Taxationary 2017-09-03T10:37:12+00:00

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z ACRONYM

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Account Owner – a taxpayer who is duly enrolled in the eDST System. For juridical person, an Account Owner may be represented by any company official who shall be responsible in the enrollment in the system, maintenance of DST balance and creation of branch/ department user. (RR No. 7-2009)

 

Accumulated Reserves – commonly referred to as the General Reserve Fund. It is the amount of accrued sum of money annually retained and deducted from the net surplus which is not intended for allocation and distribution to the members, usually deposited in the bank for the protection of and stability of the cooperative. (RR No. 14-2007)

 

Acknowledgement Number – control number issued by the AAB to the BIR to confirm that tax payment has been credited to the account of government or recognized as revenue (internal revenue tax collection) by the Bureau of Treasury. (RR No. 9-2002)

 

Acquisition Cost – include the purchase price, tax assumed and the commission paid. (RR No. 6-2008)

 

Administrative Office – an office where records of sales and/or cash collections are kept which may form part of the head office or branch. (RR No. 11-2008)

 

Administrator – an entity which had been pre-qualified by the concerned Regulatory Authority in accordance with the PERA Rules, and accredited by the Bureau of Internal Revenue (BIR) in accordance with the provisions of these Regulations. (RR No. 17-2011)

 

Adopt-a-School Program – a program which allows the private entities to assist a public school in a particular aspect of its educational program within an agreed period. (RR No.10-2003)

 

Adult-Passenger – a passenger who has attained his twelfth birthday. (RR No. 15-2002)

 

Affiliate – a corporation that is directly or indirectly, through one or more intermediaries, controlled by, or is under the common control of another corporation. (RR NO. 17-2010)

 

Agent – an Authorized Agent is any person, whether natural or judicial, who acts on behalf of a client, who may be the Lender or the Borrower or bothy, in respect of SBL Transaction. (RR No. 10-2006)

 

Agreement – Memorandum of Agreement (MOA) or Agreement/Deed of Donation entered into by and between the adopting private entity and the public school specifying the terms and conditions of the adoption, including the tasks and responsibilities of the contracting parties. (RR No. 10-2003)

 

Agricultural Contract Growers – persons producing for others poultry, livestock or other agricultural and marine food products in their original state. (RR No. 14-2005)

 

Alcohol Products – distilled spirits, wines, fermented liquors as generally classified under Chapter III, Title VI of the National Internal Revenue Code (NIRC) of 1997. (RR No. 3-2006)

 

Annual Taxable Income of a Resident Senior Citizen – the annual gross compensation, business and other income received by a resident senior citizen during each taxable year from all sources as defined in Section 31 of the Tax Code. (RR NO. 4-2006)

 

Apartel – a building or edifice containing several independent and furnished or semi-furnished apartments, regularly leased to tourists and travelers for dwelling on a more or less long-term basis and offering basic services to its tenants, similar to hotels. (RR NO. 4-2006)

 

Applicable Taxable Year/Period – the taxable year/period for which qualification under the IVAP is sought. (RR No. 18-2006)

 

Appropriate Regulatory Authority (ARA) – refers to the agency/authority having jurisdiction over the Financial Institution’s (IF’s) operations. (RR No. 6-2004)

 

Assessment, Preliminary or Final, Disputed or Not – refers to a tax assessment issued or self-assessment made on or before June 30, 2006 which has not yet become final and executory. (RR No. 15-2006)

 

Assistance –   refer to the aid/help/contribution/donation provided by an adopting private entity to a public school. Assistance may be in the form of, 2 but not limited to, infrastructure, teaching and skills development, learning support, computer and science laboratories, and food and nutrition. (RR No. 10-2003)

 

Authentication – a confirmation that the record is accurate, complete and appropriate to the actions taken. (RR No. 16-2006)

 

Authorized Agent Bank – refers to any bank as certified by Bangko Sentral ng Pilipinas (BSP) which has satisfied the criteria on accreditation and is actually accredited to collect internal revenue taxes.(RR No. 9-2002)

 

Automobile – refer to any four- (4) or more-wheeled vehicle, other than a truck, pick-up, jeep/jeepney, bus or vehicle used for special purpose, which is propelled by gasoline or diesel and specially designed to transport persons and not primarily to transport freight or merchandise. (RR No. 4-2003)

 

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Baggage – articles, effects and other personal property of a passenger as are necessary or appropriate for wear, use, comfort or convenience in connection with his trip. (RR No. 15-2002)

 

Banks or Banking Institutions – those entities as defined in Section 3 of Republic Act No. 8791, as amended, otherwise known as the General Banking Law of 2000. The term “banks” or “banking institutions” are synonymous and interchangeable and specifically include universal banks, commercial banks, thrift banks (savings and mortgage banks, stock savings and loan associations, and private development banks), cooperative banks, rural banks, Islamic banks and other classifications of banks as may be determined by the Monetary Board of the Bangko Sentral ng Pilipinas. (RR No. 12-2003)

 

Banking Activities – the functions or operations conducted to carry on the business of commercial banking such as accepting drafts and issuing letters of credit; discounting and negotiating promissory notes, drafts, bills of exchange, and other evidences of debt; accepting or creating demand deposits; receiving other types of deposits and deposit substitutes; buying and selling foreign exchange and gold or silver bullion; acquiring marketable bonds and other debt securities; and extending credit, subject to such rules as the Monetary Board of the BSP may promulgate. (RR No. 8-2008)

 

Base Year – refers to the taxable year immediately prior to the Current Taxable Year. (RR No. 6-2005)

 

Bases Conversion and Development Authority (BCDA) (primary level) – refer to the implementing agency of the Project. (RR No. 17-2005)

 

Benefactor – any person, whether related to the senior citizen or not, who takes care of him/her as a dependant. (RR No. 4-2006)

 

Bioethanol – is the ethanol (C2H5OH) produced from biomass resources. (RR No. 8-2006)

 

BIR – Bureau of Internal Revenue (RR NO. 12-2010)

 

Book Value per Share – the value per share computed by dividing the total Stockholders’ Equity of a corporation or net assets of the company by the number of outstanding shares or units of participation in a company. (RR No. 6-2008)

 

BOA –  the Board of Accountancy under the Professional Regulation Commision (PRC). (RR No. 11-2006)

 

Borrower – any person, whether natural or judicial, who obtain shares of stock/securities from a Lender’s Portfolio or investment account under a MSLA strictly for purposes specified under Section 6 (f) hereof. (RR No. 10-2006)

 

Borrowing Period – the period agreed upon by the parties during which an SBL transaction should be outstanding, which period, shall in no case exceed two (2) years from the date of execution of the SBL Confirmation Notice. At the end of this period, the Borrower must return to the Lender the equivalent shares of stock borrowed. (RR No. 10-2006)

 

Branch – a separate or distinct establishment or place of business where sales transactions are conducted independently from the head office, which branch, like the HO, needs to be registered in the Revenue District Office (RDO) having jurisdiction over its physical location and is subject to the payment of Registration Fee (RF). (RR No. 11-2008)

 

Broker – is a person engaged in the business of buying and selling securities for the account of others. (RR No. 6-2008)

 

BOC – Bureau of Customs (RR No. 12-2010)

 

Bus – a motor vehicle of 3.5 tons gross vehicle weight or more of any configuration, which is generally accepted and specially designed for the public transportation of persons and with any number of wheels and axles. (RR No. 4-2003)

 

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Cancellation – the process by which the information pertaining to primary registration of a taxpayer is tagged as “cancelled” but nevertheless remains as part of the BIR’s registration database. (RR No. 11-2008)

 

Capital Assets – all real property held by a taxpayer, whether or not connected with his trade or business, and which are not included among the real properties considered as ordinary assets under Sec. 39 (A) (1) of the Code. (RR No. 7-2003)

 

Capital goods or properties – goods or properties with estimated useful life greater than one (1) year and which are treated as depreciable assets under Sec. 34(F) of the Tax Code, used directly or indirectly in the production or sale of taxable goods or services. (RR No. 4-2007)

 

Cash Register Machine (CRM) – a machine that has a memory and can record the sale/transfer of merchandise or service rendered, in lieu of a registered sales invoice or official receipt. (RR No. 11-2004)

 

CD-R (Compact Disc-Recordable) – an optical data storage written and read using lasers that can be read or viewed only but cannot be modified, deleted, or written over with new data. Recordable CDs are WORM (Write Once, Read Multiple). (RR No. 16-2006)

 

Certificate of Eligibility (COE) – refers to the certificate issued by the Appropriate Regulatory Authority as to eligibility of the NPL or ROPOA for the purposes of availing of the tax exemptions and privileges, and which, if applicable, likewise indicates its approval of the transfer of the NPAs from the FI to an SPV/Individual being in the nature of a “true sale”, pursuant to the provisions of the act and its implementing rules and regulations. (RR No. 6-2004)

 

Certificate of Entitlement to Subsidy (CES) –  mean a non-transferable instrument issued by the FIRB to the BCDA for the SCTEP, in an amount sufficient to cover the Philippine taxes on Japanese firms or nationals operating as contractors, consultants or suppliers in the Project. (RR No. 17-2005)

 

Certificate of Product Quality/Analysis – the certification issued by the supplier, either local or foreign, or by an independent or third-party surveyor on the quality of goods transported and consigned in favor of the Oil Industry-Participant for use in the Fuel Bioethanol Program. (RR NO. 8-2006)

 

Certified Authorizing Registration (CAR) – it is issued by the BIR to effect the transfer of ownership over real property. (RR No. 13-2011)

 

Chartered Flight – refers to flight operation which includes operations between ports or points situated in the Philippines and ports or points outside the Philippines, which include block charter, place under the custody and control of the charterer by a contract/charter for rent or hire relating to a particular airplane. (RR No. 15-2002)

 

Children – refer to passengers who have attained their second but not their twelfth birthday. (RR No. 15-2002)

 

Closely-Held Corporation – is corporation at least fifty percent (50%) in value of the outstanding capital stock or at least fifty percent (50%) of the total combined voting power of all classes of stock entitled to vote is owned directly or indirectly by or for not more than twenty (20) individuals. (RR No. 6-2008)

 

Collateral – Cash, government or equity securities or letters of credit guaranteed by a bank, provided to the Lender as security in accordance with the rules prescribed by the SEC and/or PSE until the borrowed share/security is returned. (RR No. 10-2006)

 

Collateral Management System Operator – refers to PDTC, the entity also accredited by PDEx which is capable of operating a Collateral Management System and which accepts all assets intended as collateral for transactions under its Fixed-Income Securities Lending Program, and holds the same for the benefit of Lenders during the Borrowing Period. (RR No. 5-2007)

 

Commencement of Business – in the case of pursuit of business or practice of profession, it shall be reckoned from the day when the first sale transaction occurred or within thirty (30) calendar days from the issuance of Mayor’s Permit/Professional Tax Receipt (PTR) by LGU, or Certificate of Registration issued by the Securities and Exchange Commission (SEC), whichever comes earlier. (RR No. 7-2012)

 

Common Carrier – refers to persons, corporations, firms or association engaged in the business of carrying and transporting passengers or goods or both, by land, water, or air, for compensation, offering their services to the public and shall include transportation contractors. (RR No. 14-2005)

 

Compact – a Millennium Challenge Compact between the USA and the Philippines. (RR No. 12-2010)

 

