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Tax Updates

Company Books of Accounts

The Philippine Revenue Regulations No. V-1, otherwise known as “The Bookkeeping Regulations,” require the keeping of books of accounts, records, registers, and the issuance and keeping of invoices, receipts, tickets, and other supporting papers and documents by the persons subject to internal revenue taxes as well as the manner of recording business transactions. Strict compliance with the bookkeeping regulations is necessary in order to ensure that the correct revenues are timely and completely reported and only deductions authorized by law are properly claimed in returns supported by accounting entries in the books of accounts and by contracts, invoices, and receipts.

All corporations, companies, partnerships or persons required by law to pay internal revenue taxes shall keep a journal and a ledger or their equivalents . The journal may consist of only one book, the general journal . The equivalents may consist of several books such as sales book, purchase book, cash book and such other books as the taxpayer may find convenient to his business . The books of accounts ( which may be in computerized or manual forms) must be approved first by the Bureau of Internal Revenue before they are used.

If the person’s gross quarterly sales, earnings, receipts, or output exceed one hundred fifty thousand pesos (P150,000), he shall have his books of accounts audited and examined yearly by independent Certified Public Accountants and his income tax returns accompanied with a duly accomplished Account Information Form (AIF) which shall contain , among others, information lifted from certified balance sheets, profit and lost statements, schedules listing income–producing properties and the corresponding income therefrom and other relevant statements.

All the books of accounts, including the subsidiary books and other accounting records of such corporations, companies, partnerships, or persons shall be preserved by them for a period of at least three years from the date of the last entry in each book and shall be subject to examination and inspection at any time by internal revenue officers.

RMC82-2008-Manual books of account renewal
RMO29-2002-Computerized books of accounts application
Modified Guidelines and Procedures in Processing Application and Issuance of Authorithy to Print (ATP) Receipts, Sales or Commercial Invoices
Issuance of Receipts or Sales or Commercial Invoices
RMC24-2001 - Enrollment Procedures for BIR Electronic Filing and Payment System - EFPS
RR15-2010 - Documentary Requirements in Connection with the Preparation and Submission of Financial Statements Accompanying the Tax Returns
RR_11-2010 - Clarifying the term Managerial and Technical Positions. Guidelines on Availment of 15 percent preferential rate for Filipinos Employed by RHQs and ROHQs
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