Guidelines & Policies

for the Monitoring of Service fees

of Professionals
(Revenue Regulations 4-2014)
Basic Taxpayer Obligations
"The ultimate inspiration is the
deadline"




Revenue Memorandum Circular No. 32-2014-Extension
of time to comply with RR 4-2014 from May 6 to May 31,
2014
REGISTRATION
New Requirements on
REGISTRATION (RR 4-2014)
All self-employed professionals shall submit
an AFFIDAVIT indicating the ff:
1.) rates;
2.) manner of billings;
3.) and the factors they may consider in
determining their fees.

Examples of affidavit
Source: PICPA website
When to submit?
Due date
Upon registration and every year
thereafter on or before Jan. 31
Transitory provision
Affidavit to be submitted within 30 days
from effectivity of this Regulation
May 31, 2014 per RMC 32-2014

INVOICING
New Requirements on
INVOICING (RR 4-2014)
In cases when no professional
fees are charged by the professional
and paid by client, a BIR registered
receipt, duly acknowledged by the latter,
shall be issued showing a discount of
100% as substantiation of the pro-
bono service.

BOOKKEEPING
***PATIENTS LOG BOOK (A SUBSIDIARY
BOOK)

Daily list of clients w/ the corresponding fees including
those free of charge, per branch
Name and address
Date
Official receipt no.
Amount charge
Must be registered with the BIR

New Requirements on
BOOKKEEPING (RR 4-2014)
OFFICIAL APPOINTMENT BOOKS
(RR 4-2014)
Shall contain only the names of the client
and the date/time of the meeting

Due date
May 31, 2014
RECAP
1. Submit affidavit on or before May 31,
2014 and every year thereafter;
2. Register appointment book on May 31,
2014;
3. Issue receipt for "pro bono" transactions
Penalty Clause
SEC. 254. Attempt to Evade or Defeat Tax. - in addition to other
penalties provided by law, upon conviction thereof, be punished by a
fine not less than Thirty thousand (P30,000) but not more than One
hunderd thousand pesos (P100,000) and suffer imprisonment of not
less than two (2) years but not more than four (4) years: That the
conviction or acquittal obtained under this Section shall not be a bar
to the filing of a civil suit for the collection of taxes.

SEC. 275. Violation of Other Provisions of this Code or Rules
and Regulations in General. - Any person who violates any
provision of this Code or any rule or regulation promulgated by the
Department of Finance, for which no specific penalty is provided by
law, shall, upon conviction for each act or omission, be punished by
a fine of not more than One thousand pesos (P1,000) or suffer
imprisonment of not more than six (6) months, or both.