Amending Sec. 243 of Revenue Regulations No. 2 Implementing Section 77 of the National Internal Revenue Code

June 30, 1965 REVENUE REGULATIONS NO. 09-65 SUBJECT : Amending Sec. 243 of Revenue Regulations No. 2 Implementing Section 77 of the National Internal Revenue Code, Regarding the Use of the Information Return (B.I.R. Form No. 17.01-B) TO : All Internal Revenue Officers and Others Concerned Pursuant to the provisions of Section 338, in relation to Section 4(1) of Commonwealth Act No. 466, otherwise known as the National Internal Revenue Code, the following regulations amending Section 243 of Revenue Regulations No. 2, otherwise known as the Income Tax Regulations, are hereby promulgated and shall be known as Internal Revenue Regulations No. 9-65. LLjur SECTION 1. For the effective enforcement of the provisions of Section 77 of the National Internal Revenue Code, Section 243 of Revenue Regulations No. 2 is hereby amended to read as follows: "Sec. 243. Return of information as to Payments of P1,800 or more . All persons, corporations, partnerships and associations making payments to another of fixed or determinable income of P1,800 or more in a taxable year must render a return thereof in duplicate on the form prescribed therefor (BIR Form No. 17.01-B). These forms should be attached to and filed together with the annual income tax returns of said persons, corporations, partnerships and associations as payers, within the time fixed by law for the filing of income tax returns. The payments referred to herein do not include the following: (1) Dividend payments mentioned under Section 75 of the National Internal Revenue Code. (2) Salaries, wages, bonuses, and other compensations in kind, such as living quarters, meals, and lodging which are subject to withholding tax and reported in W-2 forms as provided for under Republic Act 590. (3) Payments subject to withholding tax at source enumerated under Section 53 of the National Internal Revenue Code. Examples of income covered by these regulations and to be declared in BIR Form 17.01-B are interest, rents, commissions, royalties, advertisements, professional fees, and the like, arising generally from payments between payors and recipients who have no employer-employee relationship." SECTION 2. Date of Effectivity . These regulations shall take effect upon their promulgation in the Official Gazette. cdi RUFINO G. HECHANOVA Secretary of Finance Recommended by: BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue ATTACHMENT July 24, 1963 REVENUE REGULATIONS NO. 63 SUBJECT : Use of the Information Return Form 17.01B implementing Section 77 of the National Internal Revenue Code. TO : All Regional Directors, Provincial Revenue Officers, Collection Agents and other internal revenue officers concerned. SECTION 1. For the effective enforcement of the provisions of Section 77 of the National Internal Revenue Code. Section 243 of Revenue Regulations No. 2 is hereby amended to read as follows: Section 243. Return of Information as to Payments of P1,800 or more . All persons, corporations partnerships, and associations making payments to another of fixed or determinable income of P1,800 or more in a taxable year must render a return thereof in duplicate on the form prescribed therefor (BIR Form 17.01B). These forms should be attached to and filed together with the annual income tax returns of said persons, corporations, partnerships, and associations as payers, within the time fixed by law for the filing of income tax returns. Exceptions: (a) Dividend payments mentioned under Section 75 of the N.I.R.C. to be reported in a separate list duly verified and under oath. (b) Salaries, wages, bonuses, and other compensations in kind, such as living quarters, meals, and lodging which are subject to withholding tax and reported in W-2 forms as provided for under Republic Act 598 and implemented by Revenue Regulations No. V-8, as amended. (c) Payments subject to withholding tax at source enumerated under Sections 53 and 54 of the N.I.R.C to be reported in Form 17.43. Examples of income covered by this Regulations and to be declared in BIR Form 17.01-B are interest, rents, commissions, royalties, advertisements, professional fees, and the like, arising generally from payments between payers and recipients who have no employer-employee relationship. SECTION 2. These Regulations supersede all previous circulars issued on the same subject matter and shall apply to payments made in 1963 and thereafter. JOSE B. LINGAD Acting Commissioner of Internal Revenue APPROVED: RODRIGO D. PEREZ, JR. Acting Secretary of Finance 3rd Indorsement August 27, 1965 Respectfully returned to the Commissioner of Internal Revenue, Manila, the proposed Revenue Regulations No. 9-65, amending Section 243 of Revenue Regulations No. 2 implementing Section 77 of the National Internal Revenue Code, regarding the use of the Information Return (B.I.R. Form No. 17.01-B), approved. RUFINO G. HECHANOVA Secretary 2nd Indorsement June 30, 1965 Respectfully returned to the Honorable, the Secretary of Finance, for approval, the within papers bearing on Internal Revenue Regulations No. 63 amending Section 243 of Revenue Regulations No. 2, Income Tax Regulations, prescribing the use of BIR Form 17.01-B. BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue 2nd Indorsement June 30, 1965 Respectfully returned to the Honorable, the Secretary of Finance, for approval, the within papers bearing on Internal Revenue Regulations No. 63 amending Section 243 of Revenue Regulations No. 2, Income Tax Regulations, prescribing the use of BIR Form 17.01-B. BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue 3rd Indorsement December 1, 1964 Returned to the Chief, Income Tax Division, thru the Revenue Operations Head (Assessment), B.I.R., Manila, the within papers bearing on proposed Revenue Regulations No. 63 dated July 24, 1963, amending Section 243 of Revenue Regulations No. 2, the Income Tax Regulations. This Office believes that the proposed amendments conforms to the provisions of existing law. cdta AMBROSIO LINA Revenue Operations Head (Legal) 2nd Indorsement October 8, 1963 Respectfully returned to the Honorable, the Secretary of Finance, Manila, his 1st indorsement dated February 22, 1962, together with the proposed amendments to Section 243 of Revenue Regulations No. 2, prepared by this Office for his approval. RAMON T. OBEN Acting Commissioner of Internal Revenue May 15, 1964 MEMORANDUM FOR: The Revenue Operations Head (Legal) There is referred to you for comment the attached proposed regulations amending Section 243 of Revenue Regulations No. 2 implementing Section 77 of the National Internal Revenue Code, relative to the use of the Information Return (BIR Form No. 17.01-B). ALFREDO M. JIMENEZ Revenue Operations Head (Assessment) Copy furnished: The Commissioner of Internal Revenue Manila INSTRUCTIONS TO PAYORS Prepare one of these forms for each payee. ( a ) Salaries, wages, fees, commissions, and other payments for personal services totaling P1,800 or more, to the extent not reported on Form W-2. ( b ) Interests, rents, royalties, pensions, and other fixed or determinable income totaling P1,800 or more. ( c ) Dividends or distributions to any stockholder or partner regardless of amounts. Forward this form with your income tax return. A copy of this form as filed with the Regional Director of Internal Revenue should be furnished to the employees whose income is reported in column 1 on other side to assist him in preparing his income tax return. INCOME TAX RETURN REQUIREMENTS An income tax return must be filed, on or before April 15 of each year with the Regional Director of Internal Revenue, Provincial Revenue Officer, or Collection Agent of the municipality where the taxpayer has his legal residence or principal place of business, if the total income reported on this form, when added to his income from all sources, amounts to P1,800 or more. AN INCOME TAX RETURN MAY BE OBTAINED FROM ANY REGIONAL DIRECTOR OF INTERNAL REVENUE, PROVINCIAL REVENUE OFFICER, OR COLLECTION AGENT IN ANY CITY OR MUNICIPALITY. cdt March 30, 1964 MEMORANDUM FOR: The Revenue Operations Head (Legal) BIR, Manila This refers to the request contained in the attached letter dated February 20, 1962 of Mr. Andres Cruz concerning the revocation of the BIR memoranda implementing the use of BIR Form No. 17.01-B and that relating to the schedule of taxes, which was transmitted to this Office for comment and recommendation under the covering 1st indorsement dated February 22, 1962 of the Department of Finance. The records show, among others, that under cover of our reference slip dated February 28, 1962, the attached papers were sent by this Office to the Chief, Law Division, for appropriate action. ALFREDO M. JIMENEZ Revenue Operations Head (Assessment) January 29, 1965 The Revenue Operations Head Management and Planning Dept. M a n i l a S i r : In connection with your memorandum dated January 25, 1965 directing this Office to prepare the necessary action documents amending Revenue Regulations No. 3-63 relative to the transfer of the Municipality of Isulan, Cotabato from the jurisdiction of Inspection District No. 67 to Inspection District No. 66, I am enclosing herewith the papers as instructed. Very truly yours, RUDOLFO B. ARGONZA Acting Chief, O & M Staff November 27, 1957 FIELD CIRCULAR No. V-110 SUBJECT : Use of the Information