Taxation Reminders

and Updates
Atty. Rheneir P. Mora, CPA
Managing Partner, R.P. Mora & Co.
Resource Person
Due Date Description Regulatory Agency
Dec. 24, 2015 Release of employees 13th month pay DOLE
Dec. 31, 2015 Registration of manual books of accounts BIR
J an. 15, 2016 Registration of the loose-leaf bound books of accounts BIR
J an. 15, 2016 Report of compliance with PD 851 Alphalist of 13th Month Pay as prescribed by DOLE DOLE
Advisory 03-2010
J an. 20, 2016 Renewal of business permits for 2016 LGU
J an. 25, 2016 Release of employees tax refunds for 2015 and distribution of their respective 2316 BIR; DOLE
J an. 30, 2016 Inventory list as of December 31, 2015 BIR
J an. 31, 2016 Lessee information sheet BIR
J an. 31, 2016 Submission of books generated from the taxpayers computerized accounting system (C AS) BIR
J an. 31, 2016 Filing of the employee alphalist through BIR form 1604CF BIR
J an. 31, 2016 Payment of BIR annual registration fees (ARF) BIR
J an. 31, 2016 Professional tax receipt (PTR) for 2016 LGU
Feb. 28, 2016 Securing community tax certifcate or cedula without a penalty LGU
Feb. 28, 2016 Submission of 2316 duly signed by employees who are covered under the substituted fling BIR
Mar. 01, 2016 Filing and submission of the 2015 annual alphalist of payees through BIR Form 1604E BIR
Apr. 15, 2016 Filing and submission of the 2015 annual income tax return for individuals and non-individual BIR
taxpayers whose account period ends at December 31, 2015
Apr. 15, 2016 Filing and submission of the annual audited fnancial statements before complying to the SEC
SEC number coding scheme
 Books of Accounts
Taxpayers using manual bookkeeping are
required to register with the Bureau of
Internal Revenue (BIR) the manual books
of
accounts to be used in the incoming tax
year 2016 on or before December 31,
2015,
except those books of accounts that have
not yet been fully utilized
 Books of Accounts
a) Submit duly accomplished BIR Form
1905 at the RDO or concerned office
under the Large Taxpayer Service
having jurisdiction over the place where
the head office and branch is located,
respectively; and
b) Present the manual books of
accounts at the RDO or concerned office
under the Large Taxpayer Service where
the place of business is located for
Stamping and registration purposes
 Books of Accounts
General Journal otherwise called the book of original entry, it is a recording
of business transactions entered into the books based on the date of
transaction, using the principle of debit and credit.
General Ledger also known as the book of final entry, it is a summary of all
journal entries in order to get ending balances.
Cash Receipt Journal - a recording of cash sales as well as the collection of
receivables.
Cash Disbursement Journal a recording of cash payments and payables, if
any.
Sales Journal a recording of receivables from customers, or any sales
made on credit.
Purchase Journal a recording of purchases on credit or payables due to
suppliers.
 Books of Accounts
Subsidiary manual books of accounts
to be used by taxpayers, in addition
to the manual books of accounts,
required by the National Internal
Revenue Code of 1997 and existing
rules, shall likewise be registered
before use, following the same rules
abovementioned
 Books of Accounts
The registration of a new set of manual books
of accounts shall only be at the time when the
pages of the previously registered books have
all been already exhausted, provided, that the
portions pertaining to a particular year should
be properly labeled or marked by taxpayer.
This means that it is not necessary for a
taxpayer to register/stamp a new set of
manual books of accounts each and every year.
 Books of Accounts
Loose-leaf books are printed and
bound ledgers and journals, similar
to manual books of accounts. The
main difference is that instead of
handwritten ledgers, records or
entries were not manually written,
but typed into a computer and
printed out, usually using simple
systems like Microsoft Excel.
 Books of Accounts
This Computerized Accounting System
(CAS) employs the use of computer
programs that have been configured in an
accounting system to facilitate easy,
accurate, and speedy record keeping. The
system should be registered by the BIR
because of the need to verify how
accurate and capable your computer
system is in keeping your books of
account. Systems such as Peachtree,
QuickBooks, XERO, SAP, or MYOB are
readily available in the market.
 Books of Accounts
The requirement of binding and stamping of
computerized books of accounts and/or receipts and
invoices generated by a duly approved CAS shall no
longer be necessary, provided:
(1)Soft copy of the computerized books of accounts and
other accounting records/documents in Text File format
shall be made available in CD-R, DVD-R, or other optical
media.
(2) A duly notarized certification in the form of an
affidavit ascertaining/attesting the accuracy of the
number of receipts and invoices used during the year
and soft copy of books of accounts and other
accounting records/documents in Text File Format
stamped received within thirty days (30) from the close
of taxable year.
 Books of Accounts
The registration deadline of January
30 of the following year as
enunciated in RMO 29-2002 applies
only to computerized books of
accounts.
The 15 days after the end of the
calendar year deadline under RMC
13-82 refers to loose-leaf bound books
of accounts.
 Books of Accounts
It is to be emphasized that the
Taxpayer Service Section (TSS) of
the RDOs or concerned office under
Large Taxpayer Service has no
authority to examine whether the
previously registered books are
complete and/or updated prior to
the approval of the registration.
 Annual Registration Fee
Pay annually a registration fee
of P500.00 for every separate or
distinct establishment or place
of business on or before January
31 (BIR Form 0605) as required
under Sec. 113 and Sec. 236 of
the Tax Code.
 Annual Registration Fee
Head Office is the declared specific or
identifiable principal place of business
as stated in the Articles of
Incorporation or DTI Certificate of
Registration.
Branch is a separate or distinct
establishment where sales
transactions are conducted
independently from the HO.
 Annual Registration Fee
For persons who conduct business in
nomadic manner, such as:
Peddlers;
Tiangges
Mobile store operators
Common carriers/school bus operators
without designated garages/terminals

The head office shall be their place of

residence.
 Annual Registration Fee
Branches shall include:
1.Sales outlet situated in another location other than at the
HO;
2. Facility with sales activity;
3.Real properties for lease including car parks with Admin
Office.
4.For Public Transport Operators with more than one (1)
franchise/Certificate of Public Convenience, regardless of
the number of units;
5. Toll Way Company operating more than one hi-
way/road/expressway.
 Annual Registration Fee
Branches shall include:
1.Sales outlet situated in another location other than at the
HO;
2. Facility with sales activity;
3.Real properties for lease including car parks with Admin
Office.
4.For Public Transport Operators with more than one (1)
franchise/Certificate of Public Convenience, regardless of
the number of units;
5. Toll Way Company operating more than one hi-
way/road/expressway.
 Annual Registration Fee
Branches shall include:
Branch and facility situated abroad of a domestic
corporation or resident citizen shall be registered
with the BIR district office having jurisdiction over the
HO.

Examples of Branches:
Automated Vending Machines (AVM), Automated
Ticket Dispensing Machines, Automated Teller
Machines (ATMs) and the like.
 Annual Registration Fee
Exempt from the imposition of ARF:
1.Cooperatives duly registered with the CDA;
2.Individuals earning purely compensation income;
3.OCW/OFWs;
4.Marginal income earners;
5.GAI, in the discharge of their governmental
functions;
6.LGUs, in the discharge of their governmental
functions;
7.Tax exempt corporations, in pursuance of tax-
exempt activities.
 Annual Registration Fee
Exempt from the imposition of ARF:
8.Non-stock/non-profit organizations not
engaged in business;
9.Persons subject to tax under ONETT;
10.Persons registered under EO 98 (one-
time registration);
11.Facilities where no sales transactions
occur.
 Annual Registration Fee
Marginal Income Earner - shall refer to those
individual whose business do not realize gross
sales or receipts exceeding P100,000 in any I 2-
month period.
The individual referred to in that section is an
individual not deriving compensation as an
employee under an employer-employee
relationship but who is self-employed and
deriving gross sales or receipts not exceeding
P100,000 in any 12-month period.
The activities of such MIE should principally for
subsistence or livelihood.
 Annual Registration Fee
A facility may include but not limited to
place of production, showroom, warehouse,
storage place, bus terminal, or real property
for lease with no sales activity.
If a warehouse or place of production is
predominantly used for storage, warehouse
or productions purposes, a single sales
transaction consummated thereat is enough
to warrant the imposition of the Annual
Registration Fee (ARF).
 1604CF and 1604E
Procedural changes under RR No. 1-2014:
The BIR will no longer accept manual
submission of alphalists beginning Jan. 31,
2014.
The BIR will no longer accept alphalists in
floppy diskette / CD format.
Submission of alphalists where income
payments and taxes withheld are lumped
into one single sum or amount (e.g. various
employees, various payees, PCD nominees,
others, etc.) shall not be allowed.
 1604CF and 1604E
The only valid modes of submission will be
through electronic submission:
as attachments in the Electronic Filing and
Payment System (eFPS);
using the BIRs e-mail address at
esubmisson@bir.gov.ph; and
at dedicated BIR addresses using the
prescribed CSV data file format, the details
of which shall be covered by a separate
revenue issuance.
 1604CF and 1604E
If a withholding agent fails to comply with
the prescribed format thereby resulting to
unsuccessful uploading into the BIR
system, said withholding agent will be
considered as not having filed the alphalist.
As a consequence, the withholding agents
payments to its employees and income
payments to payees as contained in the
non-compliant alphalists would be
disallowed as deductible expenses for
income tax purposes.
 1604CF and 1604E
Alphalist Data Entry and
Validation Module version 5 is
now available and
downloadable from this
website.
 1604CF and 1604E
Alphalist Data Entry and Validation
Module version 5 is now available
and downloadable from this website.
Threshold on the 13th Month Pay
and Other Benefits is adjusted from
Thirty Thousand Pesos (P30,000.00)
to Eighty Two Thousand Pesos
(P82,000.00).
1. Click the icon on 1604 Attachments Data Entry and the User Login pop up
will appear. Encode the User Name and Password, then click OK or
press E.
 2. The Main Menu will appear together with the BIR System Message pop-up.
Then click Yes or press E.

Note: The BIR System Message pop-up will appear only on the initial
installation of this program to capture information of the
Withholding Agent.

3. The Withholding Agent Information screen will appear. Fill in all mandatory
fields, then click Save button. The Revert button is used to undo encoding or
when the user does not want to save the encoded data of the withholding agent.
Once the Withholding Agent Information screen is filled up, the next time you
view the same screen to update information, Edit & Close buttons are activated.

Note: If field validation rule is violated, an Error Message pop up will appear.
 Add/Update 1604CF Attachments

4. After saving the encoded information of the withholding agent, the Main
Menu screen will appear. The selection buttons for attachments will be
activated. Click 1604CF button or press E.

5. The 1604CF Menu (Annual Information Return of Income Taxes Withheld

on Compensation and Final Withholding Taxes) screen will appear. The
Year of Return Period field is defaulted at the system year but the user has
the option to enter the same.
 1604CF Schedule 5 Data Entry

6. In the 1604CF Schedule 5 Data Entry screen, click Add button to add or
encode a record. Take note that after clicking the Add button, the Save,
Revert and Exit buttons are activated.
7. All mandatory fields must be properly filled up. After encoding data on the
last field, press E.

Note: An Error pop up screen will appear when there is still a mandatory
field not yet filled up.

8. A Question pop up message will appear. Click Yes to add another record and
No if not. The cursor will go back to the original screen. Click the Exit button.
9. A pop up message will appear asking if you want to exit, click Yes button
to return to 1604CF Menu screen.

10. All buttons are displayed and activated when you have encoded and
saved multiple data. User may use all activated buttons (i.e. Top, Next,
Prev, Bottom, Inquiry) to go to other records.
 1604CF Schedule 6 Data Entry

Note: Follow the same procedures in encoding data for 1604CF Schedule 5
(Nos. 6 to 9).
 1604CF Schedule 7.1 Data Entry Screen

Note: Follow the same procedures in encoding data for 1604CF Schedule 5
(Nos. 6 to 9).
 1604CF Schedule 7.2 Data Entry Screen

Note: Follow the same procedures in encoding data for 1604CF Schedule 5
(Nos. 6 to 9).
 1604CF Schedule 7.3 Data Entry Screens

Note: Follow the same procedures in encoding data for 1604CF Schedule 5
(Nos. 6 to 9).
 1604CF Schedule 7.4 Data Entry Screens

Note: Choose among the folders (i.e. Non-taxable, Taxable, Other Payments)
in encoding data. Follow the same procedures in encoding data for
1604CF Schedule 5 (Nos. 6 to 9).
 Add/Update 1604E Attachments

11. To add 1604E attachment, click the 1604E button and the 1604E Menu
(Annual Information Return of Creditable Income Taxes Withheld
[Expanded] / Income Payments Exempt from Withholding Tax) screen
will appear. The Year of Return Period field is defaulted at the system year.
Click Add/Update button to add/encode a record. Then follow procedures in
encoding data for 1604CF Schedule 5 (Nos. 6 to 9).
 1604E Schedule 3 Data Entry Screen

Note: Follow the same procedures in encoding data for 1604CF Schedule 5
(Nos. 6 to 9).
 1604E Schedule 4 Data Entry Screens

Note: Follow the same procedures in encoding data for 1604CF Schedule 5
(Nos. 6 to 9).
 Print / Inquire on a Taxpayer Screen (1604CF/E)

12. To print or inquire a record, click Print/Inquire button and the Inquiry
Screen will appear. To view the entire report in excel format click
eXcel Report button.
13. Click the Search button and the Search Entry pop-up will appear. Encode
the TIN or Taxpayers Name you want to inquire. Click the Ok button and
the record you are inquiring will be highlighted.