Complete Computerized System – refers to the books of accounts and other accounting records in electronic form, in accordance with Revenue Regulations No. 16-2006. (RR No. 10-2007)

 

Completely Build Up (CBU) – shall refer to vehicles imported in completely assembled form and ready for use by the consumers. (RR No. 25-2003)

 

Completely Knocked Down (CKD) – shall refer to parts and components for assembly purposes that are imported in disassembled condition. (RR No. 25-2003)

 

Computerized Accounting Books/Records – books of account and other accounting records in electronic form, such as electronic documents, transaction files, customer or vendor master files, and other files/databases maintained and used by a taxpayer in and under a computerized accounting system. (RR No. 16-2006)

 

Computerized Accounting System – refers to a computer – based system used to process captured/encoded accounting/financial data to generate books of account, reports, or any other accounting information. This system may either be comprehensive in nature to cover all the financial transactions of the system owner or may only be a component or components thereof. (RR No. 5-2002)

 

Computerized Books of Accounts – refers to the computerized books of entries (e.g., journals, ledgers, subsidiaries etc.) emanating from processed transactions that are captured or encoded into the accounting system and/or interfaced system(s). (RR No. 5-2002)

 

Confidential Information – is the sworn written statement given voluntarily to the informer. Such document must definitely state the facts or acts constituting fraud committed by a person or entity denounced to have violated or in violation of the NIRC of 1997, as amended. (RR No. 16-2010)

 

Conglomerate – is a combination of two or more corporations engaged in entirely different businesses together into one corporate structure, usually involving a parent company and a subsidiary/ies. (RR No. 17-2010)

 

Consolidation – is the union of two or more corporations into one corporate body, after which the constituent corporation cease to exist. Assets and Liabilities of the constituent are absorbed by the new company. (RR No. 17-2010)

 

Contributor – a natural person who: (1) establishes and contributes to a PERA; (2) has a Tax Identification Number; and (3) has the capacity to contract. A person over fifty-five (55) years of age may still open a PERA and be a qualified Contributor. (RR No. 17-2011)

 

Control – is the power of parent corporation to direct or govern the financial and/or operating policies of an enterprise so as to obtain benefits from its activities. (RR No. 17-2010)

 

Construction in progress (CIP) – is the cost of construction work which is not yet completed. CIP is not depreciated until the asset is placed in service. Normally, upon completion, a CIP item is reclassified and the reclassified asset is capitalized and depreciated. (RR No. 4-2007)

 

Continuous and Uninterrupted Flight – refers to a flight in the carrier of the same airline company from the moment a passenger, excess baggage, cargo, and/or mail is lifted from the Philippines up to the point of final destination of the passenger, excess baggage, cargo and/or mail. The flight is not considered continuous and uninterrupted if transshipment of passenger, excess baggage, cargo and/or mail takes place at any port outside the Philippines on another aircraft belonging to a different airline company. (RR No. 15-2002)

 

Constitutive Documents – the articles of incorporation and bylaws of a REIT. (RR No. 13-2011)

 

Constructive Receipt – occurs when the money consideration or its equivalent is placed at the control of the person who rendered the service without restrictions by the payor. (RR No. 14-2005)

 

Consultant (secondary level) – refer to the party whose services for the detailed design and monitoring of works are directly engaged by BCDA for the implementation of the Project, and when such party is unincorporated joint venture, the member of such joint venture. (RR No. 17-2005)

 

Cooperative – those associations duly registered with the Cooperative Development Authority (CDA), composed of at least fifteen (15) persons, majority of which are poor, having a common bond of interest, who voluntarily join together to achieve a lawful common social and economic end. (RR No. 14-2007)

 

Corporation Code – the Batas Pambansa Bilang 68, otherwise known as Corporation Code of the Philippines. (RR No. 13-2011)

 

Cost of Goods Sold – include all business expenses directly incurred to produce the merchandise to bring them to their present location and use. (RR No. 12-2007)

 

Cost of Services or Direct Cost of Services – include business expenses directly incurred or related to the gross revenue from rendition of services. (RR No. 12-2007)

 

Covered Employee – any natural person who performs work for a Project or otherwise in connection with the Compact as an employee of MCA-Philippines or a Vendor, and who is not a Philippine citizen or Philippine permanent resident. (RR No. 12-2010)

 

Credit cooperative – is a type of cooperative which provides thrift among its members and creates funds in order to grant loan for productive and provident purposes.(RR No. 14-2007)

 

Current Taxable Year – refers to the taxable year for which qualifications under the NAP is sought. (RR No. 6-2005)

 

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Data – a representation of information in a formalized manner suitable for communication, interpretation, or processing. Data consists of letters, numbers, or symbols. (RR NO. 16-2006)

 

Database – a stored collection of related electronic data used by organizations to meet their information processing requirements. It is normally associated with software to access and manipulate that data. (RR NO. 16-2006)

 

Data Management System – a software system that controls, relates, retrieves, and provides accessibility to data stored in the database. (RR NO. 9-2009)

 

Dation in Payment (dacion en pago) – refers to a payment whereby property, whether real or personal, tangible or intangible, is alienated in favor of the creditor, which could either be an FI or an SPV, in satisfaction on a non-performing loan. (RR No. 6-2004)

 

Dealer in Denatured Alcohol – a person, natural or judicial, who, other than as denaturer, sells or offers for sale or delivery to others, for himself or on commission, denatured alcohol in the original containers as bought or required by him without opening the same and breaking the internal revenue labels affixed thereto. (RR No. 3-2006)

 

Dealer in Securities – means a merchant of stock or securities, whether an individual partnership or corporation, with an established place of business, regularly engaged in the purchase securities and their resale to customers, that is, one who as a merchant buys security and sells them to customers with a view to the gains and profits that may be derived therefrom. (RR No. 14-2005)

 

Dehydration – the process of removing water to produce anhydrous or dehydrated bioethanol containing more than ninety-nine percent (99%) by volume of ethanol (C2H5OH). (RR No. 8-2006)

 

Delinquent Accounts – the amount of tax due on or before June 30, 2006 from a taxpayer who failed to pay the same within the time prescribed for its payment, arising from(1) a self-assessed tax, or (2) a deficiency assessment issued which has become final and executory. (RR NO. 15-2006)

 

Dental Services – the oral examination, cleaning, permanent and temporary filling, extraction and gum treatments, restoration, replacement or repositioning of the teeth, or alteration of the alveolar or periodontium process of the maxilla and the mandible that are necessary  for the diagnosis and/or treatment of dental illness or injury. (RR No. 4-2006)

 

Dependent – senior citizen, who may or may not be related to his benefactor and who is living with and dependent upon his benefactor for his chief support. (RR No. 4-2006)

 

Deposit Substitutes – refer to an alternative form of obtaining funds from the public (the term ‘public’ means borrowing from twenty [20] or more individual or corporate lenders at any one time), other than deposits, through the issuance, endorsement, or acceptance of debt instruments for the borrower’s own account, for the purpose of relending or purchasing of receivables and other obligations, or financing their own needs or the needs of their agent or dealer. (RR No. 12-2003)

 

Diagnostic and Laboratory Tests – refer to X-Ray, CT Scans, Blood Chemistry Exams, Histopathology and Immunopathology, Hematology, Urinalysis, Parasitology and Bacteriology Tests, Serology, Blood banking, and other diagnostic examinations that are necessary for diagnosis and/or treatment of an illness and injury. (RR No. 4-2006)

 

Disability – physical or mental impairment that substantially limits one or more psychological, physiological or anatomical function of an individual or activities of such individuals. (RR No. 1-2009)

 

Distributable Income – the net income earned for the taxable year as adjusted for unrealized gains and losses/ expenses and impairment losses and other terms in accordance with internationally accepted accounting standards. (RR No. 13-2011)

 

Distribution Companies – the persons or entities which operate a distribution system in accordance with provisions of the EPIRA. (RR No. 14-2005)

 

Documentary Stamp Tax Electronic Imprinting Machine (DSEIM) – is a device capable of imprinting the value of the DST and other data on the taxable document with remote loading and resetting feature, and with built-in modem which enables the users to load the DST thru an on-line set-up or electronic data transmission with the BIR using the Revenue Collection and Verification System (RCVS). (RR No. 7-2009)

 

DPWH – Department of Public Works and Highways (RR No. 12-2010)

 

DSWD – Department of Social Welfare and Development (RR No. 12-2010)

 

DVD-R (Digital Video Disc- Recordable) – a new generation of optical disc storage technology which holds more data than the CD-R. (RR No. 16-2006)

 

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E-Gasoline – the unleaded gasoline blended with fuel bioethanol. (RR NO. 8-2006)

 

eDST User – is any person authorized by the Account Owner to utilize the DST Account balance and affix the prescribed documentary stamp to any taxable document. (RR No. 7-2009)

 

Early Withdrawal – a withdrawal of a PERA assets, whether in full or in part, in such manner and at such time as to make the receipt of such PERA Assets not a Qualified PERA Distribution. (RR No. 17-2011)

 

Early Withdrawal Penalty – have the meaning ascribed to such term under Section 10 of these Regulations. (RR No. 17-2011)

 

Educational Services – academic, technical or vocational education provided by private educational institutions duly accredited by the DepEd, the CHED, and those rendered by government educational institutions and it does not include seminars, in-service training, review classes and other similar services rendered by persons who are not accredited by the DepEd, the CHED and/or the TESDA. (RR No. 14-2005)

 

EFPS AAB – is a BIR authorized agent bank (AAB) that has passed accreditation criteria for EFPS AAB such as being an internet-ready bank, indorsed by the Bureau of Treasury (BTR) for EFPS accreditation, and certified by the Information System Group of the BIR that the applicant bank’s system is acceptable and compatible with EFPS of the BIR. (RR No. 9-2002)

 

Electronic Data Interchange (EDI) – the computer-to-computer exchange of business transactions in a standardized structured electronic format. (RR No. 9-2009)

 

Electronic Document – information or the representation of information, data, figures, symbols or other modes of written expression, described or however represented, by which a right is established or an obligation extinguished, or by which a fact may be proved and affirmed, which is received, recorded, transmitted, stored, processed, retrieved or produced electronically. (RR NO. 16-2006)

 

Electronic Documentary Stamp Tax (eDST) System – is a web-based application created for taxpayers and the BIR that is capable of affixing a secured documentary stamp on the taxable documents as defined under the appropriate provisions under Title VII of the National Internal Revenue Code of 1997. (RR No. 7-2009)

 

Electronic Filing and Payment System (eFPS) – the internet-based system of the BIR for the paperless filing of tax returns, the payment of taxes due thereon, and the submission of information such as Summary List of Sales and Purchase. (RR No. 3-2005)

 

Electronic Fund Transfer Instruction System (eFTIS) – the electronic processing and transmission of tax return information, including attachments, if any, and the payment of corresponding taxes due the government via the internet thru the BIR website. (RR No. 7-2009)

 

Electronic Linkage – refers to the system that paves the submission/transmission of data and information in electronic format viewable and accessible to Bureau under secured environment via internet facilities. (RR No. 5-2002)

 

Electronic Mail (E-mail) – the transmission of messages using electronic files over the communication networks. (RR No. 5-2005)

 

