RMC No. 29-2019: Provides guidelines in keeping, maintaining and registration of Books of Accounts

Key points

1. Keeping the books. Taxpayers keep appropriate bookkeeping records at their place of business, preserved intact, unaltered and unmutilated. Keeping two or more sets of records or Books of Accounts is prohibited.
2. Forms of books. Books may be manual, loose leaf (with Permit to Use) or computerized (with Permit to Use).
3. Manual books. They are registered before the deadline for the first quarterly Income Tax Return or the annual Income Tax Return, whichever comes earlier. All entries are handwritten, and pasted or glued printouts in bound books are prohibited and penalized.
4. Loose leaf and computerized books. Loose leaf books are bound and presented with a sworn statement within 15 days after the end of each taxable year or from closure of business, whichever is earlier. Computerized books are submitted within thirty (30) days from the close of each taxable year or from closure, to the RDO/LTAD/ELTRD/LTD-Cebu/LTD-Davao where registered. The Commissioner may extend on a request made before the period lapses.
5. Audit requirement. Those whose gross annual sales, earnings, receipts or output exceed Three Million Pesos (Php3,000,000) have their books audited yearly by independent Certified Public Accountants.
6. Retention. Books are preserved for ten (10) years from the day after the return deadline, or from the filing date if filed late. Hardcopies are kept for the first five (5) years, after which an electronic copy in a system compliant with Section 2-A of RR No. 5-2014 may be kept.

Who is affected

• Corporations, companies, partnerships and persons required to pay internal revenue taxes
• Taxpayers with gross annual sales, earnings, receipts or output above Php3,000,000

Deadlines and effectivity

• Loose leaf: within 15 days after end of each taxable year
• Computerized: within 30 days from close of each taxable year
• Retention: 10 years, hardcopies for the first 5 years