Note: All other schedules (i.e. 1604CF Schedules 6, 7.1, 7.2, 7.3 & 7.4
1604E Schedules 3 & 4) have the same inquiry screen.
14. Click View button to view the report on line or eXcel Report button to the
report in excel format. Click the Printer icon on the Print Preview tool bar
to print the report. Then close program to go back to Inquiry Screen.
 To Load / Save File

15. To load / save data encoded into the diskette, click Generate File button.
A Save As pop up screen will appear, choose the folder where you will save
data then click Save button. A pop up message asking if you want to view the
file created will appear. Click Yes and the flat file of the data will appear.
Click No and pop up message informing that the file was successfully created
will appear. Click Ok to go back to 1604 CF Menu screen
 Utilities

16. Click Utilities button on the Main Menu. Utilities Menu screen will
appear. Select and click the button you will use.
 Note: If user click Printer Setup button on the Utilities Menu screen, the
Print Setup screen will appear. Click Ok to print report.

Note: To change user, click Change User button on the Utilities Menu screen.
User Login screen will appear then fill in the new user name and password,
then click Ok.
Note: To delete other users, click the Delete User button on the Utilities Menu screen,
then the Delete User Login screen will appear. Only user with ROOT Access
Code can delete other users with code ADD and INQ.

Note: To change password, click the Change Password button on the Utilities Menu
screen, then the Change Password screen will appear. Fill in all enterable fields
then click OK.
 Inventory List
The additional reports or schedules to be
submitted and filed with the annual
inventory list shall cover companies
maintaining inventory of stock-in-trade,
raw material, goods in process, supplies
and other goods such as manufacturing,
wholesaling, distributing/retailing sectors
including real estate dealers/developers,
service companies, e.g., construction
companies, building contractors, etc.
 Inventory List
All taxpayers with tangible asset-rich
balance sheets, often with at least half
of their total assets in working capital
assets, e.g., accounts receivable and
inventory, shall submit, in addition to
the annual inventory list, schedules/lists
prescribed herein, in hard and soft
copies, using the prescribed format.
ForRetail / ManufacturingIndustry

ANNEXA
NAMEOFCOMPANY
MERCHANDISE/ RAWMATERIALS/ GOODSINPROCESS/ FINISHEDGOODSINVENTORY
Asof December 31, 20__

LOCATION (Note 1) INVENTORY

UNIT OF MEASUREMENT
VALUATION TOTAL
PRODUCT / INVENTORY QUANTITY IN TOTAL
ITEM DESCRIPTION METHOD UNIT PRICE (In weight or volume) WEIGHT /
CODE ADDRESS CODE REMARKS STOCKS COST
e.g., kilos, grams, liters, VOLUME
(Note 2)
etc.)

Note1 a Include all goods whether taxpayer has title thereto or not, provided these goods are actuallysituated in location/address at the Head Office or Branch or Facilities
(with or without sales activityof the taxpayer). Facilities shall include but not limited to place of production, showroom, warehouse, storage place, leased property,
etc. Include also goods out on consignment, though not physicallypresent are nonethelessowned bythe taxpayer.

b Use the followingcodes:

CH Goods on consignment held bythe Indicate the name of the consignor in the Remarks column
taxpayer
P Parked goods or goods owned byrelated Indicate the name of related party/owner in the Remarks column
parties
O Goods owned by the taxpayer
CO Goods out on consignment held in the Indicate the name of the entityin the Remarks column
hands of entityother than taxpayer

Note2 Indicate CostingMethod applied, e.g., Standard Costing, FIFO, Weighted Average, SpecificIdentification, etc.

We declare, under the penalties of perjury, that this schedule has been made in good faith, verified byus, and to thebest of our knowlegde and belief, is true
and correct pursuant to the provisions of the National Internal Revenue Code, as amended, and the regulations issued under authoritythereof.

Name and Signature of Authorized

Representative
TIN : ______________
ForReal EstateIndustry

ANNEXB
NAMEOFREALESTATECOMPANY
Inventoryof Saleable Unitswith CorrespondingCost Per Project
As of December 31, 20__

TOTALPROJECTED/ ACTUALCOSTINCURRED ESTIMATED TOTAL REALIZEDGROSSPROFIT TOTALSALEABLEUNITS

PROJECT ESTIMATED COSTTO ESTIMATED
REVENUE Prior Current COMPLETE PROJECTCOST ForPrior ForCurrent Availablefor UnitsSold UnitsSold Unsoldat
Total
Year(s) Year Year(s) Year Sale PriorYear(s) CurrentYear YearEnd
A B C D E F G H I J K L M

Legend:
A Project(s) beingundertaken/ indicatename of Project J Total units available for saleasplanned
B Projected/Estimated revenue per Project K Total units sold in prior year(s)
C Actual project cost incurred, previousyear(s) L Total units sold duringthe current year
D Actual project cost incurred for the current year M =J - ( K+L)
E Total Project cost incurred to date ( C+D)
F Estimated additional cost to complete the project
G Total project cost to date ( E+F )
H Profit recognized in prior year(s) asdeclared in AFS/ITR
T
I = x( B- G)
B
where: T = collectionsduringthe year (refer to AnnexB-1)

We declare, under thepenaltiesof perjury, that thisschedule hasbeen made in good faith, verified byus, and to thebest of our knowlegde and belief, istrue and
correct pursuant to the provisionsof the National Internal Revenue Code, asamended, and the regulationsissued under authoritythereof.

Name and Signature of Authorized

Representative
TIN : ______________
ForReal EstateIndustry ANNEXB-1
NAMEOFREALESTATECOMPANY
Schedule of Inventoryof Saleable UnitsPer Project with the CorrespondingTrade AccountsReceivable Reconciliation
As of December 31, 20__

A/RBeg SALESDURINGTHEYEAR COLLECTIONSDURINGTHEYEAR A/REnd

VATABLESALES VATABLESALES(netof VAT) VATABLESALES(netof VAT) VATABLESALES

InstallmentSales Zero Zero Zero Installment Sales

PROJECT Exempt InstallmentSales Exempt Total Installment Sales (net) Exempt Total ZeroRated Exempt
Deferred (net) Deferred (net)
Rated Balance Deferred Rated Cash Deferred Rated Balance
CashSales VAT Sales* CashSales Sales* Sales VAT Sales* Collection CashSales VAT Sales Sales*
Sales CashSales Sales Sales CashSales Sales
(net) Interest+ Interest + Interest+ (net) Interest +
Principal Other Principal Other Principal Other Principal Other
Charges Charges Charges Charges
A B C1 C2 D E F G H I J1 J2 K L M N O P1 P2 Q R S T U V1 V2 W X Y Z

*Exempt Sales - Sale of residential lot with gross sellingprice not exceedingP1,919,500.00and sale of houseand lot and other residential dwellingsnot exceedingP3,199,200.00set forth under Revenue RegulationsNo. 3-2012.

Legend:
A Project(s) beingundertaken/indicate nameof Project O Amount of collection fromsales, where initial payments>25%of contract
B Amount of receivables, beginning, attributableto sales whereinitial payments>25%of contract price, excludingVAT P Amount of collection fromsales, where initial payments=<25%of contract
C Amount of receivables, beginning, attributableto sales whereinitial payments=<25%of contract price, excludingVAT Q Interestsand penalties
D VAT fromreceivables, beginnning R Amount of VAT collected fromvatablesales
E Amount of receivables, beginning, fromzero rated sales S Amount of collection fromzero rated sales
F Amount of receivables, beginning, fromexempt sales T Amount of collection fromexempt sales
G Balanceof receivables, beginning, inclusive of VAT U Total amount of collections for the year
H Amount of sales, paid in full within theyear of sale V Amount of receivables, end, attributable to saleswhere initial payments >25%of contract price, excludingVAT
I Amount of sales, whereinitial payments >25%of contract W Amount of receivables, end, attributable to saleswhere initial payments =<25%of contract price, excludingVAT
J Amount of sales, whereinitial payments =<25%of contract X VAT fromreceivables, end
K Amount of zero ratedsales Y Amount of receivables, end, fromzero rated sales
L Amount of exempt sales Z Amount of receivables, end, fromexempt sales
M Total sales(vatable, zero rated and exempt sales) AZ Balance of receivables, end, inclusive of VAT
N Amount of collection fromsalespaid in full within theyear of sale

We declare, under the penalties of perjury, that this schedule has been made in good faith, verified byus, and to the best of our knowlegde and belief, istrue and correct pursuant to the provisions of the National Internal Revenue Code,
as amended, and the regulationsissued under authoritythereof.

