1/24/2018 New BIR requirements for firms with inventories | BusinessMirror

New BIR requirements for rms with inventories

By David Cagahastian - September 26, 2015

INTERNAL Revenue Commissioner Kim Jacinto-Henares has issued Revenue Memorandum Circular

57-2015 prescribing new reporting requirements of companies maintaining inventories of stock-in-
trade, raw materials, goods and other supplies to track these inventories which are used in computing a
company’s net income

“This is in line with the bureau’s objective of implementing an expanded and improved landscape of
accounting information reporting that seeks to provide reliable data and to maximize the quality and
adequacy of such data for better monitoring and analysis,” the new circular said.

The new reporting requirements shall be in addition to the annual inventory list required to be reported
to the Bureau of Internal Revenue (BIR) and should be submitted by September 30, 2015, and
thereafter on every 30th day following the close of the taxable year.

“This circular aims to consistently apply the data requirements across different sectors with the
peculiarity of the industry, where the taxpayers belong directing the volume of reporting. Hence, the
additional reports or schedules to be submitted and filed with the annual inventory list shall cover
companies maintaining inventory of stock-in-trade, raw materials, goods in process, supplies and other
goods, such as manufacturing, wholesaling, distributing/retailing sectors, including real-estate
dealers/developers, service companies, construction companies, building contractors, etc.,” the circular
said.

“It bears stressing that the data/information contained in the said schedules/lists should be reconciled
with the amount declared in the financial statements and annual income-tax returns,” it added.

The new requirements provide for a format specifically for companies in the industries of retail,
manufacturing, real estate and construction, but shall also be applicable to other companies not in
these industries but are also maintaining inventories in their businesses.

“The submission of the schedules and inventory list that does not conform with the herein prescribed
format shall be deemed not received by the concerned office of the BIR and shall be considered as
grounds for the imposition of penalties under the Tax Code, as amended,” the circular said.

The failure to submit the new reporting requirements will subject the taxpayers to penalties provided
under Section 250 and 255 of the Tax Code.

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1/24/2018 New BIR requirements for firms with inventories | BusinessMirror

Such penalties include a fine of not less than P10,000 and imprisonment of not less than one year but
not
more than 10 years. 

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David Cagahastian
Dave Cagahastian is BusinessMirror's reporter covering the O ce of the President and the Department of Labor
and Employment. He has recently nished a law degree from the University of the Philippines, and holds a business
degree from the International Academy of Business and Economics. In the past two years in a row, he had won the
Sinag Financial Literacy Journalism Award sponsored by Sun Life Financial Philippines, getting the third place in
2014 then the rst prize in 2015.

FO LLO W U S O N I N STAG RAM

@B MSOCIA LMEDIA

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