Bureau of Internal Revenue Issuances
REVENUE MEMORANDUM CIRCULARS (RMC)
RMC No. 006-2025
January 16, 2025
Extension of Registration of Permanently Bound Loose-Leaf Books of Accounts/Invoices and Computerized Books of Accounts and Other Accounting Records
The Bureau of Internal Revenue (BIR) has extended the registration deadlines for Loose-Leaf Books of Accounts, Invoices, and Computerized Books of Accounts due to technical issues with the Online Registration and Update System (ORUS). The new extended deadlines are as follows:
RMC No. 4-2025
January 14, 2025
Publishing the full text of COMELEC Law Department Memorandum No. 24-09122 dated December 26, 2024 in connection with the 2025 National and Local Elections, and Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) Parliamentary Elections
Full Text | COMELEC Memorandum No. 24-09122 | COMELEC Resolution No. 10999
RMC No. 5-2025
January 16, 2025
Amending certain provisions of RMC Nos. 11-2024. 12-2024, 13-2024 and 19-2024, provide clarifications/ transitory provisions and to align them with the provisions of R.A. No. 11976, (EOPT Act), its Implementing Rules and Regulations and other issuances
REVENUE MEMORANDUM ORDERS (RMO)
REVENUE DELEGATION OF AUTHORITY ORDERS (RDAO)
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
RDAO No. 4-2025
January 15, 2025
Delegates to specific personnel/officials the authority to sign documents specified in the Order in view of the approved sick leave of Accounting Division’s OIC-Chief
RDAO No. 5-2025
January 15, 2025
Delegates to the Assessment Division Chief of RR 8B-South NCR the authority to sign documents specified in the Order in view of the approved leave of RR 8B’s Regional Director
TAX LAW
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. 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. 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
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:
- 4 to 7 years of income tax holiday (ITH)
- 10 years of special corporate income tax (SCIT) for export enterprises
- Enhanced deductions
- Customs duty exemption on importation
- Value-added tax (VAT) exemption on importation and VAT zero-rating on local purchases
A Step-by-Step Guide for IPAs: Approve and Consolidate the Annual Tax Incentives Report (ATIR) and Annual Benefits Report (ABR) submissions of RBEs through FIRMS – After the RBE’s submission of the ATIR-ABR package through FIRMS, the IPAs can navigate and download the packages under Manual Submission, or Approve/Return the RBE’s ATIR-ABR under Electronic Submission.
Click the link below to read the full news from the source:
https://firb.gov.ph/download/a-step-by-step-guide-for-ipas-approve-and-consolidate-the-atir-and-abr-submissions-of-rbes-through-firms/?wpdmdl=3954&refresh=67809445871d91736479813
TAX AND BUSINESS RELATED NEWS
BIR WEEKENDER BRIEFS
Volume No. 16 Issue No 2 Week ending January 10, 2024
Commissioner Romeo D. Lumagui, Jr. delivered his New Year message to revenuers during the flag-raising ceremony on January 6, 2025 at the BIR National Office.
Lumagui: BIR hits 2024 collection target; ends 20-year drought
Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui, Jr. announced that the BIR has reached its 2024 collection target of Php 2.848 trillion. This is the collection goal approved by the Development Budget Coordination Committee (DBCC) last March 22, 2024. This is the first time in twenty (20) years since the BIR achieved its full collection goal. “After 20 long years, the BIR has finally reached its full collection target. The BIR has collected at least Php 2.848 trillion for 2024. All credit belongs to the men and women of the BIR. Mabuhay po kayong lahat!” Commissioner Lumagui stated.
Mayors back push for accurate accounting of LGUs’ national tax share
Manila Bulletin / Chito Chavez / January 11, 2025
The League of Cities of the Philippines (LCP) is calling for the correct, accurate and transparent computation of the national tax allotment (NTA) share for the local government units (LGUs). In a statement, the LCP echoed the stand of LCP Secretary-General and Baguio City Mayor Benjamin B. Magalong that there is a need for full and clear accounting of the LGUs’ NTA dividend.
