REGISTRATION, TAXATION &

ACCOUNTING COMPLIANCE OF
CONSTRUCTION INDUSTRY
MARGIE R. DE CASTRO
Chief, Assessment Section
RDO 038 – North, Quezon City
November 27, 2020
Bureau of Internal Revenue
 LOCAL NATIONAL
GOVERNMENT GOVERNMENT

Department of Single
Barangay Trade and
Proprietor
Industry (DTI)

Securities and
Exchange Partnership /
Municipality Commission Corporation
(SEC)

City Bureau of
Internal Revenue
Government (BIR)
BIR REGISTRATION
R EGISTRATION
I NVOICING
B OOKKEEPING
F ILING
P AYMENT
 REGISTRATION
Sec. 236(A) of the National Internal Revenue
Code of 1997 (NIRC of 1997), as amended
requires that all business entities, even tax-
exempt ones, regardless if sole proprietorships
or corporations, must be registered with the
Bureau of Internal Revenue.
 REGISTRATION
 Primary Registration (Initial Stage)
 TIN Application
 Registration Fee (BIR Form 0605) – P 500.00
 Certificate of Registration

 Secondary Registration
 Invoicing
 Bookkeeping
 PRIMARY
REGISTRATION
 A. TIN APPLICATION
* Filing can be thru:
 eReg Online
 Manual application
*Only One (1) TIN is issued for every
individual/partnership/corporation
Single Proprietor / BIR issues
Individual the TIN

Partnership/Corporation SEC issues

/ Association the TIN
 B. REGISTRATION FEE

P 500.00 on BIR Form

or before Renewable 0605
January 31 of Annually (Payment
the ff. year Form)
C. CERTIFICATE OF REGISTRATION
C. CERTIFICATE OF REGISTRATION
 SECONDARY
REGISTRATION
INVOICING
 A. INVOICING

 All persons, whether private or government, who

are engaged in trade or business shall secure /
apply from the BIR. Authority to Print (ATP)
principal and supplementary receipts/invoices.
 A. INVOICING
 Secure Authority to Print (ATP) Invoice/Receipts:
a. Manual Invoice/Receipt - Booklet
b. Loose-Leaf Invoice/Receipt

However, per RMC 28-2019, in lieu of securing the

ATP immediately, BIR Printed Receipts/Invoices
(BPR/BPI) may be secured from the RDO and used
for a period of 30 days from registration, after
which, ATP should be secured.

• Amended by RMC 117-2019, extended its usage

up to one year.
 A. INVOICING

 Approved Authority to Print (ATP) shall be valid

only upon full usage of the inclusive serial
numbers of principal and supplementary
receipts/invoices reflected in such ATP or five (5)
years from ATP issuance whichever comes first.

 Only BIR Accredited Printers shall have the

exclusive authority to print principal and
supplementary receipts and invoices.
SAMPLE OF BPR/BPI Receipts (NON-VAT)
SAMPLE OF BPR/BPI Receipts (VAT)
 A. INVOICING
Seller of Goods – Sales Invoice/Collection Receipt
Seller of Services – Official Receipt

Shall be valid for Five (5) years from date of ATP, to

be renewed 60 days prior to expiration.

Use of unregistered receipt (No ATP / Expired ATP)

and failure to issue receipts are both violation to
existing rules and regulations thus, subject to
penalties.
SAMPLE OF OFFICIAL RECEIPT
 A. INVOICING

RR 16-2018 provides that in order to claim as

expense for Income Tax purposes and as
source of Input Tax for Value-Added Tax
purposes, POS receipts shall no longer be
valid proof – therefore, a manual SI/OR shall
be requested as replacement for the POS
receipt issued.
BOOKKEEPING
 MANUAL BOOK OF ACCOUNTS
A minimum set of Books of Accounts shall consist
of the following: (for construction industry)
1. Cash Receipts Book
2. Cash Disbursements Book
3. General Journal
4. General Ledger

Per RMC 29-2019 however, Books of Accounts are

to be registered before the filing of the 1st Qtr ITR
or annual ITR, whichever comes first.
 BOOKKEEPING

TP’s may maintain Books of Accounts in any of the

ff. manner:
1. Manual Books of Accounts;
2. Loose-leaf Books of Accounts (w/ permit to use);
3. Computerized Books of Accounts (w/ permit to use)
 INVOICING & BOOKKEEPING

• Accounting records, including books

of accounts and invoices, shall be
stored for 10 years per RR 5-2014.

