Tax Alert No. 54 [Revenue Memorandum Circular (RMC) No. 119-2021 dated 10 December 2021]

Circularizing the Availability of Revised BIR Form Nos. 1707 and 1707-A Version April 2021 

The Commissioner of Internal Revenue has issued RMC No.119-2021 to prescribe the use of the following BIR forms, which were revised due to the implementation of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act:

• BIR Form No. 1707 - Capital Gains Tax Return (For Onerous Transfer of Shares of Stocks Not Traded Through the Local Stock Exchange)
• BIR Form No. 1707-A - Annual Capital Gains Tax Return (For Onerous Transfer of Shares of Stock Not Traded Through the Local Stock Exchange)

The revised manual returns are already available in the BIR website (www.bir.gov.ph) under the BIR Forms - lncome Tax Return. However, the forms are not yet available in the Electronic Bureau of Internal Revenue Forms (eBIRForms). As such, manual and eBIRForms filers are required to download the PDF version of the forms, print the forms and fill-out completely all the applicable fields, otherwise shall be subjected to penalties under Section 250 of the Tax Code, as amended.

The payment of the tax due thereon, if any, shall be made through manual or online payment channels. Pending the availability of returns in the Offline eBIRForms Package, taxpayers who opt to pay through online payment channels must still file the return manually to the RDO having jurisdiction over the place where the seller/transferor is required to register.

In case of “No Payment Return", the taxpayer shall file the return to the RDO having jurisdiction over the place where the seller/transferor is required to register.

You may access the full version of the Circular through the BIR website.