DOF clarifies determination of the National Tax Allotment shares for LGUs, ensures transparency and strict compliance with Mandanas-Garcia ruling
Department of Finance / January 12, 2025
The Department of Finance (DOF) has reaffirmed its commitment to transparency and strict compliance with the Supreme Court decision and relevant laws in determining the National Tax Allotment (NTA) shares for local government units (LGUs). “We assure our LGUs that we are strictly adhering to transparency and accountability, especially with the principles set by the Supreme Court, in implementing the Mandanas-Garcia ruling. Nothing is shortchanged. We are very much welcome and open to having continued dialogues with our LGUs to help them strengthen their fiscal capacities and optimize resource utilization to deliver more and better services to Filipinos,” Finance Secretary Ralph G. Recto said.
LGU tax share not shortchanged
Business World / Luisa Maria Jacinta C. Jocson / January 12, 2025
THE Department of Finance (DoF) said it has been adhering to the Mandanas-Garcia ruling and computation for local governments’ shares in national taxes. In a statement on Sunday, the department said it ensures the “strict compliance with the Supreme Court decision and relevant laws in determining the National Tax Allotment (NTA) shares for local government units (LGUs).” “Nothing is shortchanged. We are very much welcome and open to having continued dialogues with our LGUs to help them strengthen their fiscal capacities and optimize resource utilization to deliver more and better services to Filipinos,” Finance Secretary Ralph G. Recto said.
https://www.bworldonline.com/the-nation/2025/01/12/646067/lgu-tax-share-not-shortchanged/
Unveiling the opportunities of the CREATE MORE Act
Business World / Cheryl Edeline C. Ong and Virnee Agot-Ting / January 12, 2025
IN BRIEF • The CREATE MORE Act signals a renewed commitment to fostering a more attractive and competitive environment aimed at attracting more FDI into the economy. • The Act intends to help the country gain a more significant share in the near-shoring activities of manufacturing plants and support the continued growth of the BPO industry, among others. The government is taking bold steps to significantly enhance the investment landscape and address investor concerns with the signing of Republic Act No. 12066 (Maximize Opportunities for Reinvigorating the Economy) or the CREATE MORE Act. This landmark legislation signals a renewed commitment to fostering a more attractive and competitive environment for businesses. By introducing expanded tax incentives, streamlining VAT processes, and clearly defining eligibility criteria, the CREATE MORE Act aims to stimulate economic growth and position the Philippines as a prime destination for foreign direct investment (FDI).
WHAT RBEs CAN EXPECT – Pre-CREATE RBEs are currently enjoying the sunset provisions under the CREATE Act which provides that those currently enjoying 5% Gross Income Tax (GIT) are given until April 2031 to continue under this regime. However, with the effectivity of CREATE MORE, these pre-CREATE RBEs have been given an extension to Dec. 31, 2034 to continue enjoying the 5% GIT. The clarification on VAT zero-rating as discussed below will also have a positive impact on pre-CREATE RBEs. The phrase “directly and exclusively used” has been one of the main concerns of the investors when the CREATE Act was implemented since it appears to be very limiting and restrictive. This has been abandoned in the CREATE MORE Act, which now uses the phrase “directly attributable” and refers to goods and services that are incidental to and reasonably necessary for the registered activity or export activity of the export-oriented enterprise. These include janitorial, security, financial, consultancy, marketing and promotion services, and services rendered for administrative operations such as human resources, legal, and accounting. Notably, the enumerated purchases are the exact purchases explicitly provided in RR No. 3-2023 as purchases that are previously excluded from VAT zero-rating. The determination of what constitutes as “directly attributable” will be made by the IPA. It is important to highlight that the option to choose an incentive package is irrevocable and that it will be elected at the time of application. As it is, given several key amendments in the 5% SCIT and EDR, a simulation exercise is necessary for the companies to arrive at a decision that will be most advantageous for their intended investment.
Passage of stalled tax measures critical to meet revenue collection targets
Business World / Kenneth Christiane L. Basilio / January 12, 2025
LEGISLATORS need to approve pending tax measures before the 19th Congress ends to help the government meet its 2025 revenue collection goals, Revenue Commissioner Romeo D. Lumagui, Jr. said. Measures yet to be passed include an excise tax on single-use plastics, the rationalization of the mining fiscal regime, tax reforms in the Philippine capital markets, and a proposed hike to the motor vehicle road user charge. The House of Representatives has approved the pending tax measures, some as early as 2022; while its counterpart measures are stalled at the Senate.
ARTA hoping to enroll 200 LGUs in one-stop shop system this year
Business World /Justine Irish D. Tabile / January 12, 2025
THE Anti-Red Tape Authority (ARTA) has set a target of signing up 200 more local government units (LGUs) for the electronic Business One-Stop Shop (eBOSS) system this year. “As of the moment, 112 LGUs are eBOSS compliant, and the target for 2025 is to have an additional 200 LGUs,” ARTA Deputy Director General Gerald G. Divinagracia said via Viber. If realized, Mr. Divinagracia said that the year will end with over 300 eBOSS-compliant LGUs. Republic Act (RA) No. 11032 or the Ease of Doing Business and Efficient Government Service Delivery Act requires LGUs to adopt eBOSS. Asked about the locations of the 200, ARTA said they are largely in “the eight regions where we have people: Northern Luzon, Central Luzon, Southern Luzon, the Western Visayas, the Eastern Visayas, Northern Mindanao, Eastern Mindanao, and Western Mindanao,” he said.
CTA partially grants MSD’s petition for VAT refund
Business World / Chloe Mari A. Hufana / January 13, 2025
THE COURT of Tax Appeals (CTA) has ordered the Bureau of Internal Revenue (BIR) to refund P14.59 million to the local branch of United States-based pharmaceutical company Merck Sharp & Dohme (MSD), ruling that value-added tax (VAT) on certain medicine imports was improperly collected. The court’s second division, in a decision promulgated on Jan. 6, partially granted the firm’s petition for review, acknowledging the company’s claim that the imported medicines were exempt from VAT beginning Jan. 1, 2020. The tribunal only partially granted the petition for a refund of erroneously paid VAT, as the BIR had already refunded a portion of the claimed amount. It held that the National Internal Revenue Code (NIRC) of 1997, as amended by Republic Act (RA) No. 11467, which exempts the importation of prescription drugs and medicines for diabetes, high cholesterol, and hypertension from VAT starting Jan. 1, 2020, takes precedence over subsequent administrative issuances that prescribed later effectivity dates.
Parañaque launches 2025 tax campaign
The Philippine Star / January 13, 2025
MANILA, Philippines — Taxpayers will receive a 10-percent discount on quarterly real property tax (RPT) payments, based on leaflets that will be distributed this week by the Parañaque government as part of its tax campaign program. Early payment of quarterly RPT will have a 10-percent discount, from Jan. 1 to 20 for the first quarter; April 1 to 20, second quarter; July 1 to 20, third quarter, and from Oct. 1 to 20 for the fourth quarter. Online and onsite business permit renewals with no penalty have been set from Jan. 2 to 20 and from Jan. 21 to 26, respectively. A 25-percent penalty with a two-percent interest or surcharge will be imposed on renewals from Jan. 27 to Feb. 20 and from Feb. 21 to 28.
