QUALITY ASSURANE ULLETIN I February 2019 Edition 1paguiodumayasassoc.com/articles/QualityAssuranceBulletin-February2019.pdfforeign missions, their qualified personnel and the dependents

QUALITY ASSURANCE BULLETIN I February 2019 Edition 1


RECENT BUREAU OF INTERNAL REVENUE ISSUANCES

RECENT COURT OF TAX APPEALS CASES

RECENT SECURITIES AND EXCHANGE COMMISSION ISSUANCES

Revenue Regulations No. 1-2019: Further Amending Certain Provisions of Revenue Regulations (RR) No. 2-98 as Amended by RR No. 11-2018, Which Implemented the Provisions of Republic Act 10963, Otherwise Known as Tax Reform for Acceleration and Inclusion (TRAIN) Law, Relative to Some Changes in the Rate of Creditable Withholding Tax on Certain Income Payments.

Revenue Memorandum Order No. 8-2019: Prescribes the policies, guidelines and procedures in the Certification of Electronic Tax Return Filing and/or Payment Solutions.

Revenue Memorandum Order No. 10-2019: Grants Value-Added Tax (VAT) privileges to resident foreign missions, their qualified personnel and the dependents of the latter.

Revenue Memorandum Circular No. 24-2019: Clarifications to the Amending Provisions of RR No. 11-2018 Prescribing the Submission of BIR Form No. 2316 and Certified List of Employees Qualified for Substituted Filing of Income Tax Return (ITR).

Revenue Memorandum Circular No. 27-2019: Circularizing Enhanced BIR Registration Forms Due to the Implementation of Tax Reform for Acceleration and Inclusion (TRAIN) Law.

Revenue Memorandum Circular No. 28-2019: Prescribes the use of BIR Printed Receipt/Invoice.

Revenue Memorandum Circular No. 29-2019: Keeping, Maintaining and Registration of Books of Accounts.

Revenue Memorandum Circular No. 30-2019: Clarifying Section 100 of National Internal Revenue Code (NIRC) of 1997, as amended by Republic Act (RA) No. 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN Law) in Relation to Sale of Shares of Stock Not Traded or Listed.

Petitioner failed to submit a clear proof to substantiate its argument such as a copy of minutes of the meeting of its Boards, the Board Resolution, or a memorandum recommending the appropriation

of such retained earnings for its definite planned expansion.—CTA EB No.1662

Failure to declare his income and to pay the corresponding taxes thereon is a violation of Section 255 and the accused may be prosecuted even without an assessment pursuant to Section 222 of the NIRC. Hence,

the prosecution of criminal cases against accused may proceed even without an assessment.—CTA

SEC Memorandum Circular No. 2-Series of 2019: Amendments to Rule 5.8.2 of the Investment Company Act Implementing Rules and Regulations.

SEC Memorandum Circular No. 4-Series of 2019: Sustainability Reporting Guidelines For Publicly-Listed Companies.

SEC Notice to the Public: Implementation of the Requirements of the New General Information Sheet (GIS), SEC Memorandum Circular No. 17 (2018).

SEC Notice to the Public: New Company Registration System (CRS) Users (LEAP) Lane for Express Application Processing.

RECENT PROFESSIONAL REGULATION COMMISSION PROVISIONS

PRC Resolution No. 2019-1146 Series of 2019: Amending Relevant Provision of Resolution No. 1032 (s.2017) Otherwise Known as the “ Implementing Rules and Regulations (IRR) of Republic Act No. 10912,

Also Known as the Continuing Professional Development (CPD) Act of 2016.


REVENUE REGULATIONS

NO. 1-2019

Further Amending Certain Provisions of Revenue

Regulations (RR) No. 2-98 as Amended by RR No.

11-2018, Which Implemented the Provisions of

Republic Act 10963, Otherwise Known as Tax Reform

for Acceleration and Inclusion (TRAIN) Law, Relative

to Some Changes in the Rate of Creditable

Withholding Tax on Certain Income Payments.

Section 57(B) of the National Internal

Revenue Code (NIRC) of 1997, as amended by

Section 17 of the TRAIN Law, provides that CWT

rate shall not be less than 1% but not more than

15% [previously 32%] of the income payment.

