Bureau of Internal Revenue Issuances
REVENUE MEMORANDUM CIRCULARS
RMC No. 64-2025
July 1, 2025
Publishing the full text of memorandum dated 13 June 2025 from OIC-Undersecretary Niño Raymond B. Alvina, Policy Development and Management Services Group (PDMSG), Department of Finance Re: COMELEC Resolution No. 11132 dated 21 April 2025: Implementing Resolution of Article V, Calendar of Activities, of COMELEC Resolution No. 10924 in Connection with the 01 December 2025 Barangay & Sangguniang Kabataan Elections
RMC No. 65-2025
July 2, 2025
Clarification on the registration of Books of Accounts for new business registrants
RMC No. 66-2025
July 2, 2025
Clarification on certain issues pertaining to compliance with the documentary requirements in availing Value-Added Tax (VAT) zero-rating on local purchases of Duly-Registered Business Enterprises (RBEs)
RMC No. 67-2025
July 3, 2025
Circularizing Customs Memorandum Circular No. 113-2025, entitled “Implementation of Revenue Regulations No. 9-2025 which Implemented Section 295 (D) of the National Internal Revenue Code of 1997 (Tax Code), as Amended by Section 18 of Republic Act No. 12066 or the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE Act)”
REVENUE MEMORANDUM ORDERS
RMO No. 32-2025
June 30, 2025
Creation, Modification and Dropping of Alphanumeric Tax Code (ATC) of Selected Revenue Source under Republic Act (R.A.) No. 12214 (Capital Markets Efficiency Promotion Act) and R.A. No. 11491 (Bayanihan to Recover as One Act)
RMO No. 33-2025
July 4, 2025
Amending Revenue Memorandum Order No. 26-2025 on Modification of Alphanumeric Tax Code (ATC) of Selected Revenue Source under Republic Act No. 12066, otherwise known as Corporate Recovery and Tax Incentives for Enterprises Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act
REVENUE ADMINISTRATIVE ORDERS
RAO No. 3-2025
July 2, 2025
Renaming of Various Revenue Regions of the Bureau of Internal Revenue
REVENUE DELEGATION AUTHORITY ORDERS
RDAO No. 39-2025
July 2, 2025
Designates the OIC-Head Revenue Executive Assistant of the Legal Service as Officer-in-Charge of the Legal Service in view of the approved leave of OIC-Legal Service Assistant Commissioner
RDAO No. 40-2025
July 4, 2025
Designates the Assistant Commissioner of the Internal Affairs Service as Officer-In-Charge of the Legal Group in view of the official travel of the Legal Group’s OIC-Deputy Commissioner
TAX ADVISORY
Taxpayers concerned are advised of the effectivity of Republic Act No. 12214 or Capital Market Efficiency Promotion Act on July 1, 2025 and the preparatory guidance to ensure efficient and seamless transition.
Click the link below to read the full news from the source:
https://bir-cdn.bir.gov.ph/BIR/pdf/Tax Advisory_June 27 2025.pdf
PUBLIC ADVISORY:
The BIR warns the public against fraudulent documents being circulated, such as fake Tax Clearance Certificates or Notices of Assignment signed by the BIR Commissioner.
Click the link below to read the full news from the source:
https://bir-cdn.bir.gov.ph/BIR/pdf/Public Advisory.pdf
TAX LAW
REPUBLIC ACT No. 12214 – Capital Markets Efficiency Promotion Act (CMEPA)
BIR Website / signed May 29, 2025
AN ACT AMENDING SECTIONS 22, 24, 25, 27, 28, 32, 34, 38, 39, 42, 51, 52, 56, 57, 127, 149, 174, 176, 179, 190, 199, AND 258 OF REPUBLIC ACT NO. 8424, ОТHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED, AND FOR OTHER PURPOSES
REPUBLIC ACT No. 12079 – A VAT Refund for Non- Resident Tourists
Official Gazette / December 9, 2024
AN ACT CREATING A VAT REFUND MECHANISM FOR NON-RESIDENT TOURISTS, ADDING A NEW SECTION 112-A TO THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED, FOR THE PURPOSE
REPUBLIC ACT No. 12066 – CREATE MORE
Official Gazette / November 13, 2024
AN ACT AMENDING SECTIONS 27, 28, 32, 34, 57, 106, 108, 109, 112, 135, 237, 237-A, 269, 292, 293, 294, 295, 296, 297, 300, 301, 308, 309, 310, AND 311, AND ADDING NEW SECTIONS 135-A, 295-A, 296-A, AND 297-A OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED, AND FOR OTHER PURPOSES.
REPUBLIC ACT No. 12023 – VAT on Digital Services
Official Gazette / October 2, 2024
AN ACT AMENDING SECTIONS 105, 108, 109, 110, 113, 114, 115, 128, 236, AND 288 AND ADDING NEW SECTIONS 108-A AND 108-B OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED
REPUBLIC ACT No. 11976 – Ease of Paying Taxes (EOPT)
Official Gazette / January 5, 2024
AN ACT INTRODUCING ADMINISTRATIVE TAX REFORMS, AMENDING SECTIONS 21, 22, 51, 56, 57, 58, 76, 77, 81, 90, 91, 103, 106, 108, 109, 110, 112, 113, 114, 115, 116, 117, 118, 119, 120, 128, 200, 204, 229, 235, 236, 237, 238, 241, 242, 243, 245, 248, AND 269; AND REPEALING SECTION 34(K) OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED, AND FOR OTHER PURPOSES
TAX AND BUSINESS RELATED NEWS
BIR WEEKENDER BRIEFS
Volume No. 16 Issue No 26 Week ending June 27 2025 – (BIR Website)
BIR regional and district offices file criminal charges/complaints under BIR’s Run After Tax Evader (RATE) Program against erring taxpayers between June 19 and June 24.
Click the link below to read the full news from the source:
https://bircdn.bir.gov.ph/BIR/pdf/v16n26%20for%20web%20posting.pdf
BIR WEEKENDER BRIEFS
Volume No. 16 Issue No 27 Week ending July 4, 2025 – (BIR Website)
BIR regional and district offices file criminal charges/complaints under BIR’s Run After Tax Evader (RATE) Program against erring taxpayers between June 25 and June 30.
Click the link below to read the full news from the source:
https://bir-cdn.bir.gov.ph/BIR/pdf/v16n27%20hr%20web.pdf
The effects of VAT on digital services ‘Let’s Talk Tax’
Business World / Diana Iris O. Terado / June 30, 2025
Over the years, we’ve witnessed remarkable innovation, from the early days of basic communication tools to the sophisticated digital platforms we rely on today. What began with simple devices for messaging and calls has transformed into a global digital ecosystem powered by the internet. Innovation has introduced a wide array of services that have reshaped how we live, work, and connect. Platforms such as Netflix, Disney+, HBO Go, and YouTube Premium revolutionized entertainment; Spotify and Apple Music redefined music listening consumption; app stores like the Apple App Store and Google Play Store enabled access to countless digital tools; and cloud services such as Google Drive and OneDrive changed how we store and share information. To keep up with this digital transformation, the government passed Republic Act No. 12023, also known as the VAT on Digital Services. This law ensures that digital services consumed in the Philippines are taxed fairly, whether they come from local or foreign providers. Let’s break down the key features of the tax and understand how it affects the economy and consumers.
