Tax Updates

This category contains 42 posts

Taxpayers’ privacy compromised by BIR with the use of eBIRForms?

The Bureau of Internal Revenue (BIR) issued various revenue regulations and revenue memorandum circulars, implementing and clarifying various issues about the eBIRForms. They even required all “covered” taxpayers to register and start filing online. That’s not surprising.

What’s surprising is, when you registered, you entered personal information that you expect BIR to protect. Privacy is one of the main concerns in an online world, and by providing your personal information to them, you expect them to protect your privacy and will not use your personal information for other purposes without your consent.

But wait, does BIR even have privacy policy with regards to the use of their eBIRForm package and system? Continue reading


Important updates on eBIRForms – Part 2

On April 5, 2015, we shared to you recent important updates on eBIRForms and others which includes the issuance of the following Revenue Regulations (RR) and Revenue Memorandum Circulars (RMC):

To read back the summary of those updates, please click here.

With the number of tax filers who are dissatisfied with the changes and the eventual update on the systems as well as various other clarifications and various new procedures to follow, tax filers are at least hoping that the Bureau of Internal Revenue will issue again another directives that are favorable to us.

Just right after we have written those updates, another update was up for everyone and followed by four more updates: Continue reading

Recent important updates on eBIRForms and others

There’s really not a year where Bureau of Internal Revenue (BIR) has no surprise when it comes to tax rules and regulations particularly on tax filing. Every year, there are new sets of rules, procedures, forms introduced to taxpayers, tax agents and all other stakeholders that add pressure in meeting the filing deadlines. Aside from the very imperfect timing of these new directions, there is also lack of information dissemination and taxpayer education.

We feel you, filing income tax returns is becoming a headache of virtually all of the taxpayers, even those who don’t need to pay. While it’s good that the BIR is finding ways to make filing easier in the long run (in the sense like, once you are enrolled online, it would be easy and convenient for you to file you next returns), its imperfect timing of implementation usually leads to a more disastrous situation, especially those who are not keen in using computers and internet.

Click here to read more of this post… 

Additional P10,000 nontaxable De Minimis Benefits effective January 1, 2015

Late in December 2014, there has been many articles in the social media discussing the expanded the list of de minimis benefits exempted from income tax on compensation, to include benefits under collective bargaining agreements (CBAs) and productivity incentive schemes. The inclusion of this additional item was described as “a fitting gift to our workers in this holiday season”. It is said as well that expanding the list of tax-exempt de minimisbenefits was one of the demands of labor at the dialogue with the President in the last Labor Day commemoration in May 2014

A post from the Official Gazette of the Republic of the Philippines was well-shared in the social media, but what exactly are included in the expanded list?

On January 5, 2015, the Bureau of Internal Revenue issued Revenue Regulations (RR) No. 1-2015 to further amend previously issued regulations covering de minimis benefits to include:

Continue reading

Is using eBIRForms mandatory? Find out.

No more manual BIR forms, only eBIRForms?

Recently, the Bureau of Internal Revenue issued Revenue Regulations (RR) No. 6-2014 making  it mandatory for non-eFPS filers or taxpayers to use eBIRForms covering thirty six (36) BIR Forms in the preparation and filing of their returns effective September 24, 2014. Among those covered are:

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

Continue reading

Revenue regulation increasing withholding tax rates drafted by BIR

It has already became a part of our regular business process to withheld taxes on certain income payments to individuals and juridical persons as required by the Bureau of Internal Revenue (BIR). The laws and regulations covering withholding taxes has became too complex as it requires different rates on differing nature of goods and services and based on the tax status of the taxpayers. Furthermore, various amendments of the existing Revenue Regulations No. 2-98 has been issued making it difficult for the taxpayers to monitor which part of it are still applicable and which are modified or are already repealed.