However, there are certain CWT rates

remained to be more than 15% notwithstanding

the issuance of RR 11-2018.

Thus, RR No. 1-2019 hereby reduces the

CWT rates for the following income payments:

REVENUE MEMORANDUM ORDER

NO. 8-2019

Prescribes the policies, guidelines and procedures in

the Certification of Electronic Tax Return Filing and/

or Payment Solutions.

The Order shall be applicable to Tax

Software Providers (TSPs) who develop

electronic tax return filing, and/or payment

solution for their own clients, for sale as an

off- the-shelf solution, or for subscription. An

individual or non-individual TSP is eligible to

apply for testing and certification of their Tax

Return Filing/Payment Solution (TFPS)

provided said TSP is registered with the BIR.

The TSPs may submit their solutions for

testing and certification as an: (1) e-filing; (2)

e-payment; and (3) combination of e-filing and

e-payment solution. The TSP who applies for

certification of the TFPS shall enroll in the

eTSPCert System accessible at the BIR website

(www.bir.gov.ph). The applied TFPS shall

undergo evaluation, testing and certification.

Income payments subject to CWT under RR No. 20-98, amended by RR No. 1-2019

Old rates

New rates

Section 2.57.2. (P)(1). Manila Electric Company (MERALCO) refund arising from Supreme Court Case G.R. No. 141314 dated 9 April 2003 payments to customers under Phase IV as approved by the Energy Regulatory Commission (ERC). On gross amount of refund given by MERALCO customers.

25% or

32%

15%

Section 2.57.2. (P)(2)(ii). MERALCO payments to non-residential customers for the interest income on the refund of meter deposits determined, computed, and paid in accordance with the "Rules to Govern Refund of Meter Deposits to Residential and Non-Residential Customers", as approved by the ERC under Resolution No. 8, Series of 2008, exempting all electricity consumers from the payment of meter deposit. On gross amount of interest paid directly to the non-residential customers or applied against said customers’ billings.

20% 15%

Section 2.57.2. (Q)(ii). Interest income on the refund paid to non-residential customers either through direct payment or application against customers' billings by other electric Dis-tribution Utilities in accordance with the rules embodied in ERC Resolution No. 8, Series of 2008, dated 4 June 2008, governing the refund of meter deposits which was approved and adopted by ERC in compliance with the mandate of Article 8 of the Magna Carta for Resi-dential Electricity Consum-ers and Article 3.4.2 of DSOAR, ex-empting all electricity consum-ers from the payment of meter deposit.

20% 15%

Section 2.57.2. (S). On interest income derived from any other debt instruments not within the coverage of ‘deposit substitutes’ and RR No. 14-2012, unless otherwise provided by law or regulations.

20% 15%

http://www.bir.gov.ph/


REVENUE MEMORANDUM ORDER

NO. 10-2019

Grants Value-Added Tax (VAT) privileges to resident

foreign missions, their qualified personnel and the

dependents of the latter.

Under the principle of reciprocity, the BIR

may grant VAT privileges to a resident foreign

mission, its qualified personnel and

dependents of the latter on their local

purchase of goods and/or services, subject to a

categorical confirmation from the Office of

Protocol of the Department of Foreign Affairs

(DFA-OP) that the foreign government accords

the same VAT privileges to the Philippine

Foreign Service Posts (PFSPs) and its personnel

on their purchase of goods and services in the

concerned foreign country.

Based on the principle of reciprocity, a

resident foreign mission, its qualified personnel

and the latter’s dependent/s may be

accorded VAT exemption on their purchase

of goods and/or services either at POINT-OF-

SALE or on REFUND/REIMBURSEMENT

BASIS. The method of granting VAT

exemption highly depends on the VAT privilege

being accorded to our PFSPs by the different

tax jurisdictions abroad, which is regularly

monitored by the DFA-OP.

The updated list of countries/jurisdictions

that grant PFSPs and their members VAT

privileges on their purchase of goods and

services is provided by the DFA-OP. The list

and DFA-OP’s endorsement on the tax privileges

being enjoyed by all the country; PFSPs abroad

shall serve as a guide for the International Tax

Affairs Division (ITAD) of the BIR in determining

whether or not the applicant is entitled to VAT

privileges and therefore, should be issued a

ruling, certificate, and/or card, as the case

may be.

