THE Bureau of Internal Revenue issued Revenue Memorandum Circular (RMC) No. 10-2017 to clarify the bookkeeping requirements of national government agencies (NGAs), government agencies and instrumentalities (GAIs) and government-owned and-controlled corporations (GOCCs).
Under the Corporation Code of the Philippines, NGAs, GAIs and GOCCs vested with functions relating to public needs, whether governmental or proprietary in nature, fall under the definition of a corporation created by operation of law or special laws or charters. As such, they are required to register and keep their books of accounts as follows:
1. Those who are using the Commission on Audit-developed Electronic New Government Accounting System (eNGAS) are not required to apply for Permit to Use. However, the eNGAS shall be submitted in electronic format for payment/remittance and verification of tax liabilities; and
2. Those who are using the computerized accounting system and/or components thereof other than the eNGAS are required to apply for Permit to Use which shall be submitted and registered in electronic format.
These shall be submitted to the Revenue District Office having jurisdiction over the principal place of business or to the Large Taxpayer’s Division where the head office is duly registered within 30 days from the close of each taxable year or within 30 days upon the termination of its use.
SOURCE: PUNONGBAYAN & ARAULLO (P&A) IS THE PHILIPPINE MEMBER FIRM OF GRANT THORNTON INTERNATIONAL LTD.