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Tax Digest
REVENUE MEMORANDUM CIRCULAR
Clarification on the eCAR Forms
REVENUE MEMORANDUM CIRCULAR NO. 42-2014 issued on
May 21, 2014 issues clarification on the Electronic
Certificate Authorizing Registration (eCAR) Forms
prescribed under Revenue Memorandum Circular (RMC)
No. 40-2-14.
For the information of everybody, BIR Form No. 2313-R shall
be used in transfer of real properties while BIR Form No.
2313-P for transfer of personal properties subject to
Capital Gains Tax, Documentary Stamp Tax and Donor’s Tax.
Also, the eCAR may vary depending on the kind of
transaction and the taxes applied to such.
Revenue Memorandum Circular No. 42-2014,
dated May 21, 2014
Open Data Philippines (OPD)
REVENUE MEMORANDUM CIRCULAR NO. 43-2014, issued on
May 22, 2014 publishes the full text of Joint Memorandum
Circular No. 2014-01 entitled “Open Data Philippines”
issued by the Office of the Presidential Spokesperson
(OPS), Secretary of Department of Budget and
Management (DBM) and Undersecretary of Presidential
Communications and Development and Strategic Planning
Office (PCDSPO).
Objective
The purpose of this project is to promote openness and
reusability of information to support transparent,
accountable and participatory governance.
Program Brief
Data from different agencies, such as but not limited to
education, agriculture and budget, may be viewed by users
and use for research, analysis, generation for informed
decision and a more efficient and transparent
government.
Revenue Memorandum Circular No. 43-2014,
dated May 22, 2014
Volume 7, Series 46
Printer’s Accreditation Certificate
BIR is prescribing a new accountable form BIR Form No.
2332, Certificate of Accreditation, for printers of invoices
and official receipts and other commercial invoices in
accordance with Revenue Memorandum Circular No.
44-2014.
This form shall be accomplished in three (3) copies and
distributed as follows:
Original - Accredited Printer’s Copy
Duplicate - National/Regional Accreditation Board’s Copy
Triplicate - Issuing District Office’s Copy
The Assistant Commissioner-Large Taxpayer Service for
LTDO/LT Offices and Regional Director for Revenue District
Offices shall be responsible for the request and
distribution of the form.
Revenue Memorandum Circular No. 44-2014,
dated May 23, 2014
Electronic Accreditation and
Registration and Sales Reporting
REVENUE MEMORANDUM CIRCULAR NO. 45-2014, dated May
28, 2014, prescribes the use of the improved Integrated
Electronic Accreditation and Registration (eAccReg) and
Electronic Sales Reporting (eSales) Systems.
eAccReg
This electronic accreditation and registration simplifies
necessary requirements for the issuance of permits to use
Cash Register Machines (CRM), Point of Sales Machines
(POS) and other business machines generating receipts or
Printing of certificate and Final Permit is available at the
eAccReg.
eSales
This system automates the monitoring and reporting of
the gross monthly sales per registered CRM/POS or other
similar machines.
1
Tax Digest
Enrolment to the eAccReg and eSales
1. Authorized user should submit notarized letter Annex
“A” to concerned Revenue District Office (RDO)/ Large
Taxpayer District Office (LTDO)/Large Taxpayers
Assistance Division (LTAD)/ Excise Large Taxpayers
Regulatory Division (ELTRD) for account enrolment.
2. Authorized User, in charge of accessing eAccReg and
eSales, should be enrolled before use of the systems.
3. One (1) authorized user should be enrolled per one (1)
TIN.
Sales Reporting
Taxpayers using CRM/POS with TIN ending in even number
shall report their sales on or before the 8th day after the
month of sale via the eSales while those with TIN ending in
odd number shall report their sales 10 days after the
month of sale.
Revenue Memorandum Circular No. 45-2014,
dated May 28, 2014
Financial Lease Subject to DST
REVENUE MEMORANDUM CIRCULAR NO. 46-2014, issued on
May 30, 2014 clarifies the taxability of financial lease for
purposes of Documentary Stamp Tax (DST).
Financial Lease as Credit
Under Revenue Regulations (RR) No. 9-2004, Financial
Lease is defined as a mode of extending credit. The
definition was copied from Republic Act No. 5980, as
amended. Under the same Act, credit means any loan,
mortgage, financial lease, dead of trust, advance or
discount, conditional sales contract” among others to sell
property or service.
Paragraph Nos. 21 and 22 of International Accounting
Standard (IAS) on Leases (17) provides that Financial Lease
should be recognized ‘both as an asset and obligation to
pay for future Lease payments’.
Coverage of DST
Based on Section 179 of the National Internal Revenue
Code (NIRC), DST covers all debt instruments including
Volume 7, Series 46
Financial Lease because of its nature as credit. As such,
DST shall be imposed on all transactions involving
Financial Lease even if not specifically mentioned in the
NIRC.
Effectivity
The circular takes effect immediately.
Revenue Memorandum Circular No. 46-2014,
dated May 30, 2014
Extension of Submission via eSales
REVENUE MEMORANDUM CIRCULAR NO. 48-2014, dated June
9, 2014, in relation to RMC No. 45-2014, extended the dead
line of submission of monthly sales report (for month of
May) via eSales from June 8 or 10 to June 30, 2014 for
taxpayers with last digit TIN ending in both even and odd
numbers. Sales report for the month of June and onwards,
shall be submitted on or before either 8th or 10th day of
the following month.
No penalties shall be imposed on the submission of sales
report until June 30.
Taxpayers using Cash Register Machine/Point-of-Sales
(CRM/POS) machines with manually-issued Machine
Identification Number are required to use and are
mandated to be re-enrolled in the eAccReg and eSales on
or before July 1, 2014.
Revenue Memorandum Circular No. 48-2014,
dated June 9, 2014
Exempt Non-stock Non-profit
Corporation (NSNP)
REVENUE MEMORANDUM CIRCULAR NO. 51-2014, dated June
6, 2014, was issued to clarify the requirement for NSNP
Corporation to be exempt from Income Tax under Section
30 of the NIRC.
Non-stock meaning
For a corporation to be a non-stock corporation it should
meet the following conditions based on Section 87 of the
2
Tax Digest Volume 7, Series 46

