RR No. 12-2022 — Prescribes the policies and guidelines for the availment of incentives under RA No. 9999 (Free Legal Assistance Act of 2010) (Published in Manila Times on September 20, 2022)

REPUBLIC OF THE PHHLIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

SEP 1 3 2022

REVENUE REGULATIONS NO. 11- 2022

SUBJECT: Incentives under Republic Act No. 9999, otherwise known as the "Free Legal Assistance Act of 2010", and the Policies and Guidelines for the Availment Thereof

TO: All Internal Revenue Officials, Employees and Others Concerned

"Free Legal Assistance Act of 2010," was approved on February 23, 2010 with the aim to legal assistance to the poor and ensure that every person who cannot afford the services of a counsel is provided with competent and independent counsel preferably of his/her own choice. provide free legal assistance to the poor in accordance with the State's policy to guarantee free SECTION 1. Background. - Republic Act (RA) No. 9999, otherwise known as the

revenue officers, employees and others concerned. On March 8, 2013, the BIR issued RMC No. 26-2013 (Primer on BIR Form 1701, Item 63 and BIR Form 1702, Item 23) specifying that the incentive granted in the Act shall be treated as "Special Allowable Itemized 2010 circularizing the full text of the Act for the information and guidance of all internal Deduction. On March 8, 2010, the BIR issued Revenue Memorandum Circular (RMC) No. 23-

prescribe more definitive guidelines, procedures and requirements for the proper availment of Regulations are hereby promulgated, aside from the earlier revenue issuances issued, to the incentives granted therein. National Internal Revenue Code of 1997, as amended, in relation to Section 8 of the Act, these SECTION 2. Objective. - Pursuant to the provisions of Sections 244 and 245 of the

SECTION 3. Definition of Terms. -

instruments and contracts, including appearance before the administrative and quasi-judicial offices, bodies and tribunals handling cases in court, and other similar services as may be defined by the Supreme Court. rendering the required legal services. Mechanism for Free Legal Assistance and for Other Purposes." Court to practice law in the Philippines and in good standing as of the date of application of law, legal procedure, knowledge, training and experiences which shall include, among others, legal advice and counsel, and the preparation of c) "Legal Services" refer to any activity which requires the b) "Lawyer" refers to an individual duly licensed by the Supreme a) "Act" refers to RA No. 9999 entitled "An Act Providing a N LNARRUR F Y NO O iG LDN Q t" C NO BEREE

being appointed as counsel de officio. the appearance in court or quasi-judicial body for and in behalf of an indigent or assistance by a practicing lawyer to indigent or poor litigants in court-annexed mediation and in other modes of alternative dispute resolution (ADR), including pauper litigant and the preparation of pleadings or motions. It shall also cover provided must be within the services as defined by the Supreme Court in Bar Matter No. 2012 and subsequent issuances. The free Legal Service shall refer to For purposes of availing the incentives, the Legal Services to be

Legal Services shall be entitled to an allowable deduction from the gross income equivalent to the lower of: SECTION 4. Incentives. -- Lawyers or professional partnerships rendering actual free Services rendered; or a) the amount that could have been collected for the actual free Legal

performance of the legal profession. b) ten percent (10%) of the gross income derived from the actual

.- the Supreme Court. Mandatory Legal Aid Services for Practicing Lawyers, under Bar Matter No. 2012, issued by mandatory legal aid services rendered to indigent litigants as required under the Rule on The actual free Legal Services shall be exclusive of the minimum sixty (60)-hour

income tax return ("ITR") for the period when the deduction was claimed the following Agencies for the Availment of the Incentives. -- In order to avail of the incentives provided in Section 4 of these Regulations, the Lawyers or professional partnerships shall attach to their documents: SECTION 5. Required Certifications/Accreditations from Appropriate Government

a.Certification from the Public Attorney's Office (PAO), the Department oi Justice (DOJ) or accredited association of the Supreme Court indicating that: I. 1 the agencies cannot provide the Legal Services to be provided by the private counsel; and the Legal Services to be provided are within the services defined by the Supreme Court: D HENAALNHR Y H ow s NOIST AS 8 01 OT HCOEA

I the Legal Services were actually undertaken

by the Lawyer or professional partnership in the provision of the Legal Services. The Certification from the association and/or organization duly accredited by the Supreme Court shall specify the number of hours actually provided

b. Accomplished BIR Form No. 1701 (for individual lawyers) or BIR Form No. 1702-EX (for general professional partnership), particularly Schedules 5 and 2, respectively, on "Special Allowable Itemized Deductions.

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C Sworn Statement of the Lawyer or managing partner (in case of professional

free legal service. partnership) as to the amount that could have been collected for the actual

invalid by a competent court, the remainder of these Regulations or any provision not affected by such declaration of invalidity shall remain in force and effect. SECTION 6. Separability Clause. - If any provision of these Regulations is declared

- or portions thereof which are inconsistent with the provisions of these Regulations are hereby revoked, repealed or amended accordingly. SECTION 7. Repealing Clause. -- The provisions of any regulations, rulings or orders

foliowing its publication in the official gazette or in a newspaper of general circulation, whichever comes first. SECTION 8. Effectivity Clause. -- These Regulations shall take effect fifteen (15) days

C Cs BENJAMIN E. DIOKNO

Secretary of Finance

SEP 0 8 2Q22

Recommending Approval:

hL lGn 7C LILIA CATRIS GUHLLERMO Commissioner of Internal Revenue

09086

BUREAU OF INTEN AL REVENUE RECORDS MGT. DIVISION

RECEIVED SEP 13 2C 5400m ADMINI

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