March 17, 2011

REVENUE MEMORANDUM CIRCULAR NO. 017-11

SUBJECT : Proposes the Use of Basic Standard Format in Complying

with the Requirements of Revenue Regulations (RR) No. 15-
2010 on the Additional Notes to Financial Statements
Relative to Taxpayers' Tax Compliance

TO : All Internal Revenue Officers and Others Concerned

In various public dialogues conducted for the implementation of RR No.

15-2010, numerous tax practitioners and accounting associations are
requesting for a template/standard format that can guide them in complying
with the requirements of the said regulations. Some have given their
suggestions and inputs on the same. THAICD

In view of these appeals, the format below may be used with some
adjustments for a better fit to the distinctive character of the industry where
concerned taxpayers belong:

Propose Notes to the Financial Statements relative

RR 15-2010 to taxpayers' taxes and licenses

In compliance with the requirements

set forth by RR
Provisions 15-2010 hereunder are the information
on taxes,
duties and license fees paid or accrued
during the
taxable year.

1. The amount of VAT output The company is a VAT-registered

tax company with
declared during the year VAT output tax declaration of P_______
and the for the year
account title and amount/s based on the amount reflected in the
upon Sales Account
which the same was based. of P_________.
If there
are zero-rated sales-
receipts and/or
exempt sales/receipts, a The company has zero-rated/exempt
statement sales amounting
to that effect and the legal to P_________ pursuant to the
basis provisions of
therefor; ______________
law/regulations.

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 OR

The company is a non-VAT registered

company
engaged in the business of ___________
and paid
the amount of P____________ as
percentage tax
pursuant to ____________
law/regulations and
based on the amount reflected in the
Sales/Gross
Income Received Account of
P__________.

2. The amount of VAT Input The amount of VAT Input taxes claimed
taxes are broken
claimed broken down into: down as follows:
a. Beginning of the year; a. Beginning of the yearP________
b. Current year's domestic b. Current year's
purchases:
purchases/payments I. Goods for resale/manufacture
for:
I. Goods for resale/ or further ________
processing
manufacture or II. Goods other
further than for resale
processing or manufacture ________
II. Goods other than III. Capital goods
for subject to
resale or amortization ________
manufacture
III. Capital goods IV. Capital goods
subject not subject
to amortization to amortization ________
IV. Capital goods not V. Services lodged
under
subject to cost of goods ________
amortization sold
V. Services lodged VI. Services lodged
under under
cost of goods sold other accounts ________
VI. Services lodged c. Claims for tax
under credit/refund
other accounts and other ________
adjustments
c. Claims for tax (INCLUDE here all
credit/refund kinds of
and other adjustments; adjustments whether
and additional
d. Balance at the end of sources of inputs or
the year other
deductions from
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 available
inputs)
d. Balance at the end ofP________
the year

3. The landed cost of imports The landed cost of the company's importations
and
the amount of customs amounted to P________ for the year, with
duties
and tariff fees paid or paid/accrued amount of P________ as customs
accrued
thereon: duties and P________ as tariff fees.

4. The amount of excise The amount of excise tax/es, classified as follows:

tax/es,
classified per major product Excise Tax/es Paid/Accrued
category, i.e., tobacco Product Locally Imported
products,
alcohol products, Category Produced
automobiles,
minerals, oil and petroleum, Tobacco ____________ ____________
etc. paid on — Alcohol ____________ ____________
a. Locally produced Automobiles ____________ ____________
excisable
items; and Oil/Petroleum ____________ ____________
b. Imported excisable
items.

5. Documentary stamp tax The DST paid/accrued on the following transactions

(DST)
on loan instruments, shares are:
of
stock and other Transaction Amount DST thereon
transactions
subject thereto; Loan P_________ P_________
Instruments
Shares of P_________ P_________
Stocks

6. All other taxes, local and Other Taxes & Licenses:

national, including real a. Local
estate taxes, license and Real Estate Taxes P_________
permit fees lodged under Mayor's Permit _________
the Taxes and Licenses PTR _________
account both under the b. National
Cost of Sales and Operating BIR Annual P_________
Registration
Expense accounts; Percentage Taxes _________

7. The amount of withholding The amount of

taxes withholding taxes
paid/accrued
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 categorized into: for the year amounted to:
i. Tax on compensation i. Tax on compensation
and
benefits and benefits P_________
ii. Creditable withholding ii. Creditable
withholding
tax/es tax/es _________
iii. Final withholding tax/es iii. Final withholding _________
tax/es

8. Periods covered and
amount/s
of deficiency tax
assessments,
whether protested or not;
The company has received a final assessment notice
from the Regional Office of ___________ covering
the taxable year ____ amounting to P_________,
inclusive of penalties, for deficiency income/VAT/
Percentage/withholding tax, which has been
protested/agreed upon. (Management may include
here their opinion on the probable outcome of their
protest, if protested; or the probable outcome of their
application for installment/compromise/abatement, in
case of agreed
assessment.)

9. Tax cases, and amounts The company has a RATE case under preliminary
involved,
under preliminary investigation of the Dept. of Justice (DOJ) involving
investigation,
litigation and/or prosecution deficiency income tax for
in taxable year 2008
courts or bodies outside the amounting to
BIR." P___________.
The above format may be modified to make it more appropriate to the
business peculiarities of the concerned taxpayer/s.
All internal revenue officials and employees are hereby enjoined to give
this Circular as wide publicity as possible.

(SGD.) KIM S. JACINTO-HENARES

Commissioner of Internal Revenue

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