Bureau of Internal Revenue Issuances
REVENUE MEMORANDUM CIRCULARS (RMC)
RMC No. 7-2025
January 23, 2025
Availability of additional features and/or enhanced functionalities of the Enhanced Monitoring and Managing Administrative Cases (EMMAC)
RMC No. 8-2025
January 24, 2025
Publishing the Updated List of Registered Manufacturers/Importers/Exporters with the corresponding product brands/variants of cigarettes, heated tobacco products, vapor products, novel tobacco products, cigars and chewing tobacco products with the corresponding products/brands/variants and integration of the requirements for compliance purposes
Full Text | Annex A | Annex B | Annex C | Annex D | Annex E | Annex F | Annex G | Annex H | Annex I | Annex J | Annex K | Annex L
REVENUE MEMORANDUM ORDERS (RMO)
REVENUE REGULATIONS (RR)
RR No. 3-2025
January 17, 2024
Prescribing policies and guidelines for the implementation of Republic Act No. 12023 entitled “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,” Imposing the Value-Added Tax on Digital Services.
(Date posted: January 17, 2025)
REVENUE DELEGATION OF AUTHORITY ORDERS (RDAO)
RDAO No. 6-2025
January 21, 2025
Delegates to the Assessment Division Chief of RR 2-Cordillera Administrative Region the authority to sign documents specified in the Order in view of the approved leave of RR 2’s OIC-Regional Director
RDAO No. 7-2025
January 21, 2025
Delegates to the Assistant Regional Director of RR 6-Manila the authority to sign documents specified in the Order in view of the approved leave of RR 6’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 3 Week ending January 17, 2024
CIR Romeo D. Lumagui, Jr. delivered an inspirational message to the University of San Carlos Accountancy and Management Accountancy students during their Educational Tour at the BIR National Office on January 8, 2025.
Click the link below to read the full news from the source:
https://bir-cdn.bir.gov.ph/BIR/pdf/v16n3%20highres.pdf
Levi Strauss wins P138-M tax case
Business World / Chloe Mari A. Hufana / January 19, 2025
THE Court of Tax Appeals (CTA) ruled in favor of Levi Strauss (Phil.) Inc. II, canceling taxes worth over P138 million issued by the Bureau of Internal Revenue (BIR) for 2012, citing a violation of the company’s right to due process during the tax assessment process. The court’s Second Division said that upon review, the Formal Letter of Demand (FLD) and attached Details of Discrepancies merely copied the discussion of what was already written in the Preliminary Assessment Notice (PAN) and the attached Details of Discrepancies, without adding more by addressing any of Levi Strauss’ defenses in its reply to the PAN. “In other words, when the respondent perfunctorily and hastily issued the subject FLD on December 27, 2017, even after receiving [a] reply to the PAN merely five (5) days before, on December 22, 2017, [the] respondent (BIR) did so without considering the points raised by the petitioner,” the 18-page ruling penned by Associate Justice Ma. Belen M. Ringpis-Liban read. The CTA had reversed and set aside the Final Decision on Disputed Assessment (FDDA) dated May 20, 2020, and Assessment Notices, assessing Levi Strauss for deficiency income tax, final withholding value-added tax (FWVAT), expanded withholding tax (EWT), value-added tax (VAT) and improperly accumulated earnings tax (IAET), worth more than P138.77 million.
Click the link below to read the full news from the source:
https://www.bworldonline.com/the-nation/2025/01/19/647555/levi-strauss-wins-p138-m-tax-case/
Lumagui: BIR will exceed 2024 DBCC Collection Goal by the Billions; Final Numbers out by Early-February
Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. confirmed that the agency has not only reached its (Development Budget Coordination Committee) DBCC collection goal for 2024, a first after twenty (20) long years, it will also exceed its collection goal by the billions. A surplus of billions is expected to be added to its collection for 2024, after final reconciliation is made by early February 2025. The BIR has a 2024 collection goal of Php 2.848 Trillion, as approved by the DBCC last March 2024.
Click the link below to read the full news from the source:
https://bir-cdn.bir.gov.ph/BIR/pdf/PR03JAN2025.pdf
Digital VAT draft regulations to allow 3rd party local reps
Business World / Aubrey Rose A. Inosante / January 19, 2025
THE Bureau of Internal Revenue (BIR) will allow non-resident digital service providers (DSPs) to appoint a local third-party representative to handle administrative matters for them with regard to the value-added tax (VAT) law. “In registering with the BIR, a nonresident DSP need not have a local representative in the Philippines,” the BIR said in a version of the implementing rules and regulations (IRR) dated Jan. 17. The 10-page draft IRR previously required an in-country representative upon registering for Republic Act 12023 or the VAT on digital services law. “However, it may appoint a resident third-party service provider (an individual or entity, such as a law firm, accounting firm, or consultancy firm) for purposes of receiving notices, record keeping, filing of tax returns, and other reporting obligations,” it added. The nonresident DSP is required to notify the BIR in writing of the designated representative within 30 calendar days from the date of appointment.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2025/01/19/647626/digital-vat-draft-regulations-to-allow-3rd-party-local-reps/
Foreign digital firms in PH only have 4 months left to comply with new VAT law
Philstar.com / Jerome Villanueva / January 18, 2025
MANILA, Philippines — Foreign digital service providers (DSP) operating in the Philippines only have four months to comply with the mandatory requirements following a landmark law imposing a 12% value-added tax (VAT) on overseas digital services. These offshore digital services include all streaming platforms (Netflix, Disney+, Amazon, Viu, MAX), all online search engines (Google), all electronic marketplaces (Shopee, Shein, Temu), all cloud services, all online advertising and all digital goods consumed in the Philippines. In a 10-page draft implementing revenue regulation (IRR) obtained, the proposed rules state all foreign DSPs should register and update the country’s Bureau of Internal Revenue (BIR) through the agency’s portal within 60 days from the effectivity of the revenue regulation. Offshore DSPs shall immediately be subject to VAT after 120 days from the effectivity of the IRR. The BIR shall submit the draft IRR to the Finance department and has until Jan. 16, 2025 to issue the IRR of the Republic Act (RA) 12023 or the VAT on digital services law. BIR Assistant Commissioner Larry Barcelo said assuming the agency will release the IRR in mid-January 2025, foreign DSPs only have four months or until May 16, 2025 to comply through the agency’s VAT on Digital Services (VDS) portal, a webpage where foreign DSPs can register, submit and transact all the Philippine government’s requisites.
Time Line:
Oct 2, 2024 – Signed by The President
Oct 3, 2024 – Published in Official Gazette
Oct 18, 2024 – Effectivity of the Law (15 Days after Publication)
January 16, 2025 – Last Day to Issue Implementing RR (90 Days After Effectivity)
March 17, 2025 – Foreign DSP’s Last Day to Register (60 Days after Issuance of IRR)
May 16, 2025 – Foreign DSP Subject to VAT (120 Days after Issuance of IRR).
Power to block sites – The draft IRR also outlines the power of the BIR to issue take-down or closure orders against foreign DSPs that fail to register and comply with the law. According to the draft IRR, the Department of Information and Communications Technology (DICT) and the National Telecommunications Commission (NTC) will suspend and block the platforms of non-compliant overseas DSPs.
Appointing a local provider – The draft regulation also states a foreign DSP will not be required to appoint a Philippine representative when registering under the law.
Foreign firms decline to comment – Netflix and Google have yet to issue statements on the law. Disney, iQIYI, MAX and BiliBili did not respond to requests for comment. Meanwhile, foreign-owned streaming platform Viu declined to answer questions regarding the VAT on overseas digital services law. In an email, Viu Philippines Senior Lead for Channel Partnerships Cy Langkay said: “we’d like to kindly and politely decline to responding to this topic as of the moment, as there is yet to have full clarity on the law until the IRR guidelines are released.”
Complying on the landmark law – Meanwhile, the BIR was asked how the agency would know if all foreign DSPs would comply with the new law.
Public consultation – On Nov. 12, 2024, BIR conducted a public consultation to solicit inputs on the IRR to the Republic Act 12023. During the public consultation, questions arose on the different tax scenarios and the difference between the draft IRR and the law. In the IRR, all foreign digital firms are now required to register, but, in the law, only foreign DSPs whose gross annual sales are expected to exceed 3 million are required to register VAT. Foreign firms shall await the final IRR for clarity.
