Bureau of Internal Revenue Issuances
TAX ADVISORY
The Bureau of Internal Revenue (BIR) shall be conducting a Public Consultation on the proposed Revenue Regulations to implement the Ease of Paying Taxes (EOPT) Act (Republic Act No. 11976) on February 26 to 27, 2024 (8:00 AM to 5:00 PM). Comments on the draft Revenue Regulations (RRs) can be sent via email to eopt@bir.gov.ph on or before March 5, 2024.
Advisory on Various Systems Availability/Accessibility
The BIR shall conduct a public auction (Seized Properties) on February 21 and March 21, 2024, 9:00 AM at the BIR National Training Center Building, BIR National Office Compound, BIR Road, Diliman, Quezon City.
REVENUE MEMORANDUM CIRCULAR (RMC)
RMC No. 26-2024
February 19, 2024
Notifies the availability of BIR Form Nos. 2200-AN, 2200-A and 2200-T in the Electronic Filing and Payment System (eFPS).
REVENUE DELEGATION OF AUTHORITY ORDER (RDAO)
RDAO No. 2-2024
February 23, 2024
Authorizes the Chief of the Assessment Division of RR No. 8B-South NCR to sign several documents specified in the Order in view of the approved leave of absence of RR No. 8B’s Regional Director.
SECURITIES AND EXCHANGE COMMISSION (SEC)
The Securities and Exchange Commission (SEC) has recently issued Memorandum Circular (MC) No. 3, s. 2024 promulgating the guidelines on the use of the eAMEND portal.
eAMEND (Electronic Application for Modification of ENtity Data) is a user-friendly online filing and submission amendment portal that facilitates the acceptance, processing, approval for payment, and issuance of the digital copy of the Certificate of Amendment of domestic stock and non-stock corporations.
Currently, it covers the following applications:
1. Amendment of Partnerships
2. Dissolution of Partnerships
3. Amendment of Articles of Incorporation and/or By-Laws of Domestic Corporations
4. Application for Increase in Capital Stock for One Person Corporations via Cash
Any additional applications not on the above list must be submitted via the Commission’s Extension Offices or official email accounts.
Click the link below to read the full news from the source:
https://www.sec.gov.ph/mc-2024/sec-mc-no-03-series-of-2024guidelines-on-the-use-of-the-eamend-portal/#gsc.tab=0
Tax And Business Related News
BIR WEEKENDER BRIEFS
Volume No. 15 Issue No. 7 Week ending February 16, 2024
CIR Romeo D. Lumagui, Jr., together with the Deputy Commissioners, spearheaded the conduct of the 2024 BIR National Tax Campaign Kickoff held last February 8, 2024 at the PICC.
Click the link below to read the full news from the source:
https://www.bir.gov.ph/images/bir_files/internal_communications_5/2024 Weekender Briefs/v15n7 highres_3.pdf
Lumagui: BIR employee caught extorting a business has been arrested, now behind bars
The Bureau of Internal Revenue, headed by Commissioner Romeo D. Lumagui Jr., caught a BIR employee extorting money from a business establishment during a joint entrapment operation with the Philippine National Police last February 14, 2024.
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/PR14FEB1924 v2.pdf
BIR Commissioner Lumagui named “Asia’s Influential Leader for Good Governance
Bureau of Internal Revenue Commissioner Romeo D. Lumagui