Name and Signature of Authorized

Representative
TIN : ______________
ForConstructionIndustry
ANNEXC
NAMEOFCONSTRUCTIONCOMPANY
Scheduleof OutstandingReceivables- Beginningand Endingand Realized GrossProfit Per Project
Asof December 31, 20__

Scheduleof OutstandingReceivables- BeginningandEnding ScheduleofRealizedGrossProfitPerProject

CONTRACT A/RBeg A/REnd TOTAL %OF

PROJECT CLIENT COLLECTIONS COST ESTIMATED REALIZED REALIZED
PRICE BILLINGSDURINGTHE ESTIMATED ESTIMATED COMPLETION
DURINGTHE Netof INCURRED COSTTO PROFITin PROFITfor
NetofVAT VAT YEAR VAT PROJECT PROFIT asof
YEAR VAT TODATE COMPLETE PriorYear(s) CurrentYear
COST 12.31.20CY
A B C D E F G H I J K L M N O P

A Project beingundertaken / indicate name of Project

B Name of Buyer of servicesrendered bythe taxpayer-contractor
C Amount of consideration for the servicesrendered per contract
D Balance of receivables, beginning, excludingVAT
E Amount of VAT
F Amount billed duringthe year
G Amount collected duringthe year
H Balance of receivables, end, excludingVAT
I Amount of VAT attributable to A/R, end
J Project cost asestimated byengineers
K Projected income/profit ( C- J )
L Project cost incurred fromthe start of Project up to report date
M Additional cost asestimated byengineersfor completion of Project
N Profit recognized in prior years as declared in the AFS/ITR
L
O = (
J )
xK lessN
Cost Incurred to Date ( L)
P Percentage of completion = x100%
Total Estimated Project Cost ( J )

We declare, under thepenalties of perjury, that thisschedulehas been madein good faith, verified byus, and to the best of our knowlegdeand belief, istrueand correct pursuant to the provisionsof the
National Internal RevenueCode, asamended, and the regulationsissued under authoritythereof.

Nameand Signatureof Authorized

Representative
TIN : ______________
ForConstructionIndustry
ANNEXC
NAMEOFCONSTRUCTIONCOMPANY
Scheduleof OutstandingReceivables- Beginningand Endingand Realized GrossProfit Per Project
Asof December 31, 20__

Scheduleof OutstandingReceivables- BeginningandEnding ScheduleofRealizedGrossProfitPerProject

CONTRACT A/RBeg A/REnd TOTAL %OF

PROJECT CLIENT COLLECTIONS COST ESTIMATED REALIZED REALIZED
PRICE BILLINGSDURINGTHE ESTIMATED ESTIMATED COMPLETION
DURINGTHE Netof INCURRED COSTTO PROFITin PROFITfor
NetofVAT VAT YEAR VAT PROJECT PROFIT asof
YEAR VAT TODATE COMPLETE PriorYear(s) CurrentYear
COST 12.31.20CY
A B C D E F G H I J K L M N O P

A Project beingundertaken / indicate name of Project

B Name of Buyer of servicesrendered bythe taxpayer-contractor
C Amount of consideration for the servicesrendered per contract
D Balance of receivables, beginning, excludingVAT
E Amount of VAT
F Amount billed duringthe year
G Amount collected duringthe year
H Balance of receivables, end, excludingVAT
I Amount of VAT attributable to A/R, end
J Project cost asestimated byengineers
K Projected income/profit ( C- J )
L Project cost incurred fromthe start of Project up to report date
M Additional cost asestimated byengineersfor completion of Project
N Profit recognized in prior years as declared in the AFS/ITR
L
O = (
J )
xK lessN
Cost Incurred to Date ( L)
P Percentage of completion = x100%
Total Estimated Project Cost ( J )

We declare, under thepenalties of perjury, that thisschedulehas been madein good faith, verified byus, and to the best of our knowlegdeand belief, istrueand correct pursuant to the provisionsof the
National Internal RevenueCode, asamended, and the regulationsissued under authoritythereof.

Nameand Signatureof Authorized

Representative
TIN : ______________
 Inventory List
The soft copies of the inventory list
including other applicable schedules
shall be stored/saved in Digital Versatile
Disk-Recordable (VD-R) properly labeled
and submitted, together with a notarized
certification,(Annex%20D.docx), duly
signed by the authorized representative
of the taxpayer certifying that the
data/information contained in the DVD-R
are true and correct.
 Inventory List
The schedules and inventory list
shall be submitted on or before
the 30th day following the close of
the taxable year (depending on
the accounting period adopted by
the taxpayer) as enunciated under
Section 13 of Revenue Regulations
No. V-1, otherwise known as the
Bookkeeping Regulations.
 Gross Income
from whatever Exclusions
source whether from Gross
legal or illegal Income

