RMC 65-2012

RMC 65-2012 CONDO CORP

QUESTION:  Required of TIN in Condo?

ANSWER:  SEC reqistration, Mayor’s Permit, BIR Form 1903

 

QUESTION:  Does 65-2012 only refer to the taxability of association dues/membership fees & other assessment collected by condominium corp? Does this also include membership fees from GOLF Clubs because starting Aug 2012 they are collecting from us Vat

ANSWER:  RMC 65-2012 only refers to condominium corp.

GOLF CLUBS falls under RMC 35-2012 which is now taxable and vatable

 

QUESTION:  How about non-stock non-profit association of professionals is also covered by the new regulations like condominium?

How about clubs organized & operated exclusively for recreation to members which also collects membership/association dues?

ANSWER:  This RMC covers condo corp only

Club – please refer to RMC 35-2012

 

QUESTION:  Are the following, which are billed in the statement of accounts together with the association dues, subject to 12% vat

realty taxes on common areas  -  x-vat exempt

insurance on common areas - yes

electric bill on my condo unit - yes

water bill on my condo unit - yes

 

QUESTION:  For electricity paid first by condo corp and billed or reimbursement later, can the condo corp claim the input tax? And how do we bill them? w/vat? And declare the output tax?

QUESTION:  It is vatable. Declare the output tax and deduct the input tax.

 

Question:  Di ba may vat na ang electric and water, how come it is still vatable? Double taxation? Bakit pati insurance pay vat na, subject pa rin to vat?

 

QUESTION:  Drs clinic/medical arts bldg covered by RMC 65-2012

ANSWER:  If not covered by condominium certificate of title, not covered by RMC 65-2012

 

QUESTION:  if the condo corp generates surplus or income for 2013. We would like to know if the 30% tax rate be apply to the total income for 2013 or only income generated for Nov & Dec income?

ANSWER:  applies to income for entire year 2012

 

QUESTION:  There is a principle in law that states of “equal applications of law”

in the case of Ceredo under the condominium law R.A 4726 it is prohibited to render services to non-member-owner.

So, how can you reconcile this principle?

ANSWER:  no answer from the BIR?

 

QUESTION:  shall the ff be subjected to vat?

a.       Real estate tax for the common areas actual mount paid being prorated to unit owners based on the size of their units.

b.      Bond for renovation of unit which is fully returned to the unit owner/tenant after inspection.

ANSWER:  Not services

 

c.       Dues and fees pertaining to periods before the effectivity of RMC 65-2012 (before Oct 31,2012)

ANSWER:  For referral to National Office

 

Shall the non-profit/non stock condo corp file & pay income tax for the year 2012 in pursuant to RMS 65-2012

ANSWER:  Yes

 

QUESTION:  Please reconcile the following:

RMC 65-2012 page 3 sec 108 stated that “performances of all kinds of services for others for a fee, remuneration or consideration. It includes the supply of technical advice, assistance or services rendered in connection with technical management or administration of any scientific, industrial or commercial undertaking or project”

 

How can the condominium corp be subject to vat when the condominium corp renders services to itself and not to other person because the condominium corp is the owner of common areas and land on which the condominium stands. How can you be subjected to tax if you are rendering services to yourself as mandated by RA 4726?

ANSWER:  The condo corp renders services to its members not itself

 

QUESTION:  Granting without admitting that the condominium corp is subject to vat , are the unit owners who refuse to use the facilities of the condominium be subject to vat for the monthly maintenance dues they pay?

ANSWER:  Yes

 

QUESTION:  May we know if RMC 65-2012 was published to the newspaper of general circulation? which newspaper and when?

ANSWER:  No publication since it is clarification of existing laws

ATP INVOICES / OR

QUESTION:  What happens to the newly printed invoice in 2012 (100 booklet)?

According to RR-18-2012 see 5 all unused invoices should be surrender to the BIR and all tax payer should print new invoices by June 30,2013.

We haven’t finish using the newly printed invoices , we should print new one, what a waste of money . Can there be extension?

ANSWER:  We will refer to the national office if there can be extension.

 

QUESTION:  We would like to know if we need to print new set of OR indicating VATregistered or we have to comsume all the OR’s still unused (non vat)?