DICT coordination and leveling the playing field – Lumagui also said the agency has been closely coordinating with DICT to monitor digital firms that will not comply. The BIR commissioner said this is not a new tax but a scheme to level the playing field for local and international players.
Click the link below to read the full news from the source:
https://www.philstar.com/business/2025/01/18/2414714/foreign-digital-firms-ph-only-have-4-months-left-comply-new-vat-law
Ease of doing business: The BIR 2028 DX Roadmap ‘Suits The C-Suite’
Business World / Thyrza F. Marbas and Rule Amethyst L. Oporto / January 19, 2025
IN BRIEF:
• The BIR’s Digitalization Program aims to modernize and enhance the efficiency, transparency, and effectiveness of tax administration and revenue collection processes.
• The BIR envisions taxpayers as customers, adopting taxpayer-centric views in their services. Completed projects reflecting this approach include the Online Registration Update System (ORUS), Enhancement of the Electronic One-Time Transaction (eONETT) System, and the Optimized Knowledge Management System for Chatbot Revie.
EVOLUTION OF THE BIR DX ROADMAP – The BIR revitalized its digital transformation journey with the issuance of Revenue Memorandum Order (RMO) No. 27-2020, known as the BIR Digital Transformation (DX) Roadmap 2020-2030. This initiative was pursued in compliance with Republic Act No. 11032 or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018, which requires government offices to assess and improve their transaction systems and procedures. The DX Roadmap is built around three core principles: adopting a people-first approach, instituting a process perspective, and embracing digital technology, with a digital transformation mindset as its foundation. Recognizing the need for a more comprehensive and updated roadmap, the BIR issued RMO No. 48-2024, known as the Adoption of the New BIR Digital Transformation Roadmap for CY 2025-2028. This initiative aligns with Section 43 of RA No. 11976, or the Ease of Paying Taxes Act, which requires the BIR to adopt an integrated digitalization strategy by providing automated end-to-end solutions for taxpayers.
PROJECT UPDATES – A report on the status of projects under the BIR DX Program for CY2024 as of Nov. 30, 2024 was also presented. There are eight completed projects and eight ongoing projects. Completed projects include the Online Registration Update System (ORUS), Enhancement of the Electronic One-Time Transaction (eONETT) System, Optimized Knowledge Management System for Chatbot Revie, Property Management System (PMS) (National Office Phase), Expansion of Digital Platform and Tools, Establishment of a Command Center with IT Operations Center, Enterprise Risk Management (ERM), and Enhanced Monitoring and Managing Administrative Cases (EMMAC). Further, under the CREATE MORE Law, taxpayers under the jurisdiction of the Large Taxpayer Service and exporters are still covered both by the requirement of issuing electronic invoices (EIS) and electronic reporting of their sales (SRS) data to the Bureau.
MODERNIZING TAX SERVICES – Transformation is not just about modernization. It aims to establish a more efficient, transparent, and responsive tax administration capable of addressing the changing needs of the public. As the BIR strives for transformative and modernized services for taxpayers, it acknowledges foreseeable challenges such as increased security risks, budget constraints, customer/taxpayer readiness, among others. Nonetheless, the BIR is prepared to address these challenges.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2025/01/19/647619/ease-of-doing-business-the-bir-2028-dx-roadmap/
The Singson Sin Tax Sabotage Bill: A deceptive attack on our health and revenue
Business World / AJ Montesa / January 20, 2025
At the Jan. 14 hearing of the House Ways and Means Committee, a heavy blow to public health and fiscal responsibility was averted. Pro-tobacco legislators had prepared to hijack the Anti-Illicit Tobacco Trade Bill (House Bill 10329, substituted by House Bill 11286) by inserting a provision that would have removed the annual indexation of tobacco excise taxes. This would have sabotaged one of the cornerstone reforms of the Sin Tax Law — the indexation of the excise tax to inflation which preserves its real value. The Department of Finance (DoF) and Bureau of Internal Revenue (BIR) themselves cannot guarantee that the proposal would curb illicit trade. They have offered no solid proof in terms of clear data and metrics and projections. Hence, they cannot offer credible assurances. The Singson-Meehan bill only offers the empty promises of the tobacco industry, which history tells us cannot be trusted. Paradoxically, this attempt to lower Sin Tax rates comes after the DoF’s 2024 “cash sweep” drained PhilHealth funds to avoid raising taxes. Finance Secretary Ralph Recto, who once proclaimed “no new taxes,” now stands silent as this revenue-eroding proposal undermines public health funding. Sin Tax indexation is a lifeline for millions of Filipinos, yet Recto seems content to prioritize tobacco industry profits over the people’s welfare. This betrayal of Sin Tax Reform reflects a broader pattern of governance failures, where funds for UHC are diverted to pork-laden appropriations, and laws designed to protect public health are systematically weakened.
