Question & AnswerQ&A (BIR REVENUE REGULATIONS NO. 9-2009)
The purpose is to define requirements, obligations, and responsibilities of taxpayers for electronic record keeping and maintenance of electronic books of accounts, electronic records, and other sources of information under the National Internal Revenue Code (NIRC), as amended, including provisions for retention, access, submission, and mandatory use of Computerized Accounting Systems for Large Taxpayers.
Taxpayers refer to Corporations, Companies, Partnerships, or Persons required to keep books of accounts necessary to determine tax liability.
Electronic record keeping refers to those electronic business systems that create, process, store, maintain, and provide access to the financial records of a person, including but not limited to custom and commercial accounting software, Point of Sale systems, and Internet-based electronic commerce business systems.
Yes, all Large Taxpayers classified under Revenue Regulations No. 1-98 are required to maintain CAS or components thereof and keep all books and accounting records in electronic formats.
The mandatory fields include Date, Reference, Brief Description/Explanation, Account Title or Account Code, Debits, and Credits.
The BIR may accept copies of such records made available in the Philippines in an electronically readable and usable format, containing adequate details to support filed tax returns. Additionally, authorization from the Commissioner of Internal Revenue is required if records are maintained outside the Philippines.
Violations may lead to prosecution, and upon conviction, the taxpayer shall be liable to penalties under Section 255 of the NIRC, in addition to any other applicable penalties.
Backups must ensure data can be restored in a format accessible and usable by the BIR, not overwrite prior backups, be uniquely labeled, include logs with details such as software versions used, and undergo periodic testing to verify restorability.
Yes, a taxpayer may engage third-party custodial or management services but must notify the BIR beforehand and remains responsible for compliance with the regulations.
Taxpayers are generally not relieved from retaining hard-copy records created or received in the ordinary course of business unless these records are not produced or received, such as in electronic data interchange transactions, where hard copies may not be required.