Tax Filing Reminders - PICPA

1 PHILIPPINE INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS. sponsored by OUTLINE. Committee on Legislation and Taxation SEMINAR on I. Time, Place and Manner of Filing of Tax Updates and Court Decisions . Holiday Inn & Suites Makati Annual ITR and Audited FS. March 4, 2016. II. Payment of Income Tax III. Attachments to Annual ITR. IV. Financial Statements Tax Filing Reminders V. Computation of Income Tax ATTY. LUIS JOSE P. FERRER, CPA. Partner, Business Tax Services VI. Others Page 2 Year-end Tips and Reminders T i m e Of F i l i n g The Annual Income Tax Return ( ITR ) shall be filed on or before April 15, or on or before the 15th day of the 4th month following the close of the fiscal year, as the case may be. No extension on ITR Filing is allowed.

2 I. Time, Place and Manner of Filing of Late Filing of ITR will be subject to a 25% surcharge, Annual ITR and Audited FS 20% interest per annum and compromise penalty. Page 3 Year-end Tips and Reminders Page 4 Year-end Tips and Reminders 1. Signatory of the ITR Where to File the ITR and Pay the Tax GENERAL RULES: For Individuals: The taxpayer himself No Payment: File the ITR with the Revenue District Office (RDO) / BIR. For Corporations: office where registered as taxpayer. President Vice-President or With Payment: Other principal officer File the ITR with the BIR authorized agent bank ( AAB ). The ITR shall be sworn by such officer and by the having jurisdiction over the location of the principal office of treasurer or assistant treasurer the corporation.

3 [Section 52(A), Tax Code]. If there are no AABs, file the ITR with the Collection Agent Accredited tax agent or duly authorized Treasurer of the city or municipality having jurisdiction over the principal office of the Corporation. Page 5 Year-end Tips and Reminders Page 6 Year-end Tips and Reminders Electronic Filing and Payment System (eFPS) Electronic Filing & Payment System (eFPS). eFPS is a system which allows taxpayers to directly Taxpayers required to file ITR and pay the tax through eFPS: encode, submit their tax returns and pay their taxes due Large taxpayers online over the internet through the BIR website. All government bidders Corporations with paid-up capital stock of P10 million Corporations with complete computerized system Top 20,000 private corporations Top 5,000 individual taxpayers Enterprises enjoying fiscal incentives granted by government agencies under special laws (RA 7916, EO 226, RA 9400.)

4 Other zone authorities). Page 7 Year-end Tips and Reminders Page 8 Year-end Tips and Reminders 2. Electronic Filing and Payment System (eFPS) Time of Payment in case of eFPS Filing E-payments shall be made within the day the return eFPS is also mandatory for taxpayers included in the is electronically filed following the pay-as-you-file . Taxpayer Account Management Program, including principle. [RR No. 09-02]. prospective importers required to secure the Importer Clearance Certificates and Customs Broker The Filing of the return ahead of the payment of the tax Clearance Certificates (Revenue Regulations No. 10- due is in accordance with the pay-as-you-file . 2014 dated December 10, 2014). principle as long as the payment of the tax is made on or before the due date of the applicable tax.

5 [RR No. 09-02]. Page 9 Year-end Tips and Reminders Page 10 Year-end Tips and Reminders Electronic BIR Forms for Non-Large Taxpayers Electronic BIR Forms Mandatory Use of Electronic BIR Forms (eBIRF orms). Revenue Memorandum Circular No. 61-2012 dated October 12, 2012 Revenue Regulations (RR) No. 6-2014 (September 5, 2014), Authorize the use of Electronic Bureau of Internal Revenue Forms as amended by RR No. 5-2015 (March 17, 2015). (eBIR Forms) Packages on a pilot basis in Metro Manila starting October 16, 2012. Mandatory Coverage: Non-eFPS filers enumerated below are required to use eBIRF orms on all 36 enumerated returns (including the ITR) to be filed on September Revenue Memorandum Order No. 24-2013 dated 1, 2014 or after: September 11, 2013 Accredited tax agents/practitioners and all its client-taxpayers Prescribing the Guidelines, Policies, and Procedures on Accredited printers of principal and supplementary receipts/invoices One-Time Transaction taxpayers the Use of eBIRF orms in Relation to RMC No.

