AFFIDAVIT ON HOW RATES OF SERVICES ARE COMPUTED REQUIRED BY BIR (FOR SELF-EMPLOYED PROFESSIONALS)

BASIS: REVENUE REGULATIONS 4-2014 SUBJECT    :  Guidelines and Policies for the Monitoring of Service fees of Professionals

What is the RR 4-2014 all about?

The BIR is imposing a new policy regarding the additional requirements in filing the Income tax return for self-employed professionals. They wanted the self-employed professionals to submit an affidavit(written statement or in words) showing their rates, how they are billing their clients and the factors that they consider in determining their professional fees.

The simple guidelines are as follows: “Policies and Guidelines (excerpts from RR 4-2014) 

1. Self-employed professionals shall register and pay the annual registration fee (ARF) with the RDO/LTDO having jurisdiction over them. In addition to the requirements for annual registration, all self-employed professionals shall submit an affidavit indicating the rates, manner of billings and the factors they consider in determining their service fees upon registration and every year thereafter on or before January 31. 

2. .Self-employed professionals are obligated to register the books of accounts and official appointment books of their practice of profession /occupation/calling before using the same. The official appointment books shall contain only the names of the client and the date/time of the meeting. They are likewise obligated to register their sales invoices and official receipts (VAT or non-VAT) before using them in any transactions.

 3. In cases when no professional fees are charged by the professional and paid by client, a BIR registered receipt, duly acknowledged by the latter, shall be issued showing a discount of 100% as substantiation of the ** “pro-bono’ service. “

*”pro-bono ” defined as doing something voluntarily; work donated for the common good

 Special Note: There is a TRO (Temporary restraining order for LAWYERS ONLY)

TRO

 ” The Supreme Court issued yesterday (April 22) a temporary restraining order (TRO) that stopped the Department of Finance (DOF) and the Bureau of Internal Revenue (BIR) from implementing Revenue Regulations No. 4-2014 that requires self-employed professionals to submit a notarized affidavit of their fixed service rates. However, said TRO was issued only as against LAWYERS. “

(excerpts from “Tax Management Association of the Philippines”)

 

 

 

 

WAIVER OF PENALTIES IMPOSED FOR eFPS FILED APRIL 16,2014

EFPS

 BASIS:( REVENUE MEMORANDUM CIRCULAR NO. 28-2014  )

SUBJECT: WAIVER OF PENALTIES FOR ELECTRONIC FILING AND PAYMENT SYSTEM (EFPS)

What is RMC No. 28-2014 all about?

There is a waiver of late penalties imposed on the ITR being filed, during the taxable year ended December 31, 2013 and quarter ended March 31, 2014. These are for those who use the eFPS system of the BIR and filed dated April 16, 2014.

Why there is a waiver?

There was a system downtime yesterday April 15, 2014, due to the volume of the tax payers/filing thru eFPS.

Exceptions and resolution:

The eFPS filers who are enrolled and have manually filed and paid their income tax due for above taxable periods will not be imposed of penalties, and are advice to file again using eFPS until April 25, 2014.

15 Things You Should Stop Doing If You Want a Better Life (by fitzvilafuerte.com excerpts reblogged)

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Henry Ford once said, “If you always do what you’ve always done, you’ll always get what you’ve always got.

Makes sense, right?

That’s why I find people who constantly complain that nothing’s happening in their life, a bit crazy.

Even Albert Einstein would agree, because he defines insanity as “doing the same thing over and over again and expecting different results.

So, if you really want your life to change, then you’ve got to start doing things differently.

And to help you with that, here are 15 things you can (and should) stop doing if you want a better life.

1. Stop making excuses. Take full responsibility of your life and stop blaming others, the economy, the weather and your zodiac sign for your bad luck.

2. Stop wasting time watching television, surfing on the internet, and playing games on your smartphone. It’s okay to relax and be entertained for awhile, but it’s a different story already if that’s all you do on your free time.

3. Stop procrastinating. Remember that the opposite of success is not failure, but inaction. Stop putting things off and get it done already.

4. Stop doing just the easy stuff. Allow yourself to be uncomfortable. Challenge yourself and I guarantee that you’ll go beyond what you thought was your limit.

5. Stop spending time with people who have no dreams. They’ll just slow you down and drag you into inertia. Instead, spend more time with people that inspire you.

