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On Feb. 25, businesses, schools and government offices will be bankrupt in anniversary of one of the best cogent contest in Philippine history — the People Power Revolution. It commemorates the day aback Filipinos aggregate forth EDSA, a aloft accessible alley and a actual date for those who rallied to restore capitalism in the Philippines and end decades of dictatorship. For millions of Filipinos, the beef in EDSA was a affirmation of alternative continued denied.



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A agnate activity of ability may accept been acquainted by some taxpayers aback the Bureau of Internal Revenue (BIR) issued Revenue Announcement Annular (RMC) No. 10-2020 on Feb. 6. This annular suspends the arising of the Permit to Use (PTU) for Computerized Accounting Systems (CAS), Computerized Books of Account, and its components. The PTU is appropriate afore a aborigine can use computerized accounts in its business operations. Unauthorized use would be accountable to penalties.



In above-mentioned years, Revenue District Offices (RDOs) could action and affair PTUs. However, due to apropos with the approval action at the RDO level, the BIR absitively to accumulate the appraisal of PTU applications at the National Office in 2015. Subsequently, PTU applications at the BIR National Office started to accumulation up.

CAS applications alpha with the acquiescence of complete documentary requirements. The appliance will again be assigned to a Technical Working Group (TWG) for a arrangement affirmation that involves a airing through of the CAS. The BIR assembly will test-check if the CAS is adjustable with the BIR rules (e.g., invoicing requirements and binding fields in the books of account). If any issues are noted, the BIR proposes adjustments to the system, and the applicant-taxpayer is accustomed time to accomplish the all-important rectifications. The BIR may additionally appeal for accession airing through, if necessary. It is alone aloft achievement of these requirements and procedures that a PTU can be issued. Considering the diffuse procedures and the abundant cardinal of applications handled at the BIR National Office, the appraisal and absolution of a PTU could booty added than a year.



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Finally, in backward 2018, the BIR accustomed the beforehand arising of a PTU cardinal to taxpayers who accept essentially complied with the appliance requirements and can absolve the actual charge for deployment of the CAS. Notably, however, this action was not covered by a academic BIR annular or memorandum. However, there were taxpayers who auspiciously anchored beforehand PTU numbers and deployed their systems.

Now, with RMC 10-2020, the awaiting applications (including those which accept undergone arrangement demonstration) for PTU will be handed over to the RDO area the aborigine is registered. In lieu of a PTU number, taxpayers will accept an Acknowledgement Certificate with Control Cardinal aural three canicule from the acquiescence of documentary requirements. The abstracts mainly abide of sample book archetype of system-generated books of annual and principal/supplementary receipts or invoices and a affidavit account with absorbed arbitrary of arrangement description, bartering invoices/receipts/ certificate description, forms/records and letters blueprint accomplished and active by the aborigine or company’s accustomed representative/s.

The aloft requirements are not new to the applicant-taxpayers because best of them should accept been included in the aboriginal appliance submitted to the BIR National Office. At most, the applicant-taxpayer may alone charge to acclimatize the architecture to accede with the assigned affidavit statement. Notably, however, the affidavit account beneath RMC 10-2020 is about agnate to the affidavit account appropriate by the BIR aback it accustomed the arising of beforehand PTUs in 2018.

Unlike before, area the absolution of the PTU cardinal technically marks the end of the application, the applicant-taxpayer would now be accountable to post-evaluation checking, which may be done accompanying with a accustomed tax analysis beneath a Letter of Authority.

The BIR is set to affair abstracted admonition implementing the circular, which would accommodate abundant procedures for the column appraisal checking. Hence, we may apprehend added abundant guidance, abnormally aback there are items defective clarifications. For instance, the BIR needs to analyze the specific advantage of RMC 10-2020. This is important because new applicants are abashed whether they should chase the new documentary requirements and procedures for accepting an Acknowledgement Certificate with Control Cardinal accustomed that the RMC abeyant the arising of PTUs. In addition, taxpayers with accustomed CAS applications but area the PTU is aloof awaiting release, are now anxious whether they will be classified as “pending applications” whose calendar would be transmitted to the RDOs area they are registered.

On accession note, the BIR National Office additionally needs time to abode all awaiting applications to the corresponding RDOs. It charge accordingly additionally be antiseptic whether RDOs will alpha accepting and processing the documentary requirements beneath the RMC alike if they haven’t yet accustomed the accordant calendar from the National Office.

Many taxpayers accept waited a continued time to assuredly get permission to use their CAS, with a few dabbling their business affairs until approval from the BIR is received. Affluence of accomplishing business was promised aback in 2018 aback Republic Act No. 11032, or the Affluence of Accomplishing Business and Efficient Government Service Delivery Act of 2018, was enacted. If affluence of accomplishing business is absolutely the capital disciplinarian for the arising of RMC 10-2020, it is reasonable to apprehend that the BIR will accommodate absolute responses to abode the afore-mentioned affairs as no aborigine would appetite to delay accession year or two to arrange their system.

The angle or opinions bidding in this commodity are alone those of the columnist and do not necessarily represent those of Isla Lipana & Co. The agreeable is for accepted admonition purposes only, and should not be acclimated as a acting for specific advice.

Donabel M. Villegas is a tax administrator at the Tax Services Department of Isla Lipana & Co., the Philippine affiliate close of the PwC network.

63 (2) 8845-2728

donabel.m.villegas@pwc.com

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