BIR Revenue Regulations No. 17-2013 is a Philippine tax regulation issued by the Bureau of Internal Revenue on September 27, 2013 that mandates all taxpayers to preserve their books of accounts and other accounting records for a minimum period of ten (10) years.

Key Provisions

RR 17-2013 establishes the following requirements for record retention:

Ten-year retention period - Books of accounts, subsidiary books, and other accounting records must be preserved for 10 years from the day following the deadline for filing a return (or the actual filing date if filed late) for the taxable year when the last entry was made
Extended retention for pending cases - If the taxpayer has any pending protest or claim for tax credit/refund, relevant records must be kept until the case is finally resolved
CPA responsibility - Independent Certified Public Accountants who audit and certify financial statements share the responsibility to maintain copies for 10 years from the due date or actual filing date of the annual Income Tax Return, whichever is later
On-site availability - All books, registers, records, vouchers, and supporting papers must be kept at the taxpayer's place of business and made available for inspection upon demand

Who is Affected?

This regulation applies to:

All individual and corporate taxpayers in the Philippines
Real estate developers maintaining sales records and commission payments
Real estate brokerages tracking agent transactions and accounts receivable
Independent CPAs who audit taxpayer financial statements
Property management companies with rental income documentation

How it Works

You need to implement a systematic record-keeping process to comply with RR 17-2013.

Identify the starting point - Determine the filing deadline for your annual return or the actual filing date, whichever is later
Calculate the retention period - Count 10 years forward from that date
Maintain complete documentation - Keep all books of accounts, journals, ledgers, vouchers, receipts, and supporting documents
Store records on-site - Ensure records are accessible at your principal place of business
Track pending cases - If you have tax disputes or refund claims, extend retention until resolution

Records Subject to Preservation

Record Type	Examples
Books of Accounts	General ledger, subsidiary ledgers, journal entries
Source Documents	Invoices, official receipts, vouchers
Bank Records	Deposit slips, check stubs, bank statements
Tax Returns	BIR forms and attachments filed
Audited Financial Statements	Balance sheet, income statement, notes

Penalties

Failure to preserve books of accounts as required by RR 17-2013 can result in penalties under the National Internal Revenue Code:

Section 266 - Failure to make, file, keep records, or supply information results in fines between PHP 1,000 to PHP 50,000 and/or imprisonment of 6 months to 2 years
Section 275 - Violation of any provision of the NIRC or regulations results in a fine of PHP 1,000 to PHP 50,000 and/or imprisonment up to 6 months
Section 6 of RA 10021 - Penalties under the Exchange of Information on Tax Matters Act for failure to provide records requested by foreign tax authorities

Additionally, inadequate records may prevent you from substantiating deductions claimed, leading to deficiency tax assessments.

Relevance to Philippine Real Estate Operations

RR 17-2013 directly impacts how real estate businesses manage their financial documentation. When you process sales transactions, pay commissions to agents, or collect payments from buyers, every voucher and supporting document must be retained for 10 years.

For real estate brokerages using accounting software, this regulation means your system must support:

Long-term data archiving capabilities
Audit trail functionality to track changes
Secure backup and recovery procedures
Document management for scanned vouchers and receipts

The regulation also reinforces the importance of double-entry bookkeeping practices. Complete records allow BIR examiners to trace transactions from source documents through journals to financial statements during audits.

Real estate developers with pre-selling projects must pay particular attention since payment collections may span 5-10 years. Records from the first reservation payment must be preserved for 10 years after the final payment is recorded.

BIR Revenue Regulations No. 17-2013