/
TOPIC OUTLINE Taxation of Individuals Engaged in Providing Services under a Service Contract TOPIC OUTLINE Taxation of Individuals Engaged in Providing Services under a Service Contract

TOPIC OUTLINE Taxation of Individuals Engaged in Providing Services under a Service Contract - PowerPoint Presentation

phoebe-click
phoebe-click . @phoebe-click
Follow
378 views
Uploaded On 2018-02-22

TOPIC OUTLINE Taxation of Individuals Engaged in Providing Services under a Service Contract - PPT Presentation

Revenue Regulations No 192011 Revenue Regulations No 62012 Revenue Regulations No 82012 Revenue Memorandum Circular No 232012 Presented by ROSANA P SAN VICENTE Chief Withholding Tax Division ID: 633932

revenue tax form bir tax revenue bir form services code service withholding contract individuals engaged vat employee employer providing

Share:

Link:

Embed:

Download Presentation from below link

Download Presentation The PPT/PDF document "TOPIC OUTLINE Taxation of Individuals En..." is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.


Presentation Transcript

Slide1

TOPIC OUTLINETaxation of Individuals Engaged in Providing Services under a Service Contract with no Employer-Employee RelationshipRevenue Regulations No. 19-2011Revenue Regulations No. 6-2012Revenue Regulations No. 8-2012Revenue Memorandum Circular No. 23-2012Presented by:ROSANA P. SAN VICENTEChief, Withholding Tax Division

July 23, 2012

1Slide2

Taxation of Individuals Engaged in Providing Services under a Service Contract with no Employer-Employee Relationship

Registration Requirement

:

Section 236 of the Tax Code

“(A) Requirements.- Every person subject to any internal revenue tax shall register once with the appropriate Revenue District Officer:Within ten (10) days from the date of employment, orOn or before the commencement of business, orBefore payment of any tax due, orUpon filing of a return, statement or declarations as required in this Code.”

2Slide3

Taxation of Individuals Engaged in Providing Services under a Service Contract with no Employer-Employee Relationship

Registration Requirement

:

BIR Form to be accomplished –

BIR Form 1901, to be submitted to the RDO having jurisdiction over the place where the service is being rendered, with the following attachments: > Birth Certificate or any document showing name, address and birth date of the individual; > Contract of Service /Job Order > Proof of payment of Annual Registration Fee of P500 [Sec. 236(B) of the Tax Code]

3Slide4

Taxation of Individuals Engaged in Providing Services under a Service Contract with no Employer-Employee Relationship

Invoicing Requirement

:

Section 237 of the Tax Code

“Sec. 237. Issuance of Receipts or Sales or Commercial Invoices.- All persons subject to an internal revenue tax shall, for each sale or transfer of merchandise or for services rendered valued at Twenty-five pesos (25.00) or more, issue duly registered receipts or sales or commercial invoices, prepared at least in duplicate, showing the date of transaction, quantity, unit cost and description of merchandise or nature of service: Provided, however, That in the case of sales, receipts or transfers in the amount of One hundred pesos (100.00) or more, or regardless of amount, where the sale or transfer is made by a4Slide5

Taxation of Individuals Engaged in Providing Services under a Service Contract with no Employer-Employee Relationship

Invoicing Requirement

:

cont

person liable to value-added tax to another person also liable to value-added tax; or where the receipt is issued to cover paymentmade as rentals, commissions, compensation or fees, receipts or invoices shall be issued which shall show the name, business style, if any, and address of the purchaser, customer or client; Provided, further, That where the purchaser is a VAT-registered person, in addition to the information herein required, the invoice or receipt shall further show the Taxpayer identification Number (TIN) of the purchaser.”