ANSWER:  You need to print VAT OR

 

QUESTION:

Vat sales              _____

Vat                         _____

Total sales          _____

 

QUESTION:  Is this the right format for sales Invoice?

ANSWER:  Check with the registration & regulation unit/section for required date on invoices and receipts

 

QUESTION:  We are a company selling goods & services, if we have change sales transactions, we will record and issue charge invoices. What should we issue when payment are made after 30/60/90 days term of the customer? Is there a standard “receipt”

Note: OR are for cash only services only?

ANSWER:  You can issue a supplementary receipt such as collection receipt. See paragraph 3 of RR 18-2012

 

QUESTION:  What if the printing company is less than 3 years are they are not allowed to apply for accreditation?

ANSWER:  They cannot be accredited printer of OR and Invoices

 

QUESTION:  ATP

Our business is engage in selling of goods on cash and on term. During sales of goods on cash, we issue cash invoice; however if we sell on credit, we issue sales invoice, upon collection of payment, we issue official receipt to customer

Query: If this RR be implemented can we still follow our present practice?

ANSWER:  You must revise the procedure to follow the RR 18-2012

 

QUESTION:  Clarify security /special markings/features. We’re in the business (printing) for more than 5 years; we have machines like offset and letterpress. Does it mean that you will prescribe machines that will suit RR-18? This will entail additional capital.

ANSWER:  Special features to be explained in future revenue issuance

 

QUESTION:  How soon the BIR can issue accreditation to the printer?

Assuming that a taxpayer will exhaust his invoices by Feb 20, 2013, is the ATP on-line system of the BIR available for the TP to apply?

If yes, how about if there are no available printers who had no accreditation as at Feb. 1, 2013 and had no capabilities or machines to print security marking to the invoices as required

ANSWER:  Soon to be implemented

 

QUESTION:  Taxpayer printed 50 booklets of sales invoices only last year.

Does the taxpayer need to surrender the unused invoices?

ANSWER:  Yes, it is valid only until June 30, 2013

 

QUESTION:  Kung dati kang single prop na printer for long time tapos ngayon naging corp ka within 2 years pwede ka p ba mag apply ng accreditation

ANSWER:  Disclose in your application so that evaluator will be given this info for consideration

OTHERS

QUESTION:  If vatable OR would be the basis of output vat, and we were able to secure a vatable OR this January, what would be the basis of our output vat for December?

ANSWER:  CollectIon x 12/112 = vat payable

 

QUESTION:  During annual tax examination, if BIR issued LN or LOA to taxpayers, can the taxpayers request for the BIR’s computation of discrepancies?

ANSWER:  The BIR must issue a computation of discrepancies to assess deficiency taxes

 

QUESTION:  We issued a credit memo for item return by customer, can we claim input /output tax?

ANSWER:  No input tax allowed on returned good. Reduce output tax

 

QUESTION:  Advertising agent not belonging to the top corp payment made to media placement is subject to 2% w/tax expanded?

ANSWER:  Only those who are in top 20,000 corp should withheld 2% for media placement

INTEREST INCOME / EXPENSE

QUESTION:  Under 14-2012, interest expense paid to the bank by top 20,000 corp will be subject to 2% w/tax expanded?

ANSWER:  20% EWT

 

QUESTION:  Ang interest expense of top 20 corp is now subject to 2% w/tax expanded, correct? so that it can claim as deduction expense

ANSWER:  Interest expense 20%

ANNUAL INFORMATION BY ALL ACCREDITED TAX AGENTS/ PRACTITIONERS TO RNAM/RRAB FOR THE TAXABLE YEAR 2012

QUESTION:  January 31, 2013 is the last day of submission of the annual information by all accredited tax agents/ practitioners to RNAM/RRAB for the taxable year 2012.

What kinds of BIR form or format of what annual information is filed.

ANSWER:  Name of taxpayer, Tin no. Nature of Business & district that that has jurisdiction

 

QUESTION:  I just called a BIR region about this, ang sabi po niya hindi naman daw po requirement yun unless magre-renew. I told her about the said deadline found on the website, seems di rin yata nila alam talaga na may annual requirement

ANSWER:  File with the office of the regional director