1. Classification and definition
Republic Act (RA) No. 12023 provides a clear and comprehensive definition of digital services, which includes automated services delivered over the internet or electronic networks. By classifying these services, the Act establishes a legal framework that enables the government to effectively monitor and tax digital transactions. (Sec. 03 of RA No. 12023, Sec. 108-A of NIRC)
2.2. 12% VAT on NRDSPs
A feature of RA No. 12023 is the imposition of a 12% VAT on gross sales from digital services consumed in the Philippines, regardless of the provider’s location. This measure ensures that nonresident digital service providers (NRDSPs) contribute to the Philippine tax base, just like their local counterparts. (Sec. 04 of RA No. 12023, Sec. 108-B of NIRC)
3. NDRSP tax compliance obligations
NRDSPs are required to register with the Bureau of Internal Revenue (BIR), issue VAT-compliant invoices, and remit taxes through the VAT on Digital Services (VDS) Portal. This requirement enhances transparency and accountability in cross-border digital transactions. (Sec. 07 of RA No. 12023, Sec. 113 of NIRC)
4. Some VAT exemptions
RA No. 12023 allows for VAT exemptions on specific digital services, particularly those related to education, government, or public interest. This provision ensures that essential services remain accessible and affordable, supporting social equity. (Sec. 05 of RA No. 12023, Sec. 109 of NIRC)
5. Local buyers’ obligation to withhold VAT
VAT-registered Philippine buyers are required to withhold and remit VAT when purchasing services from NRDSPs. This mechanism ensures tax collection even when foreign providers are non-compliant. (Sec. 08 of RA No. 12023, Sec. 114 (D))
6. Funding for creative industries (Sec. 12 of RA 12023, Sec. 288 of NIRC)
A portion of the revenue generated from VAT on digital services is earmarked to support creative industries. This initiative aims to stimulate local innovation, content creation, and cultural development.
7. Power to block non-compliant digital services (Sec. 9 of RA No. 12023, Sec. 115 (b) of NIRC)
The BIR, in coordination with the Department of Information and Communications Technology (DICT) and the National Telecommunications Commission (NTC), has the authority to block access to non-compliant DSPs.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2025/06/30/682398/the-effects-of-vat-on-digital-services/
Recto, new SEC Chair to fast-track reforms to improve ease of doing business and deepen capital market
Department of Finance / June 30, 2025
Finance Secretary Ralph G. Recto and newly appointed Securities and Exchange Commission (SEC) Chairperson Francis Lim are set to fast-track the implementation of key reform initiatives aimed at improving the ease of doing business and deepening the capital market. The SEC, under the supervision of the Department of Finance (DOF), is mandated to protect investors, ensure fair and efficient markets, and facilitate capital formation by registering corporations and securities, supervising market participants, and enforcing securities laws. Among the SEC’s top priorities is the efficient implementation of the recently enacted Capital Markets Efficiency Promotion Act (CMEPA)—a landmark reform aimed at broadening investor participation and reducing friction in market transactions.
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https://www.dof.gov.ph/recto-new-sec-chair-to-fast-track-reforms-to-improve-ease-of-doing-business-and-deepen-capital-market/
102 trafficking victims acquitted over BIR stamp case in Pangasinan
Philstar.com / Ian Laqui / June 30, 2025 – MANILA, Philippines
A regional trial court in Pangasinan has acquitted over 100 individuals charged with illegal possession of cigarette manufacturing materials and counterfeit tax stamps, citing insufficient evidence and procedural lapses in the investigation. In a 29-page decision dated June 25, the Rosales, Pangasinan Regional Trial Court Branch 52 granted a demurrer to evidence filed by the 102 accused, effectively clearing them of all charges.
Click the link below to read the full news from the source:
https://www.philstar.com/headlines/2025/06/30/2454468/102-trafficking-victims-acquitted-over-bir-stamp-case-pangasinan
WESM operator IEMOP not tax-exempt, rules CTA
Manila Bulletin / Myra M. Velasco / June 30, 2025
The Court of Tax Appeals (CTA) has formally decreed that the Independent Electricity Market Operator of the Philippines (IEMOP), as the duly authorized operating entity of the Wholesale Electricity Spot Market (WESM), is not exempt from paying income tax – and that effectively upheld an earlier ruling of the Bureau of the Internal Revenue (BIR) and the opinion rendered by the Department of Finance (DOF). In particular, the tax court noted that even if IEMOP had been registered as a non-stock, non-profit corporation, it still cannot be classified as a tax-exempt entity because it fails to establish its stature as a ‘business league’ that shall be freed from paying taxes under the prescription of Section 30 (F) of the National Internal Revenue Code (NIRC) of 1997. As defined, ‘business league’ refers to “an association of persons having some common business interest, which limits its activities to work for such common interest and does not engage in a regular business of a kind ordinarily carried on for profit,” and the nature of its operations should have been similar to that of a chamber of commerce or board of trade. “For failure to meet the statutory requirements and defining characteristics of a business league, petitioner (IEMOP) cannot be considered as such and is not entitled to income tax exemption under Section 30 (F) of the NIRC of 1997, as amended,” the CTA stressed.
