIRC) as basis for the tax exemption; Certified True Copy of the latest Articles of Incorporation and By-Laws issued by the Securities and Exchange Commission (SEC); Certification under oath by an Executive Officer of the Company as to: (i) all previous amendments/changes in the Articles of Incorporation and by-laws, (ii) Manner of activities, and (iii) the

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Value Added Tax Zero-rating on Sale of Services Philippines

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By: Tax and Accounting Center Philippines As a rule, gross receipts from services rendered in the Philippines by a value added tax (VAT) registered or registrable seller is subject to 12% value added tax (VAT).  Such 12% value added tax in the Philippines is passed on by the seller to the buyer of service in the Philippines. On the part of the VAT registered buyer, such passed on 12% value added tax could be treated as creditable input tax that it could deduct its value added tax on its monthly and quarterly sales made. However, the value added tax system in the Philippines provides for the zero-rated sales of services. Under zero-rated (0% VAT) sales rule, the seller does not impose the 12% value added tax in the Philippines to the buyer who is within the Philippines or abroad. On the part of the VAT-registered seller, it could make use

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BIR Tax Exemption of Non-stock, Non-Profit Corporations Philippines

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By: Garry S. Pagaspas Once again, the Bureau of Internal Revenue (BIR) has been under fire lately with the issuance of the  Revenue Memorandum Order No. 20-2013 (RMO 20-2013) dated July 22, 2013 entitled “Prescribing the Policies and Guidelines in the Issuance of Tax Exemption Rulings to Qualified Non-Stock, Non-profit Corporations and Associations under Section 30 of the National Internal Revenue Code of 1997, as amended”. Let us try to discuss the features of this new Revenue Memorandum Order No. 20-2013 (RMO 20-2013) and see for ourselves the new rules for BIR tax exemption of non-stock, non-profit corporations in the Philippines. Only qualified corporations or associations will be exempted  Under RMO 20-2013, only corporations or corporations that are duly qualified under Section 30 of the tax Code, as amended, shall be issued Tax Exemption Rulings. Corporations or associations which apply for tax exemption ruling under Section 30(E) of the Tax Code,

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Value Added Tax Zero Rating on Goods and Properties Philippines

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By: Tax and Accounting Center Philippines As a rule, sale of goods or properties in the Philippines by a value added tax (VAT) registered or registrable seller is subject to 12% value added tax (VAT).  Such 12% value added tax in the Philippines is passed on by the seller to the buyer on every sale of goods or properties. On the part of the VAT registered buyer, such passed on 12% value added tax could be treated as creditable input tax that it could deduct its value added tax on its monthly and quarterly sales made. However, the value added tax system in the Philippines provides for the zero-rated sales of goods or properties. Under zero-rated (0% VAT) sales rule, the seller does not impose the 12% value added tax in the Philippines  to the buyer who is within the Philippines or abroad. On the part of the VAT-registered seller,

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2014 AFA-PICPA Accountancy and Tax Conference – Cebu Philippines

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By: Tax and Accounting Center In an effort to harmonize with internationalized accounting practice, the Philippine Institute of Certified Public Accountants (PICPA) joined hands with ASEAN Federation of Accountants (AFA) for the “2014 AFA-PICPA Accountancy and Tax Conference” under theme, “ASEAN Integration 2015:Rising the Challenge” held in last January 24-25, 2014 at Cebu City, Philippines and hosted by PICPA-Cebu City Chapter. Tax and Accounting Center Philippines has supported and participated such event by sending its executive, Jobelle Mendoza, CPA along with its resource speakers and partners with Gimena Pagaspas Partners & Co. CPAs – Garry S. Pagaspas, CPA and Wilson John Gimena, CPA. The two-day event was a success for local and foreign participants participants and the AFA-PICPA for it clearly sent its message on the ASEAN integration, the challenges on the practice of profession in the ASEAN region, and the opportunities within the ASEAN region. The first day concentrated on

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Electronic Alphalist of Employees and Payees in Philippines

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By: Garry S. Pagaspas In another effort to enhance tax compliance in the Philippines, the Bureau of Internal Revenue (BIR) issued Revenue Regulations No. 1-2014 dated December 17, 2013 on submission of alphabetical list or alphalist of employees and list of payees on income payments subject to withholding taxes in the Philippines. Amendment to Revenue Regulations No. 2-98 Revenue Regulations No. 1-2014 (RR No. 1-2014) was issued to amend Revenue Regulations No. 2-98, as last amended by Revenue Regulations No. 10-2008 on submission of alphabetical list or alphalist of employees and list of payees on income payments subject to withholding taxes in the Philippines. Specifically, RR No. 1-2014 amended Section 2.83.3 of Revenue Regulations No. 2-98 on requirements for the list of payees. Mandatory Electronic Submission  Under RR No. 1-2014, all withholding agents (regardless of the number of employees and payees, and whether employees or payees are exempt or not) are

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Components of Audited Financial Statements in Philippines

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By: Garry Pagaspas, CPA For a simple layman or average entrepreneur, financial statement is just a simple document that needs to be signed by a certified public accountant in the Philippines and needs to be attached to the annual income tax return. On a technical sense, they, are not just simple documents, but a sacred report or statement about the business that is being looked upon by related government authorities as a serious requirement upon business establishment. Under the present rules, audited financial statement in the Philippines is something that business owners, entrepreneurs, company officers, and corporate board members or trustees should give due regard. Securities and Exchange Commission (SEC) is now looking into the details of the audited financial statements in the Philippines to determine extent of compliance with accounting rules, e.g. Philippine Financial Reporting Standards (PFRS). Bureau of Internal Revenue (BIR) is likewise looking at the audited financial

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