Reminder on OSD disclosure for the first quarter ITR
Reminder on OSD disclosure for the first quarter ITR
Corporations following the calendar year for accounting are reminded to disclose their election to avail of itemized deductions or optional standard deduction (OSD) by checking the appropriate box in line item 13 in the first quarter corporate income tax return (BIR Form 1702Q) for 2010 which is due on May 31, 2010,
The disclosure should be made since the same type of deduction elected by a corporation in its first quarter income tax return must be applied consistently in the succeeding quarterly income tax returns and in the final income tax return.
Under RR 02-10, corporations which fail to disclose their intention to avail either of the itemized deductions or OSD in their first quarter income tax return or those which fail to file their quarterly income tax return for the first quarter shall be considered as having availed of the itemized deductions.
It is, thus, important that at this early period, a determination should be made whether to adopt the itemized deductions or OSD through careful analysis of forecasted cost and revenues and overall review of company’s projected business operations for 2010.
P&A Tax Alerts are issued to keep our clients updated with the
latest tax developments. These are not intended to be a substitute for
professional advise. For inquiries and suggestions on how the Tax Alert may be even
more useful to you, e-mail Lina.Figueroa@ph.gt.com or Senen.Quizon@ph.gt.com
or call 886-5511.
For other tax concerns, please check out our other tax services.