Summary
RR No. 8-2007 prescribes additional compliance requirements for taxpayers mandated to adopt the Philippine Financial Reporting Standards (PFRS). They must keep books and records that reconcile financial statement figures with the filed ITR.
Key points
- Reconciling items. Concerned taxpayers must maintain books and records showing the reconciling items between Financial Statements figures and those in the filed Income Tax Return.
- Level of detail. The records must be presented so BIR examiners can understand them. They must give enough detail on the computation of the differences and the reasons, bringing PFRS and ITR figures into agreement.
- Why it is required. Recording under PFRS often differs from tax rules, which creates a disparity between financial accounting and tax accounting reports.
Who is affected
- Big corporate taxpayers mandated to adopt PFRS
Deadlines and effectivity
- Keeping of these records starts for taxable year 2007: calendar year ending December 31, 2007 and fiscal years ending not later than June 30, 2008
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.