Click the link below to read the full news from the source:
https://mb.com.ph/2025/06/30/wesm-operator-iemop-not-tax-exempt-rules-cta
G-7 agrees to exclude US from global minimum tax
Philippine News Agency / Jiji Press/ June 30, 2025 – WASHINGTON
The Group of Seven major powers said Saturday that they have agreed to exclude American companies from an international agreement to impose a minimum corporate tax rate of 15 percent on global businesses. The agreement followed a US move to withdraw the proposed “revenge tax” that Washington was preparing to introduce as a measure against the minimum tax. In 2021, about 140 countries, mainly members of the Organization for Economic Cooperation and Development, including the United States, agreed on international tax rules including the minimum corporate tax rate.
Click the link below to read the full news from the source:
https://www.pna.gov.ph/articles/1253182
CTA denies P35.8-M refund or tax credits claimed by Global Catering Services
Manila Bulletin / Czarina Nicole Ong Ki / July 1, 2025
The Court of Tax Appeals (CTA) has denied the petition of Global Catering Services Corporation which sought from the Bureau of Internal Revenue (BIR) P35.8 million in tax refund or credits for its alleged excess and unutilized input value-added tax (VAT) for its zero-rated sales in 2018. On Sept. 25, 2020, the BIR denied the plea of Global Catering, then Miascor Catering Services Corporation, for a refund of P35,851,451.10. In its petition for review, Global Catering told the CTA that its sales of services to clients engaged in international air transport operations are subject to zero percent VAT, and the excess input VAT is attributable to zero-rated sales.
Click the link below to read the full news from the source:
https://mb.com.ph/2025/07/01/cta-denies-p358-m-refund-or-tax-credits-claimed-by-global-catering-services
VAT registration woes (again) for NRDSPs ‘TOP OF MIND’
The Philippine Star / Arik Aaron Abu / July 1, 2025
In this day and age, we are all consuming digital content – from the music we listen to, the movies and television shows we watch and the e-books and other reading materials we pore over. However, over the past few months, we have received notices from our favorite streaming platforms and digital services providers that they will be increasing their fees to apply the 12 percent value-added tax (VAT) on the digital services that they provide. Indeed, we are now feeling the effects of Republic Act 12023, which amended Section 108 of our Tax Code so that the phrase “sale of services” shall expressly include the supply or delivery of digital services by DSPs in the Philippines. The NRDSPs were initially given 60 days from the effectivity of Revenue Regulations (RR) 3-2025 to register through the VAT on Digital Services (VDS) Portal. However, the period to register was eventually extended from 60 to 120 days through RR 14-2025, or up until June 1, 2025. Such deadline for the online or electronic registration of all NRDSPs was further extended by the Bureau of Internal Revenue (BIR) through Revenue Memorandum Order (RMO) 58-2025 until July 1, 2025. However, despite the extension of the period to register, the imposition of VAT on digital services will still be reckoned from June 2, 2025, as stated in RR 14-2025. As such, all digital services provided from June 2, 2025 by both resident DSPs and NRDSPs should already be subject to VAT – regardless of the status of their registration with the BIR.
Click the link below to read the full news from the source:
https://www.philstar.com/business/2025/07/01/2454500/vat-registration-woes-again-nrdsps
Recto on PSALM’s P8.96-B record-high dividend remittance: Every peso will be felt by the Filipino people
Department of Finance / July 1, 2025
Finance Secretary Ralph G. Recto has vowed that the Power Sector Assets and Liabilities Management (PSALM) Corporation’s all-time high dividend remittance of PHP 8.96 billion to the National Treasury will be reinvested into programs that directly uplift the lives of the Filipino people. “We will make sure every peso you contribute will be felt by the people. It will be used for programs that matter most. It will be invested back into the nation,” Secretary Recto said during the turnover ceremony on June 30, 2025. Under Republic Act No. 7656 or the Dividend Law, Government -Owned or -Controlled Corporations (GOCCs) are required to remit at least 50% of their net earnings during the preceding year as dividends to the national government. To maximize non-tax revenue, the Department of Finance (DOF) has requested GOCCs to increase this share to 75%. PSALM plays a crucial role in transforming the country’s energy sector into a modern, inclusive, and competitive industry. Its mandate includes the orderly sale and privatization of National Power Corporation (NPC) generation assets and real estate, the management of Independent Power Producer (IPP) contracts, and the liquidation of NPC’s financial obligations in an optimal manner.
Click the link below to read the full news from the source:
https://www.dof.gov.ph/recto-on-psalms-p8-96-b-record-high-dividend-remittance-every-peso-will-be-felt-by-the-filipino-people/
PBBM: CMEPA to usher in ‘new era of dynamism, investor confidence’
Philippine News Agency / Ruth Abbey Gita-Carlos / July 1, 2025 – MANILA
President Ferdinand R. Marcos Jr. on Tuesday directed the Securities and Exchange Commission (SEC) to address bureaucratic bottlenecks to ensure the successful implementation of Republic Act (RA) 12214 or the Capital Markets Efficiency Promotion Act (CMEPA). He expressed confidence that the special bell-ringing to mark the effectivity of the CMEPA will pave the way for a “new era of economic dynamism, investor confidence, and sustainable growth.” Marcos made the call, as he noted that from now until 2030, CMEPA is projected to generate over PHP25 billion in net revenue, “a substantial sum that can help fund the building of roads, bridges, hospitals, schools, other social safety net programs as well.” One of the law’s key features is the reduction of the Documentary Stamp Tax (DST) on the original issue of shares of stock from 1 percent to 0.75 percent.
Click the link below to read the full news from the source:
https://www.pna.gov.ph/articles/1253267
Chiz pushes tax relief, credit access for MSMEs under priority bills
Philippine News Agency / Wilnard Bacelonia / July 1, 2025 – MANILA
Senate President Francis “Chiz” Escudero is pushing for a legislative package aimed at strengthening micro, small, and medium enterprises (MSMEs) through tax incentives and expanded access to financing. The proposals form part of Escudero’s 10 priority bills for the 20th Congress, focusing on easing the financial burden of MSMEs, which he called the “backbone of the Philippine economy.” MSMEs account for 67 percent of employment nationwide. “These will allow our MSMEs, particularly those that are struggling financially, to continue their operations, hire more people, and even consider an expansion in the future,” Escudero said Tuesday. Among the key provisions of the bills is a three-year income tax exemption for MSMEs, along with a 25 percent labor expense deduction from taxable income. Escudero also seeks to reduce the optional tax on gross sales or receipts to 5 percent from the current 8 percent.
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https://www.pna.gov.ph/articles/1253287
Gatchalian seeks zero tax for P400,000 annual income, other earnings
Inquirer.Net / Maila Ager / July 1, 2025 – MANILA, Philippines
Sen. Sherwin Gatchalian is seeking to raise the take-home pay of workers through a bill that would exempt from tax those earning P400,000 and below annually. The bill, “Granting Increase in Take-Home Pay for All Working Filipinos Act” or “Ginhawa,” was among the priority measures the senator lodged on Tuesday. It will be an amendment to the National Internal Revenue Code of 1997 which currently exempts from income tax those who are earning P250,000 and below a year. “So, we will increase it to ₱400,000 a year. This means that if you earn ₱400,000 a year, you will be exempt from income tax,” Gatchalian said in a press briefing.
