RMC No. 17-2011 — Proposes the use of basic standard format in complying with the requirements of RR No. 15-2010 on the additional notes to Financial Statements relative to taxpayers' tax compliance Digest | Full Text

REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Quezon City March 17, 2011 REVENUE MEMORANDUM CIRCULAR NO. 17-2011 SUBJECT : Proposes the Use of Basic Standard Format in Complying with the Requirements of Revenue Regulations (RR) No. 15-2010 on TO : the Additional Notes to Financial Statements Relative to Taxpayers' Tax Compliance All Internal Revenue Officers and Others Concerned In various public dialogues conducted for the implementation of RR No. 15- 2010, numerous tax practitioners and accounting associations are requesting for a template/standard format that can guide them in complying with the requirements of the said regulations. Some have given their suggestions and inputs on the same. In view of these appeals, the format below may be used with some adjustments for a better fit to the distinctive character of the industry where concerned taxpayers belong: RR 15-2010 Propose Notes to the Financial Statements relative to taxpayers' taxes and licenses Provisions In compliance with the requirements set forth by RR 1. The amount of VAT output tax 15-2010 hereunder are the information on taxes, declared during the year and the duties and license fees paid or accrued during the account title and amount/s upon taxable year. which the same was based. If there The company is a VAT-registered company with VAT are zero-rated sales-receipts and/or output tax declaration of P________ for the year exempt sales/receipts, a statement based on the amount reflected in the Sales Account to that effect and the legal basis of P__________. therefor; The company has zero-rated/exempt sales amounting to P__________ pursuant to the provisions of _____________ law/regulations. OR The company is a non-VAT registered company engaged in the business of ___________ and paid the amount of P_____________ as percentage tax

pursuant to ___________ law/regulations and based on the amount reflected in the Sales/Gross Income Received Account of P__________. 2. The amount of VAT Input taxes The amount of VAT Input taxes claimed are broken claimed broken down into: down as follows: a. Beginning of the year; b. Current year's domestic purchases/ Beginning of the year........... p___________ payments for: Current year's purchases: I. Goods for resale/ manufacture or further processing I. Goods for resale/manufacture II. Goods other than for resale or or further processing .... _________ manufacture II. Goods other than for III. Capital goods subject to amortization resale or manufacture ...._________ IV. Capital goods not subject to III. Capital goods subject amortization to amortization ............._________ V. Services lodged under cost of goods sold IV. Capital goods not subject VI. Services lodged under other to amortization ........._________ accounts V. Services lodged under c. Claims for tax credit/refund and other adjustments; and cost of goods sold .........._________ d. Balance at the end of the year VI. Services lodged under other accounts ...._________ c. Claims for tax credit/refund and other adjustments ........._________ (INCLUDE here all kinds of adjustments whether additional sources of inputs or other deductions from available inputs) d. Balance at the end of the year P___________ 3. The landed cost of imports and the The landed cost of the company's importations amount of customs duties and tariff fees paid or accrued thereon: amounted to P____________ for the year, with 4. The amount of excise tax/es, paid/accrued amount of P_________ as customs classified per major product category, i.e., tobacco products, alcohol duties and P_________ as tariff fees. products, automobiles, minerals, oil and petroleum, etc. paid on- The amount of excise tax/es, classified as follows: a. Locally produced excisable items; and Excise Tax/es Paid/Accrued b. Imported excisable items. Product Locally Imported Category Produced Tobacco Alcohol Automobiles Oil/Petroleum 5. Documentary stamp tax (DST) on The DST paid/accrued on the following transactions loan instruments, shares of stock and other transactions subject thereto; are: Transaction Amount DST thereon Loan P P Instruments Shares of P P Stocks 6. All other taxes, local and national, Other Taxes & Licenses: P_____________ including real estate taxes, license a. Local _____________ and permit fees lodged under the Real Estate Taxes..... _____________ Taxes and Licenses account both Mayor's Permit ...... under the Cost of Sales and PTR ......................

Operating Expense accounts; b. National BIR Annual Registration.. P_____________ Percentage Taxes ........... _____________ 7. The amount of withholding taxes The amount of withholding taxes paid/accrued for categorized into: the year amounted to: i. Tax on compensation and benefits ...P__________ i. Tax on compensation and benefits ii. Creditable withholding tax/es ........ __________ ii. Creditable withholding tax/es iii. Final withholding tax/es .............. __________ iii. Final withholding tax/es 8. Periods covered and amount/s of The company has received a final assessment notice deficiency tax assessments, whether from the Regional Office of __________ covering the protested or not; taxable year _____ amounting to P_________, inclusive of penalties, for deficiency 9. Tax cases, and amounts involved, income/VAT/Percentage/withholding tax, which has under preliminary investigation, been protested/agreed upon. (Management may litigation and/or prosecution in courts include here their opinion on the probable outcome or bodies outside the BIR." of their protest, if protested; or the probable outcome of their application for installment/compromise/abatement, in case of agreed assessment.) The company has a RATE case under preliminary investigation of the Dept. of Justice (DOJ) involving deficiency income tax for taxable year 2008 amounting to P_______________. The above format may be modified to make it more appropriate to the business peculiarities of the concerned taxpayer/s. All internal revenue officials and employees are hereby enjoined to give this Circular as wide publicity as possible. (Original Signed) KIM S. JACINTO-HENARES Commissioner of Internal Revenue