REVENUE REGULATIONS NO. 16-2013 issued on September 25, 2013 revokes Revenue Regulations (RR) Nos. 16-2003 and 24-2003 relative to the taxation of privilege stores, and imposes new rules on the collection of Business and Income Taxes, including Withholding Tax on income payments by/to “privilege stores” (popularly known as “tiangge/s)” and the obligations of organizers or exhibitors of space for the operation of “privilege stores” as well as the obligations of the “privilege store” operators. The obligations to the BIR of exhibitor or organizer are the following: a. Obligation to post in a conspicuous place the Certificate of Registration of the organizer issued by the BIR b. Obligation to deduct and withhold Expanded Withholding Tax on lease payments to the lessor of real property c. Obligation to provide the Revenue District Office (RDO) with the list of names, residence addresses, stall, slot or unit number in the privilege store outlet, location site of the privilege store outlet, individual Taxpayer Identification Number (TIN) of persons/entities participating in the event or exhibit and the specific dates and duration when such operations shall be conducted d. Obligation to ensure compliance of lessees/tenants to the following: presentation of TIN and Official Receipts/Sales or Commercial Invoice; submission of Information Statement on Privilege Store Activities indicating the duration (total number of days) of business operations and presentation of proof of payment of actual withholding tax due on its income payment e. Obligation to keep Books of Accounts and issue receipts f. Obligation to provide Cash Register Machines/Point-of-Sale (CRM/POS) Machines for each privilege store operator, or centralized CRM/POS/Payment Centers, or allow the use of its own manual Official Receipts/Sales or Commercial Invoices for the exclusive use by its Privilege Store Operators to monitor the sales of the latter g. Obligation to ensure the submission of List of Sales within 5 days after the privilege store operation h. Obligation to report to the BIR non-compliance by the privilege store operators/lessees with their obligations and responsibilities The obligations to the BIR of privilege store operators are the following: a. Obligation to deduct and withhold the Expanded Withholding Tax on rental payments to exhibitor/organizer for sub-leased spaces or lessor/owner of leased property b. Obligation to file Income Tax returns c. Obligation to submit Information Statement on Privilege Store Activities d. Obligation to keep Books of Accounts and issue receipts/sales or commercial invoices e. Obligation to submit List of Sales on Privilege Store Activities to the exhibitor/organizer The obligations to the BIR of lessees/tenants not classified as “Privilege Store Operators” (regular taxpayers) are the following: a. Obligation to deduct and withhold the Expanded Withholding Tax on rental payments to exhibitor/organizer for sub-leased spaces or lessor/owner of leased property b. Obligation to keep Books of Accounts and issue receipts/sales or commercial invoices c. Obligation to file Income, Withholding, Business (Percentage or Value- Added) and other tax returns, and pay the correct amount of taxes d. Obligation to file other information returns A privilege store operator whose business operation/s is more than 15 days ceases to be as such and shall thenceforth be governed by existing revenue laws and regulations applicable to regular taxpayers. The RDOs shall be primarily responsible in monitoring compliance by the organizer/exhibitor of his/its obligations imposed herein and the activities of any privilege store operating within their respective jurisdictions, as well as in validating the list furnished by the exhibitor/organizer with respect to such information regarding the identity of the participants, the number of participants and the duration of the exhibit. The validation of the participants, as reported by the exhibitor/organizer, shall be made through the BIR’s existing registration system. Based on the list provided by the exhibitor/organizer, the RDO shall recommend the issuance by the Regional Director of Mission Order/s directing the deployment of Revenue Officers (ROs) who shall be in-charged of physically checking compliance by the exhibitor/organizer, privilege store operators and regular taxpayers with their obligations as enumerated above, particularly the filing of tax returns (i.e. Income Tax returns, Percentage or Value-Added Tax returns, etc.).