BIR allows claim for income tax deductions due to Ondoy and Pepeng
The Bureau of Internal Revenue (BIR) announced that business taxpayers whose enterprises have been damaged by typhoons Ondoy and Pepeng may file for income tax deduction for the losses they incurred. But the bureau said there should be proof to show the extent ofВ the damage or the condition of the property before and after it was repaired or replaced.
Expecting that the tax reprieve might be used by unscrupulous individuals, the BIR said it would scrutinize every claim for losses they receive.
The agency said that large taxpayers, as well as non-large taxpayers, with business or enterprise should file their sworn declaration of loss and other requirements deemed necessary to prove their losses.
These claims should be filed to their respective revenue district offices or large taxpayers division where they are registered, within 45 days from the date of the event.
The BIR issued a memorandum to business taxpayers about the requirement for reporting their claims for losses for purposes of income tax deductions due to typhoons Ondoy and Pepeng:
“The sworn declaration of loss shall state the following: nature of the event that gave rise to such losses and the time of its occurrence; description and location of the damaged property; items needed to compute the losses, such as cost or other basis of the properties; depreciation allowed, if any value of the properties before and after the event. Applicants must also include the cost of repair and the amount of insurance or other compensation received,” the tax bureau said.
BIR Commissioner Sixto Esquivias IV has already advised all the taxpayer service units and BIR personnel to advice and counsel all business taxpayers regarding the requirement in filing their claims for losses due to the recent typhoons.
October 18, 2009
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