BIR's January 2013 collections up by 11.27%

 Economy
Feb 272013
 
BIR's January 2013 collections up by 11.27%

MANILA, Philippines – The Bureau of Internal Revenue’s collections for January rose by 11.27 percent or P9.59 billion year-on-year, the state agency reported on Wednesday. BIR said it collected P89.03 billion from its operations and P5.71 billion from non-BIR operations for a total of P94.74 billion worth of tax revenues collected in January 2013. The agency collected P85.15 billion in January last year. BIR Commissioner Kim Henares earlier said the agency is aiming to collect P1.25 trillion this year after missing last year’s target by a small margin. BIR has also unveiled 26 major projects to ensure that it will sustain a positive growth in its collections.

Tax treatment of deposits, cash advances

 Economy
Feb 252013
 

THE BUREAU of Internal Revenue’s (BIR) new issuance, Revenue Memorandum Circular No. 16-2013 (RMC 16-2013) clarified the tax treatment of deposits/advances given by clients/customers to their suppliers/providers. This new issuance is an offshoot of RMC 89-2012, which involves cash advances given to General Professional Partnerships (GPPs). Unlike RMC 89-2012, RMC 16-2013 covers all taxpayers, other than GPPs, doing business in the Philippines. The latter details all the tax implications to and obligations of the taxpayer and the client for purposes of recording and documentation of the deposits/cash advance made.

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