Additional Requirements for Submission

While the Bureau of Internal Revenue (BIR) instructs individuals and non-individuals to file national and local taxes in the Philippines (e.g income tax, withholding tax, value-added tax, etc.), there are also documents required for submission even without the use of a tax return.

These documents serve as requirements mandated for submission by Revenue Regulations, Revenue Memorandum Circulars or the National Internal Revenue Code. Like most tax returns, these are prescribed by the BIR to determine all taxes due that the government can readily verify at any given time.

The following additional requirements for tax compliance are listed below:

BIR’s eSales System

The Enhanced Electronic Sales (eSales) System is an online encoding system promulgated by the BIR through Revenue Regulations 5-2005. It imposes the monthly submission of sales reports created by Cash Register Machines (CRMs), Point of Sale systems (POS), and other sales machines that generate receipts or invoices registered with the BIR.

According to RR No. 5-2005, all establishments using CRM/ POS machines are required to submit their sales reports on or before the 10th day of the month with the gross sales recorded at the end of the previous month in each CRM/ POS machine.

Tenants Profile for Establishments Leasing or Renting Spaces

The Tenants Profile is a reportorial requirement for owners and sub-lessors of establishments leasing or renting commercial spaces to tenants conducting business activities. Under Revenue Regulation No. 12-2011, owners of commercial spaces must submit the following documents to the nearest BIR Revenue District Office (RDO):

• Building/space layout of the entire area leased by the tenants with the proper address of the unit or space;
• Certified true copy of Contract of Lease per tenant; and
• The Lessee Information Statement presented in the prescribed Excel format in soft copy stored in a CD-R disc or hard copy.

Establishments leasing or renting out spaces for commercial activities must submit the tenants profile on January 31 (for tenants as of December 31 of the presiding year) or July 31 (for tenants as of June 30 of the current year).

Books of Accounts

According to Title IX, Sections 232 and 235 of the Tax Code, BIR mandates individual and non-individual taxpayers to register, maintain, and preserve their Books of Accounts. It must contain the day-to-day business transactions of taxpayers and the result of their operations. This accounting record is a prerequisite for businesses or individuals who aim to obtain their Certificate of Registration (COR) with the BIR.

BIR accepts Manual, Looseleaf, and Computerized Books of Accounts if they contain the following documents:

1. Cash Receipts Book;
2. Cash Disbursements Book;
3. Book of Original Entry (General Journal);
4. Purchases Journal;
5. Sales Journal; and
6. General Ledger.

Manual books of accounts are not required for annual submission to BIR unless all pages of the book are used. They can use the book of account continuously without the need for renewal or restamping.

Taxpayers with looseleaf books must submit their hardbound records 15 days after the end of the calendar year while computerized records must be submitted in CD-R, DVD-R or any accessible media on or before January 30 of the succeeding taxable year.

BIR Form No. 0605 – Payment Form

Taxpayers use BIR Form No. 0605 to file taxes and fees that don’t require tax returns. This form can also be used for second installment payments of income tax, registration fees, advanced tax payments, deposits, deficiency tax, delinquency tax, and other penalties caused by non-compliance with the prescribed deadlines.

Individuals and non-individuals must submit the Payment Form for the following reasons:

1. If the taxpayer has a tax payment, penalty due or for advanced tax payments;
2. Receiving a demand letter/ assessment notice or collection letter from the BIR; and
3. Payment of annual registration fees for new businesses and for renewals on or before January 31 of each business year.