BIR Ruling

September 22, 1969 The Sun Life Assurance Co. of Canada Singson Bldg., P. O. Box 2998 Manila Gentlemen : This refers to your letter dated August 15, 1969, requesting information as to whether or not you are required to comply with bookkeeping regulations issued by the Bureau of Internal Revenue. cdlex In reply, I have the honor to inform you that, under Section 334 of the Tax Code, all corporations, companies, partnerships or persons required by law to pay internal revenue taxes shall keep a journal and a ledger or their equivalents. Section 334 of the same Code provides that taxpayers keeping the said books of accounts may, at their option, keep such subsidiary books as the needs of their service may require. Furthermore, Section 204, also of the Tax Code, provides that persons subject to internal revenue taxes are required to issue sales or commercial invoices or receipts. As a foreign insurance company licensed to engaged in the insurance business in this country, you are subject to the payment of Philippine internal revenue taxes. Such being the case, you should keep the books of accounts and issue invoices or receipts, as required by the said provisions of the Tax Code. Attention is also invited to the fact that the regulations relative to the keeping of the said books of accounts, the insurance of the said invoices or receipts by persons subject to internal revenue taxes and the manner of recording business transactions are set forth in Revenue Regulations No. V-1, otherwise known as the "Bookkeeping Regulations". It follows, therefore, that you should comply with the said regulations. The fact that for engaging in the insurance business, you are required to comply with the regulations of the Insurance Commissioner as regards the keeping of your books of accounts, does not exempt you from complying with the pertinent internal revenue laws and regulations, since you are subject to the payment of internal revenue taxes. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue