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BIR Revenue Regulations No. 12-2011 Reportorial Requirement for Establishments Leasing or Renting Out Spaces for Commercial Activities

CLARK DEVELOPMENT CORPORATION

MEMORANDUM CIRCULAR No. CSD11-34

TO : ALL Concerned

SUBJECT : BIR Revenue Regulations No. 12-2011 Reportorial Requirement for Establishments Leasing or Renting Out Spaces for Commercial Activities

DATE : 07 September 2011

We are transmitting copies of BIR Revenue Regulations Nos, 12-2011 and 15-2011

otherwise known as the “Reportorial Requirement for Establishments Leasing or

Rentmg-Out Spaces for Commercial Activities”.

The National Government particularly the Department of Finance through the BIR &

CDC enjoins all tax filers in the Clark Freeport Zone to comply with all the provisions

of said regulations and deadline set forth to avoid unnecessary penalties.

For inquiries or assistance, you may directly coordinate with the BIR RDO 21A

through Ms. Amalia de Leon, Chief Assessment Section at telephone number 624-

0659.

We look forward to your usual cooperation to maintain your status as taxpayers in

good standing.

FELIPE ANTONIO B. REMOLLO

President and Chief Executive Officer

OP Control No.: 17121

atch: (OCR – Machine Transcript)

REPUBLIC OF 1 HE PHILIPPINES

DEPARTMENT OF FINANCE

BUREAU OF INTERNAL REVENUE

BUREAU OF INTERNAL REVENUE”

RECORDS MGT. DIVISION

RECEIVE

August 26,2011

SUBJECT

TO

. 15′

REVENUE REGULATIONS NO

AMENDMENT TO SECTION 5 OF REVENUE REGULATIONS NO. 12-2011

All Revenue Officials, Employees and Others Concerned.

Whereas, taxpayers covered under Revenue Regulations No. 12-2011, specifically those

mandated to comply with the requirements contained under Section 5 thereof, are requesting

for an extension as they need more time to be able to comply thereto, Section 5 of Revenue

Regulations No. 12-2011 is hereby amended to read as follow:

“Section 5. Transitory Provision

This first filing of tenants profile will cover tenants as of Jury 31,201*. All

owners/sub-lessors are required to comply with these regulations by submitting

the following documents on or be fore November 2.2011:

xxx.”

These Regulations shall take effect Immediately following its publication In a newspaper

of general circulation.

Recommending Approval:

wot

Β«V . UR IMA

Secretary of Finance

002079

KIM S. JKQ1WO-ENARES(

Commissioner of Internal Revenue

D05397

BUREAU OF INTHfWU/- f\-BHX

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE

BUREAU OF INTERNAL REVENUE

July 25, 2011

REVENUE REGULATIONS NO. 12-2011

SUBJECT: REPORTORIAL REQUIREMENT FOR ESTABLISHMENTS LEASING OR RENTING

OUT SPACES FOR COMMERCIAL ACTIVITIES

TO: All Revenue Officials, Employees and Others Concerned

Section 1. Objective

All taxpayers who are engaged in business are required by law to comply with the

provisions of the National Internal Revenue Code of 1997, as amended (hereinafter referred

to as the Tax Code), particularly with the mandate that business activities must be

registered with the Bureau of Internal Revenue (BIR). This requirement necessarily covers

H owners qtsub-lessorsofcpjnmerciaLestablishments/buildings/spaces who are leasing or

renting out spaces, as well as their tenants who are engaged in commercial activities.

jt has been noted, however, that in view of the nature of their business activities,

“privilege stores” and other ambulant business tenants who lease such commercial spaces

are_unable : or have failed -__tQ-camply with the registration requirement of the Philippine

.tax system. Thus, such unregistered establishments are able to conduct business operations

and earn income without paying the proper amount of taxes due. It is essential therefore,

that the owners or sub-lessorfof such commercial establishments/buildings/spaces

‘ e

In this regard, these Regulations alre hetlWirfrKuigatea to ensure” fhat all

$g&T*sub-lessors deal only with BIR-registered taxpayers, to establish the procedure for the

submission of essential information by the owners of commercial

establishments/buildings/spaces, and to impose the appropriate sanctions- to .ensure

Section 2. Responsibility and Reportorial Requirements of Owners of Establishments for

Lease

It shall be the primary responsibility of all owners or sub-lessors of commercial

establishments/buildings/spaces to ensure that the person intending to lease their

commercial space is a BIR-registered taxpayer.

A BIR-registered taxpayer should have a Tax Identification Number, a BIR Certificate

of Registration, and duly registered receipts, sales or commercial invoices in compliance

with Sec 237 and 238 of the Tax Code.

Every 31st of January starting from the current year (for tenants as of Dec 31st of the

// previous year) and 31st of July starting from the current year (for tenants as of June 30th of

the current year), 5all owners or sub-lessors of commercial establishments/buildings/spaces

who are leasing or renting out such commercial space to any person doing business therein

are hereby required, to submit to the BIR Revenue District Office (RDO) where the

commercial establishments/ buildings /spaces are located the following information, under

oath,dn hard and soft copies:;

Building / space layout of the entire area being leased with proper unit/space

address or reference;

Certified True Copy of Contract of Lease per tenant; and

he Lessee Information Statement shall be presented in the prescribed format,

as follows: (using Excel format: printed copy and soft copy stored in a CD-R)

Lessess Information Statement (For Initial Filing)

Name of Owner/Lessor:

Address:

TJN:

Tenant’s Profile

As of [June 30, _

J or [Dec 31,

J

Location of Building/Space for Commercial Lease:

Location Name ofTenant TotalLeasedArea MonthlyRental Start of(ease(mm/dd/yyyy) Duration/ PeriodofLease BIR Registration Profile

Floor / UnitNo. TaxIdentificationNo. (TIN) Authority toPrint # forOR's/Invoices POS/CRMPermit#β€’

*for taxpayers also using Point of Sale (POS) / Cash Register Machine (CRM) in dispensing receipts

Lessee Information Statement: For Subsequent Filing

Name of Owner/Lessor:

Address:

TIN:

Tenant's Profile

For the period [January 1, ___ to June 30/ ] or [July 1,

Location of Building/Space for Commercial Lease:

to Dec 31,

i. New Tenants

Location Name ofTenant TotalLeasedArea MonthlyRental Start oflease(mm/dd/WYY) Duration/PeriodofLease BIR Registration Profile

Floor /UnitNo. TaxIdentificationNo. (TIN) Authority toPrint 8 forOR’s/Invoices POS/CRMPermit#*

β€’for taxpayers also using Point of Sale {POS) / Cash Register Machine (CRM) in dispensing receipts

ii. Terminated Tenants

Location Name of Tenant TaxIdentificationNumber {TIN) Total LeasedArea MonthlyRental Date leaseended(mm/dd/yyyy)

Floor / UnitNo.

Section 3. Monitoring of Compliance by the Revenue District Officers (RDOs)

a. It shall be the responsibility of the BIR Revenue District Office (RDO) where the

commercial establishments/ buildings /spaces are located to monitor compliance

with these Regulations.

Lessors may seek assistance with the Revenue District Officer (RDO) where the

commercial establishments/buildings/spaces are located to verify correctness of

TIN submitted by their tenants.

b. Immediately upon receipt of the reportorial requirements prescribed in Section 2

hereof, the BIR Revenue District Office (RDO) where the commercial

establishments/buildings/spaces are located must validate through the BIR’s

Integrated Tax System (ITS) database the registration profile of the tenants as

reported by the owners or sub-lessors of commercial

establishments/buildings/spaces.

c. The Revenue District Office (RDO) where the commercial establishments/

buildings /spaces are located is likewise mandated to forward the report

required under Section 2 hereof to the Revenue District Office (RDO) where the

owner or sub-lessor of commercial establishments/ buildings /spaces are

registered. The said RDO must maintain its own database of said information for

future audit and investigation activities.

Section 4. Penalty Clause

Every person subject_to any internal revenue tax isrequired to comply with the

Administrative Prpvjsionsjof the Tax Code which include one’s duty to comply with

registration requirement, to issue receipts or sales or commercial invoices and to secure

permit from_lheJ31R for the authority to print receiptssajes or commercial invoices. Failure

to do so shall subject such person to appropriate criminal sanction or penalty as provided

for under the Tax Code.

All owners or sub-lessors of commercial establishments/buildings/spaces who fails to

submit the reportorial requirements under Section 2 hereof or willfully submits false or

falsified information or knowingly transact with taxpayers who are not duly registered with

the BIR are subject to the penalty as provided under Section 255 and 267 of the Tax Code as

follows:

SEC. 255. Failure to File Return, Supply Correct and Accurate Information, Pay Tax

Withhold and Remit Tax and Refund Excess Taxes Withheld on Compensation. -

Any person required under this Code or by rules and regulations

promulgated thereunder to pay any tax make a return, keep any record,

or supply correct the accurate information, who willfully fails to pay

such tax, make such return, keep such record, or supply correct and

accurate information, or withhold or remit taxes withheld, or refund

excess taxes withheld on compensation, at the time or times required

by law or rules and regulations shall, in addition to other penalties

provided by law, upon conviction thereof, be punished by a fine of not

less than Ten thousand Β¦5?c*e /B1* β€’β€’β€’) and suffer imprisonment of

riot less than one (1) year but not more than ten (10) years.

xxx

SEC. 267. Declaration under Penalties of Perjury. -

Any declaration, return and other statement required under this Code,

shall, in lieu of an oath, contain a written statement that they are made

under the penalties of perjury. Any person who willfully files a

declaration, return or statement containing information which is not

true and correct as to every material matter shall, upon conviction, be

subject to the penalties prescribed for perjury under the Revised Penal

Code.

Section 5. Transitory Provision

The first filing of tenants profile will cover tenants as of July 31. 2011. All

owners/sub-lessors are required to comply with these regulations by submitting the

following documents on or before September 1.2011:

a. Building / space layout of the entire area being leased with proper unit/space

address or reference;

b. Certified True Copy of Contract of Lease per tenant; and

c. The Lessee Information Statement shall be presented in the prescribed

format, as follows: (using Excel format: printed copy and soft copy stored in a

CD-R)

Name of Owner/Lessor: TIN:

Address:

Tenant’s ProfileAs of July 31,2011Location of Building/Space for Commercial Lease:

Location Name of Total Monthly Start of Duration BIR Registration Profile

Floor/UnitNo. Tenant LeasedArea Rental lease(mm/dd/YVYV) / PeriodofLease TaxIdentificationNo. (TIN) Authority toPrints forOR’s/Invoices POS/CRMPermit#*

β€’for taxpayers also using Point of Sale (POS) / Cash Register Machine (CRM) in dispensing receipts

This information must be submitted under oath to the BIR Revenue District Office

(RDO) where the commercial establishments/ buildings /spaces are located, in hard and soft

copies.

Section 6. Repealing Clause

All existing regulations and other issuances or portions thereof which are

inconsistent with the provisions of these Regulations are hereby repealed, amended or

modified accordingly.

Section 7. Effectivity

These Regulations shall take effect after fifteen (15) days following its publication in

a newspaper of general circulation.

(Original Signed)

CESAR V.PURISIMA

Secretary of Finance

002682

Recommending Approval:

(Original Signed)

KIM S. JACINTO – HENARES

Commissioner of Internal Revenue

004617

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