6. Stop running away from your problems, because they have legs and they’ll catch up with you sooner or later. Don’t try to drown them either because they know how to swim – believe me, I know.

7. Stop comparing yourself to others. There will always be people who are better than you, and that’s okay. Don’t be hard on yourself. Remember that each one of us is unique, and we all have the ability to make a difference in this world.

8. Stop holding on to your past. We all make mistakes. We all failed at one point in our lives. We all have those “I-wish-I-could-turn-back-time” moments. Learn the lesson and just let go.

9. Stop being scared of failure. Mistakes are part of life, and success isn’t complete if you haven’t failed at least once.

10. Stop finding happiness in material things. Moreover, stop relying on others for your happiness. The best person that can make you happy is yourself. Remember that happiness (and contentment) is a personal state of mind.

11. Stop feeling sorry for yourself. We all experience tough times, and hitting one doesn’t mean you’re unlucky, untalented nor undeserving of success.

12. Stop waiting for the right time. Things will never be perfect, so just ship out to the open seas and simply adjust your sails along the way. Fire now, and aim later.

13. Stop thinking about the things that might go wrong. Instead, focus and believe that things will go right. Optimism, positivity and visual reinforcement often becomes a self-fulfilling prophecy.

14. Stop pleasing everyone. As they say, “Haters gonna hate” – so just ignore them. What other people say and think is not as important as providing and caring for the people that actually matter in your life.

15. Stop changing the things you can’t change. There’s usually a fine line between the things that you can and cannot control. Grant yourself the serenity to accept those you can’t, and take on the courage to change those that you can.

Can you think of more things that people should stop doing to make their life better? Please share them below and let’s make this list grow further.

 

BOA Accreditation Requirements(for initial applicant only)

 

REQUIREMENTS FOR REGISTRATION OF INDIVIDUAL CPA/FIRMS/PARTNERSHIPS IN ACCORDANCE WITH IMPLEMENTING RULES AND REGULATIONS (RES. NO. 71) REPUBLIC ACT NO 9298 OTHERWISE KNOWN AS THE PHILIPPINE ACCOUNTANCY ACT OF 2004 

  1. BACC Form No. 02, duly accomplished in three (3) copies and properly notarized (Please affix metered documentary stamp to the original copy)
  2. Photocopy of CPA Board Certificate(s) of individual CPA, sole proprietor, partners and staff member(s).
  3. Photocopy of current professional identification card(s) of individual CPA, sole proprietor, partners and staff member(s)
  4. Code of Good Governance of the Individual CPA, Firm or Partnerships (signed by the Individual CPA, sole proprietor of the Firms and managing partner of the Partnership)
  5. Copy of Internal quality review procedures being implemented to ensure compliance with the professional ethical and technical standards required of the practice of public accountancy.
  6. Certified copies of all business permits/current PTR issued by the local and/or national government.
  7. Sworn statement by the individual CPA, sole proprietor of the Firm and managing partner of the Partnership stating that the individual CPA and staff member(s), the sole proprietor and staff member(s) of the Firm, and all the partners and staff member(s) of the Partnership, as the case maybe,: (Please notarize and affix metered documentary stamp to the original copy)
  • Had a meaningful participation of their respective internal quality review process.
  • Had undergone adequate and effective training (from organizations duly accredited by the Board or by its duly authorized representatives) on all the current accounting and auditing standards, code of ethics, laws and their implementing rules and regulations, circulars, memoranda, their respective codes of good governance and other related documents that are required in the practice of public accountancy to ensure professional, ethical and technical standards.
  • Are all of good moral character
  • He/she or they had not been found guilty by a competent court and/or administrative body of any case involving moral turpitude and/or unethical practices and that neither any of them is a defendant in any case of similar nature pending before any competent court and/or administrative agencies.
  • Has(have) at least three(3) years meaningful experience in any of the areas of public practice including taxation as defined in Section 4 Rule 4 of the IRR.

8. For government employee only:

Original copy of authority to practice profession issued by employer, printed in the official letter head of the institution/agency.

Supporting documents to be attached to the sworn statements:

9Certified copies of accredited certificate(s) of attendance or any proof of meaningful participation in, and proof of adequacy and effectiveness of such training for the immediate past three years.

