The Philippine government, through the Bureau of Internal Revenue (BIR), requires those who fall under the large taxpayer classification to operate using a Computerized Accounting System (CAS). This is by virtue of the Revenue Regulations No. 9-2009 issued by the BIR, as an agency tasked to collect more than half of the government’s total revenues.
Who are the Large Taxpayers?
The criteria used to determine which business establishment falls under the large taxpayer classification will be detailed below. It is important to note that following the BIR commissioner’s recommendation, the Secretary of Finance may deem it necessary to add to the said criteria. As a taxpayer, the business establishment in question only needs to satisfy at least one of these:
|Corporate Income Tax||Paid or payable annual income tax of at least PHP 1 million for the preceding taxable year|
|Excise Tax||Paid or payable of at least PHP 1 million for the preceding taxable year|
|Value Added Tax||Paid or payable of at least PHP 100,000.00 for any quarter of the preceding taxable year|
|Withholding Tax||Or remittance of at least PHP 1 million for the preceding taxable year|
What is CAS?
The CAS is an information system used to produce computer-generated accounting records, documents, and Books of Accounts. Its components are as follows:
- Cash Register Machine or Point Of Sale Machine linked to a Computerized Accounting System or connected to a network
- General Journal and other subsidiary records
- Accounts Payable Book, Accounts Receivable Book, Inventory Book, Purchases Book, Sales Book, Payroll Ledgers, Subsidiary Ledgers, and other accounting records
- Any application system that forms a part of the official accounting documents as well as any subsidiary ledger-generating application system
- Any application system that generates reports required by the Bureau of Internal Revenue
It is necessary to apply for a permit before using or adopting a CAS. For a complete list of required documents and where to submit the application, visit the BIR website.
Issuance of the Permit to Adopt CAS and/or Components Thereof:
|Systems Demo Required||Cross RDO Evaluation Required|
|10 days after the filling of application||✗||✗|
|20 days after the filling of application||✗||✓|
|30 days after the filling of application||✓||✗|
|40 days after the filling of application||✓||✓|
What to Do
Some entrepreneurs may find it intimidating to comprehend the law and comply with it accordingly. If you need expert assistance on your business’s accounting needs, you may contact our team by phone at +63 2 8247961 or +63 906 5586469 or you may send your inquiries via email to email@example.com.
As an experienced Philippines accounting services provider, we can share the industry best practices that can help in your transition. You can count on us as you prepare your business for the adoption of CAS. We are committed to help businesses properly monitor their income and expenditures, manage their finances, remain compliant to the laws, and supply quantitative financial information to their stakeholders, the government, and future partners whenever necessary.