BAIPHIL LegReg Update – 30 September 2015 Page 1 of 4

BAIPHIL LEGREG UPDATE

For The Period

September 16-30 2015

Date Of Issue / Effectivity Date /

Issued By Title / Major Requirement/s / Impact / Required Action

September 18, 2015

Effectivity:

Immediately

Bureau Of Internal Revenues

BIR Revenue Memo Order No. 20-2015 Prescribing Policies, Guidelines and Procedures on the Registration of Employees This Order is being issued to:

1. Clarify the procedures on the registration of employees; 2. Prescribe policies and guidelines in the issuances of TIN of employees using the

eRegistration System. Generally, the submission of fully accomplished registration forms with the required documentary requirements to the BIR may either be done by the employer or the employee. However, employees whose TINs were secured by the employer thru the eReg System, shall submit the prescribed registration form through their respective employer. The policy and guidelines are hereby enumerated in the attached Circular.

1. Those employers who are required to use the eRegistration system but instructing its new employees to visit the RDOs or LTAD/ELTRD/LTD-Makati/LTD-Cebu with photocopied alleged eRegistration System message presented, shall be imposed a penalty of P1,00.00 per employee pursuant to Section 275 of the NIRC, as amended.

2. A penalty of P1,000.00 for every instance but not to exceed P25,000.00 shall be imposed

on eRegistration System and Update of Exemption of Employee Data Entry Module users who supplied erroneous/invalid information.

For guidance and compliance of all concerned.

September 18, 2015

Effectivity:

N/A

Bureau Of Internal Revenues

BIR Revenue Memo Order No. 58-2015 Availability of eBIRForms Package Version 5.1 The eBIRForms Package Version 5.1 is now available and downloadable from the following sites:

www.knowyourtaxes.ph; www.dof.gov.ph; http://goo.gl/UCr8XS (Dropbox); http://ftp.pregi.net/bir/ebirforms_package_v5.1.zip; www.bir.gov.ph

The new version includes the following modifications:

BIR Form No. 1707-A (Annual Capital Gains Tax Return for Onerous Transfer of Shares of Stock Not Traded Through the Local Stock Exchange) is included in the package and thirty seven (37) returns are now available;

BIR Forms Nos. 1601E, 1702-MX and 2000 were enhanced; and Annual Income Tax Returns (BIR Form Nos. 1700, 1701, 1702-EX, 1702-MX & 1702-RT)

can now be submitted online thru the eBIRForms System. Taxpayers using this new version shall follow the following steps:

BAIPHIL LegReg Update – 30 September 2015 Page 2 of 4

Date Of Issue / Effectivity Date /

Issued By Title / Major Requirement/s / Impact / Required Action

1. Download, install and run eBIRForms Package Version 5.1. 2. Fill-up data in the tax return. 3. Validate. If there are any changes, click edit. Validate every changes made. 4. Clicks submit.

Version 5.0 may still be used for filing all other BIR forms not mentioned in the modifications. For guidance and compliance of all concerned.

September 21, 2015

Effectivity:

N/A

Bangko Sentral Ng Pilipinas

Circular Letter No. CL-2015-057 Updated Validation Rules of the BSP for the Financial Reporting Package In an effort to further assist banks in finalizing the FRP, attached are the updated validation rules used by the BSP to check and determine whether the entries in the FRP are either balanced and reconciled or cited with mathematical defects requiring correction and the submission of amendments that are subject to penalty in accordance with existing regulations. The attached validation rules have the following three (3) components:

1. A User Guide that explains and describes the validation process and the translation of the validation rules into the Reconciliation Report transmitted by the BSP to banks with illustrative samples and references;

2. The Intra Validation Rules in Annex A itemizing the arithmetic formulations in balancing and reconciling the Balance Sheet, Income Statement and Supporting Schedules of the FRP; and

3. The Inter Validation Rules in Annex B itemizing the arithmetic formulations in reconciling the FRP with the following prescribed reports: a. Report on Compliance with Mandatory Agri-Agra Credit under R.A. 10000 (Agri-Agra

Report) b. FRP Branch Report c. Risk-Based Capital Adequacy Report for Stand-Alone Thrift Banks, Rural Banks and

Cooperative Banks d. Quarterly Statement of E-Money Balances and Activity e. FRPTI f. Report on Microfinance Products and Income Statement on Retail Microfinance

Operations g. Report on Compliance with Mandatory Credit Allocation Required under R.A. 6977

(MSME Report) h. Published Balance Sheet i. Expanded Report on Real Estate Exposure j. Stress Testing Reports k. Report on Cross-Border Financial Positions

Banks may use the aforementioned rules and formulations as reference for internally developing and reinforcing their own validation procedures, systems and controls. Such rules and formulations, however, mainly focus in determining arithmetical consistency of the FRP within an acceptable tolerance limit and are not intended to capture errors arising from significant changes or movements in values reported from one period to another nor misclassification of transactions arising from the misuse of the FRP accounts. The integrity and quality of the FRP ultimately rests with the bank. Adequate internal controls should be in place that the information submitted by banks to BSP is consistent, correct and conforms to the prescribed reporting standards. For information and compliance of all concerned.

BAIPHIL LegReg Update – 30 September 2015 Page 3 of 4

Date Of Issue / Effectivity Date /

Issued By Title / Major Requirement/s / Impact / Required Action

September 22, 2015

Effectivity:

N/A

Bangko Sentral Ng Pilipinas

Circular Letter No. CL-2015-058 United Nations Security Council Resolution (UNSCR) No. 2231 dated July 20, 2015 Endorsing the Joint Comprehensive Plan of Action (JCPOA) Regarding the Islamic Republic of Iran’s (Iran) Nuclear Program and Financial Action Task Force Public Statement dated June 26, 2015 UNSCR stated that the full implementation of the JCPOA will contribute to building confidence in the exclusively peaceful nature of Iran’s nuclear programme and is conducive to promoting and facilitating the development of normal economic and trade contacts and cooperation with Iran. In this regard, banks are enjoined to monitor developments thereon as well as be aware of the sanctions relief provided to Iran by the US government between the announcement of JCPOA and the Implementation Day, such as temporary suspension of sanctions involving Iran’s purchase and sale of gold and other precious metals, Iran’s export of petrochemical products and Iran’s automotive industry. For information and guidance of all concerned.

September 22, 2015

Effectivity:

N/A

Bangko Sentral Ng Pilipinas

Circular Letter No. CL-2015-059 Sumitomo Mitsui Banking Corporation Manila Branch, (SMBC Manila Branch) – Establishment and Commencement of Operation The MB in its Resolution No. 229 dated February 13, 2015 approved the authority of Sumitomo Mitsui Banking Corporation, a Japan-based bank, to establish a branch with a commercial bank license in the Philippines. The SMBC Manila Branch was registered with SEC on April 1, 2015. The corresponding Certificate of Authority to Operate SMBC Manila Branch was issued by the BSP on July 2, 2015 and its operation started on September 1, 2015. For information of all concerned.

CFO Forum on: – 13 November 2015

Tax Issues affecting Financial Institutions

Relevant updates on Philippine Financial Reporting Standards Supervisory Expectations on Compliance System – 27 November 2015 Signature Analysis & Forgery Detection – 28 November 2015 Enterprise Risk Management – 28 November 2015

For details, please contact BAIPHIL via telephone (853-4457/519-2433) or email training@baiphil.org.

BAIPHIL LegReg Update – 30 September 2015 Page 4 of 4

Sources

All materials are obtained from third party websites such as www.bsp.gov.ph, www.sec.gov.ph, www.bir.gov.ph, etc. Neither BAIPHIL nor the LegReg Committee is responsible for the content or availability of any third party website.

Compiled And Prepared By: LegReg Committee FY 2015-2016

Director: Maria Teresita R Dean (PBCOM) Chair: Marissa B. Espino (ChinaBank) Members: Raissa Katrina G. Ballesteros (HSBC) / Noel A. Flores (CTCB) / Romel D. Meniado (RobinsonsBank) / Rafael M. Reynante (DBP)/ Gregorio M. Yaranon (MayBank)