2016 Pulong Pulong

MARCH - APRIL
2016

The tax campaign theme is

Means calling all taxpayers to be vigilant in
paying correct taxes for our country. We need
increase in voluntary compliance.

Deadlines of Taxes to
be paid
Income Tax

paid quarterly April 15, August

15 & Nov. 15; Annual payment due on or before
April 15.
Forms: 1701Q, 1701 for individuals; 1702RT,
1702QRT for regular taxable corporations

Business Tax
Percentage Tax - 20th day after taxable month
Form 2551M
VAT- 12% paid monthly deadline 20 th of the
following month using Form 2550M; and Quarterly
Return deadline on or before the 25th using Form
2550Q

Deadlines of Taxes to
be paid
Registration Fee - P500.00 for each line of business

deadline on or before Jan. 31st of the year using BIR

Form 0605
Emphasizing on per branch payment of P500.00;
For PUJ operators Taxi operators, pay P500.00 per
franchise.
Maintenance of Warehouse means paying P500.00
annually for the warehouse or facility. It must be duly
registered with the BIR

Using New BIR Forms

Under RR 2-2014, all taxpayers must use the new
forms:
Form 1701Q, 1701 for individuals, mixed
earners
Form 1700 for purely compensation income
earners with taxes due at the end of the period
(for substituted filers no return will be filed)
Form 1702QRT, 1702RT for taxable
corporations using regular tax rate
Form 1702QEX, 1702EX for exempt
corporations
Form 1702QMX, 1702MX for corporations
with mixed income subject to multiple tax rates

RR 6 -2014 The following taxpayers are mandatorily required

to file using eBIR Forms effective Sept. 1, 2014:

1. Accredited Tax Agents/Practitioners and all

its client-taxpayers;
2. Accredited Printers of Principal and
Supplementary Receipts/Invoices;
3. One-Time Transaction (ONETT) taxpayers;
4. Those who shall file a No Payment Return;

RR 6 -2014 5. Government-Owned or
-Controlled Corporations (GOCCs);
6. Local Government Units (LGUs),
except barangays;
7. Cooperatives registered with
National Electrification
Administration (NEA) and Local
Water Utilities
8. Administration (LWUA)

RR 6 -2014 For those with computers download the

forms thru the BIRs website at
www.bir.gov.ph
For those without computer facility, go to
the nearest computer shop or at the BIR
e-Lounge Unit located at BIR Molo, Iloilo
City.

Use of New Invoices

This is only a reminder to use the new
form of invoices compliant with RR
12-2013; with 5 years limit or until
used up whichever is shorter.
Principal Invoices: Cash Sales
Invoice, Charge Invoice (for sale of
goods); Official Receipt (for sale of
services)
Secondary Invoices: Cash Receipt,
Billing Statement, Delivery Receipt,
etc.

Programs & Activities

to Increase Tax
Collection
1. TCVD (Tax Mapping)
2. Surveillance
3. Monitoring of top taxpayerscompliant and regular
payment of taxes; increase
payments
4. Information Drive- for
taxpayers to be well informed
5. Voluntary Compliance

Senior Citizens
20% discount on basic
commodities such as rice,
meat, poultry, milk,
medicines
No 12% VAT. The discount
is computed net of VAT

Cooperatives
Exemption is not automatic,
you must apply for tax
exemption
The Certificate Tax Exemption/Ruling shall
be valid for a period of five (5) years from
the date of issue or date of affectivity as
provided under Section 13 hereof, and
during such period that the Cooperative is
in good standing as ascertained by the
CDA on an annual basis.

Cooperatives
An application for renewal of Certificate
of Tax Exemption shall be filed at least
two (2) months prior to the date of
expiration of the existing Certificate of Tax
Exemption/Ruling, and should be acted
upon
within the period prescribed in
Section 13 of this Joint Rules and
Regulations.
Such
renewal
of
the
Certificate of Tax Exemption/Ruling shall
be for a period of five (5) years unless
sooner revoked for cause.

Documents to be Attached to the

Letter Application for the Issuance
of Certificate of Tax Exemption
Ruling
1. Certified
true
copy
of
the
Certificate of Registration issued
by the CDA under the new
Cooperative Code;
2. Certified true copy of the Articles
of Cooperation and By-Laws of the
Cooperative.
3. Certified true copy of the current
Certificate of Good Standing from
CDA, effective on the date of
application. No application for
exemption will be processed in the

Tax Exemptions for Non-Stock

Non- Profit (RMO 3-2013)
Tax Exemption is not automatic.
All tax exemptions issued prior
to June 30, 2013 were revoked
effective Dec. 31, 2013. If you
failed to file the application for
tax exemption, you are deemed
taxable until application has
been approved.
Requirements are enumerated
in said RMO.

