Tax Alert No. 8 [Revenue Memorandum Circular (RMC) No. 10-2020 dated 6 February 2020]

Suspending the Requirement for Permit to Use (PTU) Computerized Accounting System (CAS), Computerized Books of Accounts (CBA) and/or Component(s) Thereof and Allowing their Use Subject to Compliance Requirement

The Commissioner of Internal Revenue has issued RMC No. 10-2020 dated 6 February 2020 to suspend the issuance of Permit to Use CAS/CBA and/or components thereof as provided under Revenue Memorandum Order (RMO) No. 21-2000, as amended by RMO No. 29-2002.

The RMC provides that all taxpayers with pending applications for PTU shall be allowed to use such CAS, CBA, and/or components, provided that they submit the following to the Technical Working Group (TWG) Secretariat of the Revenue District Office (RDO) or Large Taxpayer (LT) office where they are registered.

1. A duly accomplished and notarized Sworn Statement with attached Summary of System Description, Commercial Invoice/Receipts/ Document Description, Forms/Records and Reports Specification executed and signed by the taxpayer/company’s authorized representative/s, including the Special Power of Attorney, Board Resolution, or Secretary’s Certificate stating such authority. The prescribed format is provided in Annex A of this RMC.;
2. Sample print copy of system-generated principal and supplementary receipts or invoices as defined under Section 2 of Revenue Regulations (RR) No. 18-2012 showing compliance with RR No. 16-2018, if applicable; and
3. Sample print copy of system-generated books of accounts such as but not limited to general journal, general ledger, sales journal, purchase journal, inventory book, cash receipts book and cash disbursements book reflecting the mandatory fields stated in RR No. 9-2009, if applicable.

An “Acknowledgement Certificate” shall then be issued by the TWG Secretariat within three (3) working days from receipt of the abovementioned requirements with a Control Number which shall be reflected on the face of the system-generated principal or supplementary receipts or invoices in order to authorize the use of such receipts or invoices.

All CAS, CBA, and/or Components thereof used without PTU shall be subject to post evaluation to check compliance with the existing rules.

The dockets of all pending applications for PTU CAS/CBA, and/or components thereof that have undergone system demonstration (including the findings) shall be turned over by the National Accreditation Board to the respective TWG of the RDO or LT Office having jurisdiction over the taxpayer’s place of business for validation during post evaluation.

The taxpayer shall also inform in writing the TWG Secretariat in case of any system changes of CAS/CBA and/or Components thereof attaching a matrix showing the comparative changes of the current and upgraded system.

Lastly, if the taxpayer opted to maintain loose-leaf books of accounts, the application of such shall be continuously processed pursuant to RMC No. 68-2017.

The detailed procedures implementing this circular and post evaluation shall be covered by a separate issuance.

You may access the full version of this RMC through the BIR website.