RR No. 3-2010: Provides the rationale and guidelines for the submission of the Statement of Management Responsibility

Summary

RR No. 3-2010 requires a Statement of Management’s Responsibility to accompany the financial statements submitted with the annual Income Tax return. The Regulations provide the rationale and guidelines for it.

Key points

1. Who must submit. All taxpayers required to file the Annual Income Tax Return under the National Internal Revenue Code, as amended, must submit the Statement.
2. What management is responsible for. Management states it is responsible for the information in the Annual Income Tax Return, the accompanying financial statements, and all other tax returns for the period, such as VAT, percentage tax, withholding tax and documentary stamp tax returns.
3. What management affirms. Management affirms that the audited financial statements and the return agree with the books and records and are complete and correct in all material respects. It also affirms that the return follows the NIRC and pertinent issuances, that disparities between financial and tax accounting are reported as reconciling items under RR No. 8-2007, and that all applicable returns are filed and taxes shown as due are paid, except those contested in good faith.
4. Who signs. The individual taxpayer, president or managing partner signs, together with the Chief Executive Officer or equivalent and the Chief Financial Officer or equivalent. For a foreign corporation with a branch in the Philippines, the local manager in charge of operations signs.

Who is affected

• All taxpayers required to file the Annual Income Tax Return
• Foreign corporations with a branch office in the Philippines

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