Return Form No. 17.01 B TO : All Regional Directors, Provincial Revenue Officer, Provincial, City and Municipal Treasurers, and Others Concerned: Information is hereby given that effective from the filing of 1962 income tax returns of employers and payers and thereafter their returns must be accompanied by Form No. 17.01 B for payments. This form is intended to check whether the recipients of compensation have included them in their returns filed. LLjur The regional directors shall segregate these forms upon receipt, put together those belonging to the same person, arrange them alphabetically, and then attach to the return filed by the person concerned to facilitate the checking of the income or receipts declared by him or her. If no return was filed, the form should be referred to the provincial revenue officer concerned for investigation. All internal revenue officers, provincial, city and municipal treasurers, and others in charge of receiving the income tax returns filed, should see to it that Form No. 17.01 B are attached to the returns whenever it is necessary before accepting them. The forms must be securely attached to the returns to forestall their loss. You are enjoined to give this new requirement as wide publicity as possible within your district, so that all those concerned can have time and information to comply with it before the last day for filing the returns. (SGD.) JOSE ARAAS Collector of Internal Revenue FOURTH CONGRESS OF THE REPUBLIC ) OF THE PHILIPPINES ) ) Third Session ) HOUSE OF REPRESENTATIVES H. B. No. _________ Introduced by AN ACT TO AMEND SECTION THREE THOUSAND FIVE (A) OF REPUBLIC ACT NUMBERED NINETEEN HUNDRED AND THIRTY-SEVEN OF THE TARIFF AND CUSTOMS CODE OF THE PHILIPPINES, AND FOR OTHER PURPOSES. Be it enacted by the Senate and House of Representatives of the Philippines, in Congress assembled: SECTION 1. Section 3005 (a) of Republic Act No. 1937 is hereby amended to read as follows: "(a) Articles, supplies or materials imported by OR CONSIGNED DIRECTLY TO any branch OR INSTRUMENTALITY OR POLITICAL SUBDIVISION of the Philippine Government, AS SHOWN BY THE BILL OF LADING, INVOICE AND MANIFEST, [except those imported by Philippine government entities which are intended for commercial or profit-making purposes], FOR ITS OWN EXCLUSIVENESS, shall be exempt from storage charges; Provided, That whenever such [consignments] ARTICLES, SUPPLIES OR MATERIALS SHALL [have been] BE imported by GOVERNMENT-OWNED OR CONTROLLED CORPORATIONS OR ENTITIES OR BY other than the Philippine Government or branches, INSTRUMENTALITIES OR POLITICAL SUBDIVISION thereof, [or for sale thereto] storage shall be charged thereon as hereinabove provided." SECTION 2. This Act shall take effect upon approval. APPROVED: _______________, 1960 2nd Indorsement Respectfully returned to the Acting Secretary of Finance, the following proposed amendments to Section 243 of Revenue Regulations No. 2, for his approval. LINGAD SUBJECT : Amendments to Sec. 243 of Revenue Regulations No. 2 implementing Section 77 of the National Internal Revenue Code, regarding the use of the Information Return (B.I.R. Form No. 17.01-B) SECTION 243. Return of Information as to Payments of P1,800 or More , All persons, corporations, partnerships, and associations, making payment to another person of fixed or determinable income of P1,800 or more in a taxable year must render a return thereof TO THE COLLECTOR OF INTERNAL REVENUE WITHIN THE TIME FIXED FOR THE FILING OF THE ANNUAL RETURNS OF SAID PERSON, CORPORATIONS, PARTNERSHIPS, AND ASSOCIATIONS. THE NAME AND ADDRESS OF THE RECIPIENT OF THE INCOME SHOULD BE STATED, IF POSSIBLE. ALTHOUGH TO MAKE NECESSARY A RETURN OF INFORMATION THE INCOME MUST BE FIXED OR DETERMINABLE, IT NEED NOT BE ANNUAL OR PERIODICAL. THE NAMES OF ALL EMPLOYEES TO WHOM PAYMENTS OF P1,800 OR OVER A YEAR ARE MADE, WHETHER SUCH TOTAL SUM IS MADE UP OF WAGES, SALARIES, COMMISSIONS, OR COMPENSATION IN ANY OTHER FORM, MUST BE REPORTED. COMPENSATIONS IN KIND, SUCH AS LIVING QUARTERS, MEALS, AND LODGING, ARE TAXABLE INCOME TO THE RECIPIENT AND, AS SUCH, SHOULD BE REPORTED IF THE SUM TOTAL OF THE SAME AND THE OTHER COMPENSATION IN CASH RECEIVED SHALL AMOUNT TO P1,800 OR MORE DURING THE YEAR. IN THE CASE OF PAYMENTS OF ANNUAL OR PERIODICAL INCOME TO NONRESIDENT ALIEN INDIVIDUAL OR TO FOREIGN CORPORATIONS OR FIRMS NOT ENGAGING IN TRADE OR BUSINESS WITHIN THE PHILIPPINES AND NOT HAVING ANY OFFICE OR PLACE OF BUSINESS THEREIN, THE RETURN BY WITHHOLDING AGENTS SHALL CONSTITUTE AND BE TREATED AS RETURN OF INFORMATION. The amendments herein incorporated shall apply to income payments beginning the year 1962 and thereafter. LINGAD APPROVED: Acting Secretary of Finance