quality assurane ulletin i october 2019 edition...

QUALITY ASSURANCE BULLETIN I October 2019 Edition 1


RECENT SECURITIES AND EXCHANGE COMMISSION ISSUANCES

RECENT BUREAU OF INTERNAL REVENUE ISSUANCES

REVENUE MEMORANDUM ORDER NO. 54-2019: Modifies the Alphanumeric Tax Code

(ATC) for Value-Added Tax under Revenue Regulations No. 8-2002.

REVENUE MEMORANDUM CIRCULAR NO. 102-2019: Provides additional issues

relative to the implementation of Estate Tax Amnesty pursuant to the provisions under Title II of Republic Act No. 11213 (Tax Amnesty Act).

REVENUE MEMORANDUM CIRCULAR NO. 103-2019: Prescribes the revised Estate Tax

Amnesty Return, Certificate of Availment and clarification on the allowable deductions from the gross estate for Non-Resident Aliens pursuant to the provisions of Estate Tax Amnesty under Title II of RA No. 11213 (Tax Amnesty Act), as implemented by RR No. 6-2019.

REVENUE MEMORANDUM CIRCULAR NO. 105-2019: Clarifies the proper tax treatment

of maternity leave benefits under Republic Act No. 11210 (105-Day Expanded Maternity

Leave Law).

REVENUE MEMORANDUM CIRCULAR NO. 106-2019: Circularizes the availability of

revised BIR Form No. 2000-OT [Documentary Stamp Tax Declaration/Return (One Time

Transactions)] January 2018 (ENCS).

REVENUE MEMORANDUM CIRCULAR NO. 107-2019: Extends the validity period of

Certificates of Accreditation and Permits to Use pursuant to the provisions of Revenue

Memorandum Circular (RMC) No. 55-2016, as amended, and RMC No. 30-2015.

Revised Application Forms, Client Profile Template and Pre-evaluation Notice Form.


REVENUE MEMORANDUM ORDER NO. 54-2019

Modifies the Alphanumeric Tax Code (ATC) for

Value-Added Tax under Revenue Regulations

No. 8-2002.

To facilitate the proper identification and

monitoring of tax collection from Value-Added Tax

in BIR Form Nos. 2550M (Monthly Value-Added

Tax Declaration) and 2550Q (Quarterly

Value-Added Tax Return) and to align the

Alphanumeric Tax Codes in the forms with the

ATC Handbook, pursuant to RR No. 8-2002, the

following ATCs are hereby modified:

REVENUE MEMORANDUM CIRCULAR

NO. 102-2019

Provides additional issues relative to the Implementation of Estate Tax Amnesty pursuant to the provisions under Title II of Republic Act No. 11213 (Tax Amnesty Act).

If the estate involves several stages of

succession and the succeeding decedents,

during their lifetime, owned separate

properties other than the properties emanating

from the first decedent, the Estate Tax

Amnesty Return shall be Individually filed at

the Revenue District Office (RDO) having

jurisdiction over the last residence of each

decedent. The option to file at only one (1)

RDO is not available in this instance.

A supplemental Extra Judicial Settlement

covering the undeclared real or personal

property is required in the availment of Estate

Tax Amnesty.

If there is no more tax due and what is left is

merely the issuance of Certificate Authorizing

Registration (CAR), the heirs who want to

avail of Estate Tax Amnesty should request for

the Issuance and release of CAR subject

presentation of proof of payment

and previously submitted documentary

requirements.

If the decedent has an on-going investigation

in an RDO which is different from the revenue

district that has jurisdiction over his domicile,

the Estate Tax Amnesty shall be filed with the

RDO having jurisdiction over the last

residence of the decedent. However, the

on-going investigation shall be consolidated in

the RDO where the Estate Tax return shall be

filed.

EXISTING (per ATC Handbook) MODIFIED/NEW BIR

FORM

NO. ATC DESCRIPTION TAX

RATE

DESCRIPTION

VB102 Dealers on

Securities/Lending

Investors

12% Lending

Investors/Dealer

in Securities/

Pawnshops/

Pre-Need Co.

2550M/

2550Q

VB105

VB108

Operators of

Common Carriers

with Respect to

Transport Cargo

- Land Based

(Road Freight)

- Aircraft

12%

12%

Transport

Storage and

Communications

- Land

Transport-Cargo

- Air

Transport-Cargo

VH010 On Community,

Personal &

Household

Services

12% Other

Community

Social and

Personal

Service Activity


Pursuant to Revenue Memorandum Order

No. 62-2010, the Electronic Certificate Authorizing

Registration (eCAR) shall be issued only after the

submission of report of investigation by the

Revenue Officer (RO) on the other internal

revenue tax liabilities, and after payment of

deficiency taxes, if any.

However, if the filer insists that the eCAR

be issued even without the results of audit, or even

without the payment of deficiency taxes, the eCAR

may be issued provided that the filer shall post a

bond, either through a bonding company or a cash

bond, which will be used to settle any deficiency

tax liability. The concerned RO shall be required to

prepare a proposed assessment on other tax

liabilities which shall be the basis of the bond to be

posted by the executor/administrator/heirs of the

decedent.

REVENUE MEMORANDUM CIRCULAR NO.

103-2019

Prescribes the revised Estate Tax Amnesty Return,

Certificate of Availment and clarification on the

allowable deductions from the gross estate for

Non-Resident Aliens pursuant to the provisions of

Estate Tax Amnesty under Title II of RA No. 11213 (Tax

Amnesty Act), as implemented by RR No. 6-2019.