REVENUE MEMORANDUM CIRCULAR

NO. 24-2019

Clarifications to the Amending Provisions of RR

No. 11-2018 Prescribing the Submission of BIR Form

No. 2316 and Certified List of Employees Qualified for

Substituted Filing of Income Tax Return (ITR).

Clarifications:

1. Submission of BIR Form No. 2316 (duplicate

original copy) to BIR Office

The provisions of Section 12 of RR No.

11-2018 prescribe the manner of distribution of

duly accomplished three (3) copies of BIR Form

No. 2316. On the other hand, the provisions of RR

No. 2-2015 prescribe the manner of submission of

the duplicate original copy of BIR Form No. 2316

to the BIR Office.

Hence, RR No. 11-2018 did not

re-introduce the submission of the said form in

physical or hard duplicate original copies by

employers to the BIR Office, in so far as the

concerned taxpayers duly registered under the

Large Taxpayers (LT) Service, or other non-LT

registered taxpayers who opted to submit thru the

Digital Versatile Disk (DVD) prescribed under RR

No. 2-2015.

The Universal Storage Bus (USB) memory

stick or other storage devices may be used in

absence or unavailability of the DVDs provided

that the scanned copies of the said forms shall be

made in uneditable format.

2. Submission to BIR Office of Certified List of

Employees Qualified for Substituted Filing of ITR

(Annex "F" of RR No. 11-2018)

Annex "F" of RR No. 11-2018 prescribed

the specific format for the preparation of the

Certified List of Employees Qualified for

Substituted Filing of ITR, it was observed that the

table provided therein for the prescribed list is only

applicable for employers with eighteen (18) or less

employees. Accordingly, in case additional pages

are attached to the certification in order to

accommodate additional employees or a separate

list is prepared as an attachment to the

certification, a reference statement to the...


additional pages or attachment shall be clearly

indicated in the certification, with the signature of

the certifying employer.

Further, the submission of un-notarized

certified list may be allowed by this Bureau

provided that all the pages attached to the

certification are duly signed by the certifying

employer or its authorized representative.


NO. 27-2019

Circularizing Enhanced BIR Registration Forms Due to

the Implementation of Tax Reform for Acceleration

and Inclusion (TRAIN) Law.

This Circular is issued to inform taxpayers on the

availability of the enhanced version (January 2018

ENCS) of the registration forms, hereto attached

as "Annex A-F" which was revised due to the

implementation of the TRAIN Law.


NO. 28-2019

Prescribes the use of BIR Printed Receipt/Invoice.

All persons subject to an internal revenue

tax shall, at the point of each sale and transfer

of merchandise or for services rendered valued

at One Hundred Pesos (P100.00), issue duly

registered receipts or sale or commercial

invoices.

New business registrants are required to

secure Authority to Print (ATP) principal

receipts/invoices upon registration with the BIR.

However, in order for them to immediately

commence business operations after registration,

they shall be allowed to secure BPR/BPI at the

time of registration from the New Business

Registrant Counter in the meantime that their

receipts are being printed. They shall be allowed

to use the said BPR/BPI for a period of fifteen

(15) days from the date of registration, hence,

the number of booklets to be issued shall be

limited to the estimated number of transactions

for such period. However, new business

registrants may opt not to avail of the BPR/BPI

and make use of their own receipts/invoices

covered by the ATP issued during registration.

The BPR/BPI shall be issued as principal

evidence in the sale of goods and or properties

and or services or lease of properties. It can

be used as a supporting document in claiming

expenses as deduction from ordinary gross

income or claim as input tax credit subject to

existing rules and regulations on invoicing

requirements for taxation purposes.

Only the BIR is allowed to print and

issue the BPR/BPI. A separate revenue

issuance shall be issued prescribing the

format to be used in printing the BPR/BPI to

conform with existing revenue issuances. All

existing BPR in the BIR offices that do not

comply with the format showing required

information are deemed invalid and subject to

appropriate disposal/destruction.

