28 March 2014
The Commissioner of Internal Revenue (“CIR”) has issued Revenue Regulations (“RR”) No. 4-2014 dated 3 March 2014 for the purpose of monitoring fees charged by professionals, aid the BIR in conducting tax audit and boost revenue collection.
The salient provisions of the RR are as follows:
1. Self-employed professionals are required to:
In cases when no professional fees are charged, to issue a BIR-registered receipt, duly acknowledged by the client, showing a discount of 100% as substantiation for the “pro-bono” service.
2. The submission of affidavit and the registration of books should be made by all existing and registered self-employed professionals within 30 days from the date of effectivity of these regulations.
3. Failure to comply shall be subject to the penalties provided for under the Tax Code.
The RR shall take effect after 15 days following publication in any newspaper of general circulation. It was published on 21 March 2014 in the Manila Bulletin.