Amendment on OSD for GPPs and Partners

GPP is not subject to income tax; income tax liability falls on individual partners for their distributive share.
Net income of GPP computed like a corporation's for partner distributions.
GPP can choose between claiming itemized deductions (Sec. 34(A)-(J)) or OSD (up to 40% of gross income).
Net income after these deductions is distributable to partners.
Partners report their distributive share as gross income on personal returns.
Partners can claim deductions separately only if GPP claimed itemized deductions, but not for expenses already claimed by GPP.
If GPP claims OSD, partners cannot claim further deductions on that share.
Deduction type must be consistent between GPP and partners (both itemized or both OSD).
Partners with additional income from other business/professions apply the same deduction method used for their partnership income; partners may claim 40% OSD on other income if GPP claimed OSD.

Election to use OSD or itemized deductions must be declared in the first quarter income tax return.
Election is irrevocable for the taxable year and must be consistently applied in subsequent quarterly and final returns.
Failure to file first quarter return defaults taxpayer to itemized deductions.
Individual taxpayers claiming OSD are exempt from submitting financial statements but must keep records of gross sales/receipts.
Corporations claiming OSD must still submit financial statements annually and keep gross income records.

Any revenue issuances inconsistent with these amendments are repealed or modified accordingly.

These regulations take effect 15 days after publication in a newspaper of general circulation.