New Requirements in Attached Financial Statements to Tax Returns

The BIR issued a new Revenue Regulation prescribing new procedures and additional documentary requirements in connection with the preparation and submission of attached financial statements to tax returns.

Revenue Regulation 15-2010 now mandates the following in addition to the disclosures required under the Philippine Financial Reporting Standards:

1. Information on the amount of VAT output tax declared during the year and the account title and amount upon which the same was based.

2. Information on the amount of VAT input taxes claimed beginning of the year as well the current year’s domestic purchases and payments for goods for resale/manufacture or further processing, goods other than for resale or manufacture, capital goods subject or not subject to amortization and services lodged under cost of goods sold and other accounts
must also be indicated.

3. Claims for tax credit/refund and other adjustments and balance at the end of the year.

4. Information on the landed cost of imports
and the amount of customs duties and tariff fees paid or accrued thereon must be reported.

5. The amount of excise tax classified per major product category, i.e., tobacco and
alcohol products, automobiles, minerals, oil and petroleum paid on locally produced and
imported excisable items must be incorporated in the report.

6. Information on documentary stamp tax (DST) on loan instruments, shares of stock and
other transactions subject thereto as well as all other taxes, local and national, including
real estate taxes, license and permit fees lodged under the taxes and Licenses account both
under the cost of sales and operating expense accounts must be declared for One-Time-
Transactions.

7. For withholding taxes, information must include tax on compensation and benefits,
creditable withholding taxes and final withholding taxes.

8. In cases where there is deficiency tax assessment whether protested or not, the periods
covered and amount involved must be disclosed.

9. Tax cases under preliminary
investigation, litigation and prosecution in courts or bodies outside the bureau, including
amounts involved must be part of the information disclosed.