By: Tax and Accounting Center Philippines
Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular No. 21-2013 dated 28 February 2013 (RMC No. 21-2013) entitled “Amending Revenue Memorandum Circular No. 57-2011” regarding the completion of the supplemental information for 2012 individual income tax returns due for filing not later than 15 April 2013.
Under the November 2011 version of BIR Form No. 1700 for individuals with pure compensation income, and BIR Form No. 1701 for individual taxpayers engaged in trade or business or practice of profession ins the Philippines, a SUPPLEMENTAL INFORMATION at the back of sch forms requires details of such other income items not subject to normal income tax of 5-32% such as but not limited to the following:
Hereunder are the details of RMC No. 21-2013 in the Philippines:
Supplemental information OPTIONAL for 2012 ITR
The amendment under RMC No. 21-2013 consists mainly in making the disclosure of Supplemental Information under BIR Form Nos. 1700 and 1701 OPTIONAL for taxpayers for income tax filing covering with calendar year 2012 due for filing on or before April 15, 2013.
Supplemental information MANDATORY for 2013 ITR and onwards
For income tax filing covering and starting with calendar 2013, the disclosure required under Supplemental Information WILL BE MANDATORY. Thus, taxpayers are advised to demand from their payors, and properly document their BIR Form No. 2307 and other pieces of evidence for final taxes withheld. Likewise, said taxpayers should properly receipt and book their tax-exempt income.
The idea of transparency on such disclosure for supplemental information is quite simple but compliance is not as easy. As such, we highly recommend that individual taxpayers maintain a record and related documents on such other income.
Disclaimer: This article is for general conceptual guidance only and is not a substitute for an expert opinion. Please consult your preferred tax and/or legal consultant for the specific details applicable to your circumstances. For comments, you may please send mail at email@example.com.
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