RR No. 17-2013: Prescribes the guidelines on the preservation of books of accounts and other accounting records

Summary

RR No. 17-2013 clarifies the retention period and sets guidelines on preserving books of accounts and other accounting records.

Key points

1. Ten-year retention. All taxpayers keep books of accounts, subsidiary books and other accounting records for 10 years. The period runs from the day after the filing deadline, or from the filing date if the return is filed late, for the taxable year of the last entry in the books.
2. Pending cases. If a protest or a claim for tax credit or refund is pending and the records are material to it, the taxpayer keeps them until the case is finally resolved.
3. Independent CPA. Unless a longer period is required by the NIRC or other laws, the independent CPA who audited and certified the financial statements also keeps copies for 10 years. The period runs from the annual income tax return due date or actual filing date, whichever is later.
4. Place and inspection. Books and supporting papers stay at the place of business and must be produced immediately on demand. They may be examined in regular or extraordinary audit, on a foreign tax authority’s information exchange request under Sections 6 and 71 of the NIRC, and under Section 5. Examination takes place at the taxpayer’s office or the BIR office.
5. Penalties. Violations are penalized under Sections 266, 275 and other pertinent provisions of the NIRC, and Section 6 of Republic Act No. 10021.

Who is affected

• All taxpayers
• Independent CPAs who audited and certified the financial statements

Deadlines and effectivity

• Retention: 10 years from the day after the filing deadline, or from the filing date if filed late
• CPA copies: 10 years from the annual income tax return due date or filing date, whichever is later

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