Click the link below to read the full news from the source:
https://www.bworldonline.com/editors-picks/2025/01/20/647464/the-singson-sin-tax-sabotage-bill-a-deceptive-attack-on-our-health-and-revenue/
Gov’t tax collections projected to breach 2024 target revenue
Philstar.com / Jean Mangaluz / January 21, 2025
MANILA, Philippines — The government is set to meet its target revenue collections as it accumulated around P4.4 trillion in 2024. Both the Bureau of Customs (BOC) and the Bureau of Internal Revenue (BIR) were also able to meet their respective 2024 targets, As of January 16, preliminary numbers from the Department of Finance showed that revenues reached around P4,408,408,000,000. This exceeded the Development Budget Coordination Committee’s (DBCC) target of P4.38 trillion. Likewise, the DBCC set the BIR’s target at P2.848 trillion.
Click the link below to read the full news from the source:
https://www.philstar.com/business/2025/01/21/2415837/govt-tax-collections-projected-breach-2024-target-revenue
Recto to represent PBBM in the World Economic Forum, aims to bring home more investments for Filipinos
Department of Finance / January 20, 2025
During the Forum, House Speaker Ferdinand Martin G. Romualdez, Department of Trade and Industry (DTI) Secretary Ma. Cristina A. Roque, and Ambassador and Philippine Permanent Representative to the World Trade Organization (WTO) Manuel Antonio J. Teehankee will join Secretary Recto in hosting an economic briefing for global investors at the Philippine Breakfast Interaction. Joining him from the private sector are Mynt/Gcash President and CEO Martha Sazon; LT Group Inc. President Lucio Tan III; LT Group Inc. Director and President of Asia Brewery Inc. Michael Tan; Grab Philippines Chief Corporate Officer Sherielysse Bonifacio; and Benguet Corporation Director Maria Remedios Romualdez-Pompidou. The event will showcase the country’s promising potential as the next big investment destination, especially with the recent enactment of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act.
Click the link below to read the full news from the source:
https://www.dof.gov.ph/recto-to-represent-pbbm-in-the-world-economic-forum-aims-to-bring-home-more-investments-for-filipinos/
Real property valuation reform ‘Let’s Talk Tax’
Business World / Nolan Redji D. Domingo / January 20, 2025
On Dec. 10, the Department of Finance approved and issued the Implementing Rules and Regulations (IRR) of Republic Act No. 12001, otherwise known as the Real Property Valuation and Assessment Reform Act (RPVARA). RPVARA seeks to promote just, equitable, and nationally consistent real property valuation based on international standards, adopting market value as a single base for real property valuation for tax assessment and other transactions. It also aims to promote fiscal autonomy by enhancing the local government units’ (LGUs) capacity to generate revenue from real property and foster transparency and innovation through the provision of a comprehensive and up-to-date electronic database of all real property transactions.
SALIENT PROVISIONS
A.Role of the BLGF and the creation of the Real Property Valuation Service (RPVS) – It also created the Central Consultative Committee that will serve as the forum on matters pertaining to the setting and adoption of international valuation standards and other related concerns on real property valuation. The BLGF will have the following main functions under the RPVARA:
i.Development and maintenance of the Philippine Valuation Standards (PVS);
ii. Review and implementation of the SMVs;
iii. Provide leadership and policy direction to LGUs on real property valuation for taxation; and
iv. Develop and maintain an electronic database of real property transactions.