Electronic Signature – refers to the methodology or procedures prescribed by the BIR through the EFPS, employed by an individual taxpayer, or by an officer/s of a corporate taxpayer who is required by the Tax Code or appropriate regulation to affix his/her signature to such return, who files a return and pays taxes through EFPS, with the intention of authenticating, approving and attesting to the truth and correctness of the return. In the case of a corporate taxpayer, the electronic signature shall be deemed to be the signature singly, and collectively, of both the authorized corporate officer/s that are required by the Tax Code or appropriate regulations to file and swear to the truth and correctness of such return and who are certified as such officers by the corporate secretary in a document submitted to the BIR. (RR No. 2-2002) ; any distinctive mark, characteristic and/or sound in electronic form, representing the identity of a person and attached to or logically associated with the electronic data message or electronic document or any methodology or procedures employed or adopted by a person and executed or adopted by such person with the intention of authenticating or approving an electronic data message or electronic document. (RR No. 16-2006)

 

Electronic Record – a collection of related information in an electronically readable format. Electronic Records do not include hard-copy records that are created or recorded on paper or stored in or by an imaging system such as microfilm, microfiche, or storage-only imaging system. (RR No. 9-2009)

 

Electronic Record Keeping – those electronic business systems that create, process, store, maintain and provide access to the financial records of a person, including but not limited to custom and commercial accounting software, Point of Sale systems and Internet-based electronic commerce business systems. (RR No. 9-2009)

 

Electronically Readable Format – the information supported by a system capable of producing an accessible and useable copy. (RR No. 9-2009)

 

Entertainment, Amusement and Recreation Expenses – includes representation expenses and/or depreciation or rental expense relating to entertainment facilities.(RR No. 10-2002)

 

Entertainment Facilities – refer to (1) a yacht, vacation home or condominium; and (2) any item of real or personal property used by taxpayer primarily for the entertainment, amusement, or recreation of guests or employees. To be considered an entertainment facility, such yacht, vacation home or condominium, or item of real or personal property must be owned or form part of taxpayer’s trade, business or profession, or rented by such taxpayer, for which the taxpayer claims a depreciation or rental expense. (RR No. 10-2002)

 

Equivalent Shares of Stock/Securities – Share of stock/securities of the same type or class of issue and of equivalent number to the shares/securities borrowed; Conversion, subdivision or consolidation, a takeover, or a right issue where it is not possible to return such borrowed share of stocks/securities because of a corporate re-structuring or similar event subsequent to the date of the SBL. (RR No. 10-2006)

Establishment – any entity, public or private, duly licensed and/or franchised by the national government agencies or the local government units. (RR No. 4-2006)

 

Excess Baggage – refers to the part of the baggage which is in excess of that baggage which may be carried free of charge.(RR no. 15-2002)

 

Exchange – an entity that provides a venue for the dealing/exchange of fixed income securities and is duly authorized by the SEC to engage in such activity. For purposes of these Regulations, the term shall only refer to the Philippine Dealing & Exchange Corp (PDEx). (RR No. 5-2007)

 

Excise Tax Portion – that portion of the purchase price of a petroleum product that is equal in the amount to the excise tax paid by the local refiner for said petroleum product. (RR No. 12-2010)

 

Excisable Establishment – refers to any person, natural or judicial, who is engaged in the business of manufacturing, producing, assembling, importing and/or trading goods or article subject to excise tax under Title VI of the Tax Code of 1997. (RR No. 5-2002)

 

Exhibitor or Organizer – primary lessee of the entire space where the operations of privilege-stores are held by virtue of a lease contract executed between the owner of the leased property and the organizer who subsequently sub-leases the same to the privilege-store operators during the entire duration of the lease contract. (RR No. 16-2003)

Existing Brand – a brand of alcohol or tobacco products which is included in  Annexes A, B, C and D of R.A. No. 8240 and Revenue Regulations (RR) Nos. 1-97 and 2-97. (RR No. 3-2006)

 

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Facility – may include but not limited to place of production, warehouse, storage place, garage, bus terminal, or real property for lease, which is required to be registered as a facility in a revenue district office having jurisdiction over its physical location. (RR No. 11-2008)

 

Failed Settlement – the failure of the seller to deliver to the buyer the shares subject of the transaction within the required period. (RR No. 10-2006)

 

Family of an individual – includes only his brothers and sisters (whether by the whole or half-blood), spouse, ancestors, and lineal descendants. (RR No. 6-2008)

 

Field or data element– a specified area of a record used for storing a particular class of data. Fields are sub-units of a record. (RR No. 16-2006)

 

File – a named collection of records stored or processed as an individual entity. (RR No. 16-2006)

 

File formats – a standard of organizing and storing the data in the file such that specific applications will be able to use the data. (RR No. 16-2006)

 

Filipino Overseas Contract Worker (OCW) – are Filipino citizens employed in foreign countries, commonly referred to as OFWs, who are physically present in a foreign country as a consequence of their employment thereat.  (RR No. 7-2012)

 

Financial Institution – refer to banks, non-bank financial intermediaries including quasi banks and finance companies. This does not, however, include insurance companies. (RR No. 12-2003)

 

Financial Leasing – refer to the mode of extending credit through a non-cancellable lease contract under which the lessor purchases or acquires, at the instance of the lessee, machinery, equipment, motor vehicles, appliances, business and office machines, and other movable or immovable property in consideration of the periodic payment by the lessee of a fixed amount of money sufficient to amortize at least seventy percent (70%) of the purchase price or acquisition cost, including any incidental expenses and a margin of profit over an obligatory period of not less than two (2) years during which the lessee has the right to hold and use the leased property with the right to expense the lease rentals paid to the lessor and bears the cost of repairs, maintenance, insurance and preservation thereof, but with no obligation or option on his part to purchase the leased property from the owner-lessor at the end of the lease contract (R.A. No. 5980 as amended by R.A. No. 8556). (RR No. 12-2003)

 

Financing Companies – refer to corporations except banks, investments houses, savings and loan associations, insurance companies, cooperatives, and other financial institutions organized or operating under other special laws, which are primarily organized for the purpose of extending credit facilities to consumers and to industrial, commercial, or agricultural enterprises, by direct lending or by discounting or factoring commercial papers or accounts receivables, or by buying and selling contracts, leases, chattel mortgages, or other evidences of indebtedness, or by financial leasing of movable as well as immovable properties (R.A. No. 5980 as amended by R.A. No. 8556). (RR NO. 12-2003)

 

Fixed-Income Securities – types of debt securities that are acceptable to the Lending Pool System for lending under the Fixed-Income Securities Lending Program of PDEx. (RR No. 5-2007)

 

Fixed Length File – a file in which each record has the same number of characters. (RR No. 16-2006)

 

Follow-on/Follow-through Offering of Shares – an offering of shares to the investing public subsequent to an IPO. (RR No. 6-2008)

 

Foreign Currency – is a currency which is other than the functional currency of the qualified entity. (RR No. 6-2006)

 

Foreign Currency Denominated Sale – means the sale to a non-resident goods, except those mentioned in Secs. 149 and 150 of the Tax Code, assembled or manufactured in the Philippines for delivery to a resident in the Philippines, paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the BSP. (RR No. 14-2005)

 

Foreign Tax Authority – these are the tax authority or tax administration of the requesting State under the tax treaty or convention to which the Philippines is a signatory or a party of. (RR No. 10-2010)

 

Freeport Zones and Economic Zones as defined by law, are considered as separate customs territories. Sales by entities registered with these zones are either treated as sales outside the country (if the purchaser is a locator as well or if the goods are for export to a country other than the Philippines) or domestic sales. If considered as domestic sales, said sales are importations in the hands of the purchaser and are thus, subject to the corresponding customs duties and other taxes on imported products. (RR No. 2-2012)

 

Fuel Bioethanol – the suitably denatured bioethanol, for use as blending component to unleaded gasoline to produce E-gasoline. (RR NO. 8-2006)

 

Functional Currency – is the currency of the primary economic environment in which the reporting entity operates; that is the currency of the environment in which an entity primarily generates and expends cash. (RR No. 6-2006)

 

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Generation Companies – refers to a person or entities authorized by the Energy Regulatory Commission (ERC) to operate facilities used in the generation of electricity. (RR No. 14-2005)

 

Goods – pertains to a tangible personal property. (RR No. 14-2008)

 

Government Securities – refer to security issued by the Republic of the Philippines or any of its agencies, instrumentalities, and political subdivisions.(RR No. 20-2003)

 

Gross Income – it is the gross sales less sales returns, discounts, and allowances and cost of goods sold, in case of sale of goods, or gross revenue less sales returns, discounts, allowances and cost of services/direct cost, in case of sale of services. (RR No. 12-2007)

 

Gross Receipts – For purposes of RR No. 12, the term shall refer to the compensation for all financial and non- 4 financial services, or combination thereof, exclusive of the value added tax, performed by financial institutions within the Philippines, which compensation or fees are actually or constructively received during the month or quarter. (RR No. 12-2003)

 

Gross Revenue – include income from sale of services, likewise, taxable under Sec. 27(A). (RR No. 12-2007)

 

Gross Selling Price – The term shall refer to the total amount of money or its equivalent which the purchaser pays or is obligated to pay to the seller in consideration of the sale, barter or exchange of the goods or properties, excluding the value added tax. (RR No. 12-2003)

 

Gross value in money – means the “fair market value”. In the case of shares traded thru the stock exchange, “fair market value” shall consist of the actual selling price at which the transaction was executed in the trading system and/or facilities of the Local Stock Exchange. (RR No. 6-2008)

 

Group of Companies – the corporations that are related to one another as parent corporations, subsidiaries, affiliates and conglomerates. (RR NO. 17-2010)

 

Guests – mean persons or entities with which the taxpayer has direct business relations, such as but not limited to, clients/ customers or prospective clients/customers. The term shall not include employees, officers, partners, directors, stockholders or trustees of the taxpayer. (RR No. 10-2002)

 

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Hard Copy – any documents, records, reports or other data printed on paper. (RR No. 9-2009)

 

Heads – distillation fraction containing a high percentage of low boiling components such as aldehydes. (RR No. 3-2006)

 

Head Office (HO) – declared specific or identifiable principal place/head office of business as stated in the Articles of Incorporation/ Articles of Partnership/ Department of Trade and Industry Certificate of registration, as the case maybe, or, in the absence thereof, the place where the complete books of accounts are kept. (RR No. 11-2008)

 

Head of Family – an unmarried or legally separated man or woman, widow or widower, who is the benefactor of a defendant senior citizen. (RR No. 4-2006)  

 

Hotel/Hostel – the building, edifice or premises or a completely independent part thereof, which is used for the regular reception, accommodation or lodging of travelers and tourists and the provision of services incidental thereto for a fee. (RR No. 4-2006)

 

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Implementing Rules and Regulations (IRR) – as revised, it is promulgated by SEC to implement the provisions of this Act. (RR No. 13-2011)

 

Importer – shall refer to any person bringing motor vehicles into the country from a foreign country for the purpose of sale, for personal use or for use in business. (RR No. 25-2003)

 

Importation – the introduction of an alcohol or tobacco product from a foreign country into the Philippine customs’ territory or into a duly chartered economic and freeport zones and duty-free shops, whether for sale or not. (RR No. 3-2006)

 

Income Generating Real Estate – the real property which is held for the purpose of generating a regular stream of income such as rentals, toll fees, user fees and the like, as may be further defined and identified by the SEC. (RR No. 13-2011)

 

Income Tax Due – the income tax due per final or annual income tax return, undiminished by any amount of withholding tax or tax credit. (RR No. 18-2006)

 

Income Tax Returns – all Income Tax Forms issued/ prescribed by the BIR including attachments thereto, written statements or other documents designed to be supplemental to and part of the said returns. (RR No. 10-2010)

 

Infant – refer to a passenger who has not attained his second birthday. (RR No. 15-2002)

 

Informer – any qualified person who voluntarily provides definite and sworn information not yet in the possession of the BIR nor of the public knowledge, leading to the discovery of frauds upon the internal revenue laws or violations of any provisions of the NIRC of 1997, as amended, resulting in the recovery of the revenues, surcharges and fees and/or the conviction of the guilty party and/or the imposition of any fine or penalty. (RR No. 16-2010)

 

Initial Payments – means payment or payments which the seller receives before or upon execution of the instrument of sale and payments which he expects or is scheduled to receive in cash or property (other than evidence of indebtedness of the purchaser) during the year when the sale or disposition of the real property was made. (RR NO. 14-2005)

 

Initial Public Offering (IPO) – a public offering of shares of stock made for the first time in the Local Stock Exchange. (RR No. 6-2008)

 

Input Tax – means the VAT due on or paid by a VAT-registered person on importation of goods or local purchases of goods, properties or services, including lease or use of properties, in the course of his trade or business. (RR No. 14-2005)

 

Insurance Companies – refer to entities that undertakes for a consideration to indemnify another (insured) against loss, damage or liability arising from an unknown or contingent events. (RR No. 12-2003)

 

International Agreements or Agreement on Tax Matters – refers to Tax Information Exchange Agreements (TIEAs) which may be negotiated between the Philippines and other Contracting States or jurisdictions. (RR NO. 10-2010)

 

International Air Carrier – refers to foreign airline corporation doing business in the Philippines having been granted landing rights in any Philippine port to perform international air transportation services/activities or flight operation anywhere in the world. (RR No. 15-2002)

 

International Convention or Tax Treaty – is the Double Taxation Convention (DTCs) or Double Taxation Agreement (DTAs) negotiated between the Philippines and other Contracting States or jurisdictions for the avoidance of double taxation and the prevention of physical evasion with respects to taxes on income. (RR No. 10-2010)

 

Interest Income – For purposes of RR No. 12, the term shall include interest and discounts earned on loans and investment transactions. (RR No. 12-2003)

 

Investible Funds – funds of the REIT that can be placed in investment vehicles other than income generating real estate such as real estate related assets, managed funds, government securities, and cash and cash equivalents. (RR No. 13-2011)

 

Investor – the owner of investor securities or investor shares. (RR No. 13-2011)

 

Investor Securities or Shares – are the shares of stock issued by a REIT or derivatives thereof. (RR No. 13-2011)

 

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Jeep/Jeepney – refer to a locally assembled military type vehicle manufactured by local firms with no foreign affiliations, which is similar in appearance to the McArthur or Eisenhower type with canvas or hard top shell. It shall also include the locally assembled variant of the said vehicle primarily used for transport of passenger. (RR No. 4-2003)

K


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Late Return – a tax return filed beyond the date prescribed under the NIRC and existing rules and regulations. Tax returns filed with check payments made by the taxpayer on the prescribed due date, but were received by the concerned AAB after the cut-off / clearing time and reported in the Batch Control Sheet (BCS) the following working day, shall not be considered as late returns / late payments. (RR No. 13-2010)

 

Latest Income Tax Return (LITR) – refers to the ITR for the preceding Tax Year be it on a calendar or fiscal year. (RR No. 3-2005)

 

Latest Business Tax Return – refers to the Value Added Tax (VAT) or Percentage Tax returns covering the previous six (6) months. For those with less than six (6) months of operations, this refer to the monthly business tax returns filed to date. (RR No. 3-2005)

 

Lease or Operating Agreement – is the document that stipulates the agreement between the lessee and lessor with regard to the use and/or operation of the former of the storage facilities owned by the lessor. (RR No. 2-2012)

 

Lender – is any institution qualified by PDEx under its Fixed-Income Securities Lending Program, who lends securities from his/its pool of assets or the assets of his/its clients (in the case of Lending Agents). (RR No. 5-2007)

 

Lending Agent. – is an institution accredited by the BSP or the SEC and qualified by PDEx that lends securities from the assets of its clients for SBL/SLTs under the Fixed-Income Securities Lending Program of PDEx. (RR No. 5-2007)

 

Lender/Lending Agent – any person or entity who lend shares of stock/securities from his pool of assets as principal or from the assets of his client in case of a Lending Agent. (RR NO. 10-2006)

 

Lending Investors – includes all person other than banks, non-bank financial intermediaries, finance companies and other financial intermediaries not performing quasi-banking functions who make a practice of lending money for themselves or others at interest. (RR No. 14-2005)

 

Lending Pool System Operator – the Philippine Depository and Trust Corporation (PDTC), the entity accredited by PDEx which is capable of operating a Lending Pool System and which accepts all securities intended for transactions under its Fixed-Income Securities Lending Program and delivers the same to Borrowers upon execution of an SBL/SLT. (RR No. 5-2007)

 

Lessee – the one who is granted the use of a storage facility by virtue of a lease agreement with its owner or operator. (RR No. 2-2012)

 

Lessor or Operator – used synonymously with an owner or the one that grants the use of a storage facility with whom a lease agreement was executed. (RR No. 2-2012)

 

Light Commercial Vehicle (LCV) – refer to a motor vehicle, whether four-wheel drive or not, such as commuter vans; utility vehicles; Sports Utility Vehicles (SUV); and the like, except pick-ups. (RR No. 4-2003)

 

Local Stock Exchange – any domestic organization, association, or group of persons, whether incorporated or unincorporated, licensed or unlicensed, which constitutes, maintains, or provides a marketplace or facilities for bringing together purchasers and sellers of stocks, and includes the market place and the market facilities maintained by such exchange. (RR No. 6-2008)

 

Lodging Establishment – those establishment that are regularly engaged in the hotel business, but which, nevertheless, are not registered, classified and licensed as hotels by reason of inadequate essential facilities and services. (RR No. 4-2006)

 

Low-Cost Housing – refers to housing projects intended for homeless low-income family beneficiaries, undertaken by the Government or private developers, which may either be a subdivision  or a condominium registered and licensed by the Housing and Land Use Regulatory Board/Housing (HLURB) under BP Blg. 220, PD No. 957, or any other similar law, wherein the unit selling price is within the selling price ceiling per unit of P750,000.00 under RA No. 7279, otherwise known as the “Urban Development and Housing Act of 1992” and other laws, such as RA No. 7835 and RA. No. 8763. (RR No. 14-2005)

 

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Machine Identification Number (MID) – the unique, system-generated control number issued by the BIR to the taxpayer through its Electronic Sales Reporting System (eSales), to acknowledge the enrollment of the machine into the facility. (RR No. 5-2005)

 

Managerial Employee – one who is vested with powers or prerogatives to lay down and execute management policies and/or to hire, transfer, suspend, layoff, recall, discharge, assign or discipline employees. (RR No. 11-2010)

 

Marginal Income Earner – those individuals whose business do not realize gross sales or receipts exceeding P100,000 in any 12-month period. (RR No. 11-2008)

 

Mark-to-Market – the practice of periodically re-pricing the shares on loan against the value of the Collateral based on current market prices of the shares of stock and the Collateral. (RR No. 10-2006)

 

Marketed Nationwide – a brand that is commercially produced and marketed, as defined herein, in all the Revenue Regions in Metro Manila and in at least fifty one percent (51%) of all the other Revenue Regions. (RR No. 3-2006)

 

Master Security Lending Agreement (MSLA) – a written contract between the Borrower and the Lender or the Lending Agent embodying the general terms and conditions for the conduct of SBL Transactions. (RR No. 10-2006)

 

Manufactured Dividends or Benefits – the amount of dividends or other benefits that accrue on the shares of stock/securities that are lent out which the Borrower is obliged to pass on to the Lender in accordance with the terms of the agreement. (RR NO. 10-2006)

 

Manufactured Income/Substitute Payment – Otherwise referred to as “ Passthrough Payment”, shall consist of both or any one of the following: 1) interest income or coupon payment received from the Lent/Borrowed Securities arising from corporate action of the Issuer thereof~ or 2) interest income that has accrued and received by the Borrower from its sale of the Lent/Borrowed Securities which the Borrower is obliged to pass on to the Lender during the life of the SBL/SLT, in accordance with the terms of the agreement. (RR No. 5-2007)

 

Manufacturer/Assembler – refer to any person or group of persons, juridical or otherwise, who produces, assembles, fabricates, or otherwise manufactures a motor vehicle by combining body frame/chassis, engine, drive-train, suspension and other automotive parts, or one who alters any part of a motor vehicle to meet the specification of an automobile and render it fit for registration with the Land Transportation Office. (RR No. 25-2003)

 

Media – the physical forms of recorded information. This includes paper, film, computer disks, computer tapes, and any other materials on which information can be recorded. (RR No. 16-2006)

 

Medical Services – refers to hospital rooms and services, professional services of attending physicians and other healthcare professionals, and diagnostic and laboratory tests that are necessary for the diagnostic and/or treatment of an illness or injury. (RR No. 4-2006)

 

Medicinal Preparation – any compounded substance prepared and used as a remedy or cure for alleviating, palliating, or preventing some diseases or body disorders whether applied orally, externally or any other manner of application. (RR No. 3-2006)

 

Medicines – refers to both prescription and non-prescription medicines, and articles approved by the BFAD-DOH, which are intended for use in the diagnosis, cure, mitigation, treatment or prevention of disease in man; but do not include food and devices or their components, parts or accessories. (RR No. 4-2006)

 

Merger – is a combination of two companies where one is completely absorbed by another. The surviving corporation assumed all the rights, privileges, and liabilities of the merged corporation. (RR No. 17-2010)

 

Metro Manila and Regions – revenue regions composed of revenue district offices established by the BIR for internal revenue tax purposes. (RR No. 3-2006)

 

Microfinance – is a credit and savings mobilization program exclusively intended for the poor to improve the asset base of households and expand the access to savings of the poor. (RR No. 14-2007)

 

Millennium Challenge Corporation (MCC) – a corporation of the government of USA established pursuant to the USA Millennium Challenge Act of 2003, as amended. (RR No. 12-2010)

 

Miller – is a person engaged in milling for others (except palay into rice, corn into corn grits, and sugar cane into raw sugar). (RR No. 14-2005)

 

Mixed Income Earner – a compensation-earner, who at the same time is engaged in business or practice of profession. (RR No. 11-2008)

 

Monthly Sales – gross monthly sales per machine, as stored in the machine’s  non-volatile memory. (RR No. 5-2005)

 

Motorist Hotel – any structure with several separate units, primarily located along the highway, with individual or common parking space, at which motorist may obtain lodging and some instance, meals. (RR No. 4-2006)

 

Multi Purpose Cooperative – is a type of cooperative which combines two (2) or more of the business activities of the different types of cooperatives. (RR No. 14-2007)

 

Multilateral MSLA – an MSLA entered into by three or more borrowers and Lenders/Lending Agent embodying the general terms and conditions for the conduct of SBL transactions. For purposes of these Regulations, references to MSLA shall also include the Multilateral MSLA. (RR No. 1-2008)

