The Bureau of Internal Revenue (BIR) now requires professionals to submit an affidavit indicating their rates, manner of billing and service fees to the BIR within 30 days or face sanctions under the Tax Code, according to a new regulation.
Internal Revenue Commissioner Kim Jacinto-Henares issued Revenue Regulation 4-2014, which seeks to monitor the service fee charged by professionals and determine if they pay the correct taxes.
The new regulation comes in the wake of a sustained campaign by the BIR against doctors who are held in high esteem in society, but some of whom declare and pay less tax than the average schoolteacher, whose own tax are automatically withheld monthly by their employers.
The new regulation said:
Section 2 of RR 4-2014.“Self-employed professionals shall register and pay the annual registration fee. In addition to the requirements for annual registration, all self-employed professionals shall submit an affidavit indicating the rates, manner of billings and the factors they consider in determining their service fees upon registration and every year thereafter on or before January 31,”
“All existing and registered self-employed professionals at the time these regulations became effective are required to submit the required affidavit and register its official appointment books within 30 days from date of effectivity of these regulations,”
In addition to the registration requirements, the self-employed professionals are also obligated to register their book of accounts and official appointment books in the practice of profession before they can use those books of accounts.
The entries in these books shall contain the names of the clients and the time of the meeting. The professionals shall also register their sales invoices and official receipts before using them in any transaction.
The BIR order, signed by Finance Secretary Cesar Purisima, will take effect 15 days from Friday.--Source: Business Mirror