B. Establishment of a Single Valuation Base through the development of the PVS and SMV – The RPVARA and its IRR seek to reform the methods in which real property values are determined. The current system uses multiple valuation bases, which often results in confusion in determining the tax base for real property taxes. To address this issue, the RPVARA provides for a single valuation base for taxation and benchmarking purposes.
C. Usage of SMV – The property values stated in the SMVs will be used by the government for the following purposes as provided for by the RPVARA and expounded upon by its IRR:
i. As a basis for the general revision of the assessment and property classification by the local assessor;
ii. As a basis for the determination of real property-related taxes;
iii. As a basis for the computation of internal revenue taxes (Income Tax / Capital Gains Tax) for real property transactions;
iv. As a benchmark for the appraisal of real property for purposes of public land disposition, land development for housing, township and infrastructure, and mortgage to secure the performance of obligations, among others;
v. As a benchmark for the appraisal of real property for purposes of letter-offer in negotiated sale and the payment of just compensation in expropriation cases.
D. Regular SMV updates and penal provisions – Another issue encountered in our current system of valuation is the outdated zonal and market valuations. Currently, up to 60% of LGUs have outdated property valuations. In order to address this issue, one of the main features of the RPVARA is the three-year review. It should, however, be noted that this feature is not particularly novel to the RPVARA since the regular update of property values is likewise a requirement under the Local Government Code (LGC).
E. Electronic database of all real property transactions – In order to assist LGUs, the RPVARA has likewise required the development of a Real Property Information System (RPIS), an electronic database of the sale, exchange, lease, mortgage, donation, transfer, and all other real property transactions and declarations. The electronic database will be developed by the BLGF in collaboration with LGUs and the Department of Information and Communications Technology (DICT).
F. Cap of 6% on Real Property Tax hikes – In order to avoid potential issues arising from the sudden spike in the value of real properties, the RPVARA imposes a cap of 6% on the increase of real property taxes in the first year of effectivity of the SMV. This would deter speculation on housing, among others.
G. Amnesty – Finally, one last important feature of the RPVARA is the grant of amnesty for the penalties, surcharges, and interests from all unpaid real property taxes. The amnesty may be availed of by the delinquent property owner within two 2 years from the effectivity of the RPVARA or until July 5, 2026, and the delinquent real property owner has the option of one-time payment or installment payments of delinquent real property taxes.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2025/01/20/647832/real-property-valuation-reform/
Marcos admin needs new tax measures
Philippine Daily Inquirer / Ian Nicolas P. Cigaral / January 22, 2025
The Marcos administration will continue to push for the passage of its remaining tax measures this year to offset the impact of a slower rate-cutting cycle on the government’s debt service burden, Finance Secretary Ralph Recto said on Tuesday. In an interview with Bloomberg on the sidelines of the World Economic Forum (WEF) in Davos, Recto said one of the tax measures was expected to give the government an additional P300 billion in revenues in the next four years, which could help cut budget deficit and debt. Among the priority measures of the Department of Finance (DOF) are the value-added tax (VAT) on digital service providers (DSP); imposition of excise tax on single-use plastics (SUPs); package 4 of the Comprehensive Tax Reform Program (CTRP); rationalization of the Mining Fiscal Regime; and reform on the Motor Vehicle Users’ Charge (MVUC). As it is, the US Federal Reserve had signaled a shallower easing this year amid persistent price pressures in America, alongside president-elect Donald Trump’s threat to impose a 10 to 20-percent tariff on all imported goods.
Click the link below to read the full news from the source:
https://business.inquirer.net/502451/marcos-admin-needs-new-tax-measures
Tax on single-use plastics seen raising prices of goods for consumers
Philippine Daily Inquirer / Alden M. Monzon / January 22, 2025
The head of a trade association of packaging firms said they expect the planned excise tax on single-use plastics to raise the packaging costs of goods, a price that will ultimately be passed on to consumers once implemented. Asia Packaging Federation president Joseph Ross Jocson on Tuesday said this is what happened when the government banned the use plastic bags in the past and replaced them with the much more expensive paper bags. In March last year, the Department of Finance said that it estimates that P31.52 billion will be generated from 2025 to 2028 for this planned tax. Under the DOF’s proposal, the price of “labo” bags per piece will slightly increase from 47 centavos to 82 centavos, while “sando” bags will be priced at P0.51 to P 0.91 each.
