Law Summary
Amendment to Disclosure Requirements in Financial Statements
- Additional disclosures required in the Notes to Financial Statements beyond Philippine Financial Reporting Standards.
- Must include detailed information on taxes, duties, and license fees paid or accrued during the taxable year.
Detailed Tax Disclosure Requirements
- VAT Output Tax:
- Amount declared during the year.
- Account titles and amount basis.
- Statement on zero-rated/exempt sales with legal references.
- VAT Input Tax Claims:
- Beginning and ending balances.
- Current year claims broken down into categories:
- Goods for resale/manufacture or processing.
- Goods not for resale/manufacture.
- Capital goods (amortizable and non-amortizable).
- Services under cost of goods sold and other accounts.
- Claims for tax credit/refund and adjustments.
- Landed Cost of Imports:
- Customs duties and tariff fees paid or accrued.
- Excise Taxes:
- Classified by major product categories.
- For both locally produced and imported excisable goods.
- Documentary Stamp Tax:
- On loan instruments, shares, and other subject transactions.
- Other Taxes:
- Local and national taxes, real estate taxes, license and permit fees.
- Accounted under Taxes and Licenses both in Cost of Sales and Operating Expenses.
- Withholding Taxes:
- Tax on compensation and benefits.
- Creditable withholding taxes.
- Final withholding taxes.
- Deficiency Tax Assessments:
- Periods covered.
- Amounts and status (protested or not).
- Tax Cases:
- Amounts involved.
- Status of cases under investigation, litigation, or prosecution outside BIR.
Repealing Clause
- All existing rules, regulations, or issuances inconsistent with these amendments are modified, repealed, or revoked.
- Includes removal of the requirement to submit a separate Schedule of Taxes and Licenses.
Effectivity
- These amendments take effect 15 days following complete publication in a newspaper of general circulation in the Philippines.