https://www.philstar.com/nation/2025/01/13/2413778/paraaque-launches-2025-tax-campaign
Inventory list and schedules for real estate, construction firms – ‘Let’s Talk Tax’
Business Wolrd / Richard R. Ibarra / January 13, 2025
Traditionally, the Bureau of Internal Revenue (BIR) inventory list is associated with taxpayers in manufacturing and retail, where inventories form part of the cost of goods sold, which is a critical component of major deductions on the income tax return. However, when the BIR issued Revenue Memorandum Circular (RMC) 57-2015, it significantly broadened the scope, requiring other types of businesses, including those in the real estate and construction industries, to submit an inventory list along with the schedules. The RMC requires all businesses with “tangible asset-rich” balance sheets to submit an annual inventory list along with schedules in the format prescribed by the BIR. Accordingly, a tangible asset-rich balance sheet is defined as at least 50% of the total assets composed of working capital, such as accounts receivable and inventory. This requirement has consequently brought real estate and construction businesses into the fold of compliance if they meet the criteria. If qualified, they must submit the required inventory list and schedule within 30 days after the close of a taxable year. Moreover, the preparation of the required list and schedules for these industries must conform with the prescribed format, specifically dedicated to real estate and construction, under Annexes B and C of RMC 8-2023, respectively. Non-compliance with these formats will result in the submission being considered as not received by the BIR and subject to penalties. Another challenge is that the information available during the preparation and submission to the BIR on Jan. 30 may be based on unaudited account balances. As such, the reported figures in the schedules could still change due to adjustments made during the finalization of the financial statements (FS). These adjustments may be attributed to client’s adjustments (CAJE), external auditor’s adjustments (PAJE), or a combination of both, aimed at correcting the account balances. Normally, the BIR uses the inventory list and its schedule to identify any discrepancies that might indicate under-declaration of revenue when the BIR cross-checks the amount in the AFS and ITR. It may also include procedures of recalculating and analyzing the relationship between the accounts receivable movements, cash collections, gross profit recognized in the previous and among others. Any discrepancies identified must be adequately explained by the taxpayer. Otherwise, failure to provide a satisfactory explanation could result in the imposition of deficiency taxes.
Listed companies must disclose external auditor fees — SEC
Business Wolrd / Revin Mikhael D. Ochave / January 14, 2025
THE SECURITIES and Exchange Commission (SEC) is requiring publicly listed companies (PLCs) and other public interest entities to disclose fees paid to their external auditors to improve transparency. The corporate regulator issued Memorandum Circular No. 18 on Dec. 26 last year. This circular includes rules on disclosing fee-related information of external auditors, the SEC said in an e-mailed statement on Monday. “To enhance transparency relevant to external auditors’ independence and align with the commission’s rules on fee disclosure requirements with the Code of Ethics for Professional Accountants duly adopted in the Philippines, the commission resolved to issue these guidelines,” the SEC said. The guidelines will apply to the annual financial statements (AFS) of covered entities for the period ending Dec. 31, 2024, onwards. Entities covered by the guidelines include PLCs, issuers that have sold a class of securities pursuant to a registration under Republic Act No. 8799 or the Securities Regulation Code (SRC), and public companies or firms with assets of at least P50 million and 200 or more holders of at least 100 shares of a class of equity securities each.
Wagi si Lumagui! ‘New and improved’ BIR tops revenue collection target
Bilyonaryo / January 14, 2025
The Bureau of Internal Revenue (BIR) has surpassed its 2024 collection target of P2.848 trillion, a milestone attributed to reforms under the leadership of Commissioner Romeo D. Lumagui Jr. While final figures are still being calculated and are expected to be finalized by mid-February, Lumagui said the agency is on track to surpass the revenue goal set by the Development Budget Coordination Committee (DBCC) in March 2024.
Moratorium on sin tax hike eyed
Business Wolrd / Kenneth Christine L. Basilio / January 14, 2025
THE HOUSE ways and means committee is looking at imposing a moratorium on the yearly excise tax rate increase over tobacco products in a bid to strengthen the government’s tax administration on cigarettes and to address smuggling. “The scheduled yearly increase shall not apply for the period effective January 1, 2026, until December 31, 2026… provided that the 5% increase shall again be imposed beginning January 1, 2026, and every three years thereafter,” according to the unnumbered substitute bill obtained by BusinessWorld. The Philippines applies an excise tax rate of P63 per pack of 20 cigarettes while vape products are levied with a tax of P109.20 for two milliliter (mL) salt nicotine pods and P63 per 10 mL tax for classic nicotine products, according to the Bureau of Internal Revenue (BIR).
Recto, LGUs settle NTA ‘misunderstanding’
Business Wolrd / Aubrey Rose A. Inosante / January 15, 2025
FINANCE Secretary Ralph G. Recto briefed local government units (LGUs) on how their National Tax Allotment (NTA) was computed, after a mayor alleged that the National Government (NG) is not handing over to LGUs their proper share of tax revenue. In a statement, the Department of Finance (DoF) said Mr. Recto provided a “detailed line-by-line briefing” to mayors on the NTA computations, which it said were compliant with the 2019 Mandanas-Garcia Supreme Court ruling. The 2019 ruling, which took effect in 2022, redefined the LGU share of national revenue, ordering that they be given 40% of all taxes, instead of the previous standard of 40% of all “internal revenue.” The change was reflected in the renaming of the LGUs’ share to the national tax allotment. It had previously been known as the Internal Revenue Allotment (IRA).
https://www.bworldonline.com/economy/2025/01/15/646994/recto-lgus-settle-nta-misunderstanding/
BIR sees further collection growth in 2025, assuming passage of pending tax measures
Business Wolrd / Aubrey Rose A. Inosante / January 15, 2025
THE Bureau of Internal Revenue (BIR) is expecting further growth in collections in 2025, assuming that Congress passes a number of stalled tax bills. “We are doing a lot to improve our efficiency and our collection targets. So, I think that the collection will be better also for 2025,” Commissioner Romeo D. Lumagui said on the sidelines of a Congress hearing last week.
Here comes the VAT refund for tourists – Taxwise or Otherwise’
Business Wolrd / Maryanne Patricia Uno / January 15, 2025
Shopping is a huge part of tourism, not only in other countries, but also here in the Philippines. Indeed, having a portion of the total price paid, such as the VAT, returned to the buyer, can definitely be an incentive for tourists to procure more locally made pasalubongs for their loved ones. Fortunately, tourists coming to the Philippines are now entitled to a VAT refund for the goods that they purchase, thanks to Republic Act (RA) No. 12079, which was signed into law on Dec. 9 and took effect on Dec. 24. Under the law, non-resident tourists are eligible for a VAT refund provided: (1) the goods are purchased in person by the tourist in duly accredited stores; (2) such goods are taken out of the Philippines by the tourist within 60 days from the date of purchase; and (3) the value of goods purchased per transaction is at least P3,000. The VAT can be refunded either electronically or in cash. The VAT refund system is to be operated by one or more reputable, globally recognized, and experienced VAT refund operators providing end-to-end solutions to the government. The Secretary of Finance, in consultation with the other administrative agencies and departments, is tasked with issuing the rules and regulations to faithfully implement the provisions of the law.
https://www.bworldonline.com/economy/2025/01/15/646985/here-comes-the-vat-refund-for-tourists/
After surpassing 2024 goal, BIR aims for another record year in 2025
Manila Bulletin / Derco Rosal / January 15, 2025
The Bureau of Internal Revenue (BIR) is optimistic it will hit its record P3-trillion collection target this year after a historic performance last year. BIR Commissioner Romeo D. Lumagui Jr. told the Manila Bulletin on Wednesday, Jan. 15, that the bureau, the government’s main tax agency, will do its best to achieve another record P3.2 trillion revenue haul in 2025. This year’s target is 12 percent higher than the preliminary collection of P2.848 trillion for 2024.
https://mb.com.ph/2025/1/15/bir-aims-for-another-record-year-in-2025
Recto resolves concerns on the National Tax Allotment shares of LGUs in a dialogue with city mayors
Department of Finance / January 15, 2025
Finance Secretary Ralph G. Recto resolved concerns on the computation of the National Tax Allotment (NTA) shares for local government units (LGUs) in a productive dialogue with city mayors on January 15, 2025. During the meeting, Secretary Recto provided a detailed line-by-line briefing to the city mayors on the NTA computations, ensuring full alignment with the principles of the 2019 Mandanas-Garcia Supreme Court ruling and relevant laws. Present during the briefing were Baguio City Mayor Benjamin Magalong, Quezon City Mayor Joy Belmonte, and Dumaguete City Mayor Felipe Antonio Remollo. “We did not change or amend anything. This is based on the Supreme Court ruling and a Development Budget Coordination Committee resolution, which was made in consultation with the LGUs. We are very transparent,” Secretary Recto said. Meanwhile, a comparison of the computations between the LGUs and the DOF was also discussed, revealing that the calculations and deductions under various laws were more or less aligned.
Tax court affirms BOC’s seizure of undeclared $491,600 in 2019
Manila Bulletin / Jeffrey Damicog / January 15, 2025
The Court of Tax Appeals (CTA) has denied the petition that sought the return of US$491,600 in cash that was confiscated by the Bureau of Customs (BOC) at the Ninoy Aquino International Airport (NAIA) in 2019. “After a full review of the parties’ respective arguments and evidence, we rule to deny the present petition for lack of merit,” stated the 26-page decision of the CTA En Banc penned by Associate Justice Henry S. Angeles and promulgated last Jan. 9.
https://mb.com.ph/2025/1/15/tax-court-affirms-boc-s-seizure-of-undeclared-491-600-in-2019
Tax cheats
The Philippine Star / Marianne Go / January 17, 2025
Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui Jr. just this week announced that the emerging full-year tax collection figures for 2024 will “definitely reach the P2.848 trillion mark,” even as the revenue collection agency will still have to finalize the actual tax collections by mid-February this year. As of end-November 2024, the BIR’s revenue was reported at P2.667 trillion, already at 93.64 percent of the full-year P2.8-trillion target. The BIR chief proudly declared in a statement that his agency’s 2024 performance could be “the first time in 20 years that the BIR achieved its goal.” He attributed the agency’s good collection performance for last year to “our dedication to good governance reforms, manifested by our shift to a taxpayer-oriented agency,” which he said led to the increased voluntary compliance of taxpayers. He added that “this goes to show that if government agencies improve their services, processes, and programs, our countrymen will do the right thing and pay their proper share of taxes.”
https://www.philstar.com/business/2025/01/17/2414704/tax-cheats
NEA sets new requirements for ECs to obtain LGU tax exemptions
Manila Bulletin / Gabriell Christel Galang / January 15, 2025
Electric cooperatives (ECs) seeking exemption from local taxes, fees, and charges imposed by their local government units (LGUs) must meet performance standards set by the National Electrification Administration (NEA).According to the NEA, to qualify for the exemption, ECs will be evaluated on several criteria to ensure they provide reliable and efficient power distribution services. The certificate is a prerequisite for availing of preferential tax rights from LGUs, as provided by the Local Government Code and the NEA Reform Act of 2013.
https://mb.com.ph/2025/1/15/e-cs-face-new-rules-for-tax-breaks
The right man for a taxing job
The Philippine Star / Roses and Thorns – Pia Roces Morato / January 17, 2025
Imagine if you were responsible for 80 percent of a company’s revenue. Essentially, it would mean that the salaries, operating expenses, capital, supply, stock and inventory of the corporation would pretty much depend on how well you perform your duties. Now imagine if you were responsible for 80 percent of an entire country’s revenue. All the government’s projects and programs – covering every aspect of administration, bureaucracy, infrastructure, social services and their total combined execution – would be anchored on how well you and your agency could fund them. As the Millennials and Gen-Z would say jokingly: no pressure, right? Given the sheer gravity and importance of this role, President Ferdinand “Bongbong” Marcos Jr. (PBBM) surely gave a lot of thought and consideration before selecting the best person to lead the Bureau of Internal Revenue (BIR).
https://www.philstar.com/opinion/2025/01/17/2414729/right-man-taxing-job
BIR confident it surpassed P2.85-T 2024 collection target
Philippine Daily Inquirer / Ian Nicolas P. Cigaral / January 15, 2025
The Bureau of Internal Revenue (BIR) said it might have surpassed its collection goal for the first time in 20 years in 2024 even as economic growth had shown signs of a slowdown, supporting the Marcos administration’s bid to cut the country’s budget deficit. In a statement on Tuesday, the BIR, citing emerging figures, said it collected “at least” P2.85 trillion in 2024, which matched the revenue target of the agency for last year. With the exception of 2020 when the bureau’s target was significantly lowered due to a pandemic-induced recession, the BIR said this was the first time in 20 years that the agency was able to beat its target receipts.
https://business.inquirer.net/501323/bir-confident-it-surpassed-p2-85-t-2024-collection-target
LGUs’ national tax share rises to 35% next year – Recto
The Philippine Star / Jasper Emmanuel Arcalas / January 17, 2025
MANILA, Philippines — Local government units (LGUs) would be getting 35 percent of the national taxes beginning next year as earmarking of the incremental increases in state revenues is set to expire, the Department of Finance (DOF) said. Finance Secretary Ralph Recto said LGUs’ national tax allotment (NTA) shares next year would increase from the current 32 percent as the earmarking of higher revenues generated from additional taxes under the TRAIN Law would expire this year. “By 2026, there will be additional revenues for the local government units,” Recto said yesterday. He explained that the DOF calculated the LGUs’ NTA based on the 2019 Mandanas-Garcia Supreme Court ruling, opinion of the Department of Justice and a Department of Budget and Management resolution concerning the matter.
SEC opens Laoag City office
Business Wolrd / Artemio A. Dumlao / January 16, 2025
BAGUIO CITY — The Securities and Exchange Commission’s (SEC) first extension office in Northwestern Luzon has opened in Laoag City, Ilocos Norte. Governor Matthew J. Marcos Manotoc and SEC Chairperson Emilio B. Aquino, both emphasized during the opening “the importance (of the office) in further boosting the economic performance of the provinces (in the area).” The SEC Laoag extension office, located on the 5th floor of the Dap-Ayan Commercial Center, will accommodate the registration, compliance processes, and other SEC-related transactions of businesses across Ilocos Norte, Ilocos Sur, La Union, and Pangasinan, ensuring the timely and efficient delivery of services.
https://www.bworldonline.com/the-nation/2025/01/16/647292/sec-opens-laoag-city-office/
DOF resolves issues on tax shares of LGUs
The Philippine Star / Keisha Ta-Asan / January 16, 2025
MANILA, Philippines — In a dialogue with city mayors yesterday, Finance Secretary Ralph Recto addressed concerns on the computation of national tax allotment (NTA) shares for local government units (LGUs). The meeting provided a comprehensive explanation of NTA computations, ensuring they adhered to the 2019 Supreme Court Mandanas-Garcia ruling and relevant constitutional provisions. Recto presented a detailed line-by-line breakdown to clarify the methodology and dispel misunderstandings. Among those in attendance were Baguio City Mayor Benjamin Magalong, Quezon City Mayor Joy Belmonte and Dumaguete City Mayor Felipe Antonio Remollo. “We did not change or amend anything. This is based on the Supreme Court ruling and a Development Budget Coordination Committee resolution, which was made in consultation with the LGUs. We are very transparent,” Recto said.
https://www.philstar.com/business/2025/01/16/2414463/dof-resolves-issues-tax-shares-lgus
BIR hits its goal, marks historic success
Manila Bulletin / January 17, 2025
The Bureau of Internal Revenue (BIR), under the stewardship of Commissioner Romeo Lumagui Jr., has successfully met its collection target for 2024. It marks the first time in two decades that the agency has hit its goal, a remarkable achievement and a testament to the unwavering commitment, strategic foresight, as well as the dedication of the hardworking men and women of the BIR. For years, the BIR faced various challenges that made revenue collection an uphill battle. But under Lumagui’s leadership, the agency has undergone a transformation, enhancing its operational efficiency and ensuring that compliance is both streamlined and enforced fairly. The BIR embarked on digitalization, enabling ease of paying taxes. It has also successfully implemented the Integrated Management Program of the BIR, which was even cited during the 5th Conference on the United Nations Convention Against Corruption (UNCAC) Implementation and Review last month.
https://mb.com.ph/2025/1/17/bir-hits-its-goal-marks-historic-success
Download File:
