Filing of the Information Return

February 5, 1988 BIR RULING NO. 027-88 26-00 000-00 027-88 Gentlemen : In reply to your letter dated November 24, 1987, I have the honor to inform you as follows: 1. Since the purpose of the information return referred to in Section 6(g)(i) of Revenue Regulations No. 5-87 is to provide the Commissioner of Internal Revenue with information of the periodic receipts of receivables on contracts completed on or before December 31, 1987, payments of which are receivable on or after January 1, 1988 and which are still subject to the 4% contractor's tax, the deadline for filing such return should be not later than January 20, 1988; while the regular contractor's tax return for the payment of the contractor's tax on payments received in 1988, should be filed on or before the 20th day after each calendar quarter of the taxpayer. 2. Pursuant to Section 12 of Revenue Regulations 5-87, if a VAT-registered person is also engaged in other activities, the input taxes paid for purchases of goods and services which cannot be directly attributed to either operation shall be allocated between the VAT taxable operation and the other exempt or non-VAT taxable operation, i.e., those enumerated as VAT-exempt transactions under Section 103 of the Tax Code as amended by E.O. No. 273. (see also Sec. 9(b), Rev. Regs. No. 5-87) Accordingly, not being included in the aforesaid enumeration of exempt operations/transactions, apportionment of input taxes in accordance with Section 12 of the Regulations will not apply to such operations or transactions giving rise to passive income like dividends, interests, rents, etc. 3. The provision prescribing the crediting of output tax illustrated in Section 22 of Revenue Regulations No. 5-87 is merely directory intended for the immediate identification of the VAT element from sales or receipts for each transaction. The output tax may be entered as part of sales computed by multiplying sales by a factor of 1/11. 4. Yes, the presumptive input tax of 8% is forfeited if the list of inventories of goods for sale as of December 31, 1987 is not filed on or before January 31, 1988 as provided under Section 26(a)(3) of the regulations. However, since January 31, 1988 falls on a Sunday the deadline is extended to the next working day, which was on February 1, 1988. 5. The last day of filing of inventory of unused receipts and/or invoices as required under Section 26(d) of the Regulations is January 31, 1988. However, since January 31, 1988 is a Sunday, the last day of filing is the next working day as in No. 4 above. cdtech Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner