Briefing on RA 10963: Tax

Reform for Acceleration and

Inclusion (TRAIN) –
Administrative Provisions
NIRC Provision NIRC TRAIN

Section 232 All corporations, companies, All corporations, companies,

Keeping of books partnerships or persons required partnerships or persons required by
of accounts by law to pay internal revenue law to pay internal revenue taxes
taxes shall keep a journal and a shall keep and use relevant and
ledger. appropriate set of bookkeeping
records duly authorized by the
Those whose quarterly sales, Secretary of Finance.
earnings, receipts, or output do not
exceed PHP50,000 shall keep and
use simplified set of bookkeeping
records.

TRAIN Briefing – Administrative Provisions

VER 1.0 – January 2018
 NIRC NIRC TRAIN
Provision
Section 232 Those whose gross quarterly Those whose gross annual sales,
Keeping of sales, earnings, receipts or output earnings, receipts or output exceed
books of exceed P150,000 shall have their ₱3,000,000 shall have their books of
accounts books of accounts audited and accounts audited and examined
examined yearly by independent yearly by independent CPAs and
Certified Public Accountants their ITRs accompanied with a duly
(CPAs) and their ITRs accomplished AIF.
accompanied Account Information
Form (AIF).

TRAIN Briefing – Administrative Provisions

VER 1.0 – January 2018
 NIRC NIRC TRAIN
Provision
Section 232 All corporations, companies, All corporations, companies,
Keeping of partnerships, or persons requiredpartnerships or persons required by
books of by law to pay internal revenue law to pay internal revenue taxes
accounts taxes shall keep a journal and a shall keep and use relevant and
ledger. appropriate set of bookkeeping
records duly authorized by the
Those whose quarterly sales, Secretary of Finance.
earnings, receipts, or output do
not exceed P50,000 shall keep
and use simplified set of
bookkeeping records

TRAIN Briefing – Administrative Provisions

VER 1.0 – January 2018
NIRC Provision NIRC TRAIN

Section 236 The taxpayer’s registration shall Additional proviso:

Registration contain the information as may be
Requirements required by the Commissioner in the The Commissioner shall simplify the
form prescribed business registration and tax
compliance requirements of self-
employed individuals and/or
professionals.

Persons required to register for VAT:

those whose gross receipts
• for the past 12 months have Threshold amount is increased to
exceeded ₱1,500,000 ₱3,000,000.

TRAIN Briefing – Administrative Provisions

VER 1.0 – January 2018
NIRC Provision NIRC TRAIN
Section 236 • For the next 12 months can be Additional proviso:
Registration reasonably believe to exceed
Requirements ₱1,500,000 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.
Any person not required to register
for VAT may elect to register for VAT.

Section 237 A duly-registered receipt or sales or It is expressly provided that the

Receipts or commercial invoice , prepared at issuance of the receipt or invoice shall
Invoices least in duplicate, shall be issued for be made at the point of sale.
each sale of merchandise or service
rendered valued at ₱25 or more.
The threshold amount is increased to
₱100.00

TRAIN Briefing – Administrative Provisions

VER 1.0 – January 2018
NIRC Provision NIRC TRAIN

Section 237 Additional provision:

Receipts or Within 5 years from the effectivity of the
Invoices 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 Briefing – Administrative Provisions

VER 1.0 – January 2018
NIRC Provision NIRC TRAIN

Section 237 Other taxpayers may also opt to issue

Receipts or electronic receipts/invoices in lieu of
Invoices 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.

TRAIN Briefing – Administrative Provisions

VER 1.0 – January 2018
NIRC Provision NIRC TRAIN

Section 237 (A) No provision The taxpayers that will be mandated

Electronic Sales under Sections 236 to issue electronic
Reporting System receipts/invoices shall be required to
[new] 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 Briefing – Administrative Provisions

VER 1.0 – January 2018
NIRC Provision NIRC TRAIN

Section 237 (A) No provision The data processing of sales and

Electronic Sales purchase data shall comply with:
Reporting System • the Data Privacy Act
[new] • 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.

TRAIN Briefing – Administrative Provisions

VER 1.0 – January 2018