 

Multinational Company – a foreign firm or entity engaged in international trade with its affiliates or subsidiaries or branch offices in Asia-Pacific Region and other foreign markets. (RR No. 11-2010)

 

Multinational Enterprise (MNE)  – is a foreign company doing business in the Philippines that is part of a group of companies with business establishments in two or more countries. (RR No. 17-2010)

 

Mutual Fund Company – an open-end and closed-end investment company as defined under the Investment Company Act. (RR No. 6-2008)

 

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National Collection – refers to the collections in the ARMM of internal revenue taxes, fees and charges and taxes imposed on natural resources. (RR No. 5-2003)

 

National Secretariat – refer to the office composed of representatives of the three education agencies, namely the DepEd, CHED and TESDA, which will provide overall management and coordination of the Program. (RR No. 10-2003)

 

NEDA – refers to National Economic and Development authority. (RR No. 4-2006)

 

Net Capital Gain – the excess of the gains from sales or exchanges of capital assets over the losses from such sales or exchanges. (RR No. 6-2008)

 

Net Capital Loss – the excess of the losses from sales or exchanges of capital assets over the gains from such sales or exchanges. (RR No. 6-2008)

 

Net Value-Added Tax Due (net VAT due) –  the difference between the output tax and input tax. (RR No. 18-2006)

 

New Brand – brand that is registered and introduced in the market after the date of effectivity of R.A. No. 8240. (RR No. 3-2006)

 

New Retail Price – the price, as determined by the BIR through a survey to be conducted by itself, or by the National Statistics Office (NSO) when deputized for the purpose by the BIR, at which an alcohol or tobacco product is sold at retail in such number of major supermarkets or retail outlets as prescribed by the Act, excluding the amount intended to cover the applicable excise tax and value – added tax. (RR No. 3-2006)

 

Non-Bank Financial Intermediaries – persons or entities whose principal functions include the lending, investing or placement of funds or evidences of indebtedness or equity deposited with them, acquired by them or otherwise coursed through them, either for their own account or for the account of others. (RR No. 12-2003)

 

Non-governmental Organizations (NGOs) – these are duly registered non stock, nonprofit organizations focusing on the upliftment of the basic or disadvantaged sectors of society by providing advocacy, training, community organizing, research, access to resources, and other similar activities. (RR No. 14-2007)

 

Non-Life Insurance Companies – including surety, fidelity, indemnity and bonding companies are subject to VAT. They are not liable to the payment of the premium tax under Sec. 123 of Tax Code. (RR No. 14-2005)

 

Non-Performing Assets (NPA) – Consist of Non-Performing Loans (NPLs) of, and Real and Other Properties Owned or Acquired (ROPOAs) by, FIs for which a COE was issued by the Appropriate Regulatory Authority. (RR No. 6-2004)

 

Non-Performing Loan (NPL) – refers to loans and receivables, such as mortgage loans, unsecured loans, consumption loans, trade receivables, lease receivables, credit card receivables, and all registered and unregistered security and collateral instruments, including, but not limited to, real estate mortgages, chattel mortgages, pledges, and antichresis whose principal and/or interest has remained unpaid for at least one hundred eighty (180) days after they have become past due or any of the events default under the loan agreement has occurred, as of June 30, 2002, as certified by the Appropriate Regulatory Authority. (RR No. 6-2004)

 

Non-Resident Lessor or Owner – refers to any person, natural or judicial, an alien, or a citizen who establishes to the satisfaction of the Commissioner of Internal Revenue the fact of his physical presence abroad with a definite intention to reside therein, and who own/leases properties, real or personal, whether tangible or intangible, located in the Philippines. (RR No. 14-2005)

 

Non-Revenue Passenger – refer to the non-revenue passenger as defined under Resolution No. 788 of the International Air Transport Association regarding Free and Reduced Fare or Rate Transportation and any other Free/Reduced Rate Mileage Programs Administered by individual International Air Carriers. (RR No. 15-2002)

 

Non-Volatile Memory – types of memory that retain their contents when power is turned off. (RR No. 11-2004)

 

NSCB – refers to National Statistical Coordinating Board. (RR NO. 4-2006)

 

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Off-line Carrier – refers to an international air carrier having no flight operations to and from the Philippines.(RR No. 15-2002)

 

Off-Line Flights – refers to a flight operations carried out or maintained by an international air carrier between ports or points outside the territorial jurisdiction of the Philippines, without touching a port or point situated in the Philippines, except when in distress or due to force majeure. (RR NO. 15-2002)

 

Oil Industry-Participant – on Oil Company duly authorized and accredited by the DOE pursuant to its Fuel Bioethanol Program. (RR No. 8-2006)

 

On-Line Carrier – refers to an international air carrier having or maintaining flight operations to and from the Philippines. (RR NO. 15-2002)

 

On-Line Flights – refers to a flight operations carried out or maintained by an international air carrier between ports or points in the territorial jurisdiction of the Philippines and any port or point outside the Philippines. (RR No. 15-2002)

 

Options – are contracts that give the buyer the right, but not the obligation, to buy or sell an underlying security at a predetermined price, called the exercise or strike price, on or before a predetermined date, called the expiry date, which can only be extended by the Commission upon stockholders’ approval. (RR No. 6-2008)

 

Ordinary Assets – refer to all real property specifically excluded from the definition of Capital Assets under Sec. 39 (A) (1) of the Code. (RR No. 7-2003)

 

OSCA – the Office of Senior Citizen Affairs of cities and municipalities headed by a senior citizen for a term of three (3) years. (RR No. 4-2006)

 

Out-of-District Return – a tax return filed outside the jurisdiction of the RDO, LTDO or LT Division where the taxpayer is registered, or where the return is required to be filed under the NIRC and existing rules and regulations. (RR No. 13-2010)

 

Overseas Filipino Investor – an individual citizen of the Philippines who is working abroad, including one who has retained or reacquired his Philippine citizenship under Republic Act No. 9225, otherwise known as the “Citizenship Retention and Reacquisition Act of 2003”. (RR NO. 13-2011)

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Paid-up capital stock – a portion of the authorized capital stock which has been both subscribed and paid. It also refers to the amount paid for the subscription of stock in a corporation including the amount paid in excess of par value, net of treasury stock. (RR No. 10-2007)

 

Parent – is a corporation which has control over another corporation directly or indirectly through one or more intermediaries. (RR No. 17-2010)

 

Participation Agreement – an agreement which signifies a party’s undertaking and willingness to be bound by the Program Rules of PDEx and the MSLA, as a Borrower, Lender and Lending Agent, or both as applicable. (RR No. 5-2007)

 

Pension House – a private, or family-operated tourist boarding house, tourist guest house or tourist lodging house, regularly catering to tourist, and/or traveler, containing several independent table rooms, providing common facilities, such as toilets, bathroom/showers, living and dining rooms and/or kitchen and where a combination of board and lodging may be provided. (RR No. 4-2006)

 

PERA Act – Republic Act No. 9505, otherwise known as the “Personal Equity and Retirement Account (PERA) Act of 2008”. (RR No. 17-2011)

 

PERA Assets – the aggregate assets of the Contributor in his PERA at any one time, including the cash funds and the Qualified/ Eligible PERA Investment Products into which the funds of the PERA are invested and reinvested, and all the income earned therefrom. (RR No. 17-2011)

 

PERA Processing Office – the Audit Information Tax Incentives and Exemption Division of the Bureau of Internal Revenue which will be tasked to process all applications, reports, and other transactions in connection with the PERA Act and these Regulations. (RR No. 17-2011)

 

PERA Rules – the rules and regulations implementing PERA Act jointly promulgated by the Regulatory Authorities. (RR No. 17-2011)

 

PERA TCC – a BIR – issued Tax Credit Certificate which will serve as entitlement by a qualified to the five percent (5%) tax credit for PERA related transaction as discussed in Section 8 of these Regulations. (RR No. 17-2011)

 

Percentage Tax Due – the tax due per return, which is the product of gross sales/receipts and the applicable percentage tax rate. (RR No. 18-2006)

 

Permit to Operate – is the document issued by the Bureau of Internal Revenue (BIR) to excise taxpayers or operators, lessors/lessees of storage facilities of articles subject to excise taxes which shall include the appropriate terms and conditions for the strict observance of the permittee, including the exact description of the commodity to be contained therein. (RR No. 2-2012)

 

Permit to Operate Exempt Facility – is the document to be issued by the BIR to operators, lessors/lessees of storage facilities of articles which are not subject to excise tax. Said permit should contain the appropriate terms and conditions for the strict observance of the permittee, including the exact description of the commodity to be contained therein. (RR No. 2-2012)

 

Permittee – is the taxpayer granted by the BIR a permit to operate. The permittee is one who either owns, operates and/or leases to others the storage facilities as covered by a lease or operating agreement. (RR No. 2-2012)

 

Personal Equity and Retirement Accounts (PERA) – a Contributor’s voluntary retirement account established from the Qualified PERA Contributions and/or Qualified Employer Contributions, for the purpose of being invested solely in Qualified/ Eligible PERA Investment Products. (RR No. 17-2011)

 

Persons – refers to any individuals, trust, estate, partnership, corporation, joint venture, cooperative or association. (RR No. 14-2005)

 

Persons Liable – Any person who, in the course of his trade or business, sells, barters, exchanges or leases goods or properties, or renders services, and any person who imports goods, shall be liable to VAT imposed in Secs. 106 to 108 of the Tax Code. (RR No. 14-2005)

 

Person with Disability – is any individual suffering from restriction or different abilities, as a result of mental, physical or sensory impairment to perform an activity in a manner or within the range considered normal for human being. (RR No. 1-2009)

 

Petroleum – the naturally occurring mixture of compounds of hydrogen and carbon with a small proportion of impurities and shall include any mineral oil, petroleum gas, hydrogen gas, bitumen, asphalt, mineral wax, and all other similar or naturally-associated substances, with the exception of coal, peat, bituminous shale and/or other stratified mineral fuel deposits. (RR No. 2-2012)

 

Petroleum Products – are products formed in the case of refining crude petroleum through distillation, cracking, solvent refining and chemical treatment coming out as primary stocks from the refinery such as, but not limited to: LPG, naphtha, gasoline, solvents, kerosene, aviation fuels, diesel oils, fuel oils, waxes and petrolatums, asphalt, bitumens, coke and refinery sludges, or other such refinery petroleum fractions which have not undergone any process or treatment as to produce separate chemically-defined compounds in a pure or commercially pure state and to which various substances may have been added to render them suitable for particular uses. (RR No. 2-2012)

 

Philippine Permanent Resident – a natural persons holding Philippine Immigrant visas. (RR No. 12-2010)

 

Place of Final Destination – refers to the place of final disembarkation designated or agreed upon by the parties in a contract of air transportation where the passengers, their excess baggage, cargo and/or mail are to be transported and unloaded by the contracting airline company. (RR NO. 15-2002)

 

Point-of-Sale (POS) Machine – is a computerized replacement for the CRM. It is much more complex than the CRM, inasmuch as the POS system has the capability to record and track customer orders, process and debit credit card accounts, link to other systems in the establishments’ network, and manage inventory. (RR No. 11-2004)

Portal Facility – a secured web on-line single sign-on service facility where taxpayers with Internet access can lodge their enrollment and sales report. (RR No. 5-2005)

 

