Question & AnswerQ&A (BIR REVENUE REGULATIONS NO. 15-2010)
The main purpose of BIR Revenue Regulations No. 15-2010 is to amend certain provisions of Revenue Regulations No. 21-2002, authorizing the Commissioner of Internal Revenue to prescribe additional procedural and documentary requirements for the preparation and submission of financial statements accompanying tax returns.
These Regulations were promulgated pursuant to Section 244 of the Tax Code of 1997, in relation to Section 6(H) of the same Code.
The Notes to Financial Statements must disclose information on taxes, duties, and license fees paid or accrued during the taxable year, including VAT output tax declared, zero-rated or exempt sales, VAT input taxes claimed with detailed breakdowns, landed cost of imports with customs duties and tariff fees, excise taxes paid on major product categories, documentary stamp taxes, other local and national taxes including real estate taxes, amount of withholding taxes categorized by type, deficiency tax assessments, and tax cases under investigation or litigation.
VAT input taxes must be broken down into: a) Beginning of the year, b) Current year as domestic purchases/payments for various categories like goods for resale/manufacture, goods other than resale, capital goods (subject and not subject to amortization), services under cost of goods sold or other accounts; c) Claims for tax credit/refund and other adjustments; and d) Balance at the end of the year.
Excise tax amounts must be classified per major product category such as tobacco products, alcohol products, automobiles, minerals, oil and petroleum, including separately for locally produced excisable items and imported excisable items.
The amounts of withholding taxes must be categorized into tax on compensation and benefits, creditable withholding taxes, and final withholding taxes.
No, under these regulations, the submission of a separate Schedule of Taxes and Licenses is repealed.
These Regulations took effect fifteen (15) days following the complete publication in a newspaper of general circulation in the Philippines.
The regulations were adopted by Cesar V. Purisima, Secretary of Finance, with recommending approval by Kim S. Jacinto-Henares, Commissioner of Internal Revenue.
The Notes to Financial Statements should include a statement to that effect along with the legal basis for the zero-rated or exempt sales/receipts.