Tax Reminder Requirements for bidding requirements
REQUIREMENTS IN SECURING TAX CLEARANCE FOR BIDDING
2. Photocopy of Certificate of Registration (COR) (BIR Form 2303)
3. Original copy of Delinquency Verification/Certification of No Tax Liability issued by the RDO/Collection Division having jurisdiction over the Head Office of the Taxpayer not more than fifteen (15) working days from date of application. However, for taxpayers registered under the following district offices, the delinquency verification must be issued by the Regional Office- Collection Division:
4. Copy of the previous Tax Clearance issued, in case of renewal (original copy of the tax clearance if not yet expired and xerox copy of the tax clearance if already expired).
5. Certification Fee worth Php 100.00 electronically filed and paid thru eFPS using MC = Tax Code and MC200 = Aplhanumeric Tax Code (ATC). Attach BIR Form 0605 and the eFPS Bank Payment Confirmation Receipt.
6. Two (2) pieces of loose Documentary Stamps worth Php 15.00 each (do not affix),
7. Duly accomplished letter-request addressed to the Chief, Accounts Receivable Monitoring Division and authorization letter (if applicable)
8. Latest tax return (ex. 1601-C, 2550M, 1701) filed and/or paid thru eFPS aside from payment for Registration Fee. [TAXPAYER APPLYING FOR TAX CLEARANCE FOR BIDDING PURPOSES MUST BE AN EFPS USER/COMPLIANT. (EFPS COMPLIANCE IS A MANDATORY REQUIREMENT FOR BIDDERS.)]
Tax Reminder: Campaign expenditures/contributions subject to 5% Expanded Withholding Tax (RR 8-09)
BIR anticipated that candidates for electoral offices in the national and local elections, their political parties and political supporters will incur substantial campaign expenditures. It promulgated Revenue Regulations Nos. 8-09, to ensure that the purchases of goods and services for the campaign and election activities of the candidates and their contributors and supporters shall be subject to withholding of tax.
Sec. 2.57.2 of Revenue Regulations No. 2-98, as amended, is hereby further amended, to read as follows:
"Sec. 2.57.2. Income payments subject to creditable tax and rates prescribed thereon. — Except as herein otherwise provided, there shall be withheld a creditable income tax at the rates herein specified for each class of payee from the following items of income payments to persons residing in the Philippines:
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"(W) Income payments made by political parties and candidates of local and national elections of all their campaign expenditures, and income payments made by individuals or juridical persons for their purchases of goods and services intended to be given as campaign contribution to political parties and candidates — Five percent (5%).
Sec. 2.57.3 of Revenue Regulations No. 2-98, as amended, is hereby further amended, to read as follows:
"Sec. 2.57.3. Persons required to deduct and withhold. — The following persons are hereby constituted as withholding agents for purposes of the creditable tax required to be withheld on income payments enumerated in Section 2.57.2:
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"(D) All individuals, juridical persons and political parties, with respect to their income payments made as campaign expenditures and/or purchase of goods and services intended as campaign contributions.
For the entire RR please see>> Revenue Regulations No. 8-2009
Tax Update: "BIR provides for other acceptable IDs in availing Senior Citizens' Discount (RR 11-15)"
BIR provides for the additional ID for availing Senior Citizens’ discount (RR 11-15)
- Senior Citizens’ Identification Card issued by the Office of Senior Citizens Affairs (OSCA) in the city or municipality where the elderly resides;
- The Philippine passport of the elderly person or senior citizen concerned; and
- Government-issued identification card (ID) which reflects on its face the name, picture, date of birth and nationality of the senior citizen which includes any of the following:
granted under the Act as an additional item of deduction from the gross income of the seller is subject to the following conditions:
BIR prescribes the use of non-thermal paper for all Cash Register Machines (CRMs)/Point-of-Sales (POS) Machines (RR 10-15)
Revenue Regulations No (RR) 10-2015 issued on September 21, 2015 provides that all new business registrants with CRM/POS/other similar machines/software with built-in printer for their transactions shall use non-thermal paper only. For existing registered taxpayers with said machines/software using thermal paper, a tiered compliance structure is put in place to allow them to meet the compliance requirements over a three (3) year-period (3 years depreciable life). Accordingly, all existing taxpayers with CRM/POS/other similar machines/software using thermal paper for their daily transactions are subject to the prescribed staggered implementation dates, to wit:
For those subject machines registered
Staggered Implementation Dates:
July 1, 2014 onwards
On or before July 1, 2018
July 1, 2013 – June 30, 2014
On or before July 1, 2017
Prior July 1, 2012 – June 30, 2013
On or before September 1, 2016
The Official Receipts (ORs) for sales of services or Sales Invoices/ Commercial Invoices (SIs/CIs) for sales of goods generated from CRM/POS/other similar machines/software shall be printed showing among others the following:
- Taxpayer’s (TP) Registered Name;
- TP’s Business Name/style (if any);
- A statement that the taxpayer is Value–Added Tax (VAT) or Non-VAT registered followed by the Taxpayers Identification Number (TIN) and 4-digit Branch Code (Example: VAT Registered TIN 123-456-789-0000);
- Machine Identification Number (MIN);
- Detailed business address where such ORs/SIs/CIs shall be used/located;
- Date of transaction;
- Serial Number of the OR/SI/CI printed prominently;
- A space provided for the Name, Address and TIN of the buyer;
- Description of the items/goods or nature of service;
- Unit cost;
- Total cost;
- VAT amount (if transaction is subject to 12% VAT);
- If the VAT taxpayer is engaged in mixed transactions, the amounts involved shall be broken down to: VATable Sales, VAT Amount, Zero Rated Sales, and VAT Exempt Sales;
- For Non-VAT ORs/SIs and other CIs (VAT or Non-VAT) such as delivery receipts,
- Taxpayers whose transactions are not subject to VAT or Percentage Tax shall issue Non-VAT principal receipts/invoices indicating prominently at the face of such receipts/invoices the word “EXEMPT”.
