Businesses may file income tax deductions for losses due to typhoons – BIR
Posted on October 18th, 2009
Businesses who have suffered damages from typhoons Ondoy and Pepeng get a good news when the Bureau of Internal Revenue (BIR) announced that they that they could file for income tax deduction from the losses they incurred. The BIR, however, said that they there should be proof showing the extent of the damage or the condition of the property before and after it was repaired or replaced.
Each claim for losses would be have to be assess by the agency for fear that unscrupulous individuals may take advantage of the tax reprieve given.
The BIR said, in a memorandum issued last week, large taxpayers and non-large taxpayers with business or enterprise should file a sworn declaration of loss and other requirements deemed necessary to prove their losses. They would have to submit their claims 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 said it has already issued a memorandum to business taxpayers about the requirements for reporting their claims for losses for purposes of income tax deduction due to the losses incurred from the recent calamity.
“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 BIR said.
All documents and other requirements submitted shall be verified by the concerned BIR office before they can be claimed by the business taxpayer as deduction from his income tax. BIR Commissioner Sixto Esquivias IV has advised all the taxpayers service units and BIR personnel to advice and counsel all business taxpayers regarding the requirements in filing their claims for losses due to the recent typhoons.
