BIR issues new revenue regulations
By Rose Palacio
Davao City (19 July) -- Bureau of Internal Revenue (BIR) XI Director Atty. Marcelinda Omila-Yap said the BIR central office has issued revenue regulations to implement the provisions of newly-approved tax laws and enhance existing law systems and processes.
Revenue Regulation 1-2006 was issued to ease the burden of tax requirements for minimum wage or P5,000 per month and of government employees with the Salary grades 1 to 3 shall not be subject to withholding tax..
However, said individuals are still required to file their annual income tax returns and pay the income taxes due not later than every April 15 of every year.
RR 2-2006, on the other hand, was issued to secure government revenues collected through the withholding tax system. The said RR mandates taxpayers to attach to their tax returns the Summary Alphalist of Withholding Agents of Income Payments Subjected to Tax Withheld at source and the monthly alphalist of payees.
RR 3-2006 was issued to implement the increase in Excise Tax on alcohol and tobacco products, as provided for under Republic Act No. 9334. Aside from imposing higher Excise tax rates, the said RR also prescribes provisions to strictly prohibit and penalize the downward reclassification of a particular brand of alcohol and tobacco products, willful understatement of the net retail price and other unlawful acts to evade the correct payment of Excise Taxes.
RR 5-2006 was issued to lift the temporary deferment of RR 17-2005, which provided the policies, guidelines and procedures in the implementation of tax subsidy granted by the Fiscal incentives review board to the Bases Conversion Development Authority for the Subic-Clark-Tarlac Expressway project.
Said RR supercedes RR 19-2005. Full texts of the RRs are posted at www.bir.gov.ph. (PIA XI) [top]