- If the taxpayer is subject to Percentage Tax under Title V of the National Internal Revenue Code, as amended, but also sells goods/services under Section 109 (A) to (W), excluding (E) of the same Code, as amended by Republic Act No. 10378, the Non-VAT principal receipts/invoices shall indicate the breakdown of Sales Subject to Percentage Tax (SSPT) and Exempt Sales.
- Name, address and TIN of the accredited supplier of CRM/POS/other similar machines/software;
- Accreditation number and the date of accreditation (date issued “mm/dd/yyyy” and valid until “mm/dd/yyyy”) of the accredited supplier;
- BIR Final Permit to Use (PTU) Number;
- The phrase “THIS INVOICE/RECEIPT SHALL BE VALID FOR FIVE (5) YEARS FROM THE DATE OF THE PERMIT TO USE.”
- OSCA ID No./PWD ID No.;
- Senior Citizen Discount/PWD Discount (show detailed breakdown of 20% discount and/or 12% VAT exempt); and
- Signature of the Senior Citizen/PWD.
order slips, purchase orders, provisional receipts, acknowledgment receipts, collection receipts, credit/debit memo, job orders and other similar documents that form part of the accounting records of the taxpayer and/or issued to their customers, in addition to the enumerated applicable information, the phrase “THIS DOCUMENT IS NOT VALID FOR CLAIM OF INPUT TAX” in bold letters, shall be conspicuously printed at the bottom of the Non-VAT ORs/SIs and other CIs;
The following information shall be printed at the bottom portion of the OR/SI/CI:
For taxpayers transacting with Senior Citizen/s (SC/s) and/or Person/s With Disability (PWD) pursuant with Republic Act No. 9994 (“Expanded Senior Citizens Act of 2010”), in addition to the said information, a space for the following shall also be required:
Senior Citizen/PWD TIN;
However, for taxpayers whose transactions are not covered by RA 9994, the above information may not be indicated.
All existing taxpayers issuing receipts/invoices generated thru CRM/POS/other similar machine/software (using thermal paper or otherwise), including those connected to a network or linked to Computerized Accounting System (CAS) or component(s) thereof, generating electronic receipts, shall be covered by the aforesaid requirements.
Reconfiguration of machines and adjustments in the systems (to be able to comply with the aforesaid requirements) shall be undertaken on or before October 1, 2015. Any extension due to enhancements of systems required to be undertaken abroad shall seek the approval from the concerned Regional Director or ACIR, Large Taxpayer Service, which shall not be longer than six (6) months from the effectivity of these Regulations.
For the whole regulation, Click here.
Tax Update: Employee’s Withholding Tax Update Form (2305) should now be filed electronically (RMC 59-2015)
Under Revenue Memorandum Circular No. 59-2015 issued on September 17, 2015, no employees shall visit the Revenue District Offices (RDOs)/Large Taxpayers Divisions (LTDs) in filing of BIR Form. No. 2305. The filing of BIR Form No. 2305 shall be coursed through the employer and shall be electronically filed containing all the required information in the prescribed electronic format using any of the following:
Option 1 Microsoft Excel CSV format;
Option 2 Taxpayer’s own extract program; or
Option 3 BIR’s UEE Data Entry Module.
For those who will be using Option 1 or Option 2 are required to use the 2305 Batch File Validation Module. The UEE Data Entry Module and 2305 Batch File Validation Module are available at www.bir.gov.ph/index.php/downloadables.html
Update of Exemption of Employees(UEE) (BIR Form No. 2305) Data Entry Module and 2305 Batch File Validation Module which shall be used for the following:
1. >Updating of Employee’s Additional Exemption for Dependents;>
2. >Change of Status; and>
3. >Execution of the “Waiver to Claim the Additional Exemption” by the husband; or revocation of the previously executed “Waiver to Claim the Additional Exemption by the Husband”.>
To know more about RMC 59-15, you can visit the link: Revenue Memorandum Circular No. 59-2015