= GROSS INCOME
 Gross Income
from whatever Exclusions
source whether from Gross
legal or illegal Income

= GROSS INCOME
 The proceeds of life
insurance policies
paid to the heirs of
beneficiaries upon
the death of the
insured, whether in a
 The amount received by the
insured, as returns as
premiums paid by him under
life insurance, endowment,
annuity contract either during
the term or at the maturity of
The value of property
acquired by way of
gratuitous titles such
as gift, donation,
contribution,
inheritance, bequest,
 Amount received, through
accident or health insurance or
under workmens compensation
acts, as compensation for
personal injuries or sickness, plus
the amounts of any damages
received, whether by suit or
 These are cash or non-cash
receipts representing
returns/reimbursements of the
taxpayers own money, funds,
property. Examples are cash
collections of the principal
account of loan receivable
excluding interest if there is any,
 Gross Income
from whatever Exclusions
source whether from Gross
legal or illegal Income

= GROSS INCOME
BUSIN COMPENSAT
ESS ION INCOME
INCOM

GROSS INCOME
E

PASSIVE
INCOME
 BUSIN
ESS
INCOM
These are earnings resulting or
E from its main line of
derived
commercial business activity, such
as gross profit from sales of goods
This refers and services
to the income, profit or
gain earned and derived from the
conduct or pursuit of trade,
business or the exercise of a
profession
BUSIN COMPENSAT
ESS ION INCOME
INCOM

GROSS INCOME
E

PASSIVE
INCOME
 COMPENSAT
ION INCOME

Refers to all kinds of items

of remunerations/
emoluments earned or
received in return for
services rendered
BUSIN COMPENSAT
ESS ION INCOME
INCOM

GROSS INCOME
E

PASSIVE
INCOME
Means, gains or income
items obtained from
activities in which the
taxpayer does not
participate on a regular
and continuing basis
PASSIVE
INCOME
xxxx
 Allowable
Deduction
INTEREST EXPENSE
The amount of interest paid or
incurred within a taxable year on
indebtedness in connection with the
taxpayers profession, trade or
business shall be allowed as
deduction from gross income:
Provide, however that, the taxpayers
otherwise allowable deduction for
Allowable
Deduction
TAXES EXPENSE
Taxes whether local,
national or foreign, paid or
incurred within the taxable
year in connection with the
taxpayers profession,
trade or business, shall be
allowed as deduction form
Allowable
Deduction
LOSSES
Losses on property actually
sustained as a result of
natural calamities or human
intervention during the
taxable year and not
compensated for by
insurance or other forms of
Allowable
Deduction
BAD DEBT EXPENSE
Debts due to taxpayer actually
ascertained to be worthless
and charged off within the
taxable year are deductible,
except those not connected
with the exercise of profession,
trade or business and those
sustained in a transaction
Allowable
Deduction
DEPRECIATION EXPENSE
There shall be allowed as a
depreciation deduction a
reasonable allowance for
the exhaustion, wear and
tear (including reasonable
allowance for obsolescence)
of property used in the
Allowable
Deduction
DEPLETION EXPENSE
In the case of oil and gas wells
and mines, a reasonable
allowance for depletion or
amortization computed in
accordance with the cost-
depletion method shall be
granted under rules and
regulations to be prescribed by
Allowable
Deduction
CHARITABLE
CONTRIBUTIONS
Donations or contributions made by
taxpayers shall be categorized
either as fully non-deductible, fully
deductible but subject to limitation.
 Allowable
Deduction
RESEARCH AND DEVELOPMENT
COST/ EXPENSE
A taxpayer may treat research or development
expenditures which are paid or incurred by him
during the taxable year in connection with his
trade, business or profession as ordinary and
necessary expenses which are not chargeable
to capital account
Allowable
Deduction
PENSION TRUST
CONTRIBUTION
An employer or maintaining a
pension trust to provide for
the payment reasonable
pensions to his employees.
Allowable
Deduction
OTHER BUSINESS EXPENSES
IN GENERAL
There shall be allowed as deduction from gross
income all the ordinary and necessary expenses
paid or incurred during the taxable year in
carrying on or which are directly attributable to,
the development, management, operation and/or
conduct of the trade, business or exercise of a
profession.
xxxx
 Rule 1. Basic Allowed
Exemption (BAPE)
In general, each individual
taxpayer shall be permitted to
claim the basic allowed personal
exemption amounting to 50,000,
regardless, of his/her civil/ married
legally separated, whether a
resident citizen, resident alien,
non-resident alien engaged in
business in Philippines.
 Rule 2. Additional Allowed
Personal Exemption (AAPE)
In general, each individual taxpayer shall
be permitted to claim the additional
allowed personal exemption amounting
to 25,000, for each qualified dependent
child, but not exceed four (4) children,
whether such taxpayer is a head of a
family, married, married legally
Separated or married not legally
separated, whether a resident citizen,
resident alien, non-resident alien
engaged in business in the Philippines.
xxxx
 Rules on health Hospitalization
Insurance Premium (HHIP)
The taxpayer is allowed to claim an
exemption for health hospitalization
insurance premium subjected t the
following conditions and limitations.
 Rules on health Hospitalization
Insurance Premium (HHIP)
a.) Said family (the husband and wife,
in case of married couple) has a gross
income of not more than two hundred
fifty thousand Pesos (250,000) for the
taxable year.
 Rules on health Hospitalization
Insurance Premium (HHIP)

