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Philippine Taxation 101
Philippine Taxation 101
I. Objectives
The past three weeks have witnessed the passage of two (2) weather
systems — Typhoons Ondoy and Pepeng — through the Philippines' area of
responsibility. In this regard, it is anticipated that a significant number of taxpayers
shall claim deductions for casualty losses sustained as a result of the destruction
wrought by these two weather systems throughout Luzon. ITDHSE
As such, this Order is being issued to prescribe the policies and guidelines
that shall govern the declaration of casualty losses incurred by taxpayers, and the
reporting of such losses filed at the concerned Revenue District Offices (RDOs).
• Nature of the event that gave rise to such loss(es), and the
time of its occurrence;
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• Amount of insurance or other compensation received or
receivable.
2. Proof of the elements of the loss(es) claimed, such as, but not limited
to, the following:
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B. Requisites for Deductibility
4.1. If the insurance proceeds exceed the net book value of the
damages assets, such excess shall be subject to the regular
Income Tax, but not to the Value-Added Tax, since the
indemnification is not an actual sale of goods by the insured
company to the insurance company. CacEIS
2. All RDOs should ensure that samples of the format to be used in the
preparation of the Sworn Declaration of Loss are readily available
upon request of the taxpayer. The RDOs must initiate a campaign to
inform the taxpaying public within their respective jurisdictions of
the policies and guidelines for the filing of claims for casualty losses.
cTDECH
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ANNEX A
A. Nature of Loss
B. Valuation of Loss
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5. __________ _________ ____________ ____________ __________ __________
NB: To support the information provided in this Form, the following documents must be
submitted:
1) Financial Statement for the year immediately preceding the event that caused the
loss; and,
I am executing this Sworn Declaration to attest to the truth of the foregoing facts
and for whatever legal intents and purposes it may serve.
______________________________
Taxpayer
(Signature Over Printed Name)
_____________________________
NOTARY PUBLIC
ANNEX B
Submitted by:
_______________________________
(Signature Over Printed Name)
Revenue District Officer
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Endnotes
1 (Popup - Popup)
Annex A
Annex B
2 (Popup - Popup)
* Note from the Publisher: Copied verbatim from the official copy. Missing No. 1.
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