RR No. 15-2010: Amends certain provisions of RR No. 21-2002, as amended, authorizing the Commissioner of Internal Revenue to prescribe additional procedural and/or documentary requirements in connection with the preparation and submission of financial statements accompanying the tax returns

Key points

1. Added disclosures. In addition to Philippine Financial Reporting Standards disclosures, the Notes to Financial Statements must give information on taxes, duties and license fees paid or accrued during the taxable year.
2. VAT. The notes show VAT output tax declared and the account titles and amounts it is based on, with a statement and legal basis for any zero-rated or exempt sales/receipts. They also show VAT input taxes claimed: beginning balance, current year domestic purchases by category, claims for refund or credit and other adjustments, and the ending balance.
3. Imports, excise and DST. The notes state the landed cost of imports with customs duties and tariff fees, excise taxes per major product category for locally produced and imported items, and Documentary Stamp Tax on loan instruments, shares of stock and other transactions.
4. Other taxes and withholding. The notes list all other local and national taxes, including real estate taxes and license and permit fees under Taxes and Licenses. Withholding taxes are split into tax on compensation and benefits, creditable and final withholding taxes.
5. Assessments and tax cases. The notes give the periods and amounts of deficiency tax assessments, whether protested or not, and the tax cases and amounts under preliminary investigation, litigation or prosecution outside the BIR.

Who is affected

• Taxpayers submitting financial statements with their tax returns