For years 2013 – Seminars/trainings from 2010 onwards

2014 – Seminars/trainings from 2011 onwards

Thereafter

 

TOPICS

THEMATIC AREA

REQUIRED CREDIT UNITS

Enabling Laws, Rules and Regulations

1

6 CU

Standards Applicable to Professional Practice

2

24 CU

Ethical, Governance, and Quality Principles

3

10 CU

Environment of the Practice

4

10 CU

Development of the Person as Professional

5

10 CU

TOTAL

60 CU

 

10. Current certificate of clearance issued by the proper court and/or National Bureau of Investigation (NBI) clearance for the individual CPA, sole practitioner & the partners/principals of the partnerships.

11. Detailed description of such work experience of the individual CPA, sole proprietorship of the Firm and all the partners of the Partnership (data should include name of company, position, duties and responsibilities and date of employment)

Additional Requirements for Partnerships:

12. Certified copy of the Certificate of Registration issued by the SEC

13.Certified copy of current Articles of Partnership (Should tally with the application form BACC Form No. 02)

14. Certified copy of the documents showing the correspondent relationship, membership or business dealings with foreign CPA firm(s) if any, including complete address & postal address, telephone number and facsimile numbers, e-mail address and website.

15.Sworn statement stating that: (Please notarize and affix metered documentary to the original copy)

  • The copy of the document showing the correspondent relationship membership, or business dealings with the foreign CPA is the faithful reproduction of its original copy.
  • The foreign CPA is not directly or indirectly (through the Filipino CPA) engaged in the practice of public accountancy in the Philippines, except the authorized foreign CPAs under Section 34 and 35 of R.A. No. 9298
  • The rights and obligation of the parties in specific terms.

Other Requirements

16.Payment of registration fee (in Cash, Postal Money Order, Manager’s Check or Bank Draft payable to the Professional Regulation Commission)

  • Single Proprietorship – P 1,500
  • Partnership – P 2,500

17.Short Brown Envelope for the Certificate of Registration

18. One (1) set of paper fastener for the application.

19.One set of metered documentary stamp worth Twenty-One Pesos (P 21.00) to be affixed to the Certificate of Registration.

ALL NOTARIZED DOCUMENTS SHOULD HAVE METERED DOCUMENTARY STAMPS WORTH TWENTY-ONE PESOS (P21.00)

APPLICATIONS WITH INCOMPLETE DOCUMENTS WILL NOT BE ACCEPTED METERED DOCUMENTARY STAMP IS AVAILABLE AT PRC CUSTOMER SERVICE COUNTERS AND PRC REGIONAL OFFICES

Note: Representative/s filling and claiming the Certificate of Registration/Accreditation in behalf of the professional must present Special Power of Attorney and valid identification of the professional and the representative.

 

Sworn Statement

SWORN STATEMENT FOR ACCREDITATION REQUIREMENT OF RA 9298 (Sample)

I, (name of person), single practitioner or Chairman / Managing Partner of (name of the partnership), single/married/separated, of legal age and residing at (address of the affiant), having been duly sworn in accordance with law, depose and say:

That, I, as a single practitioner or Chairman / Managing Partner and all my / our staff members both CPAs and non-CPAs and partners (in case of a partnership), have:

1. I / we had three (3) years of meaningful experience in the scope of work covered in the practice of public accountancy (detailed description of work experience to be attached to the sworn statement);

2. I / we had a meaningful participation of our respective internal quality review process;

3. I / we had undergone adequate and effective training from organizations duly accredited by the Board of Accountancy or its duly authorized representatives on all current accounting and auditing standards, Code of Ethics, laws and its implementing rules and regulations, circulars, memoranda, their respective codes of good governance and other related documents that are required in the practice of public accountancy to ensure professional, ethical and technical standards;

4. I / we are all of good moral character; and,

5. I / we had not been found guilty by a competent court and / or administrative body of any case involving moral turpitude and / or unethical practices and that neither I / any of us is a defendant in any case of similar nature pending before any competent court and / or administrative agencies.

That, this affidavit is in compliance with requirement No. 8 of the amended list of requirement issued by the PRC / BOA for accreditation to practice public accountancy;

That, I, as a single practitioner or Chairman / Managing Partner of (name of the partnership), am executing this affidavit in support to my / our application to practice public accountancy in the Philippines;

That, I, as a single practitioner or Chairman / Managing Partner of (name of the partnership), know fully well that any false statement in this affidavit will lead to the cancellation of the accreditation being sought for and / or the filing of charges against me / the partnership.