5Slide6

Taxation of Individuals Engaged in Providing Services under a Service Contract with no Employer-Employee Relationship

Invoicing Requirement

:

cont

“The original of each receipt or invoice shall be issued to the purchaser, customer or client at the time the transaction is effected, who, if engaged in business or in the exercise of profession, shall keep and preserve the same in his place of business for a period of three (3) years from the close of the taxable year in which such invoice or receipt was issued, while the duplicate shall be kept and preserved by the issuer, also in his place of business, for a like period.” 6Slide7

Taxation of Individuals Engaged in Providing Services under a Service Contract with no Employer-Employee Relationship

Invoicing Requirement

: SAMPLE OFFICIAL RECEIPT

7Slide8

Taxation of Individuals Engaged in Providing Services under a Service Contract with no Employer-Employee Relationship

Invoicing Requirement

:

BIR Form to accomplish

BIR Form No. 1906 –Application for Authority to Print Receipts and Invoices, to be filed with the RDO where the individual is registered, with the following attachments: > Certificate of Registration > Proof of Payment of RF, current > Final and clear sample of Receipt/Invoice; > Previous ATP (for additional SI/OR to be printed);

> Last booklet printed (for additional SI/OR to be printed)

8Slide9

Taxation of Individuals Engaged in Providing Services under a Service Contract with no Employer-Employee Relationship

Invoicing Requirement

:

Can the issuance of SI/OR be dispensed with

?

> Under Sec. 237, the Commissioner may, in meritorious cases, exempt any person subject to an internal revenue tax from the compliance with the issuance of SI/OR How? The individual shall apply for the “substituted issuance of OR” pursuant to the provisions of RR 14-2003.

9Slide10

Taxation of Individuals Engaged in Providing Services under a Service Contract with no Employer-Employee Relationship

Invoicing Requirement

:

Sec. 2 of RR 14-2003

– inserting new provisions under RR 2-98, as amended –

“Sec. 5.128.

xxxxxF) Substituted Official Receipt. - For sellers of services whose gross receipts have been subjected to the withholding of the 3% percentage tax, they shall be exempted from the obligation of issuing duly registered non-VAT receipts covering their receipt of payments for services sold. In lieu thereof, the issued

“Certificate of Final Tax Withheld at Source” (BIR Form No. 2306

), for payee with just

one

payor

, or

Certificate

of Creditable Tax Withheld at Source” (BIR

Form No

. 2307)

, for payee with several

payors

, shall be constituted and

treated as

the

substituted official receipt

,

pursuant to the provisions of Section

237 of

the

Code”

10Slide11

Taxation of Individuals Engaged in Providing Services under a Service Contract with no Employer-Employee Relationship

Invoicing Requirement

:

Sec. 3 of RR 14-2003

– inserting new provisions under RR 2-98, as amended –

“Sec. 9.245.

xxxxxF) Substituted Official Receipt. - For sellers of services whose gross receipts have been subjected to 12% final VAT, they shall be exempted from the obligation of issuing duly registered VAT official receipts covering their receipt of payments for services sold. In lieu thereof, the issued

“Certificate of Final Tax Withheld at Source” (BIR Form No. 2306), for payee with just

one

payor

, or

Certificate

of Creditable Tax Withheld at Source” (BIR

Form No

. 2307)

, for payee with several

payors

, shall be constituted and

treated as

the

substituted official receipt

,

pursuant to the provisions of Section

237 of

the

Code”

11Slide12

Taxation of Individuals Engaged in Providing Services under a Service Contract with no Employer-Employee Relationship

Invoicing Requirement

:

Seller of services whose gross receipts were subjected to withholding of 3% percentage tax/12% VAT are

exempted

from issuing Non-VAT/VAT receipts. In lieu thereof, the following shall be constituted and treated as the substituted OR:

“Certificate of Final Tax Withheld at Source” (BIR Form No. 2306) - for payees with just one payor;

“Certificate of Creditable Tax Withheld at Source” (BIR Form

No

. 2307

) -

for

payees

with

several

payors

12Slide13

Taxation of Individuals Engaged in Providing Services under a Service Contract with no Employer-Employee Relationship

