BIR Required Books Of Accounts

Wondering what Books Of Accounts which you must register to the BIR?

 Follow what the Tax Code is requiring.

Sec 232 of NIRC state that a journal and a ledger must be maintained by a Taxpayer (TP).

Sec 113 (C) of NIRC also requires that a Taxpayer must maintain a subsidiary sales journal and a subsidiary purchases journal for VAT-Registered.

In summary, the Basic Books Of Accounts a TP must register are the ff.:

1. General Journal
2. General Ledger
3. Subsidiary Sales Journal
4. Subsidiary Purchases Journal

There are also Journals and Ledgers which maybe registered by a TP under Sec 233 of NIRC. These are additionals but not required.

Again, consult a professional and seek advice which Books are right for your business. 

Treatment of Directors Fee according to BIR

In view thereof, the penultimate paragraph of Revenue Memorandum Circular  No.  34-2008 stating that directors receiving fees, per diems, allowances, and the like, from  corporations of which they are directors but are not employees thereof “fall  under  the  category of  sellers of  services  under 
Title IV  of the Code who are liable to pay the 12%  VAT on their gross receipts pursuant to Section 108 thereof, or to the 3% percentage tax imposed under Section  116,  should  they    fail  to    meet    the    VAT  threshold”


Source / Reference : RMC 77-2008