Streamlined processing of CARs and tax clearance
This Tax Alert is issued to inform all concerned that processing of Certificate Authorizing Registration (CAR) and tax clearance applications should comply with the timelines prescribed in the regulations. RMO 41-2016 reiterates that CARs shall be issued within five (5) days from the submission of complete documentary requirements pursuant to the provisions of RMC 39-2015 (Updated BIR Citizens Charter as Consolidated). This refer to CARs covering transactions on sale of real property, transfer or assignment of shares of stock traded in the stock exchange, transfers subject to donor's tax, estate tax and other taxes including the related documentary stamp tax. RMC 74-2016 streamlines requirements of tax clearance which shall be processed and released within two (2) working days from the submission of the following documents:
New BIR Commissioner suspends effectivity of recent issuances and audit activities; Revokes RMOs on transfer of properties
This Tax Alert is issued to inform all concerned that the new BIR Commissioner has suspended the effectivity of revenue issuances issued within June 1-30, 2016, alongside audit activities by the BIR until further notice. Revenue Memorandum Order Nos. 24 on 25 which requires determination of financial capacity in transfers of properties have been revoked effective immediately.
BIR waives TTRA requirement for interest, dividend and royalties
This Tax Alert is issued to announce the relaxed rules in applying preferential tax rates under tax treaties.
Deadlines for filing returns and tax payments
This Tax Alert is issued to circularize proper due dates for filing of returns and payment of taxes. Due dates for filing of return and payment of taxes shall be the exact dates stated in the law or regulations for filing or payment. Electronic returns must be received by the BIR on or before 12 midnight of the due date. However, if deadline falls on a Saturday, Sunday or a holiday, this shall be moved to the next business day. This rule applies in all cases whether for eFPS, eBIR Form, and manual filers
Accounting for netting/offsetting arrangements
This Tax Alert is issued to circularize the prescribed accounting and recording of transactions involving “netting” or “offsetting” arrangements. Accrued receivables or payables arising from sale of goods and services shall at all times be recognized at gross for tax purposes, regardless of whether the transactions are actually settled through offsetting or through net settlement of cash flows. Hence, income tax, withholding tax and VAT/percentage tax shall be determined based on the gross amounts.
Tax treatment of passed-on GRT
The BIR has previously ruled that banks and non-bank financial intermediaries performing quasi-banking functions may shift to their clients/borrowers the GRT due on transactions covered under Sections 121 and 122 of the NIRC.
Policies and guidelines on disputed assessments
This Tax Alert is issued to inform all concerned of the uniform policies and guidelines on handling disputed assessments. It is a basic policy that opportunities are given to taxpayers who choose to explain objection to an assessment and present necessary documents in support before issuance of FDDA.
Stricter rules on transfer of properties
This Tax Alert is issued to inform all concerned on the stricter rules on the processing of Certificates Authorizing Registration (CAR) and Tax Clearance Certificates (TCL) on transfers of properties.
Certificate of authorizing registration be issued only through electronic system
Beginning June 1, 2016, manual preparation of Certificates of Authorizing Registration (CAR) and Tax Clearance (TCL2) shall be stopped. CARs shall now be processed and generated thru the eCAR system. eCARs shall be printed on security papers which include security features and bar codes on its face which can be used by the Land Registration Authority (LRA) for an online verification on its authenticity.
Additional qualifications for accredited printers
This Tax Alert is issued to inform all concerned that additional policies in the accreditation of printers engaged in the printing services of official receipts, sales invoices and other commercial receipt and/or invoices are newly provided.