b.) There must be an actual

health hospitalization
insurance premium payment
during the month/year.
 Rules on health Hospitalization
Insurance Premium (HHIP)
c.) The claimable amount of health
hospitalization insurance premium
shall be lower amount between the
actual HHIP payment or the limit HHIP
amount prescribed by law which shall
not exceed two thousand four hundred
pesos (2,400) per year or two hundred
pesos per month.
 Rules on health Hospitalization
Insurance Premium (HHIP)
d.) In the case of married couple,
only the spouse claiming the
additional allowed personal
exemption for their children
dependents shall be entitled to
such exemption.
xxxx
 Apply Tax Rates
The basic income tax due shall
be computed based on the
unified graduated/progressive
income tax rates as follows:
If the taxable net income is:
OVER NOT OVER TAX DUE PLUS OF
IS: EXCESS
OVER
1. P0.00 P10,000 P0 5% P0
2. 10,000 30,000 500 10% 10,000
3. 30,000 70,000 2,500 15% 30,000
4. 70,000 140,000 8,500 20% 70,000
5. 140,000 250,000 22,500 25% 140,000
6. 250,000 500,000 50,000 30% 250,000
7. 500,000 Without 125,000 32% 500,000
Limit
xxxx
 INDIVIDUAL TAXPAYER

CITIZEN ALIEN

Non- Reside Non- Reside

residen nt residen nt
t Citizen t Alien Alien
Citizen
Not engaged in engaged in
trade/business trade/business

Special Ordinary
Aliens Aliens
 Foreign Petroleum Service
Contractor or Sub-contractor
engaged in Petroleum Operations
in the Philippines under a
contract with the government
Offshore Banking Units

Regional Operating
Headquarters of Multi-national
corporations
Regional Area Headquarters of
Multi-national corporations

Special
Aliens
Taxpayers Individu
Individu Corporat
Corporat Partnershi
Partnershi Estates/Tr
Estates/Tr
als
als
Compensa
Compensa ion
ion p
p ust
ust
Busines
Busines Busine
Busine Servic
Servic Business
Business
Income tion/Busin
tion/Busin
ess/
ess/ ss
ss
ss
Incom
Incom
ee
Incom
Incom Income
Income
ee ee
Profession
Profession
Itemized
Itemized Income
Income
Itemiz
Itemiz Itemiz
Itemiz
deduction
deduction Itemized
Itemized ed
ed or
or ed
ed or
or Itemized
Itemized or
or
or
or 40%
40% or
or 40%
40% 40%
40% 40%
40% 40%
40% OSD
OSD
Deductions OSD
OSD based
based OSD
OSD based
based OSD
OSD OSD
OSD based
based on
on
based
based based
based
in
in gross
gross on
on Gross
Gross Gross
Gross
on
on on
on
receipts
receipts Income
Income Gross
Gross Gross
Gross Receipts
Receipts
form
form Profit
Profit Receip
Receip
business
business ts
ts
Personal Basic
Basic
or
or
50,000
50,000
profession
profession Basic
Basic
Exemptions Additional
Additional 20,000
20,000
25,000
25,000
30%
30% 30%
30%
Norma
Norma
Tabular
Tabular Normal
Normal Tabular
Tabular Tax
Tax
Tax Rate Tax
Tax on
on Corporate
Corporate
ll
Corpor
Corpor
Tax
Tax
Exemp
Exemp on
on
individuals
individuals income
income ate
ate tt Individuals
Individuals
Incom
Incom
Tax/2%
Tax/2% ee
MCIT
MCIT
 Questions?
Thank you for your time
R. P. MORA & CO., CPAs
(032) 520-5814
(032) 412-4613
rheneir@rpmora.com
Address:
No.95 RCDC Centrum
Gorordo Ave., Cebu City