Overview
The Sworn Declaration of Gross Remittances specifically applies to the new BIR Regulation on the 1% on 1/2 of gross remittances from digital platforms. By accomplishing and submitting this specific Sworn Declaration, you will be exempted from a maximum of Php2,500 in withholding taxes.
Submission of this Sworn Declaration is not required and is entirely optional.
The only requirement with regards to the new BIR Regulation is the submission of the BIR 2303 - Certificate of Registration. This is a hard requirement.
If your existing practice is already registered with the Bureau of Internal Revenue (BIR), your existing CoR suffices as documentation. However, if you are not yet registered with the BIR, you are required to apply and register for one at your nearest BIR - Revenue District Office (RDO) before the July 2024 deadline, where compliance is required.
While not mandatory, we understand there might be questions surrounding the benefits of submitting this Sworn Declaration and the steps involved.
Allow us to clarify.
The maximum savings that you will be getting from submitting this Sworn Declaration is Php2,500. Whether this is worth all the effort of accomplishing this document is up to you.
Savings calculation
Php500,000 x 0.5% = Php2,500
where:
Php500,000: maximum exempted gross income
0.5%: withholding tax rate or 1% on 1/2 of gross income
Steps Involved in Obtaining a Sworn Declaration of Gross Remittances
Should you choose to pursue tax exemption by submitting the sworn declaration, please be aware of the following steps:
Printing: You'll need to print out at least 4 copies of the Sworn Declaration of Gross Remittances form.
Notary Public: The form must be notarized by a licensed notary public.
BIR Doc Stamps: You'll need to obtain Php30 Doc Stamps.
Submission: After completing the above steps, you must send us a hardcopy of the accomplished Sworn Declaration to us.
Please submit the hardcopy to:
Name: SeriousMD/NowServing
Address: Unit 908, 321 Dasmarinas St., Binondo, Manila
c/o Vangie
Mobile Number: 0927 434 3411
*This address is purely for receiving documents.
Conclusion
While we do not discourage our users from applying for exemption. We do recommend weighing whether the time, effort and money required to accomplish the Sworn Declaration is worth the maximum possible savings of Php2,500 that the exemption provides. Each submission of Sworn Declaration is also valid for 1 year, meaning, you will have to go through the whole process again the following year and the year after that and so forth.
Should you have any further questions or concerns, please don't hesitate to reach out to us by going to 'Help' > 'Talk to Us'
Frequently Asked Questions:
Why are we required to submit our Certificate of Registration?
The Bureau of Internal Revenue or BIR has introduced a new tax regulation (Revenue Regulation No. 16-2023) that specifically applies to electronic marketplace operators like SeriousMD.
Other electronic marketplaces that are affected by this is Shopee and Lazada, for example.
To directly quote from the regulation:
"On one-half (1/2) of the gross remittances by e-marketplace operators and digital financial services providers to the sellers/merchants for the goods or services sold/paid through their platform/facility. - One percent (1%)"Basically, SeriousMD will be withholding 0.5% of the consultation fee whenever a bill is processed through the platform. The specific 0.5% withholding depends on whether you are VAT registered.
I want to submit my sworn declaration. Do I still have to upload my Certificate of Registration/BIR Form 2303?
Yes, you will have to submit both your CoR and sworn declaration.
Can I upload my CoR first then upload my sworn declaration later on?
Yes, this is possible. If you're submitting past the deadline set by BIR (July 2024), we will be withholding 0.5% until you submit your sworn declaration.
Is there a deadline to submit my sworn declaration?
No, there is not.
I submitted but I was notified that my sworn declaration is marked as incomplete.
This most likely means that while you did upload the correct sworn declaration, it is considered incomplete because it doesn't have a documentary stamp yet. You may request one from your BIR RDO.
I submitted by sworn declaration but I was notified that is is considered invalid. Why is this so?
You most likely submitted a sworn declaration like this (ANNEX "B-1"), which is submitted to hospitals:
The sworn declaration that is applicable to us, SeriousMD, is this:
As SeriousMD/NowServing is considered an e-marketplace, not a hospital. Take note that submitting this is completely optional.
I am trying to upload my Certificate of Registration (CoR) but the system is requiring me to upload my sworn declaration, which I am choosing not to submit. What do I do?
Please go to 'My Profile' > 'BIR Form 2303':
Make sure this is set to NO
You may then upload your Certificate of Registration without needing to upload a sworn declaration.
Learn more about the BIR Regulation here: