RMC No. 09-2004: Prescribes the guidelines and policies on the taxation of banks and non-bank financial intermediaries performing quasi-banking functions and other non-bank financial intermediaries as a result of the enactment and effectivity of Republic Act No. 9238, which excludes several services from the coverage of the Value-Added Tax and re-imposing the Gross Receipts Tax on banks and non-bank financial intermediaries performing quasi-banking functions and other non-bank financial intermediaries beginning January 1, 2004.

Summary

RMC No. 9-2004 gives policies and guidelines on business tax for banks and non-bank financial intermediaries performing quasi-banking functions, and other non-bank financial intermediaries, following Republic Act (RA) No. 9238.

Key points

1. What RA No. 9238 changed. RA No. 9238 amended the National Internal Revenue Code of 1997. It excluded several services from VAT coverage and re-imposed the Gross Receipts Tax on these institutions beginning January 1, 2004.
2. VAT receipts issued before publication. RA No. 9238 was published in a newspaper of general circulation on February 16, 2004. Before then, these institutions issued VAT receipts for services rendered. They must file a VAT return for those services and remit the output VAT to the BIR.
3. Opportunity to refund. Since VAT invoices were issued before the RA was published, these institutions may be given an opportunity to refund the VAT they paid and remitted to the BIR for those transactions.

Who is affected

• Banks
• Non-bank financial intermediaries performing quasi-banking functions
• Other non-bank financial intermediaries

Deadlines and effectivity

• Gross Receipts Tax re-imposed beginning January 1, 2004
• RA No. 9238 published February 16, 2004

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.