Monthly Tax Updates | August 2018

BUREAU OF INTERNAL REVENUE (BIR) ISSUANCES

A. REVENUE REGULATIONS
APPLICATIONS FOR THE ISSUANCE OF TAX CLEARANCE FOR BIDDING PURPOSES ARE TRANSFERRED FROM NATIONAL TO REGIONAL OFFICE. In line with the BIR’S objective of “Ease of Doing Business,” all applications for the issuance of tax clearance for bidding purposes shall be manually filed with the Collection Division of the Revenue Regional Office where the taxpayer or partnership/corporation is currently and duly registered or with the concerned office under the Large Taxpayers service if the taxpayer is classified as Large taxpayer, until such time that an on-line application has been made available for use of prospective bidders. Revenue Regulations No. 18-2018, August 3, 2018.

B. BIR RULINGS
INCOME DERIVED FROM ASSOCIATION DUES, MEMBERSHIP FEES, AND OTHER ASSESSMENTS/CHARGES AND RENTALS OF FACILITIES OF HOMEOWNERS’ ASSOCIATION IS EXEMPT FROM INCOME TAX, VAT OR PERCENTAGE TAX, WHICHEVER IS APPLICABLE; CONDITIONS. Homeowners’ Association may be exempt from tax under Magna Carta for Homeowners and Homeowners’ Association, where the homeowners’ association is a duly with HLURB; that its financial statements show the delivery of basic community services; and that the local government unit covering the jurisdiction of the homeowners’ association has issued a certificate that it lacks the resources to provide these services to the association; provided, that such income and dues shall be used for the cleanliness safety, security, and other basic services needed by the members, including the maintenance of the facilities of their respective subdivisions or villages. However, homeowners’ association shall be subject to the applicable internal revenue taxes on its other income from trade, business or other activities. Montecito Homeowners’ Association, Inc., BIR Ruling No. 1154-18, August 31, 2018…. Read More