Tax Notes: Revised BIR Form 1707 and 1707-A Version 2021 now available

The Bureau of Internal Revenue (BIR) has issued Revenue Memorandum Circular (RMC) 119-2021 to circularize the availability in the agency’s website of BIR Form 1707 (Capital Gains Tax Return for Onerous Transfer of Shares of Stock Not Traded through the Local Stock Exchange) and BIR Form 1707-A (Annual Capital Gains Tax Return for Onerous Transfer of Shares of Stock Not Traded through the Local Stock Exchange) which were revised due to the implementation of the Corporate Recovery and Tax Incentives for Enterprises (Create) Act.

The forms are not yet available in Electronic Bureau of Internal Revenue Forms (eBIRForms). Manual and eBIRForms filers shall download the PDF version of the forms, print the forms, and fill out completely all the applicable fields; otherwise, they shall be subjected to penalties under Sec. 250 of the Tax Code, as amended. Payment of the tax due thereon, if any, shall be made thru:

a.) Manual Payment

• An Authorized Agent Bank (AAB) located within the territorial jurisdiction of the Revenue District Office (RDO) where the seller/transferor is required to register; or

• In places where there are no AABs, the return shall be filed and the tax due shall be paid with the concerned Revenue Collection Officer (RCO) under the jurisdiction of the RDO using Revenue Collection Officer System (MRCOS) facility.

b.) Online Payment

• Landbank of the Philippines (LBP) Link.Biz Portal – for taxpayers who have Automated Teller Machine (ATM) accounts with LBP and/or holders of Bancnet ATM/Debit Card/Prepaid Card or taxpayer utilizing PCHC PayGate or PesoNet for depositors of Rizal Commercial Banking Corp., Robinsons Bank, UnionBank, Bank of the Philippine Islands and Philippine Savings Bank; or

• Development Bank of the Philippines Tax Online – for taxpayers-holders of VlSA, MasterCard Credit Card, and/or Bancnet ATM/Debit Card; or

• UnionBank Online Web and Mobile Payment Facility – for taxpayers who have accounts with UnionBank;

• Mobile Payment (GCash/PayMaya); or

• A Taxpayer Software Provider (MYEG.Ph)

eBIRForms filers who will pay online shall file the return manually to the RDO having jurisdiction over the place where the seller is required to register.

In case of “No Payment Return,” the taxpayer shall file the return to the RDO having jurisdiction over the place where the seller/transferor is required to register.

Please be guided accordingly.

Source:
P&A Grant Thornton
Certified Public Accountants