Laurel-Ibañez Accounting & Tax Services

08/12/2023

Digital TIN ID

10/11/2023

Point-Of-Sales Machine Receipt Users

The Bureau of Internal Revenue, headed by Commissioner Romeo D. Lumagui Jr., has closed down 103 stores of a Chain of Shopping Centers due to its underreporting of sales. Upon investigation, this Chain of Shopping Centers was found to be using unregistered Point of Sales (POS) machine, some of which with sales suppression devices while others were using a software different from that approved by the BIR.

"This nationwide closure of a chain of shopping centers is a reminder to all businessmen to register its POS machines and NOT to tamper with the machines. This is a scheme for sales suppression. I have ordered the BIR to investigate all businesses that engage in this kind of tax fraud because it involves under-declaration of sales. We will not hesitate to close down all your stores in the country", Commissioner Lumagui stated.

In a test-buy operation, the BIR chanced upon machines that were only reporting about 25% of its sales, thereby drastically reducing its taxable sales.

This Chain of Shopping Centers was found to be in violation of Section 115 of the National Internal Revenue Code and Revenue Memorandum Circular No. 3-2009.

10/11/2023

Form 2551Q back to regular 3% tax rate
Effective 3rd Qtr of 2023

Effective July 1, 2023, the rate of percentage tax reverts to 3% per Revenue Memorandum Circular (RMC) No. 69-2023.

Read the full text of the RMC here: https://bit.ly/RMC692023

Read the full Media Release here: https://bit.ly/PR53JUL0523

16/10/2023

Deadline of 3rd quarter ITR 2023 is on Nov. 15
- Form 1701Q - Individual
- Form 1702Q - CorporatIon

Avoid the Rush!

With the deadline fast approaching, the BIR is reminding individual taxpayers to file their 2023 3rd Quarter Income Tax Return and pay the Tax Due thereon on or before November 15, 2023.

09/07/2023

Revenue Memorandum Circular No. 75-2023

Extends the deadline for the replacement of Ask for Receipt Notice with Notice to Issue Receipt/invoice under RMO No. 43-2022. For full text, https://tinyurl.com/4pm7ww3m

09/07/2023

About REAL PROPERTY TAX

09/07/2023

Effective July 1, 2023 (3rd quarter of 2023)

Starting July 1, 2023, persons subject to percentage tax under Section 116 of the National Internal Revenue Code, as amended, will revert to 3% of their gross quarterly sales or receipts.

As provided in the said Section 116 of the NIRC, “Any person whose sales or receipts are exempt under Section 109(CC) of this Code from the payment of value-added tax and who is not a VAT-registered person shall pay a tax equivalent to 3% of his gross quarterly sales or receipts. Provided, that cooperatives shall be exempt from the 3% gross receipts tax herein imposed: Provided, further, That effective July 1, 2020 until June 30, 2023, the rate shall be one percent (1%).”

The provision on the adoption of the 1% Percentage Tax rate from July 1, 2020 to June 30, 2023 has been promulgated in March 2021 under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law.

Non-VAT taxpayers are mandated to file the Percentage Tax return (BIR Form No. 2551Q) and pay the corresponding tax dues within twenty-five (25) days after the end of each taxable quarter.

Moreover, from July 1, 2023 onwards, the Minimum Corporate Income Tax (MCIT) will return to its previous rate of 2%, calculated based on the gross income at the end of the taxable year. The MCIT rate is applicable to domestic corporations or resident foreign corporations when the MCIT exceeds the regular corporate income tax of the company. The MCIT is imposed beginning the fourth taxable year immediately following the year in which said corporation begins its business operations.

In addition, non-stock/non-profit schools and hospitals will once again be subject to a preferential tax rate of 10% on their taxable income. However, as previously provided, if the gross income from “unrelated trade, business, or other activity” exceeds 50% of the total gross income generated by the educational institution or hospital from all sources, the tax applicable to domestic corporations will be levied on their entire taxable income.

09/07/2023

Per Revenue Regulations (RR) No. 6-2022, the BIR has removed the five-year validity period on all printed and system-generated receipts/invoices effective on July 16, 2022.

Read the RR's full text here: https://bit.ly/3yzTlny