Primary Contractor (secondary level) – refer to the party whose services are engaged by BCDA for the implementation of the Project, and when such party is an unincorporated joint venture, the member of such joint venture.(RR No. 17-2005)

 

Primary Offering – the original sale made to the investing public by the issuer corporation of its unissued Shares of Stock. (RR No. 6-2008)

 

Primary Registration – the process by which a person whether an individual, including estates and trusts, or a corporation and other juridical entities, upon application and full compliance with the registration requirements prescribed in these Regulations, is registered with and consequently included in the registration database of the Bureau of Internal Revenue (BIR). (RR No. 11-2008)

 

Principal Stockholder – a stockholder who is, directly or indirectly, the beneficial owner of more than ten percent (10%) of any class of Investor Securities of the REIT combined. (RR No. 13-2011)

 

Prior Years – the taxable year 2004 and prior years in which period no Preliminary Assessment Notice (PAN) or Final Assessment Notice (FAN) has been issued against a taxpayer liable to pay income tax, business tax and other internal revenue tax. (RR No. 18-2006)

 

Private Entity – refer to an individual engaged in trade or business or engaged in the practice of his profession or other business organizations, like a partnership, corporation or cooperative, either resident or non-resident, who/which teams up with the Department of Education (DepEd), or with the Commission on Higher Education (CHED), or with Technical Education and Skills Development Authority (TESDA), towards providing much needed assistance and service to public schools. It shall be known hereafter as the Adopting Private Entities.(RR No. 10-2003)

 

Private Securities – refer to securities not covered by Subsection 2.13 hereof. (RR NO. 20-2003)

 

Privilege-Store – refers to a stall or outlet which is not permanently fixed to the ground and is normally set up in places like shopping malls, hospitals, office buildings, hotels, villages or subdivisions, churches, parks, streets and other public places, which puts on sale a variety of goods/ services within brief durations of time. (RR No. 16-2003)

 

Privilege-Store Operator – refers to person or entity subleasing from the exhibitor or organizer a space upon which privilege-stores are erected for the purpose of selling goods or services during the entire duration of the lease contract. (RR NO. 16-2003)

 

Product Launch – the introduction in the domestic market of a brand or variant of an alcohol or tobacco product, whether locally manufactured or imported, that satisfies the conditions for being commercially produced and marketed as prescribed in Section 2 (1) of these Regulations. (RR No. 3-2006)

 

Public Company – a company listed with the Exchange which has, upon and after listing, at least one thousand (1,000) public shareholders each owning at least fifty (50) shares of any class and who in the aggregate own at least forty percent (40%) of the outstanding capital stock of the REIT at the initial year; provided that the minimum ownership shall be increased to sixty seven percent (67%) within three (3) years from its listing. (RR No. 13-2011)  

 

Public School – refers to a government school, whether elementary, secondary, post-secondary or tertiary, which enters into an Agreement with an adopting private entity concerning assistance referred to under paragraph (e) hereof. (RR No. 10-2003)

 

Q ^


Qualified Employer’s Contribution – the contribution made by the employer (whether as a single proprietorship, a partnership or a corporation) from the private sector to the PERA established by his/ its employee which, together with such employee’s contribution, if any, shall not exceed such employee’s Qualified PERA Contribution. (RR No. 17-2011)

 

Qualified PERA Contributions – the contributions of the Contributor to his PERA, which shall not exceed P 1,000,00.00 per calendar year (if the Contributor is a non-Overseas Filipino), or P 200,000.00 per calendar year (if the Contributor is an Overseas Filipino or in representation  of an Overseas Filipino), and in accordance with the provisions of Section 6 in theses Regulations, subject to the adjustments authorized by the Secretary of Finance, taking into consideration the present value of the contribution using the Consumer Price Index as published by the National Statistics Office, fiscal position of the Government and other pertinent factors. (RR No. 17-2011)

 

Qualified PERA Investment Income – all income earned by the PERA Assets. (RR No. 17-2011)

 

Qualified / Eligible PERA Investment Products – the investment product duly approved by the concerned Regulatory Authority. (RR No. 17-2011)

 

Quasi–banking Activities – refer to the borrowing of funds from twenty (20) or more personal or corporate lenders at any one time, through the issuance, endorsement or acceptance of debt instruments of any kind other than deposits for the borrower’s own account, or through the issuance of certificates of assignment or similar instruments, with recourse, or of repurchase agreements for purposes of relending or purchasing receivables and other similar obligations. (RR No. 12-2003)

 

R ^


Rank and File Employees – all employees who is holding neither managerial or supervisory position. (RR No. 11-2010)

 

Real and Other Properties Owned or Acquired (ROPOA) – refers to real and other properties owned or acquired by an FI in settlement of its loans and receivables, including, but not limited to real properties, shares of stocks, and chattel formerly constituting collateral for secured loans by way of dation in payment (dacion en pago), judicial or extra-judicial foreclosure, or execution of judgment as of June 30, 2002; and to such real properties acquired by an FI after June 30, 2002, through the same modes in settlement of a loan or receivable classified as NPL as of June 30, 2002; in either case certified by the Appropriate Regulatory Authority. (RR No. 6-2004)

 

Real Estate Dealer – refer to any person engaged in the business of buying and selling or exchanging real properties on his own account as a principal and holding himself out as a full or part time dealer in real estate.(RR No. 7-2003)

 

Real Estate Developer – refer to any person engaged in the business of developing real properties into subdivisions, or building houses on subdivided lots, or constructing residential or commercial units, townhouses or other similar units for his own account and offering them for sale or lease. (RR No. 7-2003)

 

Real Estate Investment Trust (REIT) – is a stock corporation established in accordance with the Corporation Code of the Philippines and the rules and regulations promulgated by SEC principally for the purpose of owning income-generating real estate assets. (RR No. 13-2011)

 

Real Estate Lessor – refer to any person engaged in the business of leasing or renting real properties of his own account as a principal and holding himself out as a lessor of real properties being rented out or offered for rent. (RR No. 7-2003)

 

Real Property – it have the same meaning attributed to that term under Article 415 of Republic Act No. 386, otherwise known as the “Civil Code of the Philippines”. (RR No. 7-2003)

 

Records – a collection of related fields containing data items grouped for processing and considered sub-units of a file. (RR No. 16-2006)

 

Redeemed Shares – are shares bought back by the issuing corporation for the purpose of retirement or cancellation. (RR No. 6-2008)

 

Refined sugar – those sugar whose content of sucrose by weight, in the dry state, corresponds to a polarimeter reading of 99.5° and above. (RR No. 6-2007)

 

Refund – refers to the repayment to the purchaser of all or a portion of the fare, rate or charge for unused carriage or service.(RR No. 15-2002)

 

Regular Suppliers – these are the suppliers who are engaged in business or exercise of profession/calling with whom the taxpayer-buyer has transacted at least six (6) transactions, regardless of amount per transaction, either in the previous year or the current year. (RR No. 14-2008)

 

Regulatory Authorities – it is the (1) Bangko Sentral ng Pilipinas (BSP) as regards banks, trust entities, and other BSP supervised financial institutions; (2) the Securities and Exchange Commission (SEC), for investment companies, investment houses, Stock brokerages; and (3) the Office of the Insurance Commission (OIC), for the insurance companies and pre-need plan companies. (RR No. 17-2011)

 

REIT Plan – the plan, including its amendments, of the REIT registered with the Commission. (RR No. 13-2011)

 

Relatives within the Sixth (6th) Civil Degree of Consanguinity – this means the father, mother, children, grandchildren, grandfather, grandmother, brothers, sisters, uncles, aunts, nephews, nieces, first cousins and second cousins of BIR officials or employees and other public officials or employees. (RR NO. 16-2010)

 

Representation Expenses – refers to expenses incurred by a taxpayer in connection with the conduct of his trade, business or exercise of profession, in entertaining, providing amusement and recreation to, or meeting with, a guest or guests at a dining place, place of amusement, country club, theater, concert, play, sporting event and similar events or places. Representation expense shall not refer to fixed representation allowances that are subject to withholding tax on wages pursuant to appropriate revenue regulations.(RR No. 10-2002)

 

Resident Citizen – a Filipino citizen with permanent/legal residence in the Philippines, and shall include one, who, having migrated to foreign country, has returned to the Philippines with the definite intention to reside therein, and whose immigrant visa has been surrendered to the foreign government. (RR No. 4-2006)

 

Residential Units – apartments and houses & lots used for residential purposes, and buildings or parts or units thereof used solely as dwelling places (e.g., dormitories, rooms and bed spaces) except motels, motel rooms, hotels and hotel rooms. (RR No. 14-2005)

 

Restaurant – any establishment offering to the public, regular and special meals or menu, fastfood, cooked food, and short orders. (RR No. 4-2006)

 

RAD – Revenue Accounting Division of the BIR Collection Service. (RR No. 12-2010)

 

Revenue National Accreditation Board (RNAB) – the body in the BIR National Office constituted to accredit tax practitioners/agents who are regularly engaged in making representation for or on behalf of a client/s before any BIR office. This board reviews and approves/disapproves the recommendation of the RRAB of every BIR REgional Office. (RR No. 11-2006)

 

Revenue Regional Accreditation Board (RRAB) – the body in the BIR National Office constituted to accredit tax practitioners/agents who are regularly engaged in making representation for or on behalf of a client/s before any BIR office. This board submits its recommendation to the RNAB of the BIR National Office. (RR No. 11-2006)

 

Root Name – letter, word, number, symbol, or character; or a combination of letters, words, numbers, symbols, and/or characters that may or may not form a word; or shall consist of a word or group of words, which may or may not describe the other word or words. (RR No. 3-2006)

 

Roving Machine – CRM/POS machines controlled and managed by the Head Office and are transferred for use in any branch, as needed. (RR No. 5-2005)

 

S ^


Sale or Exchange of Services –  the performance of all kinds of services in the Philippines for others for a fee, remuneration or consideration, whether in kind or in cash, including those performed or rendered. (RR No. 14-2005)

 

Sales Discount – the actual discount, or that discount, which in no case shall exceed 20% of the gross selling price of the goods sold or services rendered to senior citizens by certain establishments enumerated under the Act and in these Regulations. (RR No. 4-2006)

 

Sales Machine – is a machine or device that dispenses receipt/ invoice for purposes of tendering sales transaction. (RR No. 11-2004)

 

SBL Confirmation Notice – a notice in a format prescribed by the PSE which is sent by the Lender/ Lending Agent to the Borrower to indicate the details of the SBL Transaction including, but not limited to, the type of securities borrowed and terms of borrowing. (RR NO. 10-2006)

 

SEC – the Securities and Exchange Commission. (RR No. 11-2006)

 

Secondary Offering – an offer for sale to the investing public by the existing shareholders of their securities which is conducted during an IPO or a follow-on/follow-through offering. (RR No. 6-2008)

 

Secondary Registration – pertains to subsequent registration activities after the issuance of BIR Certificate of Registration (COR) relative to the printing and issuance of official receipts/sales invoices; keeping/registering of books of accounts and other accounting records; applying for certain accreditation requirements and securing other applicable registration-related permits. (RR No. 7-2012)

 

Secured Environment – safeguard of information and data from unauthorized access infusing a high quality protection from the source to the destination over the wide area network. (RR No. 5-2002)

 

Securities – includes share of stocks in a corporation and rights to subscribe for or to receive such shares; and bonds, debentures, notes or certificates, or other evidence of indebtedness issued by any corporation, including those issued by the government, with interest coupons or in registered form. (RR No. 20-2003)

 

Securities Borrowing and Lending (SBL) – The lending (borrowing) of shares of stock/securities listed in the Philippine Stock Exchange from an investor’s portfolio or investment account to support trading strategies of the borrower or purposes specified under these Regulations with the commitment by the borrower to return or deliver the equivalent shares/securities to the lender at the end of borrowing period. (RR No. 10-2006)

 

Securities Return – the obligation of the Borrower to return the equivalent of the Lent/Borrowed Securities on or before the expiration of the Borrowing Period, in accordance with the requirements provided under the Fixed-Income Securities Lending Program of PDEx. (RR No. 5-2007)

 

Semi-Knocked Down (SKD) – parts and components for assembly purposes that are imported in partially assembled condition. (RR NO. 25-2003)

 

Senior Citizen or Elderly – any resident Filipino citizen aged 60 years old and above. (RR No. 4-2006)

 

Separate or Distinct Establishment – an establishment where business transactions occur at a place other than where the head office is located. (RR No. 11-2008)

 

Shareholder – include holders of a share/s of stock, warrants and/or options to purchase shares of stock of a corporation, as well as a holder of a unit of participation in a partnership (except general professional partnerships), in a joint stock company, a joint account, a taxable joint venture, a member of an association, recreation or amusement club (such as golf, polo or similar clubs) and a holder of a mutual fund certificate, a member in an association, joint stock company or insurance company. (RR No. 6-2008)

 

Shares of Stock –  include shares of stock of a corporation; warrants and/or options to purchase shares of stock; as well as units of participation in a partnership (except general professional partnerships), joint stock companies, joint accounts, joint ventures taxable as corporations, associations, and recreation or amusement clubs (such as golf, polo or similar clubs); and mutual fund certificates. (RR No. 6-2008)

 

Shares Considered as Worthless – those shares when offered for sale or requested for share redemption, no amount can be realized by the owner of the share. (RR No. 6-2008)

 

Short Messaging System (SMS) – an electronic communications service for sending short text messages using mobile phones. (RR No. 5-2005)

 

Short Sale or Short Selling – any sale of shares of stock/securities not yet in the possession of the seller. (RR No. 10-2006)

 

Single Cab Chassis – a motor vehicle with complete engine powertrain and chassis equipped with a cab that has a maximum of two (2) doors and only one (1) row of seats. (RR No. 25-2003)

 

Single Family Residential Unit – building or structure that will be used for residential purposes. (RR No. 6-2004)

 

Small-scale mining – is any single unit mining operation having an annual production of not more than 50,000 metric tons of ore. (RR No. 7-2008)

 

Socialized Housing – housing programs and projects covering houses and lots or home lots only undertaken by the Government or the private sector for the underprivileged and homeless citizens which shall includes sites and services development, long-term financing, liberated terms on interest payments, and such other benefits in accordance with the provisions of RA No. 7279, otherwise known as the “Urban Development and Housing Act of 1992” and other laws, such as RA No. 7835 and RA. No. 8763. (RR No. 14-2005)

 

Special Allotment Release Order (SARO) – it is an order issued by the Department of Budget and Management for the payment of assumed taxes authorized under the CES. (RR NO. 12-2010)

 

Special Purpose Vehicle – motor vehicle, other than truck, cargo van, jeep/jeepney/jeepney substitute, bus, and single cab chassis as defined herein, designed for specific applications such as cement mixer, fire truck, boom truck, ambulance and/or medical unit, and off-road vehicles for heavy industries and not for recreational activities. (RR No. 25-2003)

 

Specialty Feeds – non-agricultural feeds of food for race horses, fighting cocks, aquarium fish, zoo animals and other animals generally considered as pets. (RR No. 14-2005)

 

Spin-offs – is a situation when a parent corporation organize a subsidiary corporation, to which it transfers a portion of its assets in exchange for all the subsidiary’s capital stock. (RR No. 17-2010)

 

Stand-Alone CRM/POS Machine – are those machines that run independently and is not linked or connected to any other machine or system. (RR NO. 11-2004)

 

Statutory Minimum Wage (SMW) – is the rate fixed by the Regional Tripartite Wage and Productivity Board (RTWPB), as defined by Bureau of Labor and Employment Statistics (BLES) of the Department of Labor and Employment (DOLE). (RR No. 10-2008)

 

Stockbroker – includes all persons whose business it is, for other brokers, to negotiate purchases or sales of stocks, or engaged in the business of effecting transactions in securities for the account of others but does not include a bank or underwriters for one or more investment companies as defined in the Investment Company Act. (RR No. 6-2008)

 

Storage-only Imaging System – a system of computer hardware and software that provides for the storage, retention and retrieval of documents originally created on paper. (RR No. 9-2009)

 

Subcontractor and Supplier (tertiary level) – party whose services are engaged by, and/or who supplies goods, materials, supplies, etc. to, the primary contractor and consultant for the implementation of the Project. (RR No. 17-2005)

 

Subsidiary – a corporation more than fifty (50%) of the voting stock of which is owned or controlled directly or indirectly through one or more intermediaries by another corporation, which thereby becomes its parent corporation. (RR No. 17-2010)

 

Subtransmission Asset – the facilities related to the power delivery service below the transmission voltages and based on the functional assignment of asset including, but not limited to step-down transformers used solely by load customers, associate switchyard/substation, control and protective equipment, reactive compensation equipment to improve power factor, overhead lines, and land where such facilities/equipments are located. (RR No. 14-2005)

 

Sub-subcontractor and Sub-supplier (fourth level) – party whose services are engaged by, and/or supplies goods, materials, supplies, etc. to, the subcontractor and supplier for the implementation of the Project. (RR No. 17-2005)

 

Sub-VAT Subsidy Checks (SVSCs) – instruments issued by the BIR to the subcontractors and suppliers upon presentation by the subcontractors and suppliers of their VSCs to the BIR for appropriate annotation of the requested amount of SVSCs to be issued in favor of sub-subcontractors and sub-suppliers, in accordance with Section 6 (A)(4) hereof. (RR No. 17-2005)

 

Sugar Owners – persons who have legal title over the refined sugar. (RR No. 13-2008)

 

Suggested Net Retail Price – the net retail price at which a new brand of locally manufactured or imported alcohol or tobacco product is intended to be sold by the manufacturer or importer at retail in major supermarkets or retail outlets in the prescribed minimum number of Revenue Regions for brands with national or regional markets. (RR No. 3-2006)

 

Suitably Denatured – the condition of ethyl alcohol when a material or substance, known as denaturant, has been added to the ethyl alcohol, in accordance with the approved formula of the BIR, to destroy the character of the same and making the added denaturant difficult to separate therefrom. (RR No. 3-2006)

 

Supervisory Employee – are those who, in the interest of the employer, effectively recommend such as managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requires the use of independent judgment. (RR No. 11-2010)

 

System Enhancement – Any change or modification in the system software or architecture components of a computerized application system that will change, add value or further improve the system. (RR No. 11-2004)

 

T ^


Tails – a distillation fraction containing components with higher boiling points. (RR No. 3-2006)

 

Tax Clearance (TLC) – issued by the BIR to effect the transfer of the ownership over shares of stock. (RR No. 13-2011)

 

Tax Practitioners/Agents – those who are engaged in the regular preparation, certification, audit and filing of tax returns, information returns or other statements or reports required by the Code or Regulations. (RR NO. 11-2006)

 

Tax Subsidy Availment Certificate (TSAC) – the instrument issued by the Bureau of Internal Revenue (BIR) to the BCDA, upon proper application by the BCDA, showing the amount of tax assumed by the BCDA for each of the primary contractors and consultant with the SCTEP, which includes, but is not limited to, the subsidy on income tax and VAT. (RR No. 17-2005)

 

Tax Subsidy Debit Memo (TSDM) – the document issued by the BIR to the primary contractors and consultant, subcontractors and suppliers, sub-subcontractors and sub-suppliers, upon proper application with the BIR, to evidence the amount of tax payment actually made using the subsidy. (RR No. 17-2005)

 

Taxable Net Income – the pertinent items of gross income specified in Section 32 of the NIRC less all allowable deductions enumerated in the Section 34 of the same Code (itemized or optional standard deductions) and the dividends distributed by a REIT out of its distributable income as of the end of the taxable year as: (a) dividend to owner of the common shares; and (b) dividends to owners of the preferred shares pursuant to their rights and limitations specified in the articles of the Incorporation of the REIT. (RR No. 13-2011)

 

Taxable Person – any person liable for the payment of VAT, whether registered or registrable in accordance with Sec. 236 of the Tax Code. (RR No. 14-2005)

 

Taxable Sale – the sale, barter, exchange and/or lease of goods or properties, including transactions “deemed sale” and the performance of service for a consideration, whether in cash or in kind, all of which are subject to tax under Secs. 106 and 108 of the Tax Code. (RR No. 14-2005)

 

Taxable Year – 12-month period starting on any date from July 1 of the prior calendar year to June 30 of the indicated year. (RR No. 6-2005)

 

Taxpayer – any person whether individual or corporate, earning purely business income. (RR No. 6-2005)

 

Taxpayer Identification Number (TIN) – the reference index number issued and assigned by the BIR to each and every person registered in its database. (RR No. 11-2008)

 

Tax Clearance – clearance issued by the Collection Enforcement Division (CED) attesting that the taxpayer has no outstanding Final Assessment Notice and/or delinquent account. (RR NO. 3-2005)

 

Tax Remittance Advice (TRA) – the serially numbered document to be distributed by the BIR to the National Government Agencies (NGAs) and attached to every Withholding Tax Return filed for payment of taxes withheld to the BIR and shall be certified by the Chief Accountant and approved by the head of the NGA or his duly authorized representative. This shall be the basis for the BIR and the BTR’s to record the collection and deposit in their respective books of accounts. (RR No. 5-2003)

 

Terminal –  depot shall be used synonymously and, for purposes of these Regulations, shall refer to a facility with at least one (1) structure, such as a silo, tank, yard or warehouse, intended for storage of commodities, whether in bulk or in packages, which may or may not have handling equipment, such as pipelines or conveyors, as well as berth for mooring cargo carriers. (RR No. 2-2012)

 

Tobacco Products – tobacco products, cigars, cigarettes packed by hand or cigarettes packed by machine as generally classified under Chapter IV, Title VI of NIRC of 1997. (RR No. 3-2006)

 

Total Landed Value – the total of the (i) market value of the motor vehicles imported as indicated in the motor vehicle reference books, such as the Japanese and U.S. Red Book, Karo and World Car Book on automobile utility vehicles and other motor vehicles, or the dutiable value as defined in Sec. 201 of the Tariff and Customs Code of the Philippines as amended, whichever is higher; (ii) customs duties paid on the imported goods; and (iii) all other charges arising from, or incident to, the importation. (RR No. 25-2003)

 

Tourist Inn – Lodging Establishment catering to transients, which does not meet the minimum requirement of an economy hotel. (RR NO. 4-2006)

 

Trading Participants/Agent Facilitator – brokers and/or dealers authorized to operate a trading right in PSE pursuant to PSE rules. (RR NO. 1-2008)

Transshipment – the transport or shipment of alcohol or tobacco products from a foreign port into any port(s) of the Philippines strictly for subsequent shipment to a foreign port or destination where the shipping manifest pertaining thereto specifically states that the destination therefor is for a foreign port without introducing the same into the Philippine customs territory. (RR No. 3-2006)

 

Transient Passengers – passengers who originated from outside of the Philippines towards a final destination also outside of the Philippines but stops in the Philippines for a period of less than forty eight (48) hours, or even more than forty-eight (48) hours, if the delay is due to force majeure or reasons beyond his control, where in both cases the passenger boarded an airplane of the same airline company bound to the place of final destination. (RR No. 15-2002)

 

Transmission Companies – any person or entity that owns and conveys electricity through the high voltage backbone system and/or sub transmission assets e.g. NPC or TRANSCO. (RR No. 14-2005)

 

Treasury Shares – are shares of stock which have been issued and fully paid for, but subsequently reacquired by the issuing corporation by purchase, redemption which is not for cancellation, donation or through some other lawful means. Such shares may again be disposed of for a reasonable price fixed by the board of directors. (RR No. 6-2008)

 

Truck – motor vehicle of 3.5 tons gross vehicle weight or more of any configuration that is primarily designed for the carriage of goods and with any number of wheels and axles. (RR No. 4-2003)

 

U ^


Undivided Net Savings – the amount arising from net surplus or any portion thereof which the Board of Directors or the General Assembly of the cooperative decides not to divide or make available to members in the form of interest on share capital, patronage refund, reserve refund, education and training fund, optional fund or any other statutory reserve. (RR No. 14-2007)

 

Unit – an apartment unit in the case of apartments, house in the case of residential houses; per person in the case of dormitories, boarding houses and bed spaces; and per room in case of rooms for rent. (RR No. 14-2005)

 

Unlisted REIT – a duly incorporated REIT that has not listed with the Exchange. (RR No. 13-2011)

 

Updates – the process by which the information supplied during the primary registration process are changed either upon taxpayer’s or BIR initiative. (RR No. 11-2008)

 

V ^


Variant of a Brand – brand of alcohol or tobacco products on which a modifier is prefixed and/or suffixed to the root name of the brand. (RR No. 3-2006)

 

VAT-Registered Person – any person who is registered as a VAT taxpayer under Sec. 236 of the Tax Code. (RR No. 14-2005)

 

VAT Subsidy Checks (VSCs) – the prenumbered instruments released by the BIR to BCDA for issuance to each of the primary contractors and consultant, drawn against the VAT TSAC of each of the primary contractors and consultant. (RR No. 17-2005)

 

Vehicle Used for Special Purpose – vehicle designed and used for a special purpose or for a specific application such as cement mixer, fire truck, ambulance and/or medical unit, armored vehicle, crane, hearse, and the like. (RR No. 4-2003)

 

Vendor – is a natural and legal persons engaged directly by MCA-Philippines to provide or perform MCC-funded goods and services. (RR NO. 12-2010)

 

Volatile Memory – memory that loses its content when the power is turned off. (RR No. 11-2004)

 

W ^


X ^


Y ^


Z ^


 

 

ACRONYM ^


AAB – Authorized Agent Bank

AAB-HO – Authorized Agent Bank- Head Office

ACIR – Assistant Commissioner of Internal Revenue

AFPCES – Armed Forces of the Philippines Commissary and Exchange Services

AGDB – Authorized Government Depository Bank

AR – Accounts Receivable

ARN – Collectible Accounts Receivable-Non-Filing/Non-Payment

ARP – Collectible Accounts Receivable-With Protest

ATCA – Authority to Cancel Assessment

BAC – Bank Accreditation Committee

BAC-AA – Bids and Awards Committee – Acquired Assets

BCDA – Bases Conversion Development Authority

BCS – Batch Control Sheet

BID – Bureau of Immigration and Deportation

BIR – Bureau of Internal Revenue

BOL – Bureau of Lands

BP – Batas Pambansa

BSP – Bangko Sentral ng Pilipinas

BTr – Bureau of the Treasury

BTr-CO – Bureau of the Treasury-Central Office

BTr-PO – Bureau of the Treasury-Provincial Office

BTr-RO – Bureau of the Treasury-Regional Office

CAAP – Civil Aviation Authority of the Philippines

CBC – China Banking Corporation

CBR – Collection and Bank Reconciliation

CCD – Corporate Communications Division

CCT – Condominium Certificate of Title

CDPP – Constructive Distraint of Personal Property

CED – Collection Enforcement Division

CES – Certificate of Entitlement Subsidy

CIR – Commissioner of Internal Revenue

CISFA – Consolidated Inventory of Seized and Forfeited Assets

CM – Collection Manual

CMS – Case Monitoring System

COA – Commission on Audit

COA-RA – Commission on Audit-Resident Auditor

COC – Certificate of Coverage

COCAF – Certificate of Coverage Authentication Facility

CPD – Collection Program Division

CPI – Consumer Price Index

CRDC – Consolidated Report of Daily Collection

CS – Collection Service

CSPP – Constructive Seizure of Personal Property

CSV – Comma Separated Value

CTA – Court of Tax Appeals

CTC – Community Tax Certificate

DA – Delinquent Account

DAA – Collectible Delinquent Account With Application for Abatement

DAC – Collectible Delinquent Account With Application for Compromise

DAD – Collectible Delinquent Account-Dishonored Checks

DAF – Collectible Delinquent Account-Final Assessment Notice/Demand

Deposit Account

DAR – Department of Agrarian Reform

DAS – Uncollectible Delinquent Account-Suspense

DAU – Collectible Delinquent Account-Unpaid Self-Assessed Tax

DAW – Uncollectible Delinquent Account-Write-Off

DBM – Department of Budget and Management

DCIR – Deputy Commissioner of Internal Revenue

DCIR-OG – Deputy Commissioner of Internal Revenue-Operation Group

DDA – Demand Deposit Account

DLN – Document Locator Number

DOF – Department of Finance

DOH – Department of Health

DPS – Document Processing Section

DST – Documentary Stamp Tax

DTI – Department of Trade and Industry

DTM – Document Tracking Module

eDST – Electronic Documentary Stamp Tax

eDT – Electronic Data Transmission

eFPS – Electronic Filing and Payment System

eFTIS – Electronic Fund Transfer Instruction System

eNGAS – Electronic National Government Accounting System

EO – Executive Order

ES – Enforcement Service

ESM – Efficient Service Machine

ETRD – Excise Tax Regulatory Division

EZPK – EZPA Y Kiosk

FAN – Final Assessment Notice

FAO – For the Account Of

FC – Flow Chart

FDDA – Final Decision on Disputed Assessment

FMV – Fair Market Value

FNBS – Final Notice Before Seizure

FRN – Filing Reference Number

GAA – General Appropriations Act

GAFMIS – Government Accountancy and Financial Management Information

Sector

GCL – General Control Ledger

GFI – Government Financial Institution

GOCC – Government-Owned and Controlled Corporation

GPPB – Government Procurement Policy Board

GSD – General, Services Division

HREA – Head Revenue Executive Assistant

IC – Insurance Commission

IPO – Intellectual Property Office

ISG – Information System Group

ISOS – Information System and Operation Service-Data Center

ISOS-DC – Information System and Operations Service- Data Center

ITR – Income Tax Return

ITS – Integrated Tax System

JEV – Journal Entry Voucher

JTRGA – Journal of Tax Remittance by Government Agencies

LBDES – Limited Bank Data Entry System

LBP – Land Bank of the Philippines

LGU – Local Government Unit

LMB – Land Management Bureau

LN – Letter Notice

LRA – Land Registration Authority

LS – Legal Service

LTAD – Large Taxpayer Assistance Division

LTCED – Large Taxpayer Collection Enforcement Division

LTDO – Large Taxpayer District Office

LTDPQAD – Large Taxpayer Document Processing and Quality Assurance Division

LTEAD – Large Taxpayer Excise Audit Division

LTO – Land Transportation Office

LTRAD – Large Taxpayer Regular Audit Division

LTS – Large Taxpayer Service

LTSEB – Large Taxpayer Service Evaluation Board

MANCOM – Management Committee

MARINA – Maritime Industry Authority

MB – Monetary Board

MOA – Memorandum of Assignment/Memorandum of Agreement

MRCD – Monthly Report on Collections and Deposits

MRT – METRO Manila Railway Transit

MTB – Monthly Trial Balance

MTC – Municipal Trial Court

NASPP – Notice of Actual Seizure of Personal Property

NBI – National Bureau of Investigation

NCA – Notice of cash Allocation

NEB – National Evaluation Board

NG – National Government

NGA – National Government Agency

NIA – National Irrigation Administration

NID – National Investigation Division

NIRC – National Internal Revenue Code

NO – National Office

NOE – Notice of Encumbrance

NOL – Notice of Levy

NOS – Notice of Sale

NOSAFA – Notice of Sale for Acquired/Forfeited Assets

NSO – National Statics Office

NTL – Notice of Tax Lien

OCT – Original Certificate of Title

OGCC – Office of the Government Corporate Counsel

OTC – Over-the-Counter

PCL – Preliminary Collection Letter

PDES – Payment Data Entry System

PDIC – Philippine Deposit Insurance Corporation

PGEPS – Philippine Government Electronic Procurement System

PNPSSS – Philippine National Police Service Store System

PPC – Philippine Postal Corporation

PSE – Philippine Stock Exchange

PTCL – Provisional Tax Clearance

RA – Republic Act

RAD – Revenue Accounting Division

RATE – Run After Tax Evaders

RCO – Revenue Collection Officer

RDAO – Revenue Delegation Authority Order

RDC – Revenue Data Center

RDO – Revenue District Office

REB – Regional Evaluation Board

RMC – Revenue Memorandum Circular

RMO – Revenue Memorandum Order

ROR – Revenue Official Receipt

RPS – Returns Processing System

RR – Revenue Regulations

RTC – Regional Trial Court

SARO – Special Allotment Release Order

SCTEP – Subic-Clark-Tarlac Express Project

SEC – Securities and Exchange Commission

SIRC – Statement of Internal Revenue Collection

SMSD – System Maintenance and Support Division

SOD – Systems Operations Division

SRCD – Statement of Report on Collections and Deposits

SVSC – Sub-Value Added Tax Subsidy Check

TAP – Tax Amnesty Program

TAS – Taxpayer Accounting System

TCC – Tax Credit Certificate

TCL – Tax Clearance

TCRPV – Technical Committee on Real Property Valuation

TCT – Transfer Certificate of Title

TD – Tax Declaration

TDM – Tax Debit Memo

TDVF – Tax Delinquency Verification Form

TEF – Tax Expenditure Fund

TIED – Tax Information and Education Division

TIN – Taxpayer Identification Number

TOP – Treasurer of the Philippines

TPL – Third Party Liability

TRA – Tax Remittance Advice

TSAC – Tax Subsidy Availment Certificate\

TSDM – Tax Subsidy Debit Memo

TWG – Technical Working Group

WDL – Warrant of Distraint and Levy

WG – Warrant of Garnishment

Vat – Value Added Tax

VSC – Value Added Tax Subsidy Check

WCA-NGA – Weekly Compliance and Alphalist of National Government Agencies

WTD – Withholding Tax Division

For tax advises that really matter and are important, please….

Call 439-3918/921-6107

Text 0922 801 0922/ 098 979 3922

Email kataxpayer@gmail.com