Withholding tax on
Government Money
Payments The government or any of its political subdivisions,
instrumentalities or agencies including GOCCs shall before
making payment on account of each purchase of goods and
services taxed at 12% VAT under Sec. 106 and 108 of the
tax code, deduct and withheld a Final VAT due at a rate
of 5%.
The 5% final VAT withholding rate shall represent the Net
VAT payable of the seller. The remaining 7% effectively
accounts for the standard input VAT for sale of good or
services to government in lieu of the actual input VAT
directly attributable or ratably appertained to sales. Should
actual input VAT attributable to sales to government
exceeds 7% of gross payments, the excess may form
part of the sellers expense or cost. On the other hand
if actual input VAT attributable to sale to government is less
than 7% of gross payment, the difference must be closed to
expense or cost.

Assume the following:

XYZ Sold to Municipality (government) the following:

Sales100,000.00
Purchases

Output Tax12,000.00

90,000.00

Input Tax 10,800.00

XYZ
000-123-435 VAT

SALES INVOICE
Sales
12% VAT

100,000.00
12,000.00
P112,000.00

Computation of withholding Tax on GMP-VAT

P 100,000.00

Rate 5%
P

5,000.00

Computation of withholding Tax Expanded

1% Sale of Goods 1%
EWT P

1,000.00

P 100,000.00

Pay to: XYZ Company

Voucher of
Municipality
What if the
Seller is
Non-VAT?

Voucher of X
Municipality

Total Invoice Price

P 112,000.00
Less: GMP VAT
5,000.00
EWT
1,000.00
6,000.00
Net Amount Due
P106,000.00

ABC Company
TIN: 000-253-333 Non VAT
Sued to: X Municipality
TIN:
Address:
Sales Goods P 100,000.00
Gross Sales Sales of Goods
100,000.00
Less: EWT 1%
1,000.00
GMP 3%
3,000.00
Total
4,000.00
Net Amount Due
P 96,000.00

Remittance of Tax:
Use BIR Form 1600 for GMP Percentage 3,000.00
together with MAP
Use BIR Form 1601-E for WT Expanded of 1,000.00

Certificates to be issued to Supplier

Use BIR Form 2307 for GMP Percentage
3,000.00
Use BIR Form 2307 for EWT 1,000.00
4,000.00
Use BIR Form 2306 for GVAT
5,000.00
Use BIR Form 2307 for EWT
1,000.00
To be accomplished in quadruplicate and to be given
to seller not later than 10th day of the following month
or upon demand.

On the Part of the Supplier:

Assuming again that
Sales 100,000.00
Purchases
90,000.00
Sales
100,000.00 x 12%
Purchases
90,000.00 x 12%
Output tax
12,000.00

12,000.00
10,800.00

Actual Input 90,000 x 12%

10,800.00
Less: Standard Input
100,000.00 x 7%
7,000.00
7,000.00
Income and Expense Summary 3,800.00
Net VAT Payable
5,000.00
Less: Final withholding Input VAT
5,000.00
x

Journal Entry to take up sales:

Cash 106,000.00
Final withholding VAT
Creditable Expanded
Sales
100,000.00
OT
12,000.00

5,000.00
1,000.00

Journal Entry to take up Purchases:

Purchases 90,000.00
Input 10,800.00
Cash 100,800.00

Journal Entry to reflect the excess of

actual input VAT over allowable input
of 5% of gross payment/gross sales:
OT VAT Payable
12,000.00
Income & Expense Summary
3,800.00
15,800.00
Input Tax
10,800.00
Creditable withholding VAT
5,000.00
15,800.00

How to Avoid Open

Cases
During registration,
taxpayers are being
interviewed as to the kind
of business he/she will be
engaging. So whatever is
indicated as tax types in
your Certificate of
Registration, you must not
fail to file those returns and
pay the corresponding taxes
thereon.

BIR wants to hear from you. We welcome

your queries, comments and suggestions.
Feel free to call us at 337-6060 or email
us at contact_us@cctr.bir.gov.ph
BIR Revenue District Office No. 74
M.H. del Pilar Street, Molo, Iloilo City

THANK YOU!