RR No. 9-2009: Promulgates the requirements for the maintenance, retention and submission of electronic records

Summary

RR No. 9-2009 sets the requirements, obligations and responsibilities of taxpayers for maintaining, retaining and submitting electronic records.

Key points

1. General duty. A taxpayer keeps all records needed to determine the correct tax liability under Section 232 of the NIRC and makes them available on request of the Commissioner or an authorized representative. If records exist in both electronic and hard-copy form, the electronic format is given on request, and a taxpayer may still show compliance with hard-copy documents.
2. Large Taxpayers. All Large Taxpayers classified under RR No. 1-98 must maintain Computerized Accounting Systems (CAS) or components of it, with all books and records in electronic format. Those still keeping manual books must register their CAS not later than December 31, 2009.
3. Record content and documentation. Electronic records need enough transaction-level detail and must be retrievable and convertible to a standard format under RR No. 16-2006. Mandatory fields are listed for the General Ledger, General Journal, Sales Journal, Purchase Journal and Inventory Book, and source documents must also be kept.
4. System controls and changes. Taxpayers keep controls over access, input and output, processing, back-up, and unauthorized editing or deletion. Changes to a recorded transaction are made by journal entry, and changes to the operating or business system are reported to the BIR before implementation.
5. Location and third parties. Records are kept at the place of business in the Philippines or another place designated by the Commissioner, and back-up copies are kept in the Philippines. Records stored abroad require written authorization, and a third-party custodian may be used only after notifying the BIR, without relieving the taxpayer of its obligations.
6. Microfilm, registration and penalties. Microfilm, microfiche and other storage-only imaging systems require a prior BIR permit and must meet the stated conditions. Records are preserved under Section 235 of the NIRC, computerized books and systems are registered under RMO No. 29-2002, and violations may lead to prosecution and penalties under Section 255 of the NIRC.

Who is affected

• Taxpayers keeping electronic records
• Large Taxpayers under RR No. 1-98
• Taxpayers using Electronic Data Interchange (EDI)
• Internet-based businesses hosted outside the Philippines

Deadlines and effectivity

• Large Taxpayers with manual books: register CAS not later than December 31, 2009
• Changes to systems: report to the BIR before implementation

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