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https://newsinfo.inquirer.net/2077100/gatchalian-seeks-zero-tax-for-p400k-annual-income-other-compensations
CMEPA encourages more Filipinos to invest in PH capital market—Marcos
Manila Bulletin / Betheena Unite / July 1, 2025
The Republic Act No. 12214 or the Capital Markets Efficiency Promotion Act (CMEPA), which became effective on July 1, was designed to encourage every Filipino to invest their hard-earned money to build a better future, President Marcos said. As Marcos led the special bell-ringing at the Philippine Stock Exchange (PSE) tower in Bonifacio Global City, Taguig City on Tuesday to mark the effectivity of the law, he stated that the Act allows Filipinos to be true participants in the nation’s economic growth. Under CMEPA, that rate has been reduced to 0.1 percent. “For a first-time investor buying a P10,000 worth of stock, this means paying P10 in tax instead of P60. This will encourage more Filipinos to invest in our capital market,” he said. According to Marcos, the law also removed the documentary stamp tax on mutual funds and unit investment trust funds—investment tools widely used by young professionals and middle-class savers. The adjustment on rates lowers barriers and opens the market to more investors. Under the law, a uniform final tax rate of 20 percent on interest income was introduced, simplifying compliance, removing confusion, and leveling the playing field. It also offers incentive for companies that help employees save for their retirement. Private employers that match or exceed their workers’ contributions to the Personal Equity and Retirement Accounts or PERA, are now entitled to an additional 50 percent tax deduction on their actual contributions, Marcos said.
Click the link below to read the full news from the source:
https://mb.com.ph/2025/07/01/cmepa-encourages-more-filipinos-to-invest-to-ph-capital-marketmarcos
Senators file measures to give workers, MSMEs tax breaks
Philippine News Agency / Leonel Abasola / July 2, 2025 – MANILA
Senators on Wednesday filed bills aiming to give workers’ higher take-home pay and to provide tax incentives for micro, small and medium enterprises (MSMEs). Senator Sherwin Gatchalian proposed that workers earning PHP400,000 annually be exempted from paying annual taxes, instead of only those earning PHP250,000. He also proposed to raise the cap on tax-free bonuses from the current PHP90,000 to PHP150,000. “The working Filipinos have always carried the economy on their backs, it is time we lend them a hand and help them in their fight for better lives,” he said. The lawmaker also proposed the removal of taxes on service charges received by service industry workers, the taxes on additional compensation such as overtime pay, holiday pay, night shift differential, hazard pay, and taxes on honoraria and allowances of election workers. Additional measures include allowing the additional 50 percent deduction for micro taxpayers for labor expenses; allowing discounts for persons with disability, senior citizens, and solo parents as tax credits; and exemption for micro businesses from paying withholding taxes. Meanwhile, Senate President Francis Escudero proposed that MSMEs be exempted from paying income tax for three years, to deduct from their taxable income the amount equivalent to 25 percent of their labor expenses, and to cut to 5 percent the optional tax on gross sales or receipts from the current 8 percent.
Click the link below to read the full news from the source:
https://www.pna.gov.ph/articles/1253417
PBBM, Recto lead PSE bell-ringing for CMEPA; vow efficient rollout of landmark capital markets reform
Department of Finance / July 2, 2025
President Ferdinand R. Marcos, Jr. and Finance Secretary Ralph G. Recto led the ceremonial bell-ringing at the Philippine Stock Exchange (PSE) on July 1, 2025 to mark the effectivity of the Capital Markets Efficiency Promotion Act (CMEPA), vowing its efficient implementation to unlock broader investor participation and drive inclusive economic growth. Championed by the Department of Finance (DOF), Republic Act No. 12214, or the CMEPA Act, aims to make the Philippines a more attractive and competitive investment destination by bringing long-awaited reforms to its capital markets. The law supports President Marcos, Jr.’s goal of driving long-term economic growth by empowering more Filipinos to invest and attracting capital that translates to more jobs, higher incomes, and shared prosperity.
