RR No. 1-2025
January 6, 2025
Further amending Section 9 of Revenue Regulations No. 25-2003 relative to the documentary requirements to be submitted by Motor Vehicle Manufacturer/Assembler/Importer as basis for the BIR to determine whether the automobiles subject to Excise Tax exemption are hybrid or purely electric vehicles pursuant to the provisions of Republic Act No. 10963 (TRAIN Law)
RR No. 2-2025
January 8, 2025
Implementing the tax provisions of Republic Act No. 9267, otherwise known as “The Securitization Act of 2004”
RMC No. 1-2025
January 6, 2025
Availability of the BIR Electronic Tax Clearance System for taxpayer-applicants registered under RR No. 7A-Quezon City, RR No. 7B-East NCR and RR No. 8B-South NCR.
RMC No. 2-2025
January 7, 2025
Circularizing EO No. 74 titled “Immediate Ban of Philippine Offshore Gaming, Internet Gaming, and Other Offshore Gaming Operations in the Philippines, and for Other Purposes”.
RMC No. 3-2025
January 9, 2025
Missing seven hundred sixty (760) pieces of unused/unissued BIR Form No. 1931 – TIN Card.
RDAO No. 1-2025
January 6, 2025
Delegates to OIC-Asst. Regional Director of RR 14-Eastern Visayas the authority to sign documents specified in the Order in view of the approved leave of absence of RR 14’s Regional Director.
RDAO No. 2-2025
January 9, 2025
Delegates to the Assistant Commissioner of the Enforcement and Advocacy Service the authority to sign documents specified in the Order in view of the approved official travel of Legal Group’s OIC-Deputy Commissioner.
RDAO No. 3-2025
January 9, 2025
Delegates to the Assistant Commissioner of the Assessment Service the authority to sign documents specified in the Order in view of the approved leave of absence of Operations Group’s Deputy Commissioner.
REPUBLIC ACT No. 12022
Official Gazette / October 2, 2024
An act defining the crimes of agricultural economic sabotage, prescribing penalties therefor, vesting jurisdiction over such offenses with the court of tax appeals, providing mechanism for its implementation and enforcement, repealing for the purpose Republic Act No. 10845 or the “Anti-Agricultural Smuggling Act of 2018”
https://www.officialgazette.gov.ph/2024/09/26/republic-act-no-12022/
REPUBLIC ACT No. 12023- VAT on Digital Services
Official Gazette / October 3, 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.
https://www.officialgazette.gov.ph/2024/10/02/republic-act-no-12023/
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
https://www.officialgazette.gov.ph/2024/11/08/republic-act-no-12066/
FISCAL INCENTIVES REVIEW BOARD – Department of Finance
Official Website / December 17, 2024
FIRB Advisory No. 007-2024
Interim Implementing Rules and Regulations (IRR) on the Availment of Incentives and Transfer of Registration as Provided Under Republic Act No. 12066
https://firb.gov.ph/download/firb-advisory-no-007-2024/?wpdmdl=4135&refresh=6776528c473f11735807628
WHAT IS THE FIRB?
The Fiscal Incentives Review Board, or FIRB, is the interagency government body given the authority by the Philippine law to grant tax incentives to registered business enterprises. The FIRB has delegated to the country’s investment promotion agencies the grant of tax incentives for registered projects or activities with investment capital of one billion pesos (P1,000,000,000) and below. The FIRB also grants tax subsidies to government-owned and -controlled corporations (GOCCs).
WHAT ARE THE TAX INCENTIVES AVAILABLE?
Business enterprises registered with the investment promotion agencies (IPAs) may apply for incentives under the single menu provided under CREATE, which include the following:
Click the link below to read the full news from the source:
https://firb.gov.ph/
BIR WEEKENDER BRIEFS
Volume No. 16 Issue No 1 Week ending January 3, 2024
BIR regional and district office filed one Run After Tax Evader (RATE) and a non-RATE case on December 26 before the Nueva Vizcaya Prosecutor’s Office.
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https://bir-cdn.bir.gov.ph/BIR/pdf/v16n1 highres.pdf
Lumagui: Government Contractors have to present an Updated Tax Clearance before Final Settlement of Government Contracts
Volume No. 16 Issue No 1 Week ending January 3, 2024
Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. has issued Revenue Regulation No. 17-2024 (RR No. 17-2024) which requires government contractors to secure from the BIR an updated tax clearance certifying that the contractor does not have any outstanding tax liabilities, and that the contractor has duly filed its latest income and business tax returns and paid the corresponding taxes due, prior to the final settlement of a government contract. “Government Contractors have to show that they do not have any outstanding tax liabilities before the final settlement of a government contract. The BIR will require an updated tax clearance. Otherwise, the Government has the power to suspend the final settlement of the government contract” Commissioner Lumagui stated. Before the issuance of RR No. 17-2024, a BIR tax clearance is submitted by a government contractor during the procurement process as an eligibility requirement.
Click the link below to read the full news from the source:
https://bir-cdn.bir.gov.ph/BIR/pdf/PR01JAN0825.pdf
Sections 195 and 196 of the Local Gov’t Code – Let’s Talk Tax
Business World / Penelope Germaine D. Sernande/ January 6, 2025
For example, all businesses every year should apply for the renewal of their business permit before the Local Government Unit (LGU) on or before Jan. 20. Typically, taxpayers pay immediately. As explained by the Supreme Court in City of Manila vs. Cosmos Bottling Corp., a taxpayer who is engaged in business would be hard-pressed to secure a business permit unless he pays an assessment for business tax and/or regulatory fees. Also, a taxpayer may pay the assessment to avoid further penalties or save his properties from levy and distraint proceedings. However, there are cases where taxpayers choose to exercise their legal right against such an assessment. With this, the question arises as to which remedy under the Local Government Code (LGC) should be availed of by the taxpayer to contest such an assessment. Notably, the LGC provides that the protest of assessment is governed by Section 195, while claims for refund or tax credit are governed by Section 196.
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https://www.bworldonline.com/economy/2025/01/06/644998/sections-195-and-196-of-the-local-govt-code/
BIR ordered to refund PAL
Business World / Chloe Mari A. Hufana / January 6, 2025
THE Court of Tax Appeals (CTA) granted Philippine Airlines’ (PAL) petition for revival of judgment, ordering the Bureau of Internal Revenue (BIR) to refund almost P2 million to the airline for its erroneously paid excise taxes from October 2009. The decision of the tribunal’s Third Division, promulgated on Dec.19, 2024, revives a March 2014 ruling in favor of PAL. It ordered the BIR to refund P1.94 million to the flag carrier airline. “PAL’s bone of contention is that its refund has not yet been claimed because the Decision dated March 26, 2014, has not yet been executed.
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https://www.bworldonline.com/the-nation/2025/01/06/645010/bir-ordered-to-refund-pal/#google_vignette
Fiscal, monetary tools limited for spurring ASEAN economies — ANZ –
Business World / Aubrey Rose A. Inosante/ January 6, 2025
FISCAL and monetary tools for spurring the economies of the region are limited, with governments still consolidating the debt they took on during the pandemic and interest rate cuts unlikely to be large enough to boost household and business spending, ANZ Research said. “Fiscal and monetary policies will offer limited support to overall growth in ASEAN-4 economies in 2025,” it said in a Jan. 6 report. The aggrupation’s members are Indonesia, Malaysia, the Philippines and Thailand. “As part of ongoing efforts to consolidate public finances after a substantive relaxation during the pandemic, policymakers will stick to conservative fiscal policies this year,” it said. ANZ said the measure of “efficacy” in 2025 is the ability of fiscal policy to boost household consumption.
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https://www.bworldonline.com/economy/2025/01/06/645003/fiscal-monetary-tools-limited-for-spurring-asean-economies-anz/
Makati condo residents’ privacy at risk? NPC raises red flags over BIR’s data requests
Biyonaryo.com / January 6, 2025
The National Privacy Commission (NPC) has voiced concerns over the Bureau of Internal Revenue’s (BIR) verbal request to Oriental Place for sensitive information, including a list of residential units in the Makati condominium, names and contact details of unit owners leasing their properties, and notarized lease contracts. Oriental Place, developed by the Ty family’s Federal Land, became the focus of a BIR mission order under its Tax Compliance Verification Drive (TCVD), aimed at ensuring proper tax remittance on leased residential units. While the BIR is authorized to examine business activities and request taxpayer information for compliance checks, it is also required to uphold data privacy principles under the Data Privacy Act, noted NPC Director Franklin Anthony M. Tabaquin IV in Privacy Policy Office (PPO) Advisory Opinion No. 2024-016. While the BIR is authorized to examine business activities and request taxpayer information for compliance checks, it is also required to uphold data privacy principles under the Data Privacy Act, noted NPC Director Franklin Anthony M. Tabaquin IV in Privacy Policy Office (PPO) Advisory Opinion No. 2024-016.
Click the link below to read the full news from the source:
https://bilyonaryo.com/2025/01/06/makati-condo-residents-privacy-at-risk-npc-raises-red-flags-over-birs-data-requests/business/
Business permit renewal in Taguig to run until Jan. 20
Manila Bulletin / Jonathan Hicap / January 7, 2025
The renewal of business permits and payment of business taxes for 2025 in Taguig will be conducted until Jan. 20. The Taguig City government launched the renewal of business permits under its Business One-Stop Shop (BOSS) 2025 last Jan. 2. It is being held from 7 a.m. to 4 p.m. daily including weekends. Business permit renewals and the payment of business taxes for 2025 will run from January 2 to January 20, 2025, operating daily from 7:00 a.m. to 4:00 p.m., including weekends.
Click the link below to read the full news from the source:
https://mb.com.ph/2025/1/7/business-permit-renewal-in-taguig-to-run-until-jan-20
Aligning MORE with BEPS – Taxwise or Otherwise
Business World / Ruthie Mae G. Clemente / January 8, 2025
The New Year is a time of renewal and fresh beginnings. For businesses, it is a time to revisit existing policies, and keep abreast of new developments. In the spirit of new opportunities and progress, the government recently passed Republic Act No. 12066 or the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE), with the goal of making the Philippines a more attractive destination for foreign investors wishing to set up their businesses. CREATE MORE builds on the foundations of the CREATE law by introducing, among others, additional enhanced deductions and tax incentives. The new tax law also lowered the corporate income tax (CIT) rate of registered enterprises availing of the enhanced deductions regime to 20%. The recently passed CREATE MORE Act appears to be a significant step in the same direction, offering competitive tax incentives similar to those in neighboring ASEAN countries. One of the salient provisions of CREATE MORE is the reduction of the CIT rate to 20% under the Enhanced Deductions Regime (EDR). Specifically for businesses in energy-intensive industries, the EDR may be more attractive because the deduction for power expenses increased from 50% to 100%. The CREATE MORE Act also introduced new deductible expense items related to trade fairs and exhibitions. In addition to these, the incentive period has also been extended to a maximum of 24 to 27 years for entities registered with the Fiscal Incentives Review Board. Taxpayers also have the option of forgoing the Income Tax Holiday (ITH) and directly availing of the 5% special CIT or EDR. The new law also amended the reckoning period to carry over net operating losses as a deduction for registered enterprises to the last year of the ITH period (previously from the year of loss) to maximize the recovery period.
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https://www.bworldonline.com/economy/2025/01/08/645497/aligning-more-with-beps/
No tax clearance, no payment: BIR tightens rules for government contractors
Manila Bulletin / Jun Ramirez / January 8, 2025
The Bureau of Internal Revenue (BIR) will now require government contractors to secure an updated tax clearance before the final settlement of a government contract to ensure they have no outstanding tax liabilities. In a statement, BIR Commissioner Romeo D. Lumagui Jr. said this new policy, outlined in Revenue Regulation No. 17-2024 (RR No. 17-2024), aims to strengthen tax compliance among government contractors. The BIR said the new regulation ensures that government contractors fulfill their tax obligations before receiving final payment for their services. RR No. 17-2024 also stipulated that any final settlement on a government contract suspended due to the contractor’s failure to present an updated BIR tax clearance will be subject to a tax lien in favor of the government to settle the contractor’s outstanding tax liabilities. To facilitate the implementation of this new policy, Lumagui also issued Revenue Memorandum Order No. 002-2025, which prescribed the policies, guidelines, and procedures for processing and issuing tax clearance certificates for the final settlement of government contracts.
Click the link below to read the full news from the source:
https://mb.com.ph/2025/1/8/bir-tightens-tax-compliance-for-govt-contractors
Retiro Golden Foods secures partial relief from tax penalties
Business World / Chloe Mari A. Hufana / January 8, 2025
THE COURT of Tax Appeals (CTA) partially granted Retiro Golden Foods, Inc.’s petition against the Bureau of Internal Revenue (BIR), ordering the cancelation of over P175 million worth of deficiency income tax, value-added tax (VAT), and compromise penalties. The CTA Second Division partially granted Retiro’s petition for review, upholding the deficiency expanded withholding tax (EWT) and withholding tax on compensation (WTC) assessments but canceling the deficiency income tax, VAT, and compromise penalties.
Click the link below to read the full news from the source:
https://www.bworldonline.com/corporate/2025/01/08/645254/retiro-golden-foods-secures-partial-relief-from-tax-penalties/
Tacloban urges property owners to settle tax delinquencies by Jan. 31
Inquirer.Net / Joey Gabieta / January 8, 2025
TACLOBAN CITY – The local government here is urging delinquent real property owners to settle their tax obligations before the Jan. 31 deadline as unpaid real property taxes have accumulated to more than P200 million over the past five years. City Treasurer’s Office officer-in-charge Jennifer Guy said over 1,000 property owners in the city have yet to pay their delinquent taxes, prompting the local government to consider implementing a tax amnesty program. “The amount of about P200 million represents accumulated delinquencies from more than 1,000 real property owners over the past five years,” Guy said in an interview with Inquirer last Jan. 3. Guy appealed to delinquent taxpayers to settle their unpaid taxes, emphasizing that the city government is considering adopting a tax amnesty program similar to the one implemented by the national government.
Click the link below to read the full news from the source:
https://newsinfo.inquirer.net/2022544/tacloban-urges-property-owners-to-settle-tax-delinquencies-by-jan-31
DoE put in charge of EV, hybrid vehicle classifications for excise tax purposes
Business World / Aaron Micheal C. Sy / January 8, 2025
THE Bureau of Internal Revenue (BIR) has transferred to the Department of Energy (DoE) the authority to classify automobiles as electric vehicles (EVs) or hybrids, which will determine eligibility for an excise tax exemption. “During the inter-agency consultation called by the Department of Finance (DoF) with representatives from Department of Energy, Department of Environment and Natural Resources-Environmental Management Bureau (DENR-EMB), and the BIR, the DoE proposed that the determination of whether an automobile is hybrid or purely electric be reverted to the DoE as originally assigned by RR No. 5-2018,” the BIR said in a Revenue Regulations 001-2025. Currently, the determination of whether an automobile is hybrid or purely electric is the responsibility of the EMB, which issues Certificates of Conformity and Certificates of Non-Coverage. Under the Tax Reform for Acceleration and Inclusion law, or Republic Act No. 10963, electric vehicles are fully exempt from the excise tax on vehicles, while hybrid automobiles are 50% exempt.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2025/01/08/645500/doe-put-in-charge-of-ev-hybrid-vehicle-classifications-for-excise-tax-purposes/
NGCP compliant with national government franchise tax laws – BIR
The Philippine Star / Delon Porcalla / January 8, 2025
The Bureau of Internal Revenue (BIR) has affirmed that the National Grid Corp. of the Philippines (NGCP) – a privately owned firm tasked to operate, monitor and develop the government’s power grid – has been fully compliant with its tax responsibilities. “NGCP has been religiously paying its franchise tax to BIR,” BIR Commissioner Romeo Lumagui Jr. told the ways and means committee of the House of Representatives, which is conducting an investigation on NGCP’s supposed refund to power consumers. On top of the Salceda committee’s agenda yesterday was a briefing of the BIR on the collection of franchise tax from NGCP, pursuant to the Implementation of BIR RMC 124-2024 “exempting NGCP franchise tax from pass-on charges.”
Click the link below to read the full news from the source:
https://www.philstar.com/headlines/2025/01/08/2412620/ngcp-compliant-national-government-franchise-tax-laws-bir
Booklet-free medicine discount to PWDs eyed
Cebu News – The Philippine Star / The Freeman/January 8, 2025
CEBU, Philippines — The Food and Drug Administration (FDA) announced that it is studying the expansion of the booklet-free rule for the 20% medicine discount to include persons with disabilities (PWDs), in addition to senior citizens. In a statement on Tuesday, January 7, the FDA said its officials have conducted meetings over the past week to discuss the Department of Health’s (DOH) initiative to issue Administrative Order 2024-0017. The DOH order, issued on Dec. 23, 2024, removes the booklet requirement from the implementation guidelines of prior administrative orders pertaining to the Expanded Senior Citizens Act of 2010. All other discounts, including the exemption from value-added tax (VAT), are also being reviewed under the CREATE Law for a more streamlined process. Under the law, medicines to help treat cancer, mental health conditions, tuberculosis and kidney diseases are VAT-exempt. The FDA is the agency that recommends the list of medicines to the Bureau of Internal Revenue.
Click the link below to read the full news from the source:
https://www.philstar.com/the-freeman/cebu-news/2025/01/08/2412679/booklet-free-medicine-discount-pwds-eyed
Digital media VAT seen raising over P102 billion
Business World / Aaron Micheal C. Sy / January 9, 2025
THE value-added tax (VAT) on digital media and advertising is projected to bring the government P102.12 billion in revenue by 2029, a Department of Finance (DoF) official said. “We hope that… a lot of the DSPs (Digital Service Providers) will comply, so that we really reap the benefits of this measure,” DoF director and Organization for Economic Co-operation and Development Representative Euvimil Nina R. Asuncion told reporters on the sidelines of an event on Wednesday. Republic Act No. 12023, which imposes a 12% value-added tax on digital services providers, both resident and non-resident, was signed into law in October.
Click the link below to read the full news from the source:
https://www.bworldonline.com/editors-picks/2025/01/09/645846/digital-media-vat-seen-raising-over-p102-billion/
Tobacco industry backs pause in excise tax hike to deter smuggling
Business World / John Victor D. Ordonez / January 9, 2025
THE Philippine Tobacco Institute (PTI) said on Thursday that a pause in raising excise taxes on tobacco could steer consumers away from smuggled cigarettes and stabilize prices of legitimate products. In September, President Ferdinand R. Marcos, Jr. signed into law a measure classifying agricultural smuggling, hoarding, profiteering, and financing of these crimes as acts of economic sabotage. Republic Act No. 12022, or the Anti-Agricultural Economic Sabotage Act, imposed a fine equivalent to five times the value of smuggled or hoarded agricultural products, with violators also under threat of life imprisonment.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2025/01/09/645842/tobacco-industry-backs-pause-in-excise-tax-hike-to-deter-smuggling/#google_vignette
Tax exemption on ABS transfers takes effect
Business World / Aaron Michael C. Sy / January 9, 2025
Bureau of Internal Revenue (BIR) said a tax exemption on secondary trade and transfers of asset-backed securities (ABS) has taken effect. “The sale or transfer of assets to the SPE (Special Purpose Entity), including sale or transfer of any and all security interest thereto, made in accordance with the Securitization Plan, shall be exempted from value-added tax (VAT) and documentary stamp tax (DST), or any other taxes imposed in lieu thereof,” the BIR said in a circular dated Jan. 8. “Secondary trades and subsequent transfers of ABS, including all forms of credit enhancement in such instruments, shall be exempt from DST and VAT, or any other taxes imposed in lieu thereof,” it added.
