Creates a Revenue District Office at Clark Freeport Zone in Pampanga
and delineates its areas of jurisdiction
Revised schedule of zonal values of real properties. RDO No. 57-Biñan City, West Laguna/ RDO No. 39-South Quezon City
Revised schedule of zonal values of real properties.
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Mandaluyong raising business tax and fees
December 27, 2019 | 12:31 am [ bworldonline.com ]
MANDALUYONG CITY is increasing its business tax, mayor’s permit and other fees by around five percent next year after keeping rates unchanged for eight years.
According to Ordinance No. 750, S-2019, published Monday, the annual graduated and fixed taxes on businesses as well as the mayor’s permit fee, garbage service charge and sanitary inspection fee will increase by around five percent starting Jan. 1 next year.
Moreover, the rate for renewal of business permit will go up to 3.15% of total gross sales from three percent currently.
A check with the office of Mandaluyong’s Sangguniang Panlungsod showed the city did not increase taxes and fees since 2011.
According to Republic Act No. 7160, or the “Local Government Code of 1991,” local governments can adjust their tax rates no more than once every five years but should not “exceed 10 percent of the rates fixed under this Code.”
The new ordinance amends certain provisions of Ordinance No. 484, S-2011 or the revenue code for the City of Mandaluyong (2011).
Affected sectors include manufacturers, exporters, importers, assemblers, wholesalers, distributors or dealers of goods, retailers, contractors, owners of food establishments such as cafés, cafeterias, ice cream and refreshment parlors, restaurants, carinderias and food caterers, real estate dealers and lessors, banks and other financial institutions, dealers in securities and foreign exchange dealers, owners and operators of amusement and vending machines, and amusement places, among others. — B. M. Laforga
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House may amend local gov’t code to force property valuation adjustments
December 26, 2019 | 10:23 pm [ bworldonline.com ]
A KEY legislator said the House intends to review a rarely-enforced Local Government Code provision requiring real estate values to be adjusted every three years.
Representative Noel L. Villanueva of Tarlac, who chairs the House Committee on Local Government, said Thursday that the chamber will study the feasibility of adjusting real estate valuation on the timetable prescribed by the Local Government Code of 1991.
“We have to study if we can make it mandatory on the part of LGUs (local government units) to comply with the provision of law, the local government code, that they should adjust real property valuation or taxation every three years. But the wording of the law is directory, not oftener than three years,” Mr. Villanueva told BusinessWorld by phone Thursday.
Republic Act 7160 or the Local Government Code requires realty valuation adjustments every three years. Since local officials are also elected every three years, the requirement is often been ignored.
According to Mr. Villanueva, the law is still “directory” and does not compel LGUs to comply with the realty tax adjustment.
“It is only directing them to review and adjust the schedule of real property taxes not over three years. That is the wordings of the law. So it’s more directory, it is not mandatory. So there is no heat in it. You cannot compel LGUs to raise their real property tax… because as you know, in the local government setting, taxes are political suicide. If it is made mandatory, and there is a penalty for those who would not comply, that is still to be discussed in the Congress,” Mr. Villanueva said.
Mr. Villanueva also said that he will file a bill to “compel LGUs to comply” with the mandatory adjustment of real property taxation should it be deemed feasible. Mr. Villanueva said that may involve amendments to the Local Government Code which will specify “corresponding administrative and criminal sanctions.”
“It’s amendatory to a particular provision. I have to see first if that is part of (the) bill of Rep. Mariño (Mario Vittorio A. Mariño) of Batangas. If not, then I will propose (the) amendment” Mr. Villanueva said.
Mr. Mariño is one of the principal authors of House Bill 4664 or the Real Property Valuation and Assessment Reform Act which seeks to centralize the valuation and assessment of real property.
The bill, which is also known as Package three of the Comprehensive Tax Reform Program (CTRP), was approved on third and final reading by the House of Representatives on Nov. 25. The Senate received the bill the day after.
Section 12 of the bill provides that “all real properties, whether taxable or exempt, shall be valued or appraised based on prevailing market values in the locality where the property is situated.”