Continuation...

Form No.

Description

1901

(Annex “A”)

Application for Registration for

Self-Employed (Single Proprietor/

Professional), Mixed Income Individuals,

Non-Resident Alien Engaged in Trade/

Business, Estate and Trust

1902

(Annex “B”)

Application for Registration for Individuals

Earning Purely Compensation Income

(Local and Alien Employee)

1903

(Annex “C”)

Application for Registration For Corporations,

Partnerships (Taxable/Non-Taxable),

Including Government Agencies

And Instrumentalities (GAIs),

Local Government Units (LGUs),

Cooperatives and Associations

1904

(Annex “D”)

Application for Registration for

One-Time Taxpayer and Person

Registering under E.O. 98

(Securing a TIN to be able to transact

with any government office)

1905

(Annex “E”)

Application for Registration Information

Update/Correction/Cancellation

1906

(Annex “F”)

Application for Authority to Print Receipts

and Invoices



NO. 29-2019

Keeping, Maintaining and Registration of Books of

Accounts.

The following are the relevant excerpts on the

said circular:

1. Books of Accounts shall be kept at all times in

the place of business of the taxpayer.

2. All entries in the Manual Books of Accounts

shall be handwritten.

3. The manual books of accounts shall be

registered before the deadline for filing of the

first quarterly income tax return or the annual

income tax return whichever comes earlier.

4. Loose leaf books of accounts/invoices/receipts

and other accounting records shall be

permanently bound and presented for

registration together with a sworn statement.

5. Corporations, companies, partnerships or

persons whose gross annual sales, earning,

receipts or output exceed P3,000,000.00, shall

have their books of accounts audited and

examined yearly by independent CPAs.

6. Preservation of books - for a period of 10 years

reckoned from the day following the deadline in

filing a return, or if filed after the deadline, from

the date of filing of the return, for the taxable

year when the last entry was made in the

books of accounts.

7. Within the first 5 years - the taxpayer shall

retain hard-copies of the books of accounts,

including subsidiary books and other

accounting records. Thereafter, the taxpayer

may retain only an electronic copy of the

hard-copy.


NO. 30-2019

Clarifying Section 100 of National Internal Revenue

Code (NIRC) of 1997, as amended by Republic Act

(RA) No. 10963, or the Tax Reform for Acceleration

and Inclusion (TRAIN Law) in Relation to Sale of

Shares of Stock Not Traded or Listed.

The legislative intendment of the “deemed

gift” provision under Section 100 of the Tax Code

is to discourage the parties to a sale from

manipulating their selling price in order to save on

Income Taxes. This is because under the Tax

Code, the measurement of gain from a disposition

of property merely considers the amount realized

from the sale, which is the selling price minus the

basis of the property sold. Hence, if the parties

would declare a lower selling price per document

of sale than the actual amount of money which

changed hands, there is foregone revenue and

the government is placed at a very

disadvantageous position. In order to plug this tax

leakage, Section 100 automatically treats the

disparity between the Fair Market Value (FMV)

and selling price of the property as gift subject to

Donor’s Tax. In short, the “deemed gift” provision

compliments the Income Tax rule on the

measurement of gain and, accordingly, works to

avoid the recurrence of under-declaration of the

selling price. Thus, if the FMV of the shares of

stock is higher than the selling price, the excess/

difference shall be treated as gift subject to

Donor’s Tax.

Thus, starting January 1, 2018, when

shares of stock not traded in stock exchange are

sold for less than its FMV, the excess of the FMV

over the selling price shall be treated as gift

subject to Donor’s Tax imposed by Section 100 of

the 1997 NIRC, as amended, except when it is

sold at arm’s length, free from any donative intent

(in the ordinary course of business).

The determination of whether the sale of

shares of stock not listed and traded is at arm’s

length is a question of fact and not of law. The

evidence that should be presented should be

viewed in accordance with its relation and

relevance to the transaction on a case to case

basis.


1MAPLE SALES, INC

(Petitioner)

versus

COMMISSIONER OF INTERNAL REVENUE (Respondent)

Before the Court is a Petition for Review

seeking the nullification of the Decision dated

December 16, 2016 ("Assailed Decision") and

Resolution dated May 15, 2017 ("Assailed

Resolution") of the Court of Tax Appeals Second

Division ("Second Division"), upholding the

assessment Respondent issued against

Petitioner for deficiency Improperly Accumulated

Earnings Tax (IAET) for taxable year 2009 plus

deficiency and delinquency interests.

Petitioner raises the following grounds in

support of its petition:

1. The Second Division erred in its finding that

Petitioner failed to pass the so-called

“Immediacy Test”;


for the year 2009, Petitioner failed to

disclose in its Notes to Financial Statements

the appropriations made, which are

significant transactions and / or information

that the stockholders, the government, and

the public should be apprised about.


the Net Retained earnings as of December

31, 2009 is a proper subject in the

examination of Petitioner's books of

accounts for the taxable year 2009 instead of

taxable year 2010; and

Petitioner failed to submit a clear proof to

substantiate its argument such as a copy of minutes of

the meeting of its Boards, the Board

Resolution, or a memorandum recommending the

appropriation of such retained earnings for its

definite planned expansion.

4. Assuming that Petitioner may be held liable

for lAET in the year under audit (2009), the

Second Division erred in its finding that the

computation of IAET should include

Retained earnings of prior years.

Petitioner claims that certain payments

of payables and loans made by Petitioner in

2010 would have been difficult if not for the

appropriation of retained earnings as of

December 31, 2009. This is an immediate

"reasonable needs of the business" that

justifies the appropriation made in 2010, and is

well within the meaning of the "immediacy

test". Moreover, the increases in appropriation

from 2007 to 2009 were justified by the increases

in the volume of transactions, and should not be

taken against Petitioner.

The Court finds that the bare allegations of

its witnesses with respect to the connection of

the Executive Marketing Agreement to the

planned expansion are also self-serving, without

any document presented as to their link.

Earnings reserved for corporate expansion

projects or programs requiring considerable

capital expenditure as approved by the Board of

Directors must be definite. Since there is

failure to connect the Executive Marketing

Agreement with the intended "planned

expansion" for Petitioner's appropriation of

retained earnings, its justification as to its

increase in appropriation, as well as its

insufficiency in its working capital in the year

2010, would no longer hold water. Tax

exemptions are never presumed and are

strictly construed against the taxpayer and

liberally in favor of the taxing authority.

The supposed unforeseeable events also

run counter to the "immediacy test". The

retained earnings were not even immediately

utilized as there was in fact increase of the same

in the succeeding years.

WHEREFORE, premises considered, the

Petition for Review filed with the Court En Banc is

DENIED for lack of merit.


PEOPLE OF THE PHILIPPINES

(Plaintiff)

versus

BENEDICTO P. CAGUIMBAL

(Accused)

For resolution is the "Motion for

Reconsideration" filed by accused through his

counsel praying that the Decision be set aside and

that an order of acquittal be issued.

In her "Motion for Reconsideration”,

accused repeatedly claims that the basis in filing

the criminal complaint against him is the Letter

Notice; that there was no Letter of Authority (LOA)

issued in relation to the instant cases; that the

revenue officers who conducted an examination on

accused have no authority to examine and issue

tax assessments; that his right to due process was

violated because he was not served with a copy of

the assessment notices and other notices sent

by the Bureau of Internal Revenue (BIR). Thus,

he cannot be said to have willfully and deliberately

violated the provisions of the National Internal

Revenue Code (NIRC) of 1997.

On the other hand, in the Comment/

Opposition of the plaintiff, it states that it agrees

with the assailed Decision, hence, the accused's

"Motion for Reconsideration" should be denied for

lack of merit; that the elements of violation of

Section 255 of the NIRC of 1997 are attendant in

the instant cases; that accused cannot validly

claim that his right to due process was violated

since the assessment and other BIR letters/

communications were sent to his registered

address at 2240-B Severino Reyes Street, Sta.

Cruz, Manila, though he admitted that he never

hold office therein; that it was only later or on June

13, 2013, when the case...

was already under preliminary investigation at

the Department of Justice (DOJ) that accused,

in his Sinumpaang Ganting Salaysay wherein he

indicated that his residence address is at Unit C

218 2F, Bldg. C, El Pueblo Manila, Sta. Mesa,

Manila; that at that time, all the notices were

already sent to accused's registered address;

and that an assessment, whether valid or void,

shall become final and executory, when no

administrative protest is filed within thirty (30)

days from receipt of the assessments.

Accused argues that the revenue

officers who conducted an examination of his

tax liabilities were not authorized because

there was no LOA issued. Hence, the

assessment made is null and void.

Consequently, the finding of guilt against him is

unwarranted.

This Court finds accused argument

unmeritorious. Accused was charged of

violation of Section 255 of the NIRC for his

failure to declare his income and to pay the

corresponding taxes thereon. Accused may be

prosecuted even without an assessment

pursuant to Section 222 of the NIRC. Hence,

the prosecution of criminal cases against

accused may proceed even without an

assessment.

WHEREFORE, in view the

foregoing considerations, the accused's

"Motion for Reconsideration" is DENIED for

lack of merit. The assailed Decision dated

September 26, 2018 is AFFIRMED with

MODIFICATION.

Failure to declare his income and to pay the corresponding taxes thereon is a violation of Section 255 and the accused may be prosecuted even without an assessment pursuant to Section 222 of the NIRC.

Hence, the prosecution of criminal cases against accused may proceed even without an assessment.


SEC Memorandum Circular No. 2

Series of 2019

Amendments to Rule 5.8.2 of the Investment

Company Act Implementing Rules and Regulations.

The amended Rule read as follows:

5.8.2. Responsibilities of Independent

Accountants or Auditors

(a) - To observe the principles on the

expectation for an effective audit function issued

by the Commission under Financial Reporting

Bulletin No. 19 and any amendments thereto;

(b) - Perform the audit of financial statements

of the Investment Company, Fund Managers, and

Fund Distributor in accordance with the

requirements of the Philippine Standards on

Auditing, the Ethical Standards under

International Ethics Board of Accountants (IESBA)

Code of Ethics for Professional Accountants, and

the relevant regulatory issuance of the

Commission such as SRC Rule 68, as amended

and Financial Reporting Bulletin.

(c) - Report to the Commission any

non-compliance by the Investment Company,

Fund Manager, and Fund Distributor with their

contractual and regulatory requirement, based

solely on the matters discovered from performing

the audit. The engagement contract between said

companies and the independent auditor shall

contain a provision that the disclosure information

by the independent auditor to the Commission

shall not constitute a breach of confidentiality nor

shall it be ground for civil, criminal or disciplinary

proceedings against the independent auditor."

These amendments shall take effect and shall be

applicable beginning 2018 audit engagement.

SEC Memorandum Circular No. 4

Series of 2019

Sustainability Reporting Guidelines For

Publicly-Listed Companies.

To promote sustainability reporting and

make it relevant for Philippine publicly-listed

companies (PLCs), the Commission, in its

en banc meeting on 12 February 2019, resolved

to issue the Sustainability Reporting Guidelines for

Publicly-Listed Companies attached to this

Memorandum Circular.

The Guidelines is intended to help PLCs

assess and manage non-financial performance

across Economic, Environmental and Social

aspects of their organization and enable PLCs to

measure and monitor their contributions towards

achieving universal targets of sustainability, such

as the United Nations Sustainable Development

Goals, as well as national policies and programs.

Submission with SEC Form 17-A

The reporting template (Annex A of the

Guidelines) shall be submitted together with

the company's Annual Report (SEC Form 17-A).

The first report shall be attached to the

2019 Annual Report to be submitted in 2020.

For companies who already have

sustainability reports in accordance with

internationally recognized frameworks and

standards, their reports shall already be

considered as their compliance with the reporting

template. Companies may choose to attach the

whole sustainability report to their Annual Report

or just include a statement providing a link to said

report.


Comply or Explain Approach

The Guidelines shall be adopted on a

"comply or explain" approach for the first three

years upon implementation. By "comply or

explain", it means that companies would be

required to attach the template to their Annual

Reports but they can provide explanations for

items where they still have no available

data on.

Non-attachment of the Sustainability

Report to the Annual Report shall be subject to

the penalty for Incomplete Annual Report

provided under SEC Memorandum Circular No.

6, Series of 2005 (Consolidated Scale of Fines).

Implementation of the Requirements of the New

General Information Sheet (GIS), SEC

Memorandum Circular No. 17 (2018).

Quoted below is the resolution from the

Minutes of the Commission Meeting held on 26

February 2019 which reads:

"RESOLVED, To DEFER the submission

of the new General Information Sheet

(GIS) containing the Beneficial

Ownership Disclosure page to 30 June

2019. Hence, by 30 June 2019, filers

are expected to use and shall submit

the new GIS containing the

Beneficial Ownership Disclosure page."

New Company Registration System (CRS) Users (LEAP)

Lane for Express Application Processing.

The Securities and Exchange Commission

is announcing the availability of LEAP or Lane for

Express Application Processing. New

Company Registration System (CRS)

applicants or users are encouraged to utilize

LEAP to expedite the process and approval of

their corporate registration.

Continuation...


PRC Resolution No. 2019-1146 Series of 2019

AMENDING RELEVANT PROVISIONS OF RESOLUTION NO. 1032

(s. 2017) OTHERWISE KNOWN AS THE “IMPLEMENTING RULES AND

REGULATIONS (IRR) OF REPUBLIC ACT NO. 10912, ALSO KNOWN AS

THE CONTINUING PROFESSIONAL DEVELOPMENT (CPD) ACT OF 2016

Key Provisions and Changes:

CPD remains a mandatory requirement for the

renewal of the PRC ID of all registered and

licensed professionals.

Significant reduction in number of required

CPD units for the renewal of professional

license which should not exceed 15 units.

Section 10.2b of the 2019 resolution states that

“various Continuing Professional Development

(CPD) Councils shall reduce the required

CPD credit units to a minimum, which shall

not be more than fifteen (15), as provided for

under applicable laws.”

In-house training programs and

capacity-building activities of government

agencies and government corporations,

including local government units and private

employers shall be accredited and considered

as CPD compliance of their employed

professionals.

Professionals who renewed their PRC ID’s by

signing an undertaking shall only comply to the

required 15 CPD units, in pursuant to the

resolution.

Other Provisions:

An indefinite transition period was also set.

During this transition period, professionals

working abroad are temporarily

exempted from CPD requirement.

Further, newly licensed professionals are

temporarily exempted from CPD

requirements for the first renewal

cycle after obtaining their respective

professional licenses.

Implementation

Commissioner said the completion of the

transition period will differ for the 43

professions they regulate, depending on the

compliance to the deliverables stipulated in

the amended IRR for the CPD Act.

Professional Regulation Boards (PRB) and

CPD councils should update their operational

guidelines for the CPD Act.

They also need to link the CPD units with the

career progression track in their respective

professions and come out with modules for

CPD programs.

Operational guidelines are expected to be

enforced by the Accredited Integrated

Professional Organization (AIPO) and

Accredited Professional Organizations (APO).


This bulletin is a compilation of relevant issuances, rulings and memoranda from various government agencies to enhance the

technical skills of the professional staff of Paguio, Dumayas and Associates, CPAs and is not intended to replace the original

issuances of the related government agencies.

PAGUIO, FLOYD C.

Managing Partner

[email protected]

[email protected]

GALLEGOS, AIRA G.

Tax Specialist

[email protected]

MELCHOR, AILEEN P.

Senior Tax Specialist

[email protected]

ASADON, KEN JOHN B.

Tax Supervisor

Unit 3207 Cityland Pasong Tamo Condominium, Pasong Tamo St., Barangay Pio del Pilar, Makati City

Contact us at: 950-9853/950-9854

We are a team of Certified Public Accountants, who aim to be the

accounting firm of choice for business entities in terms of:

Audit and Assurance

Taxation

Business Process Outsourcing

Management Consultancy

[email protected]

RULLODA, JOHN ERIC M.

Tax Specialist

Documents

QUALITY ASSURANE ULLETIN I February 2019 Edition 1paguiodumayasassoc.com/articles/QualityAssuranceBulletin-February2019.pdfforeign missions, their qualified personnel and the dependents