Internal Revenue Commissioner Kim S. Jacinto-Henares has extended up to October 31 the deadline for the submission of the new reporting requirements imposed on companies maintaining inventories of stock-in-trade, raw materials, goods and other supplies.
The extension was due to the short notice that the Bureau of Internal Revenue (BIR) gave to these companies who must comply with the new reporting requirements by September 30.
The new reporting requirements on inventories kept by companies include the use of particular templates, depending on the line of business that the reporting company is engaged in.
The filled-up template containing the inventories of a particular company at the end of the taxable year shall be in addition to the annual inventory list already required by the BIR. The new inventory list due on October 31 should cover the ending inventory as of December 31, 2014, and should be accompanied by supporting documents proving the truthfulness of the information contained in the inventory list.
Succeeding inventory lists in the prescribed template shall be submitted every 30th day following the close of the taxable year, depending on the accounting period being adopted by the taxpayer.
The new templates for reporting inventories are designed specifically for companies in the industries of retail, manufacturing, real estate and construction, but other companies maintaining inventories in their businesses are also required to use the template most suitable to their line of business.
The submission of the new reporting requirements should conform with the templates and formats prescribed by Revenue Memorandum Circular 57-2015, otherwise, the submission shall be deemed as not being received. Failure to submit the requirements will also subject the taxpayer to penalties provided under Sections 250 and 255 of the Tax Code. The reported inventories of stock-in-trade, raw materials, goods and other supplies are used by the BIR in computing the taxpayer’s gross income and the net taxable income.