The Real Property Valuation and Assessment Reform Act is one of the priority bills that President Rodrigo R. Duterte outlined in his 2019 State of the Nation Address (SONA). — Genshen L. Espedido
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BIR RMC 135-2019 : Reiterates the prescribed procedures in the availment of the Tax Amnesty on Delinquencies and additional clarification on issues raised relative thereto
| RMC No. 135-2019 |
Reiterates the prescribed procedures in the availment of the Tax Amnesty on Delinquencies and additional clarification on issues raised relative thereto
Digest | Full Text [ Please click on this link ] | December 11, 2019 |
Revised schedule of zonal values of real properties. RDO No. 104, Bayugan City, Agusan Del Sur/RDO No. 34-Paco-Pandacan-Sta. Ana Andres Manila/RDO No. 112-Tagum City
Revised schedule of zonal values of real properties.
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Revised schedule of zonal values of real properties. RDO No. 110-General Santos City/RDO 96-Bongao, Tawi Tawi/RDO 97B-Ipil Zamboanga Sibugay
Revised schedule of zonal values of real properties.
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Revised schedule of zonal values of real properties. - Cities of Biñan and Sta. Rosa/Municipalities of Quezon
Revised schedule of zonal values of real properties.
Cities of Biñan and
Sta. Rosa/
Municipalities of Quezon
Please Click here to view Zonal Values
Cities of Biñan and
Sta. Rosa/
Municipalities of Quezon
Please Click here to view Zonal Values
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BIR to finalize rules governing tax amnesty this month
[ bworldonline.com ]
THE Bureau of Internal Revenue (BIR) is set to finalize the
revenue regulations (RR) covering the tax amnesty this month after
making the rounds of public consultations.
“The BIR conducted public consultations to discuss the proposed
Revenue Regulations (RR) to implement the provisions of Republic Act
(RA) 11213 relative to the Estate Tax Amnesty,” the BIR said in a
statement on Monday.
“It is expected that the final estate tax regulation will be issued within this month,” according to BIR.
Section 2a of RA 11213 which was signed into law by President Rodrigo
R. Duterte on Feb. 14, authorizes the government to “provide a one-time
opportunity to settle estate tax obligations through an estate tax
amnesty program that will give reasonable tax relief to estates with
deficiency estates taxes.”
Under the proposed RR, only the estates of persons who died on or
before Dec. 31, 2017 are to be covered by the estate tax amnesty, with
the rate set at 6% with a minimum tax amnesty amount of P5,000 on each
decedent’s total net taxable estate at the time of death without penalty
at every stage of transfer of property.
Delinquent estate tax liabilities which are final and executory in
which the tax amnesty on delinquencies may be applied and properties
which are involved in legal cases in courts are not covered by the
estate tax amnesty.
The estate shall be valued at fair market value (FMV) at
time of death, with the value of real property reckoned at whichever is
higher of the zonal value as determined by the Commissioner or the FMV
as stated on the schedule of values set by the provincial or city
assessor.
The proposed regulations give taxpayers two years starting with the
effectivity of the finalized RR, to file the Estate Tax Amnesty Return
(ETAR) or BIR Form No. 2118-EA in three copies at the Revenue District
Office (RDO) having the jurisdiction over the decedent’s last residence.
In the absence of a legal residence, the return shall be filed with RDO 039 — South Quezon City, as stated on the proposed RR.
Package 1B of the Comprehensive Tax Reform Program (CTRP) includes
the provision of an estate tax amnesty, a tax amnesty on delinquencies,
and a general tax amnesty, which are all outlined Section 2 of the RA
11213.
Mr. Duterte, however, vetoed RA 11213’s provision on general tax
amnesty, saying that the Philippines needs first to ease its bank
secrecy law to avoid fraud.
Legislators have yet to re-file a measure calling for a general tax amnesty that addresses the veto concerns.
The tax amnesty on delinquencies started being implemented on April 24.
The Department of Finance has said that it hopes other packages of
the CTRP will be passed into law within two years, helping the country
achieve a credit rating of “A.” — Reicelene Joy N. Ignacio
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BIR issues revenue regulations draft for estate tax amnesty
Under the draft RR which was presented at a consultation at the BIR headquarters in Quezon City, a 6% estate tax amnesty rate will apply to each decedent’s total net taxable estate at the time of death without penalty at every stage of transfer of property, duly conforming to the rules of succession under the Civil Code of the Philippines on the transfer of properties.
A Filipino citizen’s gross estate includes all property, real and personal, tangible and intangible. For resident aliens and non-resident aliens, the gross estate includes only real and personal property in the Philippines.
The gross estate, as defined, “consists of all properties and interests in properties of the decedent at the time of his death as well as properties he transferred during his lifetime (only in form), but in substance, ownership of the same, were only transferred at the time of his death.”