6 61-2012 Those who shall file a No-Payment return Government-owned or controlled corporations Local government units (LGUs), except barangays Cooperative registered with National Electrification Administration and Local Water Utilities Administration Page 11 Year-end Tips and Reminders Page 12 Year-end Tips and Reminders 3. Electronic BIR Forms Electronic BIR Forms RR No. 6-2014, as amended by RR No. 5-2015 RR No. 6-2014, as amended by RR No. 5-2015. Two (2) types of electronic services (e-Services) provided by the The eBIRF orms are available to all filers with or without Internet Bureau relative to the preparation, generation, and submission of tax access. Taxpayers with Internet can download the eBIRF orms returns: Package from the BIR website, while taxpayers without internet can download the eBIRF orms Package from the BIR e-lounges.

7 A. Offline eBIRF orms Package: software that allows the taxpayer and Accredited Tax Agent (ATA) to accomplish or fill up tax forms offline; Those covered by these regulations are required to electronically and submit and file their tax returns. a. Online eBIRF orms System: is a Filing infrastructure that accepts tax Upon successful validation of the accomplished tax return, taxpayer returns submitted online and automatically computes penalties for shall receive a system-generated notification email tax returns submitted beyond due date. acknowledging successful Filing of the return. Taxpayer should print the Filing Reference (FRN) page and submit this to AABs for the payment of the tax. Page 13 Year-end Tips and Reminders Page 14 Year-end Tips and Reminders Electronic BIR Forms Electronic BIR Forms RR No.

8 6-2014, as amended by RR No. 5-2015 RMC No. 58-2015: Availability of Electronic eBIRF orms Package Version Penalties for failure to comply with the regulations: Penalty of P1,000 per return pursuant to Section 250 of the Tax The eBIRF orms Package Version is now available and Code downloadable from any of the following sites: Civil penalty of 25% of the tax due, for Filing a return in a manner 1. ;. not in compliance with existing regulations, thus, tantamount to 2. ;. wrong venue Filing ; and 3. Dropbox link: ;. Inclusion in priority audit program of Revenue District Offices 4. Direct link: ;. 5. Page 15 Year-end Tips and Reminders Page 16 Year-end Tips and Reminders 4. Electronic BIR Forms eFPS Filing RMC No. 58-2015: Availability of Electronic eBIRF orms General Rule: Package Version Taxpayers who shall avail of eFPS shall submit their Audited The new eBIRF orms package has the following modifications: FS, Certificates of Withholding Tax (CWT) (in DVD-R), Tax A.

9 BIR Form No. 1707-A (Annual Capital Gains Tax Return for Onerous Debit Memo (TDM) utilized in the payment of taxes, if any, to Transfer of Shares of Stock Not Traded Through the Local Stock Exchange) is included in the package and thirty seven (37) returns are the RDO or LTS (LTAD) or LTDO where they are now available in eBIRF orms; registered within 15 days from date of Filing of the ITR. B. BIR Form Nos. 1601E, 1702-MX and 2000 were enhanced; and (RMO No. 05-02; RR No. 02-2015). C. Annual Income Tax Returns (BIR Form Nos. 1700, 1701, 1702-EX, 1702-MX & 1702-RT) can now be submitted online thru the eBIR Forms System. All the thirty seven (37) tax returns can be filed by clicking the SUBMIT or FINAL COPY button and the taxpayer will receive the corresponding confirmation thru email notification.

10 Page 17 Year-end Tips and Reminders Page 18 Year-end Tips and Reminders eFPS Filing Where to File the ITR and Pay the Tax RR No. 02-2015 dated December 17, 2014: In lieu of the Large Taxpayer/ eFPS Taxpayer submission of hard copies of Certificate of Creditable tax Withheld at Source (BIR Form No. 2307) as attachment to the The Annual ITR shall be e-filed and the tax e-paid using the Summary Alphalist of Withholding Agents of Income eFPS facilities thru Payments Subjected to Creditable Withholding Taxes (SAWT). (which is an ITR attachment), the taxpayer shall submit: Non-Large Taxpayer/ eBIRF orms taxpayer The Annual ITR shall be filed with the authorized agent scanned copies of the certificates, stored using PDF file format bank ( AAB ) having jurisdiction over the location of the in a Digital Versatile Disk-Recordable (DVD-R), principal office of the corporation.