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This research contains some important information regarding filing income tax

returns. The group advises that for complicated tax matters, an aid of a tax
accountant, or further inquiry with BIR may prove necessary. Otherwise, constantly
being updated on important matter and reminders like the release of new circulars
and Revenue Regulations through visiting BIR’s website ( is

1. Should a registered business do manual bookkeeping?
All corporations, companies, partnerships or persons required by law to pay internal
revenue taxes shall keep a journal and a ledger or their equivalents such as
subsidiary ledgers, simplified books of accounts. The journals and ledgers that
would be used need to be registered in BIR. BIR would be stamping their seal on the
first pages of the books used. It is not necessary for a taxpayer to register/stamp a
new set of manual books of accounts each and every year, as the registration of a
new set of books must be done when the pages of the current books are already
exhausted. The taxpayer only needs to properly label and mark the portions relating
to a particular year.
Businesses are required to track their financial information by maintaining their
books updated. These books are to be inspected by BIR when filing for income tax.
For more information regarding the use of the registration of book of accounts, click
2. Can a business entity submit books in the form of digital content?
Yes. However, this choice is only limited to the use of an Accounting software
system, (e.g., SAP and Oracle). Should a business choose to only rely on
computerized bookkeeping system, they must first consult and ask for BIR’s
approval and authorization for the use of computerized accounting systems. Further
consultation must be made to determine the accounting software the BIR approves,
and in what specific formats they require the computerized books.
More details for the application for authority to use Computerized Accounting
Systems and/or components thereof/Loose-leaf book of accounts could be found in
this link:

3. Until when should taxpayers keep their accounting records after filing
tax returns?

BIR has required businesses to keep their accounting records—physical and/or electronic. may opt to just keep the electronic copy of the accounting 4. it is recommended to read the contents of Revenue Regulations (RR) No. accuracy. However. is the system created by the Bureau of Internal Revenue that enables taxpayers to electronically file tax returns with the corresponding attachments via As for the browser. 5-2014 Source: Ten-year retention rule: http://www. after five years from the date of filing the tax returns or the Enrollment can be done by visiting the website of BIR (or through visiting this link: https://efps. 5-2014. This is to serve as a future point of reference or evidence. the use of internet explorer or Mozilla firefox is recommended for the eFPS. which involves the integrity. security and quality of the system itself. should BIR or the taxpayer find a necessity to review their closed books. or the Electronic Filing and Payment and electronically pay taxes due through the internet banking facilities of Authorized Agent Banks (AABs). please visit this link: https://efps. Failure to meet the list of the requirements would require the taxpayer to keep the physical records for the duration of ten-year retention period.bir. For more information and overview on eFPS. 17-2013 amended the three-year retention rule under the tax code. The eFPS system of BIR: subject to the maintenance of an Electronic Storage System (ESS). For further information. This ten-year retention rule of accounting records via the release of Revenue Regulations (RR) No. taxpayers. whichever is later. Taxpayers are encouraged to apply for the eFPS.jhtml The exception in the use of ESS: http://www. reliability. However. this RR also sets out the requirements of the use of an ESS.bir. 17-2013. to at least ten years after the date of filing. . under the release of the recently issued RR and Revenue Regulations (RR) No.