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https://www.bworldonline.com/economy/2025/01/09/645841/tax-exemption-on-abs-transfers-takes-effect/
ICTSI’s P2.35-B Iloilo port project registered with BOI
Business World / Justine Irish D. Tabile / January 9, 2025
THE Board of Investments (BoI) said it approved a P2.35-billion project of the International Container Terminal Services, Inc. (ICTSI) to modernize, manage, and operate the Visayan Container Terminal in Iloilo. In a statement on Thursday, the BoI said that it awarded the certificate of registration to the ICTSI project, which aims to transform the old Iloilo Commercial Port Complex into a state-of-the-art facility. With its registration, the Visayan Container Terminal modernization project is entitled to a three-year income tax holiday followed by five years of enhanced deductions and duty-free imports of equipment.
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https://www.bworldonline.com/economy/2025/01/09/645840/ictsis-p2-35-b-iloilo-port-project-registered-with-boi/
Illicit cigarettes create ‘lose-lose situation’ for tax, health goals
Inquirer.Net / January 9, 2025
MANILA, Philippines – Rising illicit cigarette trade has led the country to a “lose-lose situation” by drastically reducing government revenues and reversing public health gains, Senator Sherwin Gatchalian said on Thursday. In a hearing of the Senate Ways and Means Committee, Committee Chairman Gatchalian said, “The reason we impose excise tax on tobacco products is so we can have better health outcomes. But smoking prevalence has now reversed. We’re now in a lose-lose situation because smoking prevalence is going up, tax collection is going down.” According to Bureau of Internal Revenue (BIR) Head Revenue Executive Assistant, Atty. Don Galera, excise taxes due in 2024 amounted to more than P64 million for illicit vapor products and more than P342 million for illicit cigarettes.
Click the link below to read the full news from the source:
https://newsinfo.inquirer.net/2023077/illicit-cigarettes-create-lose-lose-situation-for-tax-health-goals
BIR misses tobacco excise tax collection target in 2024
The Philippine Star / Jasper Emmanuel Arcalas / January 10, 2025
MANILA, Philippines — The Bureau of Internal Revenue (BIR) missed its tobacco excise tax collection target by more than a quarter as illicit trade continued and became even more prevalent in the domestic market. BIR head revenue executive assistant Dondanon Galera said total tobacco excise tax collection last year stood at P134 billion, about P51 billion short of the agency’s P185 billion target collection in 2023.
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https://www.philstar.com/business/2025/01/10/2413048/bir-misses-tobacco-excise-tax-collection-target-2024
SEC approves DragonFi as PERA administrator
Business World / Revin Mikhael D. Ochave / January 10, 2025
THE SECURITIES and Exchange Commission (SEC) has approved the application of DragonFi Securities, Inc. as a personal equity and retirement accounts (PERA) administrator, expanding the number of accredited entities. It is the first PERA administrator application approved by the SEC following the issuance of SEC Memorandum Circular (MC) No. 14 on Sept. 19 last year, which contained guidelines on the accreditation of PERA market participants. PERA refers to a voluntary retirement saving program on top of existing retirement benefits from the Social Security System, Government Service Insurance System, and employer-sponsored plans. PERA refers to a voluntary retirement saving program on top of existing retirement benefits from the Social Security System, Government Service Insurance System, and employer-sponsored plans.
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https://www.bworldonline.com/corporate/2025/01/10/645779/sec-approves-dragonfi-as-pera-administrator/
More businessmen renew permits early in Mandaue
Cebu News – The Philippine Star / The Freeman/ Kristine De Dios/ January 10, 2025
CEBU, Philippines — The Mandaue City Business Permit and Licensing Office (BPLO) has reported a significant increase in early business permit renewals since the renewal period started on January 2, 2025. The BPLO expects the number of registrants to grow further, as the renewal period extends until January 20.
Click the link below to read the full news from the source:
https://www.philstar.com/the-freeman/cebu-news/2025/01/10/2413211/more-businessmen-renew-permits-early-mandaue