Streamlined process on the application for registration of CAS/CBA

(Revenue Memorandum Circular No. 05-2021 issued on January 08, 2021)

This Tax Alert is issued to inform all concerned on the following streamlined procedures in the application for registration of Computerized Accounting System (CAS), Computerized Books of Accounts (CBA) and/or its components, including Electronic Storage System (ESS), Middleware and other similar systems.  

1. The requirement for Permit to Use (PTU) and system’s demonstration or pre-evaluation prior to use of the system are no longer applicable.

2. To register the system, taxpayers shall submit the documentary requirements as provided under “Checklist of Documentary Requirements” (see Annex A of the Circular). The system must comply with the standards set forth in Annex B of the Circular. Upon submission of the complete documentary requirements, an Acknowledgement Certificate shall be issued by the RDO/LT Office within three (3) working days. BIR Form No. 1900 shall no longer be required for the submission of application.

3. Though system demonstration or pre-evaluation shall no longer be required prior to use, taxpayers shall ensure that the CAS/CBA and components thereof comply with the functional and technical standards provided under Annex B of the circular.

In case the BIR discovered that the said standards were violated during a post-evaluation or audit, the taxpayer shall be subject to penalties provided under RMO No. 07-2015 and other existing revenue issuances.

4. In case of a major system enhancement, taxpayers must submit a new application for registration. In case of minor system enhancement, the taxpayer must submit a written notification to the RDO/LT Office stating the minor specific enhancements of the system.

All taxpayers with existing PTU shall not be required to apply for registration and the previously issued PTU shall still be valid, except on the following circumstances:

1. PTU was revoked upon discovery of non-compliance with existing revenue issuances; or

2. Existence of major system enhancement or upgrade which will require filing of a new application for registration.