REVENUE REGULATIONS NO. 10-2007

SUBJECT : Amending Further Section 3 of Revenue Regulations (RR) No. 9-2001, as last amended by RR No. 5-2004, Expanding the Coverage of Taxpayers Required to File Returns and Pay Taxes Through the Electronic Filing and Payment System (EFPS) of the Bureau of Internal Revenue.

TO : All Internal Revenue Officials and Others Concerned.
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Section 1. SCOPE. Pursuant to the provisions of Section 244 of the National Internal Revenue Code of 1997, as amended by Republic Act No. 9337, these regulations are hereby promulgated in order to further amend Section 3 of RR No. 9-2001, as last amended by RR No. 5-2004, by expanding the coverage thereof to include: (i) corporations with paid-up capital stock of Ten Million Pesos (P10,000,000.00) and above; (ii) corporations with complete computerized system; and (iii) all government bidders pursuant to Executive Order No. 398 as implemented by RR 3-2005. It should be emphasized, however, that non-stock non-profit corporations are excluded from the coverage of this regulations.

Section 2. DEFINITION OF TERMS. –

2.1 xxx xxx xxx

2.2 xxx xxx xxx

2.13 Paid-up capital stock - shall mean that portion of the authorized capital stock which has been both subscribed and paid. It also refers to the amount paid for the subscription of stock in a corporation including the amount paid in excess of par value, net of treasury stock.

2.14 Complete computerized system - refers to the books of accounts and other accounting records in electronic form, in accordance with Revenue Regulations No. 16-2006.

Section 3. COVERAGE. Section 3 of Revenue Regulations (RR) No. 9-2001, as amended by RR Nos. 2-2002, 9-2002 and 5-2004, is hereby further amended to read as follows:

"Section 3. - COVERAGE.- xxx xxx xxx

3.2. Non-large taxpayers. – The following Non-Large Taxpayers including their branches located in the computerized revenue district offices shall file their returns and pay their taxes thru EFPS, to wit:

3.2.1. The volunteering two hundred (200) or more Non-Large Taxpayers previously identified by the BIR to have availed of the option to file their returns under EFPS shall nevertheless continue to file their returns under such method. However, upon their receipt of a notification letter duly signed by the Commissioner of Internal Revenue, it becomes mandatory for them, including their branches located in the computerized revenue district offices, to file their returns and pay their taxes thru EFPS.

3.3. Other Taxpayers -

3.3.1. Corporations with paid-up capital stock of Ten Million Pesos (P10,000,000.00) and above;
3.3.2. Corporations with complete computerized system;
3.3.3 Taxpayers joining public bidding pursuant to Executive Order No. 398 as implemented by RR 3-2005.
xxx xxx xxx”

Section 4. REPEALING CLAUSE. – The provisions of Revenue Regulations No. 9-2001, 2-2002, 9-2002, 5-2004 and all other revenue issuances inconsistent herewith are hereby repealed, modified or amended accordingly.

Section 5. EFFECTIVITY CLAUSE. - These Regulations shall take effect on all returns to be filed in October, 2007 or after fifteen (15) days following publication in a newspaper of general circulation, whichever comes later.

(Original Signed)
MARGARITO B. TEVES
Secretary of Finance
Recommending Approval:
(Original Signed)
LILIAN B. HEFTI
OIC, Commissioner of Internal Revenue