Tax notes: Disclosure of rates charged by professionals

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Monday, April 21, 2014

TO HELP in its conduct of tax audits, the Bureau of Internal Revenue (BIR) has required all self-employed professionals to submit an affidavit indicating the rates, manner of billings and the factors considered in determining their service fees. The affidavit should be submitted upon BIR registration and on or before Jan. 31 of each year pursuant to Revenue Regulations (RR) No. 4-2014.

In addition to the submission of service fee rates and maintenance of books of accounts, all self-employed professionals should also maintain official appointment books of their practice of profession/occupation/calling.

Like the books of accounts, the official appointment books should also be registered with the BIR before their use by the self-employed professional. The official appointment books should contain the names of clients and the dates/time of meetings.


All self-employed professionals are also reminded by the BIR to register their sales invoices and official receipts (VAT or non-VAT) before using the documents in any transactions. In case no professional fees are charged by the professional and are paid by a client, a BIR registered receipt, duly acknowledged by the client, should be issued showing a discount of 100 percent as substantiation of the “pro-bono” service.

All existing and registered self-employed professionals are required to submit the affidavit and register their official appointment books within 30 days from April 5, 2014, i.e., the date of effectivity of the regulations.

(Source: Punongbayan & Araullo)

Published in the Sun.Star Cebu newspaper on April 22, 2014.


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