The net estate, meanwhile, is the “gross estate less all allowable deductions as provided in the National Internal Revenue Code (NIRC) of 1997, as amended, or the applicable estate tax law prevailing at the time of death of the decedent.”
The gross estate, in general, is to be valued on the basis of fair market value at the time of death of the decedent, BIR said, noting that if it is a real property, the fair market value is to be the higher of the zonal value as determined by the Commissioner and the fair market value as shown in the schedule of values fixed by the provincial and city assessors.
Foreign currency held in banks will be valued at the peso exchange rate at the date of death, it said.
According to the draft, in case the legal heirs, executor or administrator of the estate have newly discovered property undeclared in the previous filed return, he or she can file an estate tax amnesty return or an amended estate tax amnesty return, whichever is applicable, and pay the amnesty tax without penalty based on the net taxable value of the net undeclared estate within two years from the effectivity of the RR.
Net undeclared estate is “the difference between the total net estate valued at the time of death of the decedent and the net estate previously declared with the BIR, if any.” — Reicelene Joy N. Ignacio
Proposed RR on implementing the provisions of
Estate Tax Amnesty under Title II of the Tax Amnesty Act.
Proposed RR/Annex A/Guidelines/Annex B/Annex C
Estate Tax Amnesty under Title II of the Tax Amnesty Act.
Proposed RR/Annex A/Guidelines/Annex B/Annex C
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Tax amnesty set as BIR issues rules
[ bworldonline.com ]
FILIPINOS with overdue tax payments may start availing of tax amnesty later this month, following the release of the official guidelines by the Bureau of Internal Revenue (BIR).
The country’s top tax-collecting body published Revenue Regulations (RR) No. 4-2019 on Tuesday which lays down the process to avail of tax amnesty for delinquent accounts up to year 2017.
Applications for tax amnesty will be available starting April 24, or 15 days after yesterday’s publication date.
Delinquent taxpayers have one year to file their request for amnesty, which will cover accounts seeking compromise settlements as they question the validity of the assessed taxes to be paid, or due to their “financial incapacity” to settle the entire amount.
The rules also cover employers’ delinquent withholding taxes and unpaid estate tax liabilities.
The amnesty will also cover those with tax evasion complaints or charges before the Department of Justice, prosecutor’s office or the courts.
The law sets varying amnesty rates for delinquencies charged to the basic tax.
For delinquent accounts and assessments that have been deemed final and executory, taxpayers will need to pay the equivalent of 40% of the basic tax assessed.
Those with tax cases that have been decided by the courts will have to settle 50% of the basic assessment, while those with pending criminal cases can choose to settle by paying 60% of the assessment.
Unremitted withholding taxes — personal income tax deducted from employee salaries — still have to be paid in full.
To apply for amnesty, a taxpayer needs to submit a Tax Amnesty Return (TAR) form that has been accomplished under oath, an acceptance payment form stating the amount which he paid to settle their dues, a certificate of tax delinquencies or liabilities issued by the BIR office with jurisdiction in his location and a copy of previous assessments issued by the bureau.
Non-large taxpayers must file their forms with their respective revenue district offices, while Large Taxpayers will have to submit these documents to the Large Taxpayers Division Office where they are registered.
Upon submission, the BIR has 15 calendar days to issue an Authority to Cancel Assessment, which will mean that the tax amnesty application has been accepted.
“Insofar as the tax delinquencies covered by the TAR is concerned, any notice, attachment and/or warrant of garnishment issued against the taxpayer by the concerned BIR office shall be set aside pursuant to the lifting of the said notices and warrants issued by the concerned BIR office,” the rules read, adding that availing of tax amnesty “does not imply any admission of criminal, civil or administrative liability” of the taxpayer.
This RR is treated as the implementing rules for Republic Act No. 11213, or the Tax Amnesty Act signed by President Rodrigo R. Duterte in February.
With the measure, the government hopes to raise P21.26 billion as Filipinos avail of the amnesty, which would allow them to pay their back taxes without being charged with compounding penalties for delayed settlement.
Please click below for RR 4-2019
| RR No. 4-2019 | Implements the rules and
regulations of the Tax Amnesty Act, providing for the guidelines on the
processing of Tax Amnesty Application on Tax Delinquencies (Published in Malaya Business Insight on April 9, 2019) Digest | Full Text | Annex A | Annex B | Annex C |
April 8, 2019 |
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Publishes the full text of PRC Resolution No. 2019-1146, amending relevant provisions of Resolution No. 1032 s. 2017 (Implementing Rules and Regulations of the Continuing Professional Development Act of 2016)
| RMC No. 40-2019 | Publishes the full text of
PRC Resolution No. 2019-1146, amending relevant provisions of
Resolution No. 1032 s. 2017 (Implementing Rules and Regulations of the
Continuing Professional Development Act of 2016) Digest | Full Text | PRC Resolution 2019-1146 |
April 1, 2019 |
Prescribes the use of the Electronic Certificate Authorizing Registration System relative to transactions involving registration and transfer of real and personal properties
| R No. 3-2019 | Prescribes the use of the
Electronic Certificate Authorizing Registration System relative to
transactions involving registration and transfer of real and personal
properties pursuant to Section 5(B) of the NIRC of 1997, as amended, and
in relation to Sections 58(E), 95 and 97 of the same Code (Published in Manila Bulletin on April 1, 2019) Digest | Full Text | Annex A | Annex B |
March 28, 2019 |
Advisories for all Authorized Agent Banks to accept certain tax return/payments
Advisories for all Authorized Agent Banks to accept certain tax
return/payments of internal revenue taxes in case of unavailability of
the eFPS.
Revised schedules of zonal values of real properties.
Revised schedules of zonal values of real properties.
RMC No. 37-2019 Circularizes the availability of the Enhanced BIR Form No. 1701 [Annual Income Tax Return for Individuals (including Mixed Income Earner), Estates and Trusts] January 2018 (ENCS)
RMC No. 37-2019 Circularizes the availability of the Enhanced BIR Form No. 1701 [Annual Income Tax Return for Individuals (including Mixed Income Earner), Estates and Trusts] January 2018 (ENCS)
PLEASE CLICK BELOW
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Revenue bureau releases draft tax amnesty rules
[ bworldonline.com ]
THE Bureau of Internal Revenue (BIR) has published draft rules on availing of the tax amnesty for delinquencies in specific cases, which will give eligible taxpayers one year to settle all outstanding payments and avoid tax evasion cases.
The state’s biggest tax collection agency posted a draft revenue regulation (RR) on its Web site this week.
With the measure, the government hopes to raise P21.26 billion as Filipinos avail of the amnesty, which would allow them to pay back taxes without being charged in court and without compounding penalties for delayed settlement.
This will account for bulk of the P27.541-billion revenue to be drawn from the “truncated” tax amnesty law, together with the provision for estate tax amnesty.
“All persons, whether natural or juridical, with internal revenue tax liabilities covering taxable year 2017 and prior years, may avail of Tax Amnesty on Delinquencies within one year from the effectivity of these regulations,” the draft regulation read.
The RR defines a delinquent account as involving unpaid taxes of taxpayers who have been given final assessment notices or formal letters of demand from the BIR, as well as those who have applied for compromise settlement with the bureau but have failed to settle due to doubts on the assessment or their “financial incapacity.”
The amnesty will also cover those with pending tax evasion charges before the Department of Justice, prosecutor’s office or the courts.
The new law sets varying amnesty rates for delinquencies charged on the basic tax.
Unremitted withholding taxes will still have to be settled in full.
For delinquent accounts and assessments which have been deemed final and executory, taxpayers will need to pay the equivalent of 40% of the basic tax assessed. Those with tax cases that have been deemed final and executory by courts will have to settle 50% of the basic assessment, while those with pending criminal cases can choose to settle beforehand and pay 60% of the tax assessment.
Anyone looking to avail of the amnesty will have to file an application with BIR offices by submitting a tax amnesty return, an acceptance payment form and a certificate of tax delinquency issued by the bureau.
Non-large taxpayers must file their forms before their respective revenue district offices, while large taxpayers will have to submit these to the Large Taxpayers Division Office where they are registered.
Upon receipt of such forms, the BIR has 15 calendar days to issue an authority to cancel assessment, which will then mean that the tax amnesty application has been accepted.
“The tax delinquency of those who availed of the tax amnesty under these regulations, upon full compliance with all the conditions set forth hereof, shall be considered settled, and the criminal case in connection therewith and its corresponding civil or administrative case, if applicable, is terminated,” the proposed RR reads.
The Finance department has said that the implementing rules will be published between March and April, in keeping with the 90-day requirement set by law. — Melissa Luz T. Lopez
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TAX Amnesty Law : Republic Act 11213
Please click link for (pdf)
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KNOWING YOUR BIR REGULATIONS AND ISSUANCESRevenue 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.
