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BIR sets venue for large firms’ property-related taxes


Friday, May 22, 2009 | MANILA, PHILIPPINES [ BusinessWorld Online ]


THE BUREAU of Internal Revenue (BIR) has designated revenue district offices (RDOs) as the venue for the filing of returns and payment of taxes due on transactions involving the property of large taxpayers.

The directive is embodied in Revenue Regulations (RR) No. 5-2009, uploaded on the bureau’s Web site last May 13.

The issuance amended RR 4-2008, which designated the Large Taxpayers’ Service (LTS) offices as the venue for the payment of tax dues on real estate deals sealed by large taxpayers.

RR 4-2008, however, retained RDOs as venue for the payment of real estate taxes of non-large taxpayers.

The latest revenue regulation effectively restored the set-up before Revenue Regulations 4-2008 was implemented.

Confusion

BIR noted that RR 4-2008 caused confusion among taxpayers since some of them were removed from or have just been incorporated into the LTS.

"During the implementation [of RR 4-2008] and with the recent delisting and enlisting of taxpayers who are to be classified as large taxpayers, it has been recognized that such differing rule has caused confusion to those who have been declassified as large taxpayers, as well as those who have to be recently enlisted as such," BIR said.

"The venue for the filing of tax returns and payment of taxes due on real properties is reverted to concerned RDO where the property is located."

The tax code defines large taxpayers as firms with value-added tax paid or payable of at least P100,000 for any quarter of the preceding taxable year; firms with excise tax paid or payable of at least P1 million for the preceding taxable year; firms with annual income tax paid or payable of at least P1 million for the preceding taxable year; or firms with withholding tax payment or remittance of at least P1 million for the preceding taxable year.

The tax bureau said the new regulations should provide uniformity in processing of real-estate transactions since this would cover both large and non-large taxpayers.

It added that the new set-up would enable the BIR to conduct "expedient" ocular inspection on the real properties involved. — Alexis Douglas B. Romero

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KNOWING YOUR BIR REGULATIONS AND ISSUANCES

Revenue Regulations (RRs)
are issuances signed by the Secretary of Finance, upon recommendation of the Commissioner of Internal Revenue, that specify, prescribe or define rules and regulations for the effective enforcement of the provisions of the National Internal Revenue Code (NIRC) and related statutes

Revenue Memorandum Orders (RMOs) are issuances that provide directives or instructions; prescribe guidelines; and outline processes, operations, activities, workflows, methods and procedures necessary in the implementation of stated policies, goals, objectives, plans and programs of the Bureau in all areas of operations, except auditing.

Revenue Memorandum Rulings (RMRs) are rulings, opinions and interpretations of the Commissioner of Internal Revenue with respect to the provisions of the Tax Code and other tax laws, as applied to a specific set of facts, with or without established precedents, and which the Commissioner may issue from time to time for the purpose of providing taxpayers guidance on the tax consequences in specific situations. BIR Rulings, therefore, cannot contravene duly issued RMRs; otherwise, the Rulings are null and void ab initio

Revenue Memorandum Circular (RMCs) are issuances that publish pertinent and applicable portions, as well as amplifications, of laws, rules, regulations and precedents issued by the BIR and other agencies/offices.

Revenue Bulletins (RB) refer to periodic issuances, notices and official announcements of the Commissioner of Internal Revenue that consolidate the Bureau of Internal Revenue's position on certain specific issues of law or administration in relation to the provisions of the Tax Code, relevant tax laws and other issuances for the guidance of the public.

BIR Rulings are official position of the Bureau to queries raised by taxpayers and other stakeholders relative to clarification and interpretation of tax laws.