Invoicing Requirement

:

How will the

payor

know that the payee will avail of the “substituted OR” option? Payee is required to submit to the withholding agent-payor a “Notice of Availment of the Option to Pay the Tax through the Withholding Process”, copy-furnished Revenue District Offices

having jurisdiction over the payor and the payee

13Slide14

Taxation of Individuals Engaged in Providing Services under a Service Contract with no Employer-Employee Relationship

BIR FORM NO.__________

Republic of the Philippines

Department of Finance

BUREAU OF INTERNAL REVENUE

Revenue Region No. ___

Revenue District Office No. _________________________________________________________________________________________________NOTICE OF AVAILMENT OF THE OPTION TO PAY THE TAXTHROUGH THE WITHHOLDING PROCESSDate __________________Name of Taxpayer ______________________________________________________Address ______________________________________________________________Taxpayer Identification Number __________________________________________Class of Profession or Calling ___________________________________________

CERTIFICATIONThis is to certify that I am availing of the option to pay my percentage tax/VAT through the withholding process pursuant to the provisions

of REVENUE

REGULATIONS NO. ____; that, in accordance with the said

Regulations and Revenue Regulations No. 2-98, as amended, gross receipts

on account

of my sale of goods/service shall be withheld at 3% Percentage Tax

or 10

% VAT, as the case may be, by the withholding agent-

payor

; that, such

tax withheld

shall be constituted as a final tax provided that my source of income

comes only from one

payor

, otherwise, the same shall be considered

creditable which

shall be applied against the total percentage taxes/VAT due for the

month when

such tax was withheld; and that, I have executed this Declaration

under penalty

of perjury, pursuant to the provisions of Section 267, National

Internal Revenue

Code of 1997.

____________________________

Taxpayer’s Name and Signature

14Slide15

Taxation of Individuals Engaged in Providing Services under a Service Contract with no Employer-Employee Relationship

Invoicing Requirement

:

Withholding agent-

payor

is required to prepare BIR Form Nos. 2306 or 2307 in quadruplicate, to be distributed as follows: (Note: BIR Form 2306 must be signed by both

payor and payee)2306

2307

2 copies for the payee

1 copy to the

payor

1 copy to be attached by the

payor

to BIR Form 1600

2 copies for the payee

1 copy to the

payor

1 copy to be attached by the

payor

to BIR Form 1600

15Slide16

Taxation of Individuals Engaged in Providing Services under a Service Contract with no Employer-Employee Relationship

Bookkeeping Requirement

:

“Sec. 232.

Keeping of Books of Accounts.-

(A) Corporations, Companies, Partnerships or Persons Required to Keep Books of Accounts.- All corporations, companies, partnerships or persons required by law to pay internal revenue taxes shall keep a journal and a ledger or their equivalents: Provided, however, That those whose quarterly sales, earnings, receipts, or output do not exceed Fifty thousand pesos (P50,000) shall keep and use simplified set of bookkeeping records duly authorized by the Secretary of Finance wherein all transactions and results of operations are shown and from which all taxes due the Government may 16Slide17

Taxation of Individuals Engaged in Providing Services under a Service Contract with no Employer-Employee Relationship

Bookkeeping Requirement

:

r

eadily and accurately be ascertained and determined any time of the year:

Provided, further

, That corporations, companies, partnerships or persons whose quarterly sales, earnings, receipts or output exceed One hundred fifty thousand pesos (P150,000), shall have their books of accounts audited and examined yearly by independent Certified Public Accountants and their income tax returns accompanied with a duly accomplished Account Information Form (AIF) which shall contain, among others, information lifted from certified balance sheets, profit and loss statements, schedules listing income-producing properties and the corresponding income therefrom and other relevant statements.”17Slide18

Taxation of Individuals Engaged in Providing Services under a Service Contract with no Employer-Employee Relationship

Bookkeeping Requirement

:

Registration of Books of Accounts

– included in BIR Form 1901, the registered books of accounts shall be used until all the pages are consumed. However, if the taxpayer wishes to use separate books of accounts for every calendar year, the registration thereof must be made on or before December 31 of each year.