Then here comes another amendment from the BIR which seemingly is intended to meet the BIR’s collection target. The BIR drafted a revenue regulation entitled “Amending Pertinent Provisions of Revenue Regulations No. 2-98, as Amended, Increasing the Withholding Tax Rates on Certain Income Payments and Amending the Manner of Submission of the Alphabetical List of Employees/Payees which are Required to be Attached in the Annual Information Returns (BIR Form Nos. 1604-CF and 1604-E)”

Click here to read more of this update…

BIR mandated the use of eBIRForms by non-EFPS filers

The Bureau of Internal Revenue (BIR), today, published Revenue Regulations (RR) No. 6-2014, Prescribing the Mandatory Use of Electronic Bureau of Internal Revenue Forms (eBIRForms) in Filing of All Tax Returns by Non-Electronic Filing and Payment System (Non-eFPS) Filers Particularly Accredited Tax Agents/Practitioners, Accredited Printers of Principal and Supplementary Receipts/Invoices, and One-Time Transaction (ONETT) Taxpayers.

The e-BIRForms

The eBIRForms was developed to provide taxpayers particularly the non-eFPS filers with accessible and convenient service through easy preparation of tax returns. The use of eBIRForms will improve the BIR’s tax return data capture and storage thereby enhancing efficiency and accuracy in the filing of tax returns. These forms come in 2 types:

Click here to read more of this update… Continue reading

Deadline extension for submission of “appointment book” until May 31

Issuance of Revenue Regulations 4-2014

Revenue Regulations (RR) No. 4-2014 was issued by the Bureau of Internal Revenue (BIR) sometime in March 2014 to monitor the fees charged by professionals, aid the BIR personnel in conducting tax audit and boost revenue collections.

This RR No. 4-2014 introduced the following new requirements in addition to the regular annual registration, registration of books of accounts and receipts/invoices:

1. Submission of affidavit of billing rates, manner of billing and factors considered in determining service fees upon registration and every year thereafter.

2. Registration of official appointment book (this will contain only names of clients and date/time of meeting.

3. When no fee is charge to client, a registered receipt shall be issue indicating 100% discount for substantiation. Continue reading

BIR Form Nos. 1700, 1701 and 1702 now available in eBIRForms

Spending hard times filling up the PDF copy of the new income tax returns (BIR Form No. 1700, 1701, 1702-RT, 1702-EX, 1702-MX)? Finally, the Bureau of Internal Revenue (BIR) has uploaded in its website eBIRForms that contains the new and revised annual income tax returns forms.

Posted yesterday in the BIR website an announcement of the availability of the eBIRForms for use in the preparation of the new ITR Forms. The announcement is as follows: Continue reading

Suspension of Implementation of Annual Information Return

Good news for income tax return preparers! The Bureau of Internal Revenue, according a latest news from, issued Revenue Memorandum Circular (RMC) No. 9-2014 suspending the implementation of Annual Information Return (AIR) for the third time!  Supplementary Information will be mandatory starting with calendar year 2014.

RMC No. 9-2014 also states that in any returns filed with the BIR, individual tax payers are given the option to use either (a) their community tax certificate (b) passport or (c) driver’s license.

The Annual Information Return

If you remember, AIR (BIR Form No. 1705) is for Individual Taxpayers, Estates and Trusts as mandated by Revenue Regulations No. 2-2011, supposedly starting taxable year 2010. The AIR requires individuals, estate and trusts to report: Continue reading

New Income Tax Forms 2014 (1700, 1701, 1702, June 2013 versions)

The Bureau of Internal Revenue (BIR) issued Revenue Regulations 2-2014 on February 4, 2014. These revenue regulations are issued to prescribe the new BIR forms with bar codes, and to reflect the changes in information required from said forms. This will also enable the said forms to be read by an optical character reader (OCR) for ease in scanning.  These will be used for income tax returns (ITRs) filing covering and starting the taxable year ended December 31, 2013.

New BIR Forms

Following are the new BIR Forms:

1. BIR Form 1700 version June 2013 (Annual Income Tax Return for Individuals Earning Purely Compensation Income) Continue reading

File Your Annual Information Returns Right – Discussion on Alphalist

You must be trying to beat the deadline of filing for the Annual Information Returns (BIR Form No. 1604CF/1604E) and Monthly Remittance Returns (BIR Form No. 1601C).  Required attachment to these are alphabetical list of employees and list of payees on income payments subject to creditable and final withholding taxes.  What are the things you should consider?

The Bureau of Internal Revenue issued Revenue Regulations No. 1-2014, Amending the Provisions of Revenue Regulations (RR) No. 2-98, as Further Amended by RR No. 10-2008, Specifically on the Submission of Alphabetical List of Employees/Payees of Income Payments.  The main amendments are as follows:

Continue reading


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