The SyCipLaw T.I.P.S. for December covers the following tax issues:

1. When is the extended deadline to avail of the benefits of the Bureau of Internal Revenue’s Voluntary Assessment and Payment Program for Taxable Year 2018 (VAPP)?

The Bureau of Internal Revenue (BIR) has issued Revenue Regulations No. 33-2020 (RR No. 33-20) which extends the period for availment of the benefits of the Voluntary Assessment and Payment Program for Taxable Year 2018 under Certain Conditions (VAPP) until June 30, 2021, unless extended further by the Secretary of Finance...

2. What are the amendments to the VAPP under RR No. 33-20?

RR No. 33-20 amends Section 10 (Privilege) of RR No. 21-20 by providing that taxpayers who avail themselves of the VAPP on withholding taxes shall be allowed to claim deductions on the corresponding income payment pursuant to Revenue Regulations No. 6-2018 (RR No. 6-18). RR No. 6-18 provides the requirements for deductibility of certain expenses from a taxpayer’s gross income...

3. When is the new deadline to avail of the Tax Amnesty on Delinquencies?

The BIR has issued Revenue Regulations No. 32- 2020 (RR No. 32-20), which amends Section 3 of Revenue Regulations No. 04-2019 (RR No. 4-19) by further extending the period to avail of the tax amnesty on delinquencies which is provided under Republic Act No. 11213 (RA No. 11213 or the Tax Amnesty Act) to June 30, 2021. The tax amnesty under RA No. 11213 covers: [a] estate taxes; and [b] delinquencies. For more information, please see our bulletin on RR No. 4-19 at https://tinyurl. com/SyCipLaw-BulletinRR4-19, which was posted on April 22, 2019...

4. What version of BIR Form No. 1709 (Information Return on Transactions with Related Party) must be submitted under Revenue Regulations No. 34-2020?

The BIR has now issued Revenue Regulations 34-2020 (RR No. 34-20) to streamline the guidelines and procedures for the submission of BIR Form No. 1709 (or the RPT Form), Transfer Pricing Documentation (TPD), and other supporting documents originally provided by Revenue Regulations No. 19-2020 (RR No. 19-20)...

5. Who are required to submit BIR Form No. 1709 (Information Return on Transactions with Related Party) together with their annual income tax returns?

Under RR No. 34-20, the following are required to submit BIR Form No. 1709, together with their Annual Income Tax Returns (AITRs):

a. Large Taxpayers;

b. Taxpayers enjoying tax incentives (i.e., Board of Investments-registered and economic zone enterprises, those enjoying income tax holidays or subject to preferential income tax rate);

c. Taxpayers reporting net operating losses for the current taxable year and the immediately preceding two (2) consecutive taxable years; and

d. A related party, as defined under RR No. 19-20, which has transactions with (a), (b), or (c) above. For this purpose, key management personnel (KMP), as defined under Section 3(7) of RR No. 19-20, shall no longer be required to file and submit the RPT Form, nor shall there be any requirement to report any transaction between KMP and the reporting entity/parent company of the latter in the RPT Form.

6. Who are required to prepare and submit transfer pricing documentation based on the amendments under RR No. 34-20?
 
7. What are the additional disclosure requirements under RR No. 34-20 for taxpayers with related party transactions but are not required to submit BIR Form No. 1709 (Information Return on Transactions with Related Party)?

RR No. 34-20 has amended RR No. 19-20 to provide that the following taxpayers who are required to submit BIR Form No. 1709 (Information Return on Transactions with Related Party) [Please see above TIP] and who meet the materiality thresholds set out below are required to prepare and submit TPDs under Revenue Regulations No. 02-2013:

Please read the full text at https://tinyurl.com/SyCipLaw-DecTIPS-Vol6 or https://tinyurl.com/SyCipLaw-DecTIPS-Vol6-1.