Preservation of Books of Accounts - … shall be preserved for a period beginning from the last entry in each book until the last day prescribed by Section 203 within which the Commissioner is authorized to make assessment.18Slide19

Taxation of Individuals Engaged in Providing Services under a Service Contract with no Employer-Employee Relationship

Filing of Required Tax Returns

:

Income Tax Return

BIR FormDue Dates

BIR Form No. 1701On

or before April 15 following the close of calendar year

BIR Form No. 1701Q

1

st

Quarter –On or before April 15 of

the current CY;

2

nd

Qtr

- on or before August 15 of the current year

3

rd

Qtr

– on or before November 15 of the current year

19Slide20

Taxation of Individuals Engaged in Providing Services under a Service Contract with no Employer-Employee Relationship

Filing of Required Tax Returns

:

Percentage Tax Return

Value Added Tax Return -

BIR FormDue Dates

BIR Form No. 2551 M

Within twenty

days following the close of the month

BIR Form

Due Dates

BIR Form No. 2550 M

Within twenty

days following the close of the month

BIR Form No. 2550Q

Within twenty-five days following the close of the taxable

quarter

20Slide21

Taxation of Individuals Engaged in Providing Services under a Service Contract with no Employer-Employee Relationship

Filing of Required Tax Returns

:

Option to Avail of the Substituted Filing of Percentage Tax Return/VAT return –

Who is qualified to avail?

Individual with only one

payorHow to avail of such option?Individual must file with the RDO where he/she is registered the following:1. Notice of Availment of the Option to Pay the Tax Through the Withholding Process”,;2. Notice of

Availment of the Substituted Filing of Percentage Tax Return

21Slide22

Taxation of Individuals Engaged in Providing Services under a Service Contract with no Employer-Employee Relationship

BIR

FORM NO.__________

Republic of the Philippines

Department of Finance

BUREAU OF INTERNAL REVENUE

Revenue Region No. ___Revenue District Office No. ___________________________________________________________________________________NOTICE OF AVAILMENT OF THE SUBSTITUTED FILING OFPERCENTAGE TAX RETURNDate __________________Name of Taxpayer ______________________________________________________Address ______________________________________________________________Taxpayer Identification Number __________________________________________Class of Profession or Calling/Business __________________________________

CERTIFICATIONThis is to certify that I am a NON-VAT registered person pursuant to the provisions

of REVENUE REGULATIONS NO. ____; that, in accordance with

the said

Regulations, I have availed of the “Optional Registration under the 3%

Final Percentage

Tax Withholding, in lieu of the 3% Creditable Percentage

Tax Withholding

” System, in order to be entitled to the privileges accorded by the

“Substituted Percentage Tax Return System” prescribed thereunder; that,

this Declaration

is sufficient authority of the Withholding Agent to withhold

3% Percentage

Tax from payments to me on my sale of goods and/or services, in lieu

of the

said 3% Creditable Percentage Tax Withholding; and that, I have executed

this Declaration

under penalty of perjury pursuant to the provisions of Section

267, National

Internal Revenue Code of 1997.

____________________________

Taxpayer’s Name and Signature

22Slide23

Taxation of Individuals Engaged in Providing Services under a Service Contract with no Employer-Employee Relationship

BIR FORM NO.__________

Republic of the Philippines

Department of Finance

BUREAU OF INTERNAL REVENUE

Revenue Region No. ___

Revenue District Office No. ___________________________________________________________________________NOTICE OF AVAILMENT OF THE SUBSTITUTED FILING OFVALUE-ADDED TAX RETURNDate __________________Name of Taxpayer _________________________________________________Address _________________________________________________________Taxpayer Identification Number _____________________________________Class of Profession or Calling/Business______________________________

