Clarifies Certain Issues on the Filing of BIR Form No. 1709, or the Related Party Transaction (RPT) Form, and Its Attachments

July 29, 2020REVENUE MEMORANDUM CIRCULAR NO. 076-20SUBJECT : Clarifies Certain Issues on the Filing of BIR Form No. 1709, or the Related Party Transaction (RPT) Form, and Its Attachments   TO : All Revenue Officers, Employees and Others Concerned  This circular is issued to address the frequently asked questions regarding the submission of BIR Form No. 1709, or the RPT Form, and its attachments pursuant to Revenue Regulations (RR) No. 19-2020. Q1. What is the rationale for the issuance of Revenue Regulations (RR) No. 19-2020?RR No. 19-2020 was issued to ensure that proper disclosures of related party transaction are made and that these transactions have been conducted at arm's length so as to protect the tax base. Ultimately, it is aimed at improving and strengthening the BIR's transfer pricing risk assessment and audit. With the information gathered in the RPT Form and its attachments, the BIR will be able to perform transfer pricing risk assessment and make an informed decision, at the early stage, whether or not to conduct a thorough review/audit of a particular entity...