Click the link below to read the full news from the source:
https://www.dof.gov.ph/pbbm-recto-lead-pse-bell-ringing-for-cmepa-vow-efficient-rollout-of-landmark-capital-markets-reform/
PEZA approvals jump 59% in first half 2025, boosted by manufacturing
Manila Bulletin / Dexter Barro II / July 2, 2025
Investments approved by the Philippine Economic Zone Authority (PEZA) during the first half of 2025 rose 59 percent, as the government continues to position the country as an attractive investment hub. In a statement, PEZA said it has approved ₱72.36 billion in investment pledges from January to June, an upward adjustment from ₱45.48 billion during the same period in 2024, The pledges, which translate to actual investments over time, cover 133 new and expansion projects. This is an 11 percent hike from 120 approved projects last year.
Click the link below to read the full news from the source:
https://mb.com.ph/2025/07/02/peza-approvals-jump-59-in-first-half-2025-boosted-by-manufacturing
CTA denies P5-M claim for tax refund of Monarch Agricultural Products
Manila Bulletin / Czarina Nicole Ong Ki / July 3, 2025
The Court of Tax Appeals (CTA) has denied the plea of Monarch Agricultural Products, Inc. (MAPI) for a tax refund of P5 million representing its alleged unutilized input value added tax (VAT) on importation of goods and services in 2018. MAPI’s application for tax credits/refunds in the amount of P5,024,148.07 was denied for lack of legal and factual basis by the Bureau of Internal Revenue (BIR) in a letter dated Sept. 17, 2020. The denial prompted MAPI to file a petition for review before the CTA on Feb. 3, 2021, arguing that the BIR cannot disallow excess input VAT which is not covered by the subject claim for refund, since such determination is within the realm of a regular tax audit. The firm also said the only matter for determination in the case is whether its input VAT on importation is directly attributable to its zero-rated sales.
Click the link below to read the full news from the source:
https://mb.com.ph/2025/07/03/cta-denies-p5-m-claim-for-tax-refund-of-monarch-agricultural-products
SEC draft circular sets fines for OPCs failing to meet compliance deadlines
Business World / Revin Mikhael D. Ochave / July 3, 2025
THE Securities and Exchange Commission (SEC) has released a draft memorandum circular (MC) containing guidelines for the compliance of one-person corporations (OPCs), which will be open for public comment until July 11. The exposure draft MC, dated July 1, outlines the guidelines for the initial and subsequent appointment of officers, submission of audited financial statements (AFS), and the posting of a surety bond. It also details the fines and penalties for noncompliance in filing the Form for Appointment of Officers (FAO) for OPCs, late filing and non-filing of AFS, and failure to comply with the surety bond posting requirements. “Pursuant to Sections 115 and 129 of the Revised Corporation Code (RCC), and considering that the OPC is a new feature of the RCC, there is a need to establish monitoring guidelines for OPCs to ensure uniformity in the assessment of fines and penalties,” the draft MC stated.