CERTIFICATIONThis is to certify that I am a VAT-registered person pursuant to the provisions

of REVENUE REGULATIONS NO. ____; that, in accordance with

the said

Regulations, I have availed of the “Optional Registration under the

12% Final VAT

Withholding, in lieu of the

12%

Creditable VAT withholding,” in order to

be entitled

to the privileges accorded by the “Substituted VAT Return

System” prescribed

thereunder; that, this Declaration is sufficient authority of

the withholding

agent to withhold

12%

VAT from payments to me on my sale

of goods

and/or services; that, I have executed this Declaration under penalty

of perjury

pursuant to the provisions of Section 267, National Internal Revenue

Code of

1997.

____________________________

Taxpayer’s Name and Signature

23Slide24

Taxation of Individuals Engaged in Providing Services under a Service Contract with no Employer-Employee Relationship

SWORN

DECLARATION AND WAIVER OF THE PRIVILEGE TO CLAIM

INPUT TAX CREDITS UNDER SECTION 110 OF THE TAX CODE

In

accordance with the provisions of Sections 106 and 108 of the

National Internal Revenue Code of 1997, I hereby voluntarily depose and say: 1. That I am a VAT-registered seller of goods and/or service; 2. That I availed of the option to be taxed at 12% VAT; 3. That I hereby waive my right/privilege to claim input tax credits provided under Section 110 of the National Internal Revenue Code of 1997

that may be otherwise claimed against the output tax due on my sale of goods and/or services; and

4

. That this waiver shall be effective until cancelled through the

execution of

a notice

prepared

for the purpose

.

I

hereby declare under penalties of perjury that the foregoing

representations are

true and correct and the waiver of right/privilege is voluntarily and

knowingly made

in accordance with

the provisions

of the National Internal Revenue Code of 1997.

_______________________

Date and Name

of Taxpayer

24Slide25

Taxation of Individuals Engaged in Providing Services under a Service Contract with no Employer-Employee Relationship

BIR

FORM NO.__________

Republic of the Philippines

Department of Finance

BUREAU OF INTERNAL REVENUE

Revenue Region No. ___Revenue District Office No. ______________________________________________________________________________________NOTICE OF CANCELLATION OF AVAILMENT OF THE OPTION TO PAY THE TAXTHROUGH THE WITHHOLDING PROCESSDate __________________Name of Taxpayer ______________________________________________________Address _______________________________________________________________Taxpayer Identification Number __________________________________________Class of Profession or Calling/Business _____________________________________

CERTIFICATIONThis

is to certify that in accordance with the REVENUE

REGULATIONS NO

.____, I have availed of the “Option To Pay The Tax Through The

Withholding Process

”; that, I am hereby cancelling and withdrawing my said NOTICE

OF AVAILMENT

TO PAY THE TAX THROUGH THE

WITHHOLDING PROCESS

effective ___________________, 200__; and that, I have executed

this Declaration

under penalty of perjury, pursuant to the provisions of Section 267,

National Internal Revenue Code of 1997.

____________________________

Taxpayer’s Name and Signature

25Slide26

Taxation of Individuals Engaged in Providing Services under a Service Contract with no Employer-Employee Relationship

BIR FORM NO.__________

Republic of the Philippines

Department of Finance

BUREAU OF INTERNAL REVENUE

Revenue Region No. ___

Revenue District Office No. ___________________________________________________________________________NOTICE OF CANCELLATION OF AVAILMENT OFTHE SUBSTITUTED FILING OF PERCENTAGE TAX / VAT RETURNDate _______________Name of Taxpayer ______________________________________________________Address ______________________________________________________________Taxpayer Identification Number __________________________________________

Class of Profession or Calling/Business __________________________________Type of Registration [ ] VAT Taxpayer [ ] Non-VAT Taxpayer