Corporation Code: Clarification on Mobile Revenue

1. It should not distribute any portion of its income by
Collection officers System (MRCOS)
way dividends to its members, trustees or officers;
RMC No. 52-2014, dated June 11, 2014, was issued to explain
and
issues related to the MRCOS as follows:
2. If it generates profit from incident operations, such
profit should be used “whenever necessary or
1. A revenue collection officers (RCO) cannot accept
proper” for the purpose of such corporation.
payments from taxpayers of different municipality
but RCOs who are assigned within the district officers
Non-profit meaning
may collect taxes from taxpayers within the
jurisdiction of the district office.
For a corporation to be a non-profit corporation, it should
2. There is no need to issue Electronic Official Receipt
meet the following conditions based on Supreme Court
(eReceipt) for sale of loose documentary stamps (DS)
decision:
but RMO No. 25-2011 should be followed in recording
such sale.
1. No net income or asset should benefit any member or
3. In case of unavailability of loose DS, the RCO may
specific person.
issue the P15DS but the taxpayer should accomplish
2. All net income or asset should be dedicated to the
and file BIR Form No. 2000 and attach copy of
purposes of the corporation and all other activities
eReceipt.
that are not for profit.
4. The taxpayer may request reprinting of receipts only
under the following instances:
Benefits defined
a. A receipt was not printed on a completed
The following are considered benefits which when given to
individuals such as trustees, organizers, officers or transaction;
b. The CORD stopped functioning on the submission
members will disqualify a corporation as NSNP:
of the transaction details; or
c. The eReceipt was not properly printed
1. Payment of Compensation, salaries, or honorarium;
2. Payment of exorbitant or unreasonable compensation
Instead of the reprinted receipt, taxpayers may request for
to its employees;
certification of tax payments, forms, returns or
3. Provision of welfare aid and financial assistance to its
declarations filed with the BIR following procedures under
members. A corporation with purpose to manage
RMO No. 25-2011.
savings or investment funds such as pension and
retirement funds is not a NSNP and should be subject
Revenue Memorandum Circular No. 52-2014,
to Income Tax;
dated June 11, 2014
4. Donation to entities with a different purpose;
5. Purchase of goods or services with payments more
than its Fair Market Value from entities where at least
one (1) of its trustees or officers has an interest; and
6. When on dissolution, any remaining assets are
distributed to trustees, organizers, officers or
member. For a corporation to be a NSNP the
remaining assets must be given to entities with
similar function or to the Philippine Government.