 

WITNESS MY HAND on this _____ day of _______________, 20__ in

____________________, Philippines.

                    AFFIANT

 SIGNED IN THE PRESENCE OF:

____________________________

____________________________

 

SUBSCRIBED AND SWORN tome before this _____________________, 20__, the affiant exhibited to me his Community Tax No. ______________ issued on _______.

NOTARY PUBLIC

 Doc. No.

Page No.

Book No.

Series of

Code of Good Governance for CPAs (revised for my need)

COMMITMENT TO PUBLIC INTEREST, OBJECTIVITY AND TRANSPARENCY

As Certified Public Accountant, I shall always remember that I do not live for myself and my family alone. I am part of society to which I owe definite responsibilities. Therefore, I shall always uphold the public interest over and above personal interest.

In the performance of my profession, I shall maintain objectivity and shall make decisions and actions solely based on merit. I shall remain open and transparent about all the decisions and actions that I take. I should give reasons for my decisions and restrict information only when the wider public interest clearly demands it.

INTEGRITY, ACCOUNTABILITY AND IMPARTIALITY

I shall bear the unassailable stamp of integrity. I shall do my utmost to abide by the provisions of the Code of Professional Ethics for Certified Public Accountants. I shall, at all times, practice the highest standards of good morals in order to effectively discharge my function as professional. I shall, likewise, practice integrity and honesty, in order to preserve and protect the interest and the good name of the profession. I shall value my honor as I value my life. I shall, therefore, denounce all forms of nefarious activities that impinge upon the integrity of the profession.

I shall fully assume responsibility for the decisions and actions I take in the course of my practice, and live up to the consequences that flow from them including submitting myself to whatever public scrutiny is appropriate to my work.

I shall never discriminate against anyone and extend service to every citizen in need of my services, specially the underprivileged. I shall be just, charitable and courteous but dignified in my dealing with the public.

PROFESSIONAL COMPETENCE

I shall strive to attain the highest level of efficiency, effectiveness, and economy in my service. I shall commit myself to the highest degree of professional competence, both in the technical and ethical sense, through empowerment and continuing self-development. I shall commit myself to change, reform and innovation, where needed, in order to continually enhance the quality of service. I shall continuously update myself on new frontiers of professionalism and respond to developments affecting the profession.

SERVICE TO CLIENTS AND OTHER PUBLIC

I exist to serve primarily the clients and the public. I shall accord them the dignity and comfort that they deserve. I must adhere to a focused, efficient and committed service to the public. Service must be a measure of my professionalism, and I shall, therefore, always extend prompt, courteous and quality service to the public.

I shall also attend to others who may want to avail of my services and I must, at all times, act promptly and expeditiously on the public’s’ needs for service.

POSITIVE WORK ETHIC

I shall develop positive work ethic, always loving my calling and working cheerfully, thoroughly and well. Striving to be efficient at all times, I shall not leave for tomorrow what I can do today. Corollary to this, I shall always bear in mind that I have a job to perform and as such is duty bound to perform well. I shall discharge our duties and responsibilities with honesty and dedication to my individual work, no matter how humble and lowly the task may be.

SOLIDARITY AND TEAMWORK

I shall work in unison and collectively always mindful that in cooperation, there is strength, and in disunity, there is weakness. I shall, therefore, work towards the development of a culture of unity, cooperation and empowerment. I shall at all times respect the rights of my employees and peers, reaching out the hand of friendship to one another and endeavor to promote an atmosphere of good feeling, ample confidence, mutual respect and cooperation.

SOCIAL RESPONSIBILITY

I shall contribute to the welfare of society and promote social justice. In so doing, I must imbibe the professional’s vital role and significance to the accountancy practice, the government and the society as a whole. I shall assume responsibility for each and everyone’s role in sustaining and uplifting the standards of competence of the Filipino Certified Public Accountants. I shall at all times be mindful of the consequences on society of any of our acts and shall refrain from doing acts contrary to law, good morals, good customs, public policy, public order, public safety and public interest. I shall perform our tasks with utmost consideration of the consequences it may incur on public interest and welfare.

NATIONALISM AND PATRIOTISM

I shall, at all times, be loyal and dedicated to the national interest. I shall be ready at times to sacrifice for the country. I shall respect the Constitution which is the expression of the sovereign will. I shall, at all times, push for the protection and promotion of Filipino Certified Public Accountants to guaranty their competitive edge in the global arena. I shall also use and develop local resources and conserve them for posterity.