• First 5 years shall be in hard copy,

remaining 5 years in soft copy per
Section 2-A of RR 5-2014.
RA 11032 “Ease of Doing Business and Efficient
Government Service Delivery Act of 2018”

RMC 57-2020
FOR SELF-EMPLOYED (SINGLE PROPRIETOR)
RMC 57-2020
FOR PARTNERSHIPS AND CORPORATIONS
FILING AND PAYMENT
OF TAX RETURNS
FILING AND PAYMENT OF TAX RETURNS

VAT Registered
CONTRACTORS
(Electronic Filing and
Payment System)
eFPS Filer
*e-File and e-Pay
FILING AND PAYMENT OF TAX RETURNS

 All sales/receipt transactions should be

issued with Official Receipt and recorded in
the books and all expenses / purchases
related to the conduct of the business as
deduction, as the recordings of said
transaction (receipts/disbursement) will be
the basis for the FILING and PAYMENT of
TAX RETURNS.
FILING AND PAYMENT OF TAX RETURNS

Income Tax Returns

Value-Added Tax Returns Indicated in the

TAX RETURNS COR (BIR Form
2303)
Withholding Tax on Compensation

Expanded Withholding Tax

FILING AND PAYMENT OF TAX RETURNS
Attachments to:
 Annual ITR – Financial Statements
– Audit Certificate by a CPA
 Quarterly VAT Returns – Summary List of Sales
and Purchases (SLSP)
 1601E/1601F returns – Monthly Alphalist of
Payees Subjected to Withholding Tax (MAP)
 ITR / VAT return – Summary Alphalist of
Withholding Tax at Source (SAWT)
MANNER OF FILING INCOME TAX
 Electronic Filing and Payment System
(eFPS)
 it refers to the system developed and maintained
by the Bureau of Internal Revenue (BIR) for
electronically filing tax returns, including
attachments, if any, and paying taxes due
thereon, specifically through the internet.
ENROLLMENT TO eFPS
ENROLLMENT TO eFPS
ENROLLMENT TO eFPS
WHO ARE NOT REQUIRED TO
FILE INCOME TAX RETURNS?
An individual earning purely compensation
income whose taxable income does not exceed
P250,000.00.
An individual whose sole income has been
subjected to final withholding tax or who is
exempt from income tax pursuant to the Tax
Code and other special laws.
An individual who is a minimum wage earner.
 FACT (True) / MYTH (False)

Taxpayers who do not pay the right taxes,

either by under declaring revenues or over
declaring expenses, May be charge with
civil and criminal liabilities.

 FACT (True/Correct)
ACCOUNTING
COMPLIANCE
 WHAT IS GAAP?
 Financial Statements (Income Statement /
Balance Sheet / Cash Flow) should be
prepared and complied based on Generally
Accepted Accounting Principle (GAAP)
which are common set of accounting
principle standards are procedures that
govern how accountants measure, process,
and communicate financial information.
 FINANCIAL STATEMENTS:

1. INCOME STATEMENT
-report of the revenue & expenses for a period of time

2. BALANCE SHEET
-report of Assets, Liabilities and Capital at particular point
in time

3. STATEMENT OF CASH FLOW

BUSINESS ORGANIZATION /
STRUCTURES
BUSINESS ORGANIZATION/STRUCTURES
A.
1. Sole Proprietorship
2. Partnership
3. Corporation
4. One Person Corp. (OPC)
5. Limited Liability Company (LLC)
6. Cooperative
 CONSORTIUM

Consortium
 is formed by contract which delineates the
rights and obligations of each member.

Joint Venture
 is formed for undertaking construction
projects is not taxable as a corporation if it
complies with the conditions set in RR No.
10-2012:
 RR 10-2012
1. The JV partners must be licensed local contractors
and/or foreign contractors with a special license as
a contractor by PCAB with the construction project
being certified by the appropriate government
office as a foreign-financed/internationally-funded
project;
2. the JV itself must be duly licensed by PCAB;
3. such qualified JV shall not be subject to corporate
income tax and 2% CWT;
4. will not be required to file quarterly and final
adjustment returns.
 CONSORTIUM & JOINT VENTURE

Consortium or Joint Venture formed for the

purpose of undertaking construction projects is
not included in the term taxable “Corporation”.

Construction of private road from the taxes is

NOT a valid appropriation.
TAX UPDATES
 THANK YOU!
#WeShallRiseAsOne

MARGIE R. DE CASTRO
Chief, Assessment Section
RDO 038 – North,Quezon City