Click the link below to read the full news from the source:
https://business.inquirer.net/502604/tax-on-single-use-plastics-seen-raising-prices-of-goods-for-consumers
Valenzuela LGU extends deadline for business permit renewals
Manila Bulletin / Hannah Nicol / January 22, 2025
The Valenzuela City government on Tuesday, Jan. 21, has extended the deadline for business permit renewals, both manual and online, until Jan. 31. The extension, authorized under Ordinance No. 1251, Series of 2025, aims to give business owners additional time to process their permits conveniently. The initiative highlights the city’s dedication to supporting local businesses and ensuring efficient service delivery. Business owners are encouraged to utilize the Paspas Permit Online platform for fast and secure renewals. For in-person transactions, the city’s Business One-Stop Shops (BOSS) will remain operational during the extension period. BOSS will be open from Monday to Friday, 8 a.m. to 5 p.m., on Jan. 21 to 24 and Jan. 27 to 31. On Saturday, Jan. 25, BOSS will operate from 8 a.m. to 2 p.m. Locations for BOSS include the ALERT Center Multi-purpose Hall in Barangay Malinta, 3S Centers in Ugong, Punturin, Karuhatan, Gen. T. De Leon, Marulas, and Canumay West.
Click the link below to read the full news from the source:
https://mb.com.ph/2025/1/22/valenzuela-lgu-extends-deadline-for-business-permit-renewals
Senate urged to raise taxes to cut Filipinos’ tobacco use
Business World / John Victor D. Ordonez/ January 22, 2025
Last week, the Department of Finance pushed a single tax rate on all types of nicotine and vapor products to ease the collection burden on the Bureau of Internal Revenue (BIR). Finance Secretary Ralph G. Recto said his agency is open to discussions on raising excise taxes on tobacco products but warned that continuous tax increases could also worsen smuggling. Ms. Limpin, a pulmonologist, recommended a tax stamp on all tobacco products and e-cigarettes to track sales. In September, President Ferdinand R. Marcos, Jr. signed into law a measure classifying agricultural smuggling, hoarding, profiteering and financing as economic sabotage. Republic Act No. 12022 or the Anti-Agricultural Economic Sabotage Act imposes 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/the-nation/2025/01/22/648417/senate-urged-to-raise-taxes-to-cut-filipinos-tobacco-use/
Reader calls out BIR
The Philippine Star / Marianne Go / January 22, 2025
The Bureau of Internal Revenue (BIR) is being called out by a reader for misleading the public into thinking that the agency will perform exceptionally well in its revenue collection for 2024 when, in fact, the anonymous reader said, the BIR had actually lowered its 2024 target and did not point this out when it came out recently with a press release that the emerging full-year tax collection figures for 2024 would “definitely reach the P2.848-trillion mark.” The BIR still has to finalize the actual tax collections by mid-February this year. As of end-November last year, the agency’s revenue was reported at P2.667 trillion, which is supposed to be 93.64 percent of the full-year target. BIR Commissioner Romeo Lumagui Jr. was quoted as saying that his agency’s 2024 performance could be “the first time in 20 years that the BIR achieved its goal.” The agency’s good collection performance for last year, Lumagui was quoted as saying, is due to “our dedication to good governance reforms, manifested by our shift to a taxpayer-oriented agency,” which led to the increased voluntary compliance of taxpayers.
Click the link below to read the full news from the source:
https://www.philstar.com/business/2025/01/22/2415884/reader-calls-out-bir
Recto to global investors at WEF: Choose the Philippines and we’ll make your success happen with CREATE MORE law
Department of Finance / January 23, 2025
Special Envoy of the President and Head of the Philippine Delegation to the World Economic Forum (WEF), Finance Secretary Ralph G. Recto, urged global investors to choose the Philippines and it will ensure their success through the recently enacted Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act. “CREATE MORE was designed to address your concerns and tailor fiscal and non-fiscal incentives to meet your specific needs. Simply put, CREATE MORE was carefully crafted to make more money for you and create more high-quality jobs for our people,” he said in his remarks at the Philippine Breakfast Interaction with Investors on January 22, 2025 in Davos, Switzerland.
Click the link below to read the full news from the source:
https://www.dof.gov.ph/recto-to-global-investors-at-wef-choose-the-philippines-and-well-make-your-success-happen-with-create-more-law/
Tax mapping and taxpayers’ rights
The Manila Times / Reychristian Guintibano / January 23, 2025
Revenue Memorandum Order (RMO) 31-2003 first laid down the guidelines for the Modified Tax Compliance Verification Drive (MTCVD), which “calls for an information drive prior to the conduct of the TCVD itself, so that businesses can be in compliance and avoid being caught in violation of BIR business rules and regulations.” RMO 09-2006, which was issued in 2006, finally prescribed the guidelines and procedures which ROs must comply with in the conduct of the actual TCVD itself. It requires ROs to be clothed with a written mission order (MO), issued and signed by their respective regional directors, and to identify themselves to the establishment or the taxpayer. The MO should contain the exact names of the ROs who compose the team to tax map, as well as the specified area on the specified date or time when the tax mapping is to be conducted. The RO must also explain the purpose of the visit and the objectives of tax mapping. While RMO 09-2006 required the tax mapping team to issue a reminder letter to all business establishments being tax mapped, this was eliminated by RMO 022-18. During the inspection, the ROs verify the taxpayer’s compliance with tax laws and regulations. As a standard part of compliance, the RO will check if the business establishment has (1) the Certificate of Registration (BIR Form 2303), (2) notice to issue invoices, (3) authority to print or ATP, (4) proper invoicing and issuance of receipts, (5) registration of sales machines (CRM, POS, CAS), and (6) proper maintenance and registration of books of accounts. Previously, there was a requirement for taxpayers to show proof of payment of the annual registration fee on BIR Form 0605. However, under Revised Memorandum Circular (RMC) 91-2024, the BIR has ceased the collection of such fee as of January 2024, pursuant to the Ease of Paying Taxes Act (EOPTA).
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Tax mapping and taxpayers’ rights
Mayor Abby to push for tax-free overtime, 13th month pay
Manila Bulletin / Patrick Garcia / January 23, 2025
Makati City Mayor and senatorial aspirant Abby Binay announced on Thursday, Jan. 23, her plan to push for tax exemptions for the 13th month pay and overtime pay of workers working in both private and public sectors saying that this will help alleviate the financial burden of workers and their families. “Kapag inalis mo yung tax sa overtime at 13th month, tataas ang disposable income ng manggagawa. Meron siyang dagdag na pambili ng pagkain, gamot, pambaon sa eskwela ng anak, yung basic needs (Exempting overtime pay and 13th month from taxes will increase the disposable income of workers which they can use to buy food and medicine, provide school allowance for their children, and other basic needs),” Binay said, citing that these exemptions will also bring long-term economic impact. The exclusion of overtime pay and 13th month pay from taxable income will also greatly benefit families belonging to the low to middle-income brackets as this may help them cope better with the rising inflation. The mayor said the current Tax Code places a cap of P90,000 for the total amount of the 13th month pay and other additional benefits, including 14th month and performance bonus, to be considered non-taxable income. Any amount in excess of P90,000 shall form part of the taxable income of employees.
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https://mb.com.ph/2025/1/23/mayor-abby-to-push-for-tax-free-overtime-13th-month-pay
First time
Manila Bulletin / Fil C. Sionil / January 24, 2024
Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui, Jr. and, consequently, Finance Secretary Ralph O. Recto. In the next few days, the national government is expected to disclose the income performance of the revenue-generating agencies – the BIR, which contributes the biggest slice to the national coffers, and the Bureau of Customs. From what I gathered along the DOF corridors, BIR has outperformed its 2024 revenue assumption pegged at P2.848 trillion, with the latest figure I’ve heard being P2.86 billion in collection. Based on my recollection (before I was pulled out of covering the banking and finance plus the market beat to wear an editorial desk hat), this is the first time BIR registered such a coup in nearly 20 years.