CERTIFICATION

This is to certify that I am a Non-VAT/VAT -registered person pursuant

to the

provisions of REVENUE REGULATIONS NO. ____; that, in accordance

with the

said Regulations, I have availed of the “Optional Registration under the

3% final

Percentage Tax on the Sale of Goods and/or Service /10% final

VAT Withholding

on the Sale of Goods and/or Service” in order to be entitled to

the privileges

accorded by the “Substituted Filing of Percentage Tax/VAT

Return” prescribed

thereunder; that, I am hereby cancelling and withdrawing my

said NOTICE

OF AVAILMENT OF THE SUBSTITUTED FILING OF

PERCENTAGE TAX/VAT RETURN SYSTEM, effective

___________________, 200

__; and that, I have executed this Declaration under penalty of

perjury, pursuant

to the provisions of Section 267, National Internal Revenue Code of 1997.

____________________________

Taxpayer’s Name and Signature

26Slide27

Taxation of Individuals Engaged in Providing Services under a Service Contract with no Employer-Employee Relationship

Filing of Required Tax Returns

:

Notarized Sworn Declaration

To be prepared in three copies

(2 for the BIR & 1 for the TP, but shall be photocopied so that all his current income payors shall be provided with a copy);To be submitted to the Collection Division having jurisdiction over the RDO where the individual is registered;

To be submitted fifteen (15) days after the end of the month where the individual’s income reaches P720,000 or June 30 of each year, whichever comes earlier. (However, if after June 30, the individual’s income reaches P720,000, another sworn declaration must be submitted)

27Slide28

> Register with BIR using BIR Form 1901; > Pay Annual Registration Fee of P500;

> Keep Books of Accounts; > Issue Official Receipt for every receipt of income (not applicable to those who opted to pay PT/VAT through the withholding process); > File Required Tax Returns and information return;

> Submit required document as may be required in any future revenue issuance

SUMMARY OF THE TAX OBLIGATIONS OF INDIVIDUALS HIRED UNDER “CONTRACT OF SERVICE”

28Slide29

REQUIRE THE INDIVIDUAL TO REGISTER WITH THE BIR AS INDIVIDUAL ENGAGED IN BUSINESS OR PRACTICE OF PROFESSION, WHICHEVER IS APPROPRIATE

CERTIFICATE OF REGISTRATION (COR) OF THE INDIVIDUAL ISSUED BY THE BIR UPON HIS REGISTRATION

OFFICIAL RECEIPT

FOR EVERY PAYMENT OF INCOME/

BIR FORM 2306

DULY-SIGNED BY BOTH PAYOR AND PAYEE

COPY OF THE SWORN DECLARATION OF INCOME DULY RECEIVED BY THE BIR

WHAT THE HIRING AGENCY SHOULD REQUIRE FROM THE INDIVIDUALS HIRED UNDER THE “CONTRACT OF SERVICE”/ “JOB ORDER” SCHEME?

29Slide30

INDIVIDUALS HIRED UNDER “CONTRACT OF SERVICE”

APPLICABLE WITHHOLDING TAX

:

EWT PRESCRIBED UNDER SECTION 2.57.2 OF RR NO. 2-98

DEPENDS ON THE NATURE OF SERVICE RENDERED IF THE NATURE OF SERVICE IS NOT AMONG THE EXISTING ENUMERATIONS UNDER RR NO. 2-98, AS AMENDED, APPLY THE REQUIRED WITHHOLDING AS GOVERNMENT ENTITY UNDER SEC. 2.57.2 (N) OF RR NO. 2-98, AS AMENDED VAT OR PERCENTAGE TAX WITHHOLDING SHALL ALSO APPLY (REFER TO THE GOVERNMENT EXPENSE CHART)30Slide31

What are the objectives of RR 19-2011?To prescribe the use of new Income Tax Returns (Annual) Modify the provisions under RMC 57-2011 What are the new ITR forms?

