article banner
Tax Notes

Terminating the submission of semestral list of regular suppliers

THE Bureau of Internal Revenue (BIR) recently issued Revenue Memorandum Circular (RMC) 122-2019, further clarifying that the submission of Semestral List of regular Suppliers (SRS) has been terminated. The BIR added that the information found under the SRS is already found in the quarterly Alphalist of Payees (formerly the monthly Alphalist of Payees) and in the annual Alphalist of Payees.

Revenue Regulations (RR) 14-2008 required top 20,000 private corporations to submit their SRS to monitor their compliance in withholding and remitting the one percent and the two percent creditable withholding taxes on the purchase of goods and services, respectively.

Later, RMC 5-2009 was issued to prescribe the technical specifications of the electronic file format of the said report, as well as the modes of its submission to the BIR.

Prior to the above issuances, however, the annual Alpahbetical List of Payees was already prescribed under RR 2-98, the submission of the monthly Alphalist of Payees was subsequently required in 2006 and, more recently, the quarterly Alphalist of Payees was prescribed to be submitted under RR 11-2018. These alphalists, except for the monthly Alphalist of Payees are now amended by the quarterly Alphalist of Payees.

Previously, under RR 2-98, the top withholding agents (TWA) include the existing top 20,000 private corporations, the top 5,000 individual taxpayers, the tax account management program and medium taxpayers. However, it was subsequently amended by RR 11-2018, which states that TWAs include taxpayers whose sales or purchases exceed P12 million.

Accordingly and consistent to the policy of ease of doing business, the submission of SRS is no longer required.

Please be guided accordingly.

Source:

P&A Grant Thornton

Certified Public Accountants

 

As published in SunStar Cebu, dated 04 December 2019