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Tax Rules and News 005-2024

Bureau of Internal Revenue Issuances

REVENUE MEMORANDUM ORDER (RMO)

RMO No. 5-2024
February 13, 2024

Prescribes the policies and procedures for the implementation of Multi-Factor Authentication (MFA) for Virtual Private Network (VPN) access

Full Text | Annex A

REVENUE MEMORANDUM CIRCULAR (RMC)

No. 22-2024
February 12, 2024

Announces the availability of BIR Form No. 1702-EX January 2018 (ENCS) v2 in the Electronic Filing and Payment System (eFPS)

Full Text

RMC No. 23-2024
February 12, 2024

Announces the availability of BIR Form No. 1701A in the Electronic Filing and Payment System (eFPS)

Full Text

RMC No. 24-2024
February 13, 2024

Publishes the full text of Administrative Order No. 15 dated January 16, 2024 entitled “Directing the Accelerated Implementation of the Government Energy Management Program (GEMP)”

Full Text | Administrative Order No. 15

RMC No. 25-2024
February 13, 2024

Amends the pertinent provisions of RMC No. 16-2024 extending the deadline of submission of Alphabetical List of Employees/Payees from whom taxes were withheld

Full Text | Annex A | Annex B

REVENUE ADMINISTRATIVE ORDER (RAO)

RAO No. 2-2024
February 13, 2024

Renames Revenue District Office (RDO) No. 45 – Marikina to RDO No. 45-SMART (San Mateo-Antipolo-Rodriguez-Teresa) and reiterates its areas of jurisdiction

Full Text

Tax And Business Related News

BIR WEEKENDER BRIEFS
Volume No. 15 Issue No. 6 Week ending February 9, 2024

BIR Revenue District Offices continue to intensify the conduct of tax enforcement activities from January 31 to February 6, 2024 to enhance taxpayers’ voluntary compliance with the tax laws and regulations.

Click the link below to read the full news from the source:
https://www.bir.gov.ph/images/bir_files/internal_communications_1/News/v15n6 FINAL.pdf

Lumagui: Decarich Supertrade Inc. & Redington Corporation Officers and Accountant will face Criminal Cases before the Courts for selling Ghost Receipts

The Bureau of Internal Revenue (BIR) headed by Commissioner Romeo D. Lumagui Jr., joined the filing today, February 15, 2024, of fourteen (14) Criminal Information against the five (5) Corporate Officers and Accountant of Ghost Corporations, namely, Decarich Supertrade, Inc. and Redington Corporation. The Criminal Information are filed before the Regional Trial Court and Metropolitan Trial Court of Quezon City. The Department of Justice (DOJ), after preliminary investigation, found probable cause that these corporations together with 5 corporate officers and accountant committed crimes for Tax Evasion (Section 254, NIRC), Failure to File Tax Returns (Section 255, NIRC), Failure to Supply Correct and Accurate Information in the Tax Returns (Section 255, NIRC), and Making False Report in the Audited Financial Statements (Section 257 (A)(2), NIRC), for taxable year 2021.

Click the link below to read the full news from the source:
https://www.bir.gov.ph/images/bir_files/internal_communications_1/2024/Press Release/PR12FEB1524.pdf

Lumagui : BIR launches 2024 National Tax Campaign under Bagong Pilipinas

The Bureau of Internal Revenue (BIR), headed by Commissioner Romeo D. Lumagui, Jr., kicked off its 2024 National Tax Campaign with a grand event held at the Philippine International Convention Center (PICC) on February 8, 2024. BIR officials and personnel were also present to witness this year’s tax campaign kickoff that carried the theme, “Sa Tamang Buwis, Pag-asenso’y Mabilis”. This year’s tax campaign theme aimed to seek the support of the taxpayers in generating funds for the country’s economic recovery and development through timely payment of the correct taxes. It is an affirmation that tax is indeed the lifeblood of the country, and that the BIR and the taxpaying public are partners in nation-building and in uplifting the lives of Filipinos.

Click the link below to read the full news from the source:
https://www.bir.gov.ph/images/bir_files/internal_communications_1/2024/Press Release/PR11FEB0824.pdf

Recto to taxpayers: Hard-earned money will be spent wisely; DOF won’t leave any room for inefficiency or corruption
(Department of Finance / February 8, 2024)

As tax season begins, Finance Secretary Ralph G. Recto has assured the taxpaying public of the judicious and efficient use of their hard-earned money, vowing to eradicate inefficiency or corruption within the Bureau of Internal Revenue (BIR). “To our taxpayers: Ako po mismo ang maniniguro na bawat sentimo mula sa inyo ay mapupunta sa pagpapaunlad ng ating bayan,” the Finance Chief said during the BIR’s National Tax Campaign Kick-off on February 8, 2024.