BIR Form 1700BIR Form 1701BIR Form 1702

REVENUE REGULATIONS NO. 19-2011

31Slide32

REVENUE REGULATIONS NO.

19-201132

BEFORE (BIR Form No. 1700)

NOW (BIR Form No. 1700)

Marking of an “X” on all applicable boxes

Shading of all applicable circle

3 choices for ATC (II011; II 040; II041

2 choices for ATC

(II041; II011)

No question as to “joint filing”

With question as to “joint filing”

Information

can be provided either through script writing or print

All

i

nformation is required to be written in all capital letters on each box provided

No

question as to “gender”

With question as to “gender”

Email

address is not being asked

Space

is provided for the email address

Three digits for the branch code

Four digits for the branch codeSlide33

REVENUE REGULATIONS NO.

19-201133

BEFORE (BIR Form No. 1700)

NOW (BIR Form No. 1700)

For

the information on qualified dependent children,

there is no

question if mentally or physically incapacitated

For

the information on qualified dependent children,

there is

a question if mentally or physically incapacitated

Personal and additional exemption is lumped under one data field

Separate fields were provided for personal and additional exemption

No Part IV – the

return is composed of three (3) parts only.

With Part IV – Supplemental Information

No space provided for “new address” in

case the registered address is no longer the current address

Space is

provided for the “new address” of the taxpayer, in case the registered address is no longer the current addressSlide34

REVENUE REGULATIONS NO.

19-201134

What are the information required under Part IV

?

Gross Income/Receipts subjected to Final Withholding Tax on income

Gross Income/Receipts exempt from income tax

Under RMC 57-2011

, declaration of information required under Part IV of the tax return is optional for calendar year 2011 but for 2012 onwards, the disclosure of these information is mandatory.Under RR 19-2011

, it amended RMC 57-2011 wherein the filling-up of the fields provided under Part IV is made optional. However, in case information shall be provided, the same must be properly documented and/or substantiatedSlide35

REVENUE REGULATIONS NO.

19-201135

BEFORE (BIR Form No. 1701)

NOW (BIR Form No. 1701)

Marking of an “X” on all applicable boxes

Shading of all applicable circle

3 choices for ATC (II011; II 040; II041

2 choices for ATC

(II041; II011)

No question as to “joint filing”

With question as to “joint filing”

Information

can be provided either through script writing or print

All

i

nformation is required to be written in all capital letters on each box provided

No

question as to “gender”

With question as to “gender”

Email

address is not being asked

Space

is provided for the email address

Three digits for the branch code

Four digits for the branch codeSlide36

REVENUE REGULATIONS NO. 19-201136

BEFORE (BIR Form No. 1701)

NOW (BIR Form No. 1701)

For

the information on qualified dependent children,

there is no

question if mentally or physically incapacitated

For

the information on qualified dependent children, there is a question if mentally or physically incapacitated

Personal and additional exemption is lumped under one data field

Separate fields were provided for personal and additional exemption

Part III-Details of Payment

Part III-

Availment

of Tax Income Incentives/Exemptions

No Part IV – the

return is composed of three (3) parts only.

With additional parts (Part IV –IX)

IV- Details of Payment

V- Breakdown of Income

VI-Schedules

VII-Details

of Income Tax Incentives/Exemptions

VIII- Applicable to Estate and Trust

IX-

Supplemental Information Slide37

Amended the EWT rate applicable on the purchase of minerals, mineral products and quarry resources – Section 2.57.2 (T) of RR 2-98, as amended

REVENUE REGULATIONS NO. 6-2012

37

Before

Now

10%

5%

RR 7-2007RR 6-2012Slide38

Amended RR 5-2011 –

REVENUE REGULATIONS NO. 8-2012

38

RR 5-2011

RR 8-2011

Uniform and clothing allowance not exceeding P4,000 per annum

Uniform and clothing allowance not exceeding P5,000 per annumSlide39

Subject of this RMC - Reiteration of the responsibilities of employees and officials of government offices for the withholding of taxes on certain income payments subject to withholding taxes and the imposition of penalties for non-compliance thereofWhat are these responsibilities?