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https://mb.com.ph/2025/1/24/first-time-1#google_vignette
Tax season is here
Manila Bulletin / Wilma C. Inventor – Miranda / January 23, 2025
It’s always a practice season for me, learning how to handle the stress. I hope I can speak for others in the same profession, though I’m still a work in progress on stress management. However, I’ve noted certain factors that lessen the tax season strain. First, communicate with clients early on about deadlines. Analyze their past financials, note changes from the past year, and discuss any big projects for the coming year. The challenge is getting clients to provide the necessary documents ASAP. We need to complete our reports early, but often “the ball is in the client’s court.” We understand they’re also experiencing the tax season crunch. But we need those documents early for timely completion and to lessen stress and burnout on both sides. Secondly, we need to keep clients informed of the latest regulations from the Bureau of Internal Revenue, Securities and Exchange Commission, Cooperative Development Authority, Bangko Sentral, and any others applicable to them. Email or social media work well for this. If there are changes in government regulations or corrections needed in their financial reports, they should be updated promptly. That’s why it’s crucial to have reports completed early for proper review, avoiding errors and penalties. Third, technology is key, and staff training on any new software is essential, especially for new hires. Upgraded technology in government systems is vital for efficiency and speed. I understand these systems are constantly being updated and improved, and I hope more improvements are coming to eliminate bugs like slow speed, poor responsiveness, security problems, and workflow glitches. Sometimes, the source of stress is beyond our control. But more than managing the work, we need to maintain composure in challenging situations. It’s about maintaining work-life balance, cultivating a positive attitude, and projecting a cheerful, calm demeanor despite the pressures that could make us toxic and stressed.
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https://mb.com.ph/2025/1/23/tax-season-is-here#google_vignette
DTI: PH to pursue FTA with US under new Trump admin
Philippine News Agency / Kris Crismundo / January 23, 2025
MANILA – The Department of Trade and Industry (DTI) is more confident to pursue discussions with the United States for a bilateral free trade agreement (FTA) under the Trump administration, Undersecretary Ceferino Rodolfo said. The DTI official recalled that US Trade Representative (USTR) Robert Lighthizer in July 2018 testified in the US Congress that the PH-US FTA is a “good first bilateral trade pact” of the Trump administration following the renegotiations on the North American FTA (NAFTA). Lighthizer’s chief of staff Jamieson Greer has been nominated by Trump as USTR for his second term, which Rodolfo considered as a welcome development to push for PH-US free trade deal. “I think, they would maintain the same welcoming attitude for a bilateral FTA with the Philippines,” he said. “Because if you look at the reason why President (Joe) Biden was very hesitant on a bilateral, even an announcement, or no key Philippine interest for a bilateral FTA agreement, it’s because they didn’t control, at that time, the Congress. And they didn’t have a trade promotion authority mandate to negotiate an FTA with anyone. But it’s a different story with President Trump, as the Republicans now control both houses,” he added.
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https://www.pna.gov.ph/articles/1242489
Malabon grants 100% tax exemption to small businesses
The Philippine Star / Emmanuel Tupas and Mark Ernest Villeza / January 24, 2024
MANILA, Philippines — To assist small business owners in Malabon, the city government has granted a 100 percent tax exemption for sari-sari or convenience stores and eateries for 2025. Mayor Jeannie Sandoval said the city council approved Ordinance No. 01-2025 to give tax relief to small business owners. The ordinance covers all sari-sari stores and eateries in Malabon, except for those engaged in other forms of businesses. Among these are retail stores, which also operate as car repair shops or eateries that also function as entertainment venues. For business owners who have settled their permit renewal for 2025, the tax exemption will take effect in 2026.
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https://www.philstar.com/nation/2025/01/24/2416406/malabon-grants-100-tax-exemption-small-businesses
BIR reforms yield record-breaking results
The Freeman / Ehda M. Dagooc / January 23, 2025
CEBU, Philippines — Bold reforms implemented by the Bureau of Internal Revenue (BIR) under the leadership of Commissioner Romeo D. Lumagui, Jr. have driven the agency’s record-breaking revenue collection in recent years. The BIR exceeded its 2024 revenue target set by the Development Budget Coordination Committee (DBCC), collecting at least P2.848 trillion. The BIR also introduced a new withholding tax system for online businesses, ensuring a level playing field between traditional and digital retail sectors.
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https://www.philstar.com/the-freeman/cebu-business/2025/01/23/2416237/bir-reforms-yield-record-breaking-results
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