Click the link below to read the full news from the source:
https://www.bworldonline.com/corporate/2025/07/03/682890/sec-draft-circular-sets-fines-for-opcs-failing-to-meet-compliance-deadlines/
New SEC chief vows reforms to boost businesses, safeguard investors
Manila Bulletin / James A. Loyola / July 3, 2025
Under its new leadership, the Securities and Exchange Commission (SEC) remains committed to implementing reforms that will further enhance the ease of doing business in the Philippines and deepen the capital market. In a courtesy visit to Finance Secretary Ralph G. Recto, new SEC Chairperson Francis Lim shared the commission’s key priorities to develop the business sector and the capital market, in line with the directive of President Ferdinand R. Marcos, Jr. to boost the competitiveness of the capital market and drive investments in the country. “The SEC is ready to work with the DOF, under the leadership of Secretary Recto, to create a conducive environment that will encourage business formation and boost participation in the capital market,” Lim said
Click the link below to read the full news from the source:
https://mb.com.ph/2025/07/03/new-sec-chief-vows-reforms-to-boost-businesses-safeguard-investors
19 more medicines now VAT-exempt: BIR
Philippine News Agency / Joann Villanueva / July 3, 2025 – MANILA
Nineteen maintenance and lifesaving medicines have been included in the list of those exempted from value added tax (VAT), benefiting more people. Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui Jr., during the Bagong Pilipinas Ngayon briefing on Thursday, said nine medicines were included under Revenue Memorandum Circular (RMC) 59-2025 issued on June 11, 2025 while the other 10 are covered by RMC 62-2025. He said the inclusion of the medications for VAT exemption was based on the recommendation of the Food and Drug Administration (FDA). Of the total, seven of these medicines are for cancer treatment; three each for diabetes, hypertension and mental illness; one each for high cholesterol, kidney disease, and tuberculosis.
Click the link below to read the full news from the source:
https://www.pna.gov.ph/articles/1253551
SEC plans to expand investment options, revise REIT rules
Business World / Revin Mikhael D. Ochave / July 4, 2025
THE Securities and Exchange Commission (SEC) has announced plans to expand investment options, revise real estate investment trust (REIT) rules, and simplify regulatory transactions to strengthen the Philippine capital market. To improve market accessibility, the SEC plans to create a roadmap for alternative investment products and derivatives, including options, futures, and a potential commodity futures market, to enhance risk management and offer more investment options, it said in a statement on Thursday.
Click the link below to read the full news from the source:
https://www.bworldonline.com/corporate/2025/07/04/683201/sec-plans-to-expand-investment-options-revise-reit-rules/
Changing investment landscape
Manila Bulletin / Fil C. Sionil / July 4, 2025
A couple of months before the much-anticipated Capital Markets Efficiency Promotion Act (CMEPA) took effect, my friend Carmen got in touch about a five-year-plus-one placement offered by a publicly listed universal bank, promising a pretty good yield. Considering and understanding that transaction tax changes were imminent this month, my suggestion, based on advice from bank treasurers, was to subscribe to the offered placement. Yes, Virginia, one of CMEPA\’s provisions that, to my mind, will significantly impact medium-term placements—five years and up—is the removal of the tax exemption on certain types of fixed-income securities. Prior to CMEPA taking effect, certain government securities (GS) and bank-issued bonds with tenors of five years plus one were considered tax-exempt. Now, there will be a uniform 20 percent withholding tax across all interest-bearing securities.
Click the link below to read the full news from the source:
https://mb.com.ph/2025/07/04/changing-investment-landscape
CTA rules: Kidzoona of Aeon Fantasy in QC not liable for amusement tax
Manila Bulletin / Czarina Nicole Ong Ki / July 4, 2025
The Court of Tax Appeals (CTA) has affirmed a trial court’s ruling that Aeon Fantasy Group Philippines, Inc., the firm that operates the indoor play area Kidzoona, is not liable to pay amusement taxes to the Quezon City government. The tax court ruled: Municipal ordinances are inferior in status and subordinate to the laws of the State. In case of conflict between an ordinance and a statute, the ordinance must be set aside.” The legal issue arose when on Sept. 9, 2019 inspectors of the Amusement Tax Evaluation, Assessment and Monitoring (TEAM) Unit of the Quezon City Treasurer’s Office served a notice against Aeon on non-payment of monthly amusement taxes on its gross receipts from Kidzoona SM North Edsa branch from January to August 2019 in the amount P697,930.29. The notice was questioned by Aeon. It filed on Aug. 20, 2020 a petition for review before the RTC praying for the cancellation and withdrawal of the assessment for alleged deficiency amusement taxes.
Click the link below to read the full news from the source:
https://mb.com.ph/2025/07/04/cta-rules-kidzoona-of-aeon-fantasy-in-qc-not-liable-for-amusement-tax
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