Click the link below to read the full news from the source:
https://www.dof.gov.ph/recto-to-taxpayers-hard-earned-money-will-be-spent-wisely-dof-wont-leave-any-room-for-inefficiency-or-corruption/

Vlogger Rosmar Tan’s double run-ins with BIR revealed
(Manila Bulletin / Xander Dave Ceballos / February 8, 2024)

Vlogger and businesswoman Rosmar Tan has recently shared her encounters with the tax authorities, shedding light on her struggles with the Bureau of Internal Revenue (BIR) not once, but twice. Tax mapping, or the Tax Compliance Verification Drive (TCVD) program, was launched in 2003 to ensure that businesses comply with tax regulations by allowing BIR examiners to visit establishments and verify their tax compliance. The bureau has been on a mission to go after prominent influencers who are proven of tax evasion, even saying that they can already verify the actual earnings of these personalities through online platforms. Based on the BIR, personalities who earn money from their social media posts are classified as self-employed individuals or persons engaged in trade or business as sole proprietors.

Click the link below to read the full news from the source:
https://mb.com.ph/2024/2/8/vlogger-rosman-tan-s-double-run-ins-with-bir-revealed

Sandigan affirms graft conviction of 7 ex-DOF officials for irregular issuance of P112M tax credit certificates
(Manila Bulletin / Czarina Nicole Ong Ki / February 9, 2024)

The Sandiganbayan affirmed the conviction for graft of seven former officials of the Department of Finance (DOF) over the irregular approval and issuance of P112 million in tax credit certificates from 1995 to 1998. In a decision issued last Aug. 11, the former DOJ officials were sentenced to a prison term ranging from six to eight years for each count of graft. In their separate motions, they told the court that duties merely involved check listing and computation of the applicable tax credit, and these are merely “ministerial” in nature. As a result, they said they cannot be found guilty of gross inexcusable negligence.

Click the link below to read the full news from the source:
Sandigan affirms graft conviction of 7 ex-DOF officials for irregular issuance of P112M tax credit certificates (mb.com.ph)

Recto calls on Filipinos to timely, accurately fullfill tax obligations
(Manila Bulletin / Chino S. Leyco / February 9, 2024)

Finance Secretary Ralph G. Recto is reminding Filipinos to fulfill their tax duties diligently, underscoring their crucial role in the country’s development. At the Bureau of Internal Revenue’s (BIR) National Tax Campaign Kick-off event, Recto stressed the importance of both the tax agency and taxpayers effectively playing their respective roles in driving progress forward.

Click the link below to read the full news from the source:
https://mb.com.ph/2024/2/9/recto-calls-on-filipinos-to-timely-accurately-fulfill-tax-obligations-1

Philippines as a global tax leader
(Business Mirror / Joel L. Tan Torres / February 12, 2024)

The Model tax treaty also is oftentimes referred to in the implementation of concluded tax treaties. The various stakeholders, including the BIR, the courts, and taxpayers rely on the notations and commentaries of the Model tax treaty in the interpretation of provisions of existing tax treaties. The provisions and commentaries in the Model tax treaty have been cited in various BIR, Court of Tax Appeals, and Supreme Court decisions.

Click the link below to read the full news from the source:
Philippines as a global tax leader | Joel L. Tan-Torres (businessmirror.com.ph)

Gradual cuts to PIFITA tax on interest removed
(Business World / February 12, 2024)

THE Department of Finance (DoF) said on Monday that its revised proposal to simplify tax rates for passive income and financial intermediaries include keeping tax rates on interest income at 20% instead of the gradual reduction to 15% previously. Keeping the rate at 20% instead of the gradual decrease by 2028 would generate about P30.8 billion in revenues, Finance Assistant Secretary Karlo Fermin S. Adriano told a Senate Ways and Means Committee hearing on the proposed Passive Income and Financial Intermediary Taxation Act (PIFITA).

Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2024/02/12/575225/gradual-cuts-to-pifita-tax-on-interest-removed/

Ease of Paying Taxes law: Making tax less taxing
(Business World / Kim M. Aranas / February 12, 2024)

For years, taxpayers have been wishfully thinking of simple and practical yet comprehensive tax laws and regulations that will encourage compliance. Our legislators have heeded the call, embraced the convenience brought about by digitalization, and introduced changes to make things more convenient for the taxpayer. To ensure that the taxation process moves forward, R.A. No. 11967, or the Ease of Paying Taxes Act (EoPT), was signed into law on Jan. 5, taking effect on Jan. 22. With the end goal of easing the payment process, thereby encouraging compliance from taxpayers, the EoPT Law amended the Tax Code. The amendatory provisions notably include the following:

  1. additional taxpayer classifications, with special concessions provided to micro and small taxpayers;
  2. timing of the withholding of tax at the time when the income becomes payable;
  3. use of a uniform document for sellers of goods and services for VAT purposes;
  4. timing of the recognition of VAT on sale of services; 5. risk classification for VAT refund claims.

Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2024/02/12/575220/ease-of-paying-taxes-law-making-tax-less-taxing/

Recto urges Filipinos to invest in RTB 30 for a more secure future
(Department of Finance / February 13, 2024)

Finance Secretary Ralph G. Recto has urged Filipinos to invest in the Bureau of the Treasury (BTr)’s 30th tranche of Retail Treasury Bonds (RTB 30), which promotes cheap investment opportunities for small savers to secure their future. “The RTB 30 is more than just a financial contract but a commitment to shared prosperity. It will help drive the government’s socioeconomic agenda forward and empower ordinary Filipinos to chart their path to financial freedom for a more secure future,” he said in his keynote speech during the launching of the RTB 30 at the Ayuntamiento de Manila.

Click the link below to read the full news from the source:
https://www.dof.gov.ph/recto-urges-filipinos-to-invest-in-rtb-30-for-a-more-secure-future/

DOF pushes for removal of tax exemptions for pickup trucks
(Manila Bulletin / Chino S. Leyco / February 13, 2024)

The Department of Finance (DOF) is actively pursuing the removal of tax exemptions for pickup trucks that are not essential for small business operations. According to the DOF proposal, the reintroduction of excise tax on pickup trucks marketed as “lifestyle passenger vehicles” will significantly increase their retail prices by at least P262,464 to P338,985 per unit.

Click the link below to read the full news from the source:
https://mb.com.ph/2024/2/13/dof-pushes-for-removal-of-tax-exemptions-for-pickup-trucks

DOF presents the refined proposal on bill simplifying passive income taxes
(Department of Finance / February 14, 2024)

The Department of Finance (DOF) has presented its refined proposal on Package 4 of the Comprehensive Tax Reform Program (CTRP)—a measure recalibrated by Finance Secretary Ralph Recto during his first week in office—to the Senate Committee on Ways and Means on February 12, 2024. A priority measure of the Marcos, Jr. administration, Package 4 seeks to encourage growth in key financial markets by simplifying the tax structure on passive income, and on certain instruments and other financial products.

Click the link below to read the full news from the source:
https://www.dof.gov.ph/dof-presents-the-refined-proposal-on-bill-simplifying-passive-income-taxes/

Chambers urge BIR to revoke cross-border service tax rule
(Business Word / Justine Irish D. Tabile / February 15, 2024)

TEN business associations declared their opposition to a Bureau of Internal Revenue (BIR) cross-border taxation policy on services, citing its potential to increase the cost of doing business in the Philippines. “In this light, it is respectfully submitted that subjecting the income of NRFCs (non-resident foreign corporation) on services rendered abroad will lead to an increase in the tax cost of doing business, which may drive away foreign entities from conducting business in the Philippines,” they added. On Jan. 10, the BIR issued Revenue Memorandum Circular (RMC) 5-2024, which the business groups said will render taxable services to a Philippine entity that are performed by a foreign entity.

Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2024/02/15/576094/chambers-urge-bir-to-revoke-cross-border-service-tax-rule/

DTI signs new protocols for two FTAs
(Business Word / Justine Irish D. Tabile / February 15, 2024)

THE Department of Trade and Industry (DTI) signed two economic instruments on Wednesday updating free trade agreements (FTAs) with ASEAN, Australia, New Zealand and Hong Kong. The new protocol contains chapters on government procurement, trade and sustainable development, and micro, small, and medium enterprises (MSMEs), with new rules added to the “Trade in Goods and Customs Procedure” chapters. The Second Protocol also amended market access commitments to provide “greater stability” for businesses looking to invest in professional services, education, transportation, construction, tourism and banking services sectors in Australia and New Zealand. The signed Second Protocol also includes enhanced provisions on electronic payments, competition rules, and consumer protection, the DTI said.

Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2024/02/15/576091/dti-signs-new-protocols-for-two-ftas/

BIR: Tax evasion raps filed vs company execs in buy-and-sell of ‘ghost receipts’
(Abogado.com.ph / February 15, 2024)

Tax evasion charges have been filed against officers of two corporations allegedly connected to a scheme involving the illegal purchase, selling and use of “ghost receipts,” the Bureau of Internal Revenue (BIR) said on Thursday. “The BIR under the Run After Fake Transactions Taskforce will not hesitate to file criminal cases against big corporations/syndicates that sell, buy, or use Ghost Receipts,” he said in a statement.

Click the link below to read the full news from the source:
https://abogado.com.ph/bir-tax-evasion-raps-filed-vs-company-execs-in-buy-and-sell-of-ghost-receipts/

DBM approves P2.5 billion budget for free public area Wifi
(Manila Bulletin / Xander Dave Ceballos / February 15, 2024)

Over P2.5 billion will be allocated for free Wi-Fi connectivity in public places this year, according to the Department of Budget and Management (DBM). “This funding is crucial because the internet is central to our emerging new age— the digital era. It is the backbone of our modern world. It connects us and makes everything more convenient, powering education, economy, health care, public safety, and even government services,” Pangandaman said. “President Ferdinand R. Marcos Jr.’s administration strives to make network connectivity more available for everyone, especially for our public servants and students. Sa Bagong Pilipinas, we are united as Filipino people both physically and online,” she added.

Click the link below to read the full news from the source:
https://mb.com.ph/2024/2/15/dbm-approves-p2-5-billion-budget-for-free-public-area-wi-fi

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