Tax Notes

Suspending the requirement for permit to use computerized accounting systems, books of a.....

THE Bureau of Internal Revenue (BIR) recently issued Revenue Memorandum Circular (RMC) 10-2020, suspending the issuance of a permit to use (PTU) computerized accounting systems (CAS), computerized books of accounts (CBA) and/or components thereof, as provided under Revenue Memorandum Order (RMO) 21-2000, which is amended by RMO 29-2002.

Taxpayers with pending permit applications, but have demonstrated their systems, filed with the National Accreditation Board, and were assigned to the Technical Working Group for evaluation, are now allowed to use such CAS, CBA and/or its components, even without a permit.

In lieu of the permit, the TWG Secretariat of the taxpayer’s Revenue District Office (RDO) shall issue an acknowledgement certificate within three days of the taxpayer’s submission of the following documents:

1. Accomplished and notarized Sworn Statement with attached summary of system description, commercial invoice/receipts/document description, forms/records and reports specification, executed and signed by the taxpayer’s authorized representative, including the special power of attorney, board resolution or secretary’s certificate stating such authority. Templates of the Sworn Statement and Summary are annexed to the RMO 29-2002.

2. Sample print copy of system-generated principal and supplementary receipts/invoices, as defined under Section 2 of Revenue Regulations (RR) 18-2012, showing compliance with RR 16-2018, if applicable; and

3. Sample print copy of system-generated books of accounts such as, but not limited to, general journal, general ledger, sales journal, purchase journal, inventory book, cash receipts book and cash disbursements book reflecting the mandatory fields stated in RR 9-2009, if applicable.

The acknowledgment certificate must be issued with a control number, which shall be reflected on the face of the principal and/or supplementary receipts/invoices to be generated from the systems.

All CAS, CBA and/or components used without a permit shall be subject to post-evaluation, which may be done simultaneously with the audit of the taxpayer pursuant to a Letter of Authority.

If there is any system enhancement/modification and/or upgrades of CAS, CBA and/or components, a matrix showing the comparative changes between the current and upgraded system shall be submitted with a letter notification to the TWG Secretariat of the taxpayer’s RDO/Large Taxpayers Office.

The requirement to secure a permit to use loose-leaf books of accounts/receipts/invoices is not covered by this suspension. Thus, taxpayers opting to use loose-leaf books of accounts should still secure the required permit.

Please be guided accordingly.

Source: P&A Grant Thornton

Certified Public Accountants

 

As published in SunStar Cebu, dated 18 February 2020