RA 10963: Tax Reform for Acceleration and

Inclusion (TRAIN) – Administrative Provisions

BY:

REX PAUL R. RECOTER

ASSISTANT CHIEF
CUSTOMER ASSISTANCE DIVISION
BUREAU OF INTERNAL REVENUE
 (TRAIN) – Administrative Provisions
NIRC
Section 232 Keeping of books of
accounts
All corporations, companies,
partnerships or persons required by
law to pay internal revenue taxes shall
keep a journal and a ledger.
Those whose quarterly sales, earnings,
receipts, or output do not exceed
PHP50,000 shall keep and use
simplified set of bookkeeping records.
TRAIN
Section 232
Keeping of books of accounts
All corporations, companies,
partnerships or persons required by
law to pay internal revenue taxes shall
keep and use relevant and appropriate
set of bookkeeping records duly
authorized by the Secretary of Finance.
 (TRAIN) – Administrative Provisions
NIRC
Section 232
Those whose gross quarterly sales,
earnings, receipts or output exceed
P150,000 shall have their books of
accounts audited and examined yearly
by independent Certified Public
Accountants (CPAs) and their ITRs
accompanied Account Information
Form (AIF).
TRAIN
Section 232
Those whose gross annual sales,
earnings, receipts or output exceed
₱3,000,000 shall have their books of
accounts audited and examined yearly
by independent CPAs and their ITRs
accompanied with a duly
accomplished AIF.
 (TRAIN) – Administrative Provisions
NIRC
Section 232
All corporations, companies,
partnerships, or persons required by
law to pay internal revenue taxes shall
keep a journal and a ledger.
Those whose quarterly sales, earnings,
receipts, or output do not exceed
P50,000 shall keep and use simplified
set of bookkeeping records
TRAIN
Section 232
All corporations, companies,
partnerships or persons required by
law to pay internal revenue taxes shall
keep and use relevant and appropriate
set of bookkeeping records duly
authorized by the Secretary of
Finance.
 (TRAIN) – Administrative Provisions
NIRC
Section 236 Registration Requirements
The taxpayer’s registration shall
contain the information as may be
required by the Commissioner in the
form prescribed
Persons required to register for VAT:
those whose gross receipts for the
past 12 months have exceeded
₱1,500,000
TRAIN
Section 236 Registration Requirements
Additional proviso:
The Commissioner shall simplify the
business registration and tax
compliance requirements of self-
employed individuals and/or
professionals.
(EASE OF DOING BUSINESS)
₱3,000,000 is now the threshold
amount.
 (TRAIN) – Administrative Provisions
NIRC
Section 236 Registration Requirements
For the next 12 months can be
reasonably believe to exceed
₱1,500,000
Any person not required to register for
VAT may elect to register for VAT.
TRAIN
Section 236 Registration Requirements
Additional proviso:
Any taxable individual who elects to
pay the 8% tax on gross sales or
receipts shall not be allowed to avail of
optional VAT registration.
 (TRAIN) – Administrative Provisions
NIRC TRAIN
Section 237 Section 237
Receipts or Invoices Receipts or Invoices

A duly-registered receipt or sales or

commercial invoice , prepared at least It is expressly provided that the
in duplicate, shall be issued for each issuance of the receipt or invoice shall
sale of merchandise or service be made at the point of sale.
rendered valued at ₱25 or more.

₱100.00 is now the new threshold.

 (TRAIN) – Administrative Provisions
NIRC TRAIN
No provision Section 237 Receipts or Invoices (NEW)

Additional provision:
Within 5 years from the effectivity of the
law and upon the establishment of the
necessary storing and processing system,
the following shall be required to issue
electronic receipts or sales or commercial
invoices in lieu of manual
receipts/invoices:
taxpayers engaged in the export of goods
and services
taxpayers engaged in e-commerce, and
taxpayers under the jurisdiction of the
Large Taxpayers Service
 (TRAIN) – Administrative Provisions
NIRC TRAIN

No provision Section 237 Receipts or Invoices

Other taxpayers may also opt to issue

electronic receipts/invoices in lieu of
manual ones.

The digital record of electronic receipts/

invoices shall be kept by the purchaser,
customer or client and the issuer for a
period of 3 years from the close of the
taxable year. (NOTE: RR 5-2014)
 (TRAIN) – Administrative Provisions
NIRC TRAIN
No provision Section 237 (A) [NEW PROVISION]

Electronic Sales Reporting System

The taxpayers that will be mandated
under Sections 236 to issue electronic
receipts/invoices shall be required to
electronically report their sales data to
the BIR through the use of electronic
point of sales systems.

The machines, fiscal devices, and fiscal

memory devices shall be at the
expense of the taxpayers.
 (TRAIN) – Administrative Provisions
NIRC TRAIN
No provision Section 237 (A)
Electronic Sales Reporting System [new]

The data processing of sales and purchase data

shall comply with:
the Data Privacy Act (RA 10173)
the provision of the Tax Code on unlawful
divulgence of taxpayer information (Section 270)
other laws relating to the confidentiality of
information

The BIR shall also establish policies, risk

management approaches, actions, trainings, and
technologies to protect the cyber environment,
organization, and data.