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)


 ” 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”)






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