RR No. 4-2014: Prescribes the policies and guidelines in the monitoring of service fees of professionals

Summary

RR No. 4-2014 prescribes the policies and guidelines for monitoring the service fees of professionals.

Key points

1. Registration and affidavit. Self-employed professionals register and pay the Annual Registration Fee with the Revenue District Office or Large Taxpayers District Office having jurisdiction over them. On registration and every year after, on or before January 31, they submit an affidavit stating their rates, manner of billing and the factors used to set their fees.
2. Books and appointment books. Professionals register their books of accounts and official appointment books before using them. The appointment books contain only the client’s name and the date and time of the meeting.
3. Receipts and invoices. Sales invoices and official receipts (VAT or non-VAT) are registered before use. If no fee is charged, a BIR-registered receipt acknowledged by the client shows a discount of 100% as proof of the “pro-bono” service.
4. Existing professionals. Self-employed professionals already registered when the Regulations took effect must submit the affidavit and register their official appointment books within 30 days from the date of effectivity.

Who is affected

• Self-employed professionals

Deadlines and effectivity

• Affidavit due upon registration and every year on or before January 31
• Existing professionals comply within 30 days from effectivity
• Issued March 20, 2014

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