register;require employee to accomplish registration/update form;

withhold;

r

emit;

d

o the year-end adjustment (withhold deficiency tax or refund excess tax withheld);

Issue certificate of income paid and tax withheld (BIR Form 2316; 2306; 2307)file annual information return

REVENUE

MEMORANDUM CIRCULAR NO. 23-2012

39Slide40

Penalties for Non-Compliance:

REVENUE

MEMORANDUM CIRCULAR NO. 23-2012

40

Violation

Penalties

Legal BasisNon-withholding of required taxAmount of tax not withheldSec. 251, Tax Code

20% interest

Sec. 249, Tax

Code

Fine of not less than P10,000

and suffer imprisonment of not less than I year but nor more than 10 years, upon conviction

Sec. 255, Tax Code

Under-withholding of

tax

Amount of Under-withheld tax

Sec. 251, Tax Code

20% interest

Sec. 249, Tax

CodeSlide41

Penalties for Non-Compliance:

REVENUE

MEMORANDUM CIRCULAR NO. 23-2012

41

Violation

Penalties

Legal BasisNon-remittances of taxes withheldAmount of tax not remitted

Sec. 251, Tax Code

20% interest

Sec. 249, Tax

Code

Fine of not less than P10,000

and suffer imprisonment of not less than I year but nor more than 10 years, upon conviction

Sec. 255, Tax Code

Late remittance /Late filing of withholding tax returns

25% surcharge on the amount remitted late

Sec. 248, Tax Code

20% interest

Sec. 249, Tax CodeSlide42

Penalties for Non-Compliance:

REVENUE

MEMORANDUM CIRCULAR NO. 23-2012

42

Violation

Penalties

Legal BasisFailure to refund excess taxes withheld on compensationAmount of tax not refunded20% interest

Sec. 252, Tax CodeSec. 249, Tax Code

Fine of not less than P10,000

and suffer imprisonment of not less than 1 year but not more than 10 years, upon conviction

Sec. 255, Tax Code

Failure to file withholding tax return or certain information return

P1,000 for each failure but not to exceed P25,000 during a calendar year

Sec. 250, Tax Code

Fine of not less than P10,000

and suffer imprisonment of not less than 1 year but not more than 10 years, upon conviction

Sec. 255, Tax CodeSlide43

Penalties for Non-Compliance:

REVENUE

MEMORANDUM CIRCULAR NO. 23-2012

43

Violation

Penalties

Legal BasisFailure to supply correct and accurate informationFine of not less than P10,000 and suffer imprisonment of not less than 1 year but not more than 10 years, upon conviction

Sec. 255, Tax CodeViolations of withholding tax regulations committed by Public Officers charged with the duty to deduct and withhold any internal revenue tax and to remit the same

Penalty of not less than P5,000 but not more than P50,000 or suffer imprisonment of not less than 6 months and 1

day but not more than 2 years, or both, for each act or omission, upon conviction

Sec. 272, Tax CodeSlide44

Penalties for Non-Compliance:

REVENUE

MEMORANDUM CIRCULAR NO. 23-2012

44

Violation

Penalties

Legal BasisActs or omissions penalized under the Tax Code committed by any corporation, association or general co-partnershipFine of not less than P50,000 but not more than P100,000, for each act or omission, up

on convictionSec. 256, Tax CodeViolations of any provision of the Tax Code or any rule for which no specific penalty is provided

Penalty of P1,000 or suffer imprisonment of not more than 6 months, or both,

for each act or omission, upon conviction

Sec. 275, Tax CodeSlide45

ADDITIONS TO THE TAX45Slide46

ADDITIONS TO THE TAX46Slide47

CRIMINAL LIABILITIES47Slide48

CRIMINAL LIABILITIES48Slide49

Thank you49