Guidelines on the Submission of Requirements under RA No. 10963, Otherwise Known as the Tax Reform for Acceleration and In[cl]usion (TRAIN) Law

January 5, 2022

OCA MEMORANDUM NO. 03-2022

 

Relative to the documentary requirements to be complied with by PMC service providers, including lecturers, facilitators, resource persons, mentors/coaches, mediators, and PMC Unit Staff, pursuant to Republic Act No. 10963 (or the Tax Reform for Acceleration and Inclusion Law) and other pertinent issuances of the Bureau of Internal Revenue (BIR), the same shall be submitted to the Philippine Mediation Center Office, Court Management Office, Office of the Court Administrator, on or before January 15, 2022, following the guidelines below:

A. For a service provider with gross receipts of P250,000 and below in any 12-month period from a lone payor with no other source of income, who opts to avail of either the graduated income tax rates or the eight (8%) income tax rate:

1. Income Payee's Sworn Declaration of Gross Receipts/Sales for the current year executed after December 31, 2021. (Please clearly indicate chosen option in paragraph 2 thereof.);

2. Application for Registration (BIR Form No. 1901) duly received by the BIR, if service provider has not been issued a Tax Identification Number (TIN);

3. If applicable, Application for Registration Information Update, Correction[,] Cancellation (BIR [F]orm No. 1905), duly received by the BIR;

4. Payment Form (BIR Form No. 0605) duly received by the BIR; and,

5. Proof of payment of Annual Registration Fee.

B. For a service provider with gross receipts of above [P]250,000 but not exceeding P3 Million in any 12-month period, whether from a lone payor or from several income payors who opts to avail of either the graduate income tax rate:

1. Income Payee's Sworn Declaration of Gross Receipts/Sales for the current year executed after December 31, 2021 (Please clearly indicate chosen option in paragraph 2 thereof.);

2. Application for Registration (BIR From No. 1901) duly received by the BIR, if service provider has not been issued a Tax Identification Number (TIN); acEHCD

3. If applicable, Application for Registration Information Update, Correction, Cancellation (BIR Form No. 1905) duly received by the BIR;

4. Payment Form (BIR Form No. 0605) duly received by the BIR;

5. Proof of Payment of Annual Registration Fee; and

6. Certificate of Registration (BIR Form No. 2303).

C. Other Service Providers, such as consultants and suppliers of furniture, fixtures, and equipment:

1. Income Payee's Sworn Declaration of Gross Receipts/Sales for the current year executed after December 31, 2021 (Please clearly indicate chosen option in paragraph 2 thereof.);

2. Application for Registration (BIR From No. 1901) duly received by the BIR, if service provider has not been issued a Tax Identification Number (TIN);

3. If applicable, Application for Registration Information Update, Correction, Cancellation (BIR Form No. 1905) duly received by the BIR;

4. Payment Form (BIR Form No. 0605) duly received by the BIR;

5. Proof of Payment of Annual Registration Fee; and

6. Certificate of Registration (BIR Form No. 2303).

It bears noting that Section 2 of Revenue Regulations No. 11-2018 requires the timely submission of the documentary requirements, to wit:

Moreover, income payors/withholding agent, shall subsequently execute a sworn statement stating the number of payees who have submitted the income payees' sworn declarations with the accompanying copies of their Certificate of Registration. Such declarations of the income payors/withholding agents shall be submitted, together with the list of payees to the concerned BIR office where registered on or before January 31 of each year or fifteen (15) days following the month when a new income recipient has submitted the payee's sworn declaration.

Also, it must be stressed that the tax rate availed of in the Income Payee's Sworn Declaration of Gross Receipts/Sales shall be used for the year concerned/within the year.

For strict compliance.

(SGD.) RAUL BAUTISTA VILLANUEVADeputy Court Administrator (for Luzon) and Officer-in-Charge

Published in the PHILJA Bulletin, Page 78 on January-March 2022.