Revenue Memorandum Circular No. 51-2014,

dated June 6, 2014

3
Tax Digest
Doctors get TRO vs BIR regulation
IT'S the turn of doctors to get a reprieve from the Supreme
Court (SC) against the Bureau of Internal Revenue's (BIR)
controversial policy requiring professionals to reveal their
service fees and identities of clients.
In a press briefing last June 3, 2014, SC spokesperson
Theodore Te said the Court favored the motion for
intervention filed by the Philippine College of Physicians
and issued a temporary restraining order (TRO) on the BIR
Revenue Regulation No. 4-2014.
The SC earlier blocked the implementation of the BIR
regulation against lawyers, which had been portrayed in
the agency's newspaper advertisements as tax cheats. The
BIR also did the same on doctors.
Section 2 of R.R. No. 4-2014 requires all self-employed
professionals to submit an affidavit indicating the rates,
manner of billings and the factors they consider in
determining their service fees upon registration on or
before January 31 of each year and register the books of
accounts and official appointment books which shall
contain the names of the client and date or time of the
meeting.
They must also issue a BIR-registered receipt showing a
100 percent discount in cases when no professional fees
are charged.
Virgil B. Lopez
Sunstar (June 3, 2014)
Accountants get SC TRO on having to
bare fees
The Supreme Court has stopped the implementation of
Bureau of Internal Revenue policy requiring self-employed
accountants to disclose their fees and billing procedures.
Volume 7, Series 46
The high tribunal earlier issued a similar temporary
restraining order on the implementation of BIR Regulation
No. 4-2014 or the "Guidelines and Policies for Monitoring of
Services Fees of Professionals" among lawyers and
doctors.
"The Court has issued a temporary restraining order, as
prayed for, restraining the operation of Revenue
Regulation 4-2014 insofar as the accounting profession is
concerned, subject to the payment of the appropriate and
necessary docket and filing fees," SC spokesperson
Theodore Te said in a media briefing on Wednesday.
Te said the TRO was effective immediately and until further
orders from the high tribunal.
Last month, the SC en banc did not immediately issue a
TRO in favor of the Association of Small Accounting
Practitioners in the Philippines (ASAPP), and merely
consolidated the group's petition with earlier petitions
challenging the BIR policy.
The respondents were also required to comment on the
accountants' petition.
The accountants' petition was earlier raffled off to the
Third Division but was eventually transferred to the SC en
banc "considering the identity of issues among the cases.”
Named respondents to the petition of the accountants
were the Secretary of Finance and the BIR commissioner.
The contested tax policy required all self-employed
professionals to submit an "affidavit indicating the rates,
manner of billings, and the factors they consider in
determining their service fees upon registration and every
year thereafter on or before January 31."
According to the BIR order, the professionals are also
required to submit their books of accounts and official
appointment books containing the names of their clients
and the dates and time of the meetings.
The BIR also ordered lawyers to issue receipts even in
pro-bono cases, indicating that a 100 percent discount was
given.
But in its own petition, the Integrated Bar of the
Philippines argued that only courts have exclusive
authority and jurisdiction to regulate and prescribe rules
for the legal professions.
4
Tax Digest Volume 7, Series 46

The lawyers association said the new BIR policy would

violate the "strictly personal, fiduciary and highly
confidential" client-lawyer relationship.

Following the IBP petition, the Philippine College of

Physicians and the Philippine Medical Association
CONTACT PERSON
respectively contested the BIR policy.
Mr. Donnies T. Alas
The lawyers and physicians' groups earlier secured the
Chairman & CEO
injunctions on the implementation of the BIR regulation
E: donniesalas@alasoplascpas.com
among their ranks.
Ms. Marycris S. Oplas
Mark Merueñas
Senior Partner
GMA News (June 25, 2014)
E: marycrisoplas@alasoplascpas.com

Ms. Glesie R. Martinez

Partner, Audit & Assurance - Cavite
E: glesiemartinez@alasoplascpas.com

Ms. Nessa S. Oplas

Branch Manager - Bacolod
E: nessaoplas@alasoplascpas.com

Tax Digest by:

Tax Advisory Services / Client Continuity &
Communication Team

For clarification, tax queries or if you need our

assistance in securing BIR ruling, you may call
us at telephone number (632) 759-5090 or
email us at aocheadoffice@alasoplascpas.com
or visit us at our website
www.alasoplascpas.com