This is in consonance with the provisions of

Revenue Regulations (RR) No. 2-2003 regarding

the special deductions, namely: Family Home,

Standard Deduction and Medical Expense, which

should not be included among the deductions from

the gross estate in computing the share of

surviving spouse.

The revised Certificate of Availment-

Version 2 shall be issued by the concerned

Revenue District Offices reflecting the following

note:

“In case there are properties covered under

Section 3 of RR No. 6-2019 which are included in

the application for Estate Tax Amnesty, the

application pertaining to such properties shall be

considered null and void.”

The allowable deductions from the gross

estate of Non-Resident Aliens under Letter B of

Annex “A” of RR No. 6-2019 shall reflect the

following revised statement:

“Starting from July 1, 1939, deductions

enumerated hereunder shall only be allowed if the

executor, administrator, or anyone of the heirs, as

the case may be, includes in the return required to

be filed, the value at the time of death of that part

of the gross estate, of the non-resident alien,

situated in the Philippines.”


105-2019

Clarifies the proper tax treatment of maternity leave

benefits under Republic Act No. 11210 (105-Day

Expanded Maternity Leave Law).

The provisions of Sec. 5 (c) of RA No.

11210 and the pertinent provisions of Section 2

under the Implementing Rules and Regulations

(IRR) of the said Act jointly issued by the Civil

Service Commission, Department of Labor and

Employment (DOLE) and Social Security System

(SSS) prescribe that workers availing of the

maternity leave period and benefits must receive

their full pay. Employers from the private sector

shall be responsible for payment of the salary

differential between the actual cash benefits

received from SSS by the covered female workers

and their average weekly or regular wages, for the

duration of the maternity leave.

Continuation..


Based on the cited provisions of the new

law, the implementing joint IRR and the respective

Issuances of SSS and DOLE, the maternity benefit

of the female worker has been expanded from the

previous 100% of the average daily salary credit to

a full pay or salary which includes now the salary

differential as its component, aside from the added

duration of the maternity leave. Accordingly, the

salary differential is considered as a benefit

exempt from the Income and Withholding Taxes.


106-2019

Circularizes the availability of revised BIR Form No.

2000-OT [Documentary Stamp Tax Declaration/Return

(One Time Transactions)] January 2018 (ENCS).

The revised manual return is already

available in the BIR website (www.bir.gov.ph)

under the BIR Forms-Documentary Stamp Tax

Return section but not yet in the Electronic Bureau

of Internal Revenue Forms. Thus, all taxpayers

shall use the manual return in filing tax return and

in paying the tax due thereon.

Taxpayers shall download the PDF version

of the form, print the form and completely fill out

the applicable fields. Payment of the tax due

thereon, if any, shall be made thru:

Authorized Agent Bank (AAB) located

within the territorial jurisdiction of the Revenue

District Office (RDO) where the seller/transferor/

donor is required to be registered or where the

property is located in case of sale of real property;

or

In places where there are no AABs, the

return shall be filed and the tax due shall be paid

with the concerned Revenue Collection Officer

under the jurisdiction of the RDO using the Mobile

Revenue Collection Officers System (MRCOS)

facility.


107-2019

Extends the validity period of Certificates of

Accreditation and Permits to Use pursuant to the

provisions of Revenue Memorandum Circular (RMC)

No. 55-2016, as amended, and RMC No. 30-2015.

The validity period or effectivity date for

both the Certificates of Accreditation and PTUs

shall be based on the date of issuance, as follows:

All primary and supplementary receipts/

invoices must reflect the “Effectivity Date” as

“Date Issued” and the “Valid Until” based on the

provisions stated in the Circular and in relation to

the compliance requirements with Revenue

Regulations No. 16-2018.

Date of Issuance Effectivity

Date

Validity/ Valid

Until

Prior to August 1,

2020

August 1, 2020 July 31, 2025

August 1, 2020

onwards

Actual date of

issuance

Five (5) years

from the date of

issuance

Continuation..


NOTICE

Revised Application Forms, Client Profile

Template and Pre-evaluation Notice Form

With the effectivity of the Revised SRC

Rule 68, please be informed that the revised

Application Forms, Client Profile Template and

Pre-Evaluation Notice Form are already uploaded

at the SEC website for your convenience.

http://www.sec.gov.ph/accountants-information/

forms-2/

Said revised Forms and Template shall be

strictly implemented effective 31 October 2019

(Thursday).


This bulletin is a compilation of relevant issuances, rulings and memoranda from various government agencies to

enhance the technical skills of the professional staff of Paguio, Dumayas and Associates, CPAs and is not intended to

replace the original issuances of the related government agencies.

FLOYD C. PAGUIO

Managing Partner

[email protected]

[email protected]

AILEEN P. MELCHOR

Senior Tax Specialist

[email protected]

KEN JOHN B. ASADON

Tax Supervisor

Unit 3207 Cityland Pasong Tamo Condominium, Pasong Tamo St., Barangay Pio del Pilar, Makati City

Contact us at: 950-9853/950-9854

We are a team of Certified Public Accountants, who aim to be the

accounting firm of choice for business entities in terms of:

Audit and Assurance

Taxation

Business Process Outsourcing

Management Consultancy

[email protected]

GERRY B. MAHAWAN

Tax Specialist

ANGELINA S. ABILON

Tax Specialist

[email protected]

quality assurane ulletin i october 2019 edition...

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