BIR ANNOUNCES THE AVAILABILITY OF OFFLINE ELECTRONIC BUREAU OF INTERNAL REVENUE FORMS VERSION 7.9.3

BIR ANNOUNCES THE AVAILABILITY OF OFFLINE ELECTRONIC BUREAU OF INTERNAL REVENUE FORMS VERSION 7.9.3 

• Under RMC No. 131 dated September 28, 2022, the BIR announces the availability of Offline e-BIR Package Version 7.9.3 which is downloadable HERE.
• The new Offline eBIRForms Package has the following modifications:
  • Additional Alphanumeric Tax Codes (ATCs) in BIR Form No. 0605 to be used by the International Carriers in paying their taxes in reference to RMO No. 37-2022, to wit:

• Required official e-mail address of the taxpayer to be provided in the eBIRForms profile page. The e-mail shall be used as an additional mode of serving BIR orders, notices, letters, communications and other processes.

TAX VERIFICATION NOTICE (TVN) FOR ESTATE TAX CASES IF DECEDENT HAS NO REGISTERED BUSINESS IS DISCONTINUED.  RMO No.41-2022, September 29, 2022

• In order to comply with the ease of doing business in processing requests for issuance of Certificate Authorizing Registration related to the transfer of properties left by the decedent, issuance of TVN for estate tax cases where the decedent has no registered business is discontinued.

“ASK FOR RECEIPT” NOTICE SHALL BE VALID UNTIL JUNE 30, 2023 AND MUST BE REPLACED BY NOTICE TO ISSUE RECEIPT/INVOICE; DESIGNATED EMAIL ADDRESS TO BE REQUIRED, WHICH SHALL BE USED BY THE BIR TO SERVE. RMO No. 43-2022, September 29, 2022

• The BIR prescribes the policies, guidelines and procedures in the issuance and use of Notice to Issue Receipt/invoice (NIRI) pursuant to Revenue Regulations No. 10-2019
• NIRI shall be displayed in an area conspicuous to the public at the place of business of the seller, including branches and mobile stores.

BIR RULINGS

• Honoraria and allowances granted to the electoral boards/poll workers or persons who rendered election services in the elections are considered compensation income subject to withholding tax because the name by which remuneration is designated is immaterial. Honoria and allowances constitute compensations income.
  • However, the same is not subject to expanded withholding tax because it is received by employees. Withholding tax applies only to those who render service or labor-only for a fee or under a contract of service.
  • The same is also not subject to VAT as the same is received by employees. VAT applies only to teachers performing services in the course of trade or business. (BIR Ruling No: OT-195-2022)
• Sale of house and lot under economic and low-cost housing project of a company duly registered with the Board of Investments under Executive Order (EO) No. 226 is exempt from income tax and creditable withholding tax on its income received directly in connection with the mentioned project. In addition to that, sale of house and lot and other residential dwellings with selling price of not more than Php 3,199,200 is VAT exempted. (BIR Ruling No: Certificate of Tax Exemption No: BOI-LEH-196-2022, BOI-LEH-197-2022, BOI-LEH-198-2022)
• A non-stock and non-profit corporation with primary purpose of being an educational institution is exempted from income tax and VAT only on revenues or receipts generated from:
  • Tuition fee and other school fees: and
  • Income derived from the operation of cafeterias/canteen, dormitories, and bookstores located within its premises, owned and operated by the corporation to be actually, directly and exclusively used for educational purposes.
  • However, the corporation is liable to all other including those below:
    • Income derived from any of its properties, real or personal, or any activity conducted for profit, which income should be returned for taxation unless they are actually, directly and exclusively used for educational purposes;
    • If engaged in the sale of goods or services in the course of a business pursuit, including transactions incidental thereto, its revenues derived therefrom shall be subject to the 12% VAT, in case the gross receipts from such sales exceed Three Million Pesos (Php3,000.000.00), or the 3% (now 1%) percentage tax, if the gross receipts do not exceed Php3,000.000.00; (BIR Ruling No: Certificate of Tax Exemption No: SH30-200-2022, SH30-201-2022, SH30-202-2022)
• Merger between two (2) non-profit civic associations/organizations with consequent transfer of the property is not qualified as a tax-free merger. There must be an exchange of property solely for stock in another corporation. It is clear that in order to qualify as an exception to the recognition of the gain or loss upon the sale or exchange of property, a corporation which is a party to a merger exchanges its property solely for stock in another corporation which is also a party to the merger. (BIR Ruling No: S40M-199-2022).