BIR tax advisory this week on Train implementation

The BIR, in its advisory dated May 29, 2018, has advised eFPS taxpayers to re-file and/ or amend BIR Forms 1601EQ and 1601FQ filed prior to April 26, 2018 and May 3, 2018 due to reported technical problems specifically on filling up some fields.

BIR media release on the obligation of local government unit (lgu) to pay taxes due on proprietary activities

The Regional Office of the BIR in Central Visayas has advised all LGUs within its jurisdiction to pay their taxes for undertaking proprietary activities to create additional sources of revenue. The advisory was issued in the light of the recent BIR Ruling issued by the BIR National Office holding Municipality of Oslob liable to all internal revenue tax liabilities and fees it collected for its Butanding Watching revenue-generating activities. Accordingly, this activity is not anymore in the exercise of governmental functions but instead a proprietary activity calling for payment of taxes.

BIR clarification on issuance of tin for entities (corporations + partnerships) reaching corporate life

The BIR has issued Revenue Memorandum Circular (RMC) 41-2018 dated May 23, 2018 relative to the clarification of the policies on the issuance of TIN of corporations that have reached its corporate life as originally stated in its Articles of Incorporation. Following are the tax highlights:

1. Entities whose corporate life has been renewed or extended by SEC shall not be issued a new TIN. However, they are required to update their records with the BIR by submitting duly accomplished BIR Form 1905 together with a copy of SEC approved amendment papers.

2. Entities with revoked registration due to expiration of corporate term without having it renewed shall cease to do business.

3. Re-registration of expired entity using the same name is to be treated as a new entity with new SEC registration number and pre-generated TIN to be confirmed and validated with the BIR by filing BIR Form 1903. A new BIR Certificate of Registration/BIR Form 2303 and invoices/receipts will be issued and the application for cancellation of old TIN will have to be processed. Cancellation of old TIN requires tax examination for purposes of liquidation and winding up of business and subsequent issuance of tax clearance. New TIN shall be used in all future transactions while the old TIN shall be used for purposes of liquidation and winding up.

4. For merger and consolidation, the surviving corporation shall retain its TIN while the TIN of the merged corporation shall be cancelled. A new TIN shall be issued to the new corporation in case of consolidation and the TIN of the consolidated corporation shall be cancelled.

If you wish to get a copy of these BIR issuances, please e-mail us: willie.santiago@dmdcpa.com.ph