Who are required to Keep Books of Accounts? Do you think Corporations, Companies, Partnerships or Persons need to keep Books of Accounts?
Generally, Books of Accounts are use in recording all relevant transactions not only for the purpose of internal revenue taxes but for the preparation of Financial Position (Balance Sheet), Results of Operations (Income Statement), Statement of Cash Flows and other relevant reports of the business activities.
Sec. 71 of RA No. 10963 further amends Section 232 of the NIRC as follows:
“SEC. 232. Keeping of Books of Accounts. –
“(A) Corporations, Companies, Partnerships or Persons Required to Keep Books of Accounts. – All corporations, companies, partnerships or persons required by law to pay internal revenue taxes shall keep and use relevant and appropriate set of bookkeeping records duly authorized by the Secretary of Finance wherein all transactions and results operations are shown and from which all taxes due the Government may readily and accurately be ascertained and determined any time of the year: Provided, That Corporations, companies, partnerships or persons whose gross annual sales, earnings, receipts or output exceed Three million pesos (P3,000,000), shall have their books of accounts audited and examined yearly by independent Certified Public Accountants and their income tax returns accompanied with a duly accomplished Account Information Form (AIF) which shall contain, among others, information lifted from certified balance sheets, profit and loss statements, schedules listing income-producing properties and the corresponding income therefrom and other relevant statements.
Republic Act (RA) No. 10963 shall be known as the “Tax Reform for Acceleration and Inclusion (TRAIN)” took effect on January 1, 2018.
Please refer: https://www.bir.gov.ph/images/bir_files/internal_communications_1/TRAIN%20matters/RA-10963-RRD.pdf of the full text of RA No. 10963.