RR No. 3-2011: Provides the policies, guidelines and procedures on the application for change in accounting period

Key points

1. Covered changes. A taxpayer other than an individual that changes from fiscal to calendar year, calendar to fiscal year, or from one fiscal year to another computes net income on the new period with BIR approval. The taxpayer files a separate final or adjustment return for the period between the close of the original period and the close of the new period.
2. Documents required. These are a letter request to the Revenue District Officer stating the original and proposed periods and the reasons, a duly filled-up BIR Form No. 1905, a certified true copy of the SEC-approved Amended By-Laws showing the change, and a sworn certification of non-forum shopping.
3. Sworn undertaking. A responsible officer undertakes to file the separate final or adjustment return on or before the 15th day of the fourth month following the end of the period it covers. The undertaking states that failure to comply invalidates the approval and subjects the taxpayer to a criminal offense under Section 255 of the NIRC of 1997, as amended.
4. Timing. The request is filed at any time not less than 60 days before the start of the proposed new accounting period. The certification approving the change is released within 30 working days from receipt of the complete documents.

Who is affected

• Taxpayers other than individuals

Deadlines and effectivity

• Request filing: not less than 60 days before the new accounting period
• Undertaking return: on or before the 15th day of the fourth month after the period ends
• Certification release: within 30 working days from complete documents