Friday November 24 , 2017
Tax Updates

Tax Updates

A compilation of recent legislation and issuances of the Bureau of Internal Revenue and other government agencies relevant to the field of taxation and corporate practice.

Documents

Revenue Memorandum Circular No. 80-2012: Requires Strict Adherence to Anti-Red Tape Act Revenue Memorandum Circular No. 80-2012: Requires Strict Adherence to Anti-Red Tape Act

RMC 80-2012 directs all revenue officials and employees who are performing “frontline service” to strictly comply with the provisions of Republic Act No. 9485, otherwise known as the “Anti-Red Tape Act of 2007”. 

In compliance with the said Act, BIR officers and employees are given 5 working days within which to act upon applications and requests involving simple transactions, and 10 working days in case of complex transactions. The periods may be extended depending on the nature of the service or the mandate of the office concerned. The taxpayer shall be notified in writing of the reason for the extension and the final date of release of the service requested. In case of denial, the officer shall send a formal notice to the taxpayer, stating the reasons therefor.

The offices performing frontline services that are required to observe RMC 80-2012 include the following:

a.   All Regional Offices and all its Divisions, except Administrative Division and Document Processing Division (for regions with DPD)
b.   All Revenue District Offices
c.  All Divisions under the Large Taxpayers Service, except LT Document Processing & Quality Assurance Division and LT Performance Monitoring & Programs Division
d.  Taxpayer Information and Education Division
e.  Asset Valuation Division
f.   One-Stop-Shop Center
g.   Collection Enforcement Division
h.   Collection Programs Division
i.    Withholding Tax Division
j.    Law Division
k.    International Tax Affairs Division
l.    Appellate Division
m.  National Investigation Division

Officers and employees may be held liable for violations of R.A. 9485, and be punished with the proper penalties prescribed therein.

Revenue Memorandum Circular No. 77-2012: Clarifying certain provisions of RR 14-2012 on the proper tax treatment of interest income on financial instruments and other related transactions Revenue Memorandum Circular No. 77-2012: Clarifying certain provisions of RR 14-2012 on the proper tax treatment of interest income on financial instruments and other related transactions

Revenue Memorandum Circular No. 77-2012: Clarifying certain provisions of RR 14-2012 on the proper tax treatment of interest income on financial instruments and other related transactions

RMC was issued to clarify certain provisions of RR 14-2012 on the proper tax treatment of interest income on financial instruments and other related transactions, to wit:

Final withholding tax on interest income from government debt instrument and securities (Section 2 (4) of RR 14-2012)

The mere issuance of government debt instruments and securities is deemed as falling within the coverage of "deposit substitutes" irrespective of the number of lenders at the time of origination.  Thus, subject to 20% final withholding tax.  The final withholding tax shall accrue, in case of zero-coupon instruments and securities upon their original issuance.  In case of interest bearing, final withholding tax shall accrue upon payment of the interest.

Creditable withholding tax on income derived from other debt instruments not within the coverage of "deposit substitutes" and RR 14-2012 (Section 7 of RR 14-2012)

The 20% creditable withholding tax (CWT) on interest income derived from any other debt instrument shall be imposed on each Interest payment to be made beginning on November 23, 2012 (date of effectivity of RR 12-2012), irrespective of the instruments’ and securities’ date of issuance.  This covers all interest income from current outstanding instruments, securities, or accounts as of November 23, 2012.

30% regular corporate income tax on interest income from long-term deposits of domestic and resident foreign corporations (Section 3(6) of RR 14-2012)

Interest income derived by domestic and resident foreign corporations from long-term deposits NOT issued by banks or investment certificates that are NOT considered deposits or deposit shall be subject to 30% regular corporate income tax.  The interest payors in such a case are required to withhold 20% creditable withholding tax pursuant to section 7 of RR 14-2012.

Documentary Stamp Tax on assignments or re-assignments of debt instruments (Section 8 of RR 14-2012)

The assignment or re-assignment of debt instruments shall be subject to DST pursuant to Section 198 of the Tax Code.  The imposition of DST occurs only when the assignment or re-assignment of the debt instrument entails changing the maturity date or remaining period of coverage from the original instrument or carries with it a renewal or issuance of new instruments in the name of the transferee to replace the old ones.   Otherwise, the assignment or re-assignment without any change in maturity date shall be exempt from DST as provided under Section 199(f) or (g) of the NIRC of 1997.

Revenue Memorandum Circular 68-12 - Requirements and procedures for the condonation of tax liabilities of local water districts. Revenue Memorandum Circular 68-12 - Requirements and procedures for the condonation of tax liabilities of local water districts.

Revenue Memorandum Circular 68-12 (Nov. 5, 2012) Requirements and procedures for the condonation of tax liabilities of local water districts

RA No. 10026 is the law allowing the condonation of tax liabilities of local water districts subject to certain conditions, the provisions of which were added to the 1997 NIRC, as amended, and now reads as Section 289-A. It appears, however, that said provisions are not automatic hence RMC No. 68-2012 was issued laying down the procedures in the application and approval of tax liabilities pursuant to RA No. 10026.

The following must be filed with the Technical Working Committee on Abatement through the Assistant Commissioner on or before April 30, 2013:

1.    Application Letter stating the following circumstances:
a.    That it is a duly organized local water district;
b.    That it intends to apply for condonation of unpaid tax liabilities;
c.    A detailed statements of the unpaid tax liabilities which it seeks to be condoned including the amount/s of basic taxes, penalties and surcharges, taxable year/s involved, and other relevant data;

2.    Supporting documents such as the following;
a.    Conditional Certificate of Conformance issued by the Local Water Utilities Administration;
b.    Proof of its financial incapacity; and
c.    Proof that it has submitted to Congress of the Philippines a program of internal reforms, duly certified by the local water utilities administration, that would bring about its economic and financial viability.
d.    Such additional documents as may be required by the Bureau.

Revenue Memorandum Circular 67-12 – Proprietary non-profit hospitals not exclusively organized and operated for charitable purposes is subject to tax at 10% on its income. Revenue Memorandum Circular 67-12 – Proprietary non-profit hospitals not exclusively organized and operated for charitable purposes is subject to tax at 10% on its income.

Revenue Memorandum Circular 67-12 (Oct. 31, 2012) – Proprietary non-profit hospitals not exclusively organized and operated for charitable purposes is subject to tax at 10% on its income.

The decision of the Supreme Court in G.R. Nos. 195909 and 195960 dated September 26, 2012 entitled CIR vs. St. Lukes Medical Center, Inc., paved the way for the issuance of RMC No. 67-2012 to properly guide everyone with respect to the income tax treatment of proprietary non-profit hospitals under Section 27(B) vis-à-vis Sections 30[E] and [G] of the NIRC, as amended.

The RMC clarified that proprietary non-stock non-profit hospitals and educational institutions are subject to the following:

1.    10% income tax if gross income from unrelated trade, business or other activity does not exceed 50% of its total gross income derived from all sources;

2.    30% income tax (RCIT) if  gross income from unrelated trade, business or other activity exceeds 50% of its total gross income derived from all sources;

3.    Exempt if it qualifies under Section 30(E) complying with the following:  (1) A non-stock corporation or association; (2)Organized exclusively for charitable purposes; (3) Operated exclusively for charitable purposes; and (4) No part of its net income or asset shall belong to or inure to the benefit of any member, organizer, officer or any specific person.

Revenue Memorandum Circular 66-12 - A new rural bank formed thru the consolidation of existing banks is not qualified for the exemption granted under RA 7353 if one or more of the constituent banks already enjoyed the exemption. Revenue Memorandum Circular 66-12 - A new rural bank formed thru the consolidation of existing banks is not qualified for the exemption granted under RA 7353 if one or more of the constituent banks already enjoyed the exemption.

Revenue Memorandum Circular 66-12 (Oct. 31, 2012)  A new rural bank formed thru the consolidation of existing banks is not qualified for the exemption granted under RA 7353 if one or more of the constituent banks already enjoyed the exemption.

Under Section 15 of the Rural Banks Act of 1992 (RA No. 7353), all rural banks created and organized under its provision and those already in operation as of the date of its approval, are exempted from the payment of all taxes except corporate income taxes and local taxes, fees and charges for a period of five (5) years.

However, rural banks formed through consolidation of existing rural banks (“constituent rural banks”) shall not be entitled to the tax exemption under Section 15 of RA No. 7353 except when none of the constituent rural banks availed of the tax exemption for a period of 5 years.

Revenue Memorandum Circular 65-12 – Condominium Associations now subject to Income Tax, VAT and other taxes Revenue Memorandum Circular 65-12 – Condominium Associations now subject to Income Tax, VAT and other taxes

Revenue Memorandum Circular 65-12 (Oct 31, 2012) – Condominium Associations now subject to Income Tax, VAT and other taxes

In order to clarify the existing rules with respect to the taxability of association dues, membership fees and other assessments/charges collected by condominium corporations, RMC No. 65-2012 was issued.

Dues and fees from members and tenants collected by a condominium corporation shall now be included in the gross income of the condominium corporation and subjected to income tax.  The previous rule exempting the same from income tax based on the interpretation that it is merely held in trust by a condominium corporation without realizing any profit therefrom is now abandoned for it lacks legal basis.

Likewise, association dues, membership fees and other assessments/charges collected by a condominium corporation are subject to VAT since these constitute compensation for the beneficial services it provides to its members and tenants, whether or not said corporation realized a profit therefrom.

Revenue Regulations No. 14-2012 – Proper Tax Treatment of Interest Income Earnings on Financial Instruments and Other Related Transactions Revenue Regulations No. 14-2012 – Proper Tax Treatment of Interest Income Earnings on Financial Instruments and Other Related Transactions

Revenue Regulations No. 14-2012 – Proper Tax Treatment of Interest Income Earnings on Financial Instruments and Other Related Transactions

The BIR issued Revenue Regulations (RR) No. 14-2012, implementing the prevailing laws on taxation of interest income on financial instruments and similar transactions.  This includes the reiteration of existing tax rules on the following:

1.    Interest income from government debt instruments and securities

2.    Interest income from long term deposits or investment certificates

3.    Interest income derived from currency bank deposit and yield or any other monetary benefit from deposit substitutes and from trust funds and similar arrangements

4.    Interest income derived from a depository banks under the expanded foreign currency deposit system (EFCDU)

5.    Interest income from offshore banking units (OBUs)

The RR, however, introduced few changes from the current tax rules, to wit:

Interest income derived from any other debt instruments not within the coverage of “deposit substitutes” and the above enumerations shall be subjected 20% creditable withholding tax. 

To qualify as deposit substitutes, the borrowing must be made from twenty (20) or more individual or corporate lenders at any one time or commonly known as “19-Lender Rule”.  In the counting of the 19-lender rule, it requires that any person holding an interest, whether legal or beneficial, on a debt instrument or holding thereof either by assignment or participation, with or without recourse, shall be considered as a lender.

The RR also reiterates that mere issuance government debt instruments and securities are deemed deposit substitutes and the interest income derived therefrom is subject to final tax.  However, the final tax shall be paid upon original issuance of the deposit substitutes, that is irrespective of the kind of instrument issued (interest or non-interest bearing) and regardless of the actual receipt of interest income.

Further, interest income from long-term deposit or investment certificate received by a domestic or resident foreign corporation shall be subject to regular income tax at the rate of 30% instead of 20% final tax.

Finally, the new RR subjects to DST any assignment or re-assignment of the debt instruments unequivocally; that is, without distinction whether there were alterations in the maturity date or remaining period of coverage from that of the original instrument.

Clarifying the Issues Affecting Invoicing and Recording of Income Payments for Media Advertising Placements Clarifying the Issues Affecting Invoicing and Recording of Income Payments for Media Advertising Placements

RMC 63-2012: Clarifying the Issues Affecting Invoicing and Recording of Income Payments for Media Advertising Placements

Revenue Memorandum Circular (RMC) 63-2012 was issued to standardize the procedure for invoicing and recording of income payments and gross receipts for media advertising placement as well as its tax treatment.

The new RMC requires the media supplier to bill directly the advertisers for the cost of media placement.  Advertisers are required to withhold 2% on the total cost of media placement and in turn, the media supplier shall issue VAT official receipt directly to the advertisers.

On the other hand, the advertising agency shall now be required to bill the media supplier for its commission.  Media supplier, upon payment of commission, is required to withhold 2% withholding tax; successively the advertising agency is required to issue VAT official receipt for the entire amount of commission to the media supplier.

Proforma journal entries for the recording of gross receipts and income payments in the books of media supplier, advertising agency and advertisers were also detailed in the circular.

In the past, advertisers may make income payments to advertising agency for the total cost of media placement plus the agency commission/fee and in turn, the advertising agency remits to the media supplier the cost of media placement.  Such industry set-up, which gives rise to invoicing and recording issues, shall no longer be available.

RMC 62-2012 - Clarifying the Reporting of Gross Receipts Relative to Power Generation and Distribution RMC 62-2012 - Clarifying the Reporting of Gross Receipts Relative to Power Generation and Distribution

Revenue Memorandum Circular (RMC) 62-2012 revises Question No. 26 of RMC 61-05 on the reckoning of VATable sale between the generation company and the end-user.  Under the new procedure, all collections by generation companies from distribution companies pertaining to generation and other VATable charges shall be deemed VAT inclusive.

It can be recalled that, under RMC 61-05, the procedure is that no VAT shall be due until and unless the distribution company has collected the generation fees from the end user.  Thus, notwithstanding the advances made by the distributors to the generation company of the generation and other VATable charges, such amount advanced shall not be subject to VAT.

Despite the new procedure, the amount collected by distribution companies (pass-through entity) from end-user shall not form part of the gross receipts of the distribution companies; said amount shall remain as gross receipts of the generation company.  Further, the corresponding input tax on such pass-on charges should not be claimed as credit by distribution companies.

This procedure shall take effect beginning billing period August 26 to September 25, 2012.  Hence, the BIR mandated all generation companies to remit all outstanding deferred VAT as of August 25, 2012 on or before November 20, 2012.  On the other hand, distribution companies are required to remit VAT on their purchases prior to August 25, 2012 on or before November 15, 2012 to allow the generation companies to remit the same to the BIR within the prescribed period.  Failure to remit the VAT within the prescribed period shall warrant the imposition of penalties.

NEW REVENUE REGULATIONS - RR 12-2002 (Vehicles); RR 13-2012 (Sale of adjacent lots and homelots) NEW REVENUE REGULATIONS - RR 12-2002 (Vehicles); RR 13-2012 (Sale of adjacent lots and homelots)

REVENUE REGULATIONS 12-2012 – Purchase of Vehicles

The Bureau of Internal Revenue (BIR) has issued Revenue Regulation No. 12-2012 dated October 12, 2012, providing for the limits/rules/guidelines on the deductibility of depreciation expenses relating to purchase of vehicles and other related expenses as well as the input taxes allowed therefore.

Guidelines to claim depreciation as a deduction in the gross income:
1.    Only one vehicle for land transport is allowed for the use of an official or employee;
2.    The value of which should not exceed P 2,400,000;
3.    It must be substantiated with sufficient evidence, such as official receipts or other adequate records; and
4.    There is a direct connection or relation of the Vehicle to the development, management, operation, and/or conduct of the trade or business or profession of the taxpayer.

Generally, no deduction in the gross income shall be allowed for depreciation of the following:
1.    Yachts, helicopters, airplanes and/or aircrafts; and
2.    Land vehicles with a value of more than P 2,400,000.

Exception: the taxpayer is in the business of transport operations, or lease of transportation equipment and the vehicles purchased are used in said operations.

In addition, the following shall be disallowed as deduction in the gross income:
1.    All maintenance expenses on account of non-depreciable Vehicles; and
2.    Input taxes on the purchase of non-depreciable Vehicles and all input taxes on maintenance expenses.


REVENUE REGULATIONS 13-2012– VAT treatment on Sale of Adjacent Residential Lots, House & Lots or other residential dwellings

Revenue Regulations (RR) No. 13-2012 is an amendment to RR No. 16-2005 with respect to VAT treatment on sale of real properties held primarily for sale to customers or held for lease in the ordinary course of trade or business of the seller.

Under RR 13-2012, a sale, transfer or disposal of two or more adjacent residential lots, house and lots or other residential dwellings within the 12-month period in favor of one buyer, shall be presumed as a single or one sale of real property.  It is subject to VAT if the aggregate value of the adjacent properties sold exceeds P1,919,500.00 for residential lots and P3,199,200.00 for residential house and lots or other dwellings.

The sale of parking lot, which may or may not be included in sale of condominium units, is a separate and distinct transaction not covered by the rules on residential exemption threshold, this being not a residential lot, house & lot or a residential dwelling.  Thus, it shall be subject to VAT regardless of  amount of selling price.

Guidelines in the application of VAT TCC Monetization Program under Revenue Memorandum Order (RMO) No. 21-2012. Guidelines in the application of VAT TCC Monetization Program under Revenue Memorandum Order (RMO) No. 21-2012.

Revenue Memorandum Order (RMO) No. 21-2012 prescribes the policies, guidelines and procedures in the acceptance, processing, evaluation and approval of applications for the VAT Tax Credit Certificate (TCC) Monetization Program pursuant to Executive Order (E.O.) No. 68, series of 2012  and the Joint Circular No. 2-2012 executed among Department of Finance (DOF), Department of Budget and Management and Bureau of Internal Revenue (BIR).

All applications with the corresponding documentary requirements shall be processed and evaluated by designated Receiving Office and shall issue a recommendation on the request for VAT TCC monetization.

This RMO shall only cover those VAT TCCs that were issued prior to April 12, 2012 either by the BIR solely or those jointly issued by the BIR and the OSS Center pursuant to Section 112 of the Tax Code.

TCC MONETIZATION PROGRAM TCC MONETIZATION PROGRAM

The BIR issued Revenue Memorandum Circular No. 44-2012, publishing Joint Circular No. 2-2012, which prescribes for the implementing guidelines for the establishment of the Value-Added Tax (VAT) Tax Credit Certificate (TCC)  Monetization Program pursuant to Executive Order No. 68, Series of 2012.  To wit:

1.  The program covers all VAT TCCs issued pursuant to Section 112 of the Tax Code, as amended;

2.  Applications for the Enrollment in the Program must be received by TCC-issuing offices (the BIR or DOF-OSS Center), within 3 months from the effectivity of this Circular;

3.  The BIR shall issue to the TCC owner of the verified TCC, a Notice of Payment Schedule (NPS) confirming the details of his/her entitlement to monetization, the refundable amount, the date of monetization and such other necessary information.  The NPS must be presented to the BIT for payment within 30 calendar days before the maturity date.  Only duly issued NPS for monetization shall be accepted by the BIR or the government financial institution (GFI), as the case may be;

4.   As to the manner of giving the refund, holders of NPS may opt to:

a.   Sell the outstanding amounts at a discount to GFIs for monetization; or
b.   Hold the NPS until its maturity date and be paid by the BIR the full cash value of the TCC; and

5.   In case of failure to enroll in the program, the TCC owner may:

a.   Credit his TCCs against tax liabilities; or
b.   Apply for TCC revalidation under Section 230(B) of the NIRC and/or tax refund (cash conversion) under Section 204(C) of the same Code.

The BIR shall issue a separate RMO to cover for the mechanics of TCC verification.

Mandatory encoding of December 2011 and January 2012 ITR in the EFPS due August 31, 2012 Mandatory encoding of December 2011 and January 2012 ITR in the EFPS due August 31, 2012

Encoding of December 2011 and January 2012 ITR in the eFPS due on August 31, 2012

BIR issued Revenue Memorandum Circular (RMC) 43-2012, formally announcing the availability of the enhanced BIR Form No. 1702 in the eFPS and circularizing the guidelines in encoding the contents of previously filed manual ITR.  This is relative to the requirement set forth in RMC No. 15-2012, where the eFPS taxpayers were required to encode the contents of their manually filed ITRs in the eFPS within 10 days from the formal announcement of the availability of the enhanced Income Tax Return in the eFPS via BIR website.

Below are the guidelines to be undertaken:

1.    eFPS filers should encode the contents of the return previously filed on or before August 31, 2012.

2.    ePayment shall no longer be required if the tax due on the e-filed return is equal to the amount previously paid. However, if there is unpaid tax, the taxpayer shall e-pay the unpaid amount subject to applicable penalties.

3.    Supplemental forms were required to be accomplished by taxpayers who avail Tax Relief under Special or International Tax Treaty.  Those having less than or equal to nine (9) registered activities are required to fill-up the online supplemental forms.  Whereas those with more than nine (9) registered activities, only the cumulative amount per tax regime should be encoded in the online supplemental form; the details were required to be encoded offline.  The accomplished offline forms shall then be attached to online BIR Form No. 1702 upon submission in eFPS.

4.    After e-filing, the Filing Reference Number (FRN) shall be generated as proof that the return has been received by the BIR which should be printed for future reference.

5.    The "Proceed to payment" button shall only be enabled if there is tax still payable.

Penalties shall be imposed to eFPS taxpayers, who failed to file the accompanying schedules and attachments with the concerned LTO/RDO where they are registered within 15 days after the initial filing of the ITR.

RMC 40-2012 - Ruling issued by the BIR on exchange of properties is effective only within a period of 90 days. RMC 40-2012 - Ruling issued by the BIR on exchange of properties is effective only within a period of 90 days.

Revenue Memorandum Circular (RMC) No. 40-2012 prescribes that a ruling issued by the BIR pursuant to Section 40(C)(2) of the Tax Code on exchange of properties during mergers or consolidations is effective only within a period of 90 days from receipt of the ruling by any of the parties to the exchange transaction.  Thus, the transfer must be enforced or executed by the parties within a period of 90 days.

RMC 39-2012 - The judgment awarded to employees in labor dispute enforced through garnishment of debts, is required to be subjected to withholding by the garnishee.. RMC 39-2012 - The judgment awarded to employees in labor dispute enforced through garnishment of debts, is required to be subjected to withholding by the garnishee..

Revenue Memorandum Circular (RMC) No. 39-2012 states that when the judgment awarded to employees in a labor dispute is enforced through garnishment of debts due to the employer or other credits to which the employer is entitled, the person owing such debts or having in possession or control of such credits, known as the garnishee (e.g. banks or other financial institutions) shall act as the withholding agent with the duty of deducting the corresponding withholding tax on wages due thereon in an amount equivalent to 5% of the portion of the judgment award representing the taxable backwages, allowances and benefits.

RMC 38-2012 - Clarifies certain privileges under the Expanded Senior Citizens Act. RMC 38-2012 - Clarifies certain privileges under the Expanded Senior Citizens Act.

Revenue Memorandum Circular (RMC) No. 38-2012 clarifying the tax privileges provisions of Republic Act (RA) No. 9994, also known as “Expanded Senior Citizens Act of 2010”. It clarifies the tax treatment of the 20% discount for different scenarios and the exemption from VAT on goods and services availed by Senior Citizens.

RMC 37-2012 - Requires CAR for the transfer of ownership of shares of stocks not traded. RMC 37-2012 - Requires CAR for the transfer of ownership of shares of stocks not traded.

Revenue Memorandum Circular (RMC) No. 37-2012 clarifying that a Certificate of Authorization for Registration (CAR) is required before any transfer of ownership of shares of stock not traded in the Stock Exchange is made in the transfer book.

RMC 36-2012 - All certificates issued by a government office including Construction Industry Authority is subject to P15  DST RMC 36-2012 - All certificates issued by a government office including Construction Industry Authority is subject to P15 DST

Revenue Memorandum Circular (RMC) No. 36-2012 clarifies that all certificates including those issued by a government office as required by law or by rules or regulations of a public office, or which is issued for the purpose of giving information, or establishing proof of a fact, shall be subject to a P15 pesos documentary stamp tax under Section 188 of the Tax Code. Thus, certificates issued by the Construction Industry Authority of the Philippines are subject to P15 pesos DST.

August 10 deadline for filing of certain returns moved to August 13, 2012. August 10 deadline for filing of certain returns moved to August 13, 2012.

Revenue Memorandum Circulars (RMC) 41-2012 and 42-2012 moved the August 10, 2012 deadline for the e-filing/filing & e-payment/remittance of BIR Forms 1600; 1606; 1601C and 1602; 1601E & 1601F; and 2200M to a non-extendible deadline of 13 August 2012 for the following affected Revenue District Offices (RDOs) and Authorized Agent Banks (AABs):

RDOs 1,2,3, 4,5 and 6 under RR No. 1-Calasiao Pangasinan;
RDOs 17A, 17B, 18, 19, 20, 21A, & 21B under RR No. 4-San Fernando, Pampanga;
RDOs 24, 25A, 25B, 26 & 27 under RR No. 5-Caloocan City;
RDOs 29, 30, 31, 32, 33, & 34 under RR No. 6-Manila;
RDOs 28, 38, 39, 40, 41, 42, 43A, 43B, 45 & 46 under RR No. 7-Quezon City;
RDOs 54A, 54B, 55, 56, 57, 58, 59, 60, 61, & 63 under RR No. 9-San Pablo City; and
LTAD I, II, III and LTEAD I & II, including LTDO-Makati, under the Large Taxpayer Service;
RDO 44 (Taguig-Pateros);
RDO 47 (East Makati);
RDO 48 (West Makati);
RDO 49 (North Makati);
RDO 50 (South Makati);
RDO 51 (Pasay City);
RDO 52 (Parañaque);
RDO 53A (Las Piñas City); and,
RDO 53B (Muntinlupa City)

Attached is a PDF copy of RMCs 41-2012 and 42-2012.

Moa between bir and mines and geosciences bureau (NEW) Moa between bir and mines and geosciences bureau (NEW)


On June 19, 2012, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 28-2012 regarding the Implementing Guidelines on the Memorandum of Agreement (MoA) entered between the BIR and the Mines and Geosciences Bureau (MGB) on January 7, 2004. This is to facilitate the exchange of information between the BIR and MGB with respect to existing mining and/or quarry contractors, permittees and operators.

Under RMC No. 28-2012, it also requires the mining contractors, permittees and operators to present the following documents as part of requirements for the issuance or renewal of mining, quarry and other permits at the central and regional offices of MGB, such as:

(1)   Copy of proof of payment of excise taxes paid on extracted minerals, mineral products and quarry resources duly authenticated by the BIR;
(2)   Income Tax Returns (ITRs) filed with the BIR for the operating year(s) immediately preceding the application for permit;
(3)    Business Tax Returns filed with the BIR such as Excise Tax Returns (Form 2200M) and Value-Added Tax (BIR Form Nos. 2550M and 2550Q), or Percentage Tax (BIR Form No. 2551 M) for non-VAT contractors, permittees and operators, covering the operating year(s) immediately preceding the application for permits;
(4)    Certificate of BIR Registration and Proof of Payment of Annual Registration Fee with the BIR for each place of extraction; and
(5)    Tax Clearance Certificate and Certificate of “No Delinquent Accounts or Outstanding liabilities” duly issued by the BIR, or a copy of the written request for said certificates duly received by the BIR, or a copy of the written request for said certificates duly received by the BIR Office concerned, in case the said certificates were not issued by the said Office within fifteen (15) working days from actual receipt of the written request.

The implementing guidelines shall take effect immediately upon signing by both agencies.

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