July 10, 2020
REVENUE MEMORANDUM ORDER NO. 021-20
| TO | : | All Internal Revenue Officers and Others Concerned |
| SUBJECT | : | Prescribing the Policies, Guidelines and Procedures for the Inspection or Supervision of the Destruction/Disposal and Determination of Deductible Expense Pertaining to Inventory of Goods/Assets which Have Been Declared as Waste or Obsolete |
I. BACKGROUND
This Order is issued to revise and update the prescribed policies and guidelines in the conduct of inspection and supervision of the destruction/disposal of the inventories, machineries or equipment applied for destruction or disposal under the Large Taxpayers (LT) Office or Revenue District Office (RDO) where the taxpayer is registered, in relation to the determination of deductible expense pertaining to inventory of goods/assets which have been declared as waste or obsolete due to spoilage, deterioration, obsolescence, expiration, or other causes rendering the same unfit for sale or for use in production.
II. OBJECTIVE
To establish the policies, guidelines and procedures for the inspection and supervision of the destruction/disposal and to facilitate the processing of applications for inventory destruction/disposal.
III. DEFINITION OF TERMS
For purposes of this memorandum, the following definitions...
