Professional Documents
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In light of the recent typhoons which struck and devastated the different parts of the
country, most Filipinos and businesses are faced with tremendous losses to properties,
infrastructures, inventories, livestock, and worst lives.
But did you know that these casualty losses (properties used in business) may be
deducted as a valid expense from the gross income? To be considered valid, of course,
it has to comply with the BIR requirements.
Under the said RMO, within 45 days from the date of the event causing the loss, a
Sworn Declaration, together with other proof of loss, must be filed with the nearest BIR
RDO. Failure to submit such documentary requirements within the prescribed period
may result in the disallowance of the loss claimed.
Considering that most of us are still recovering from the aftermath of the typhoons,
complying to these requirements may be burdensome. Burdensome though it may be,
taxpayers should take advantage of this tax relief, especially that under the Bayanihan
to Recover as One Act, losses incurred from 2020 until 2021 may be carried over as
deduction in the next five (5) years.
So, let’s try to pick up ourselves from 2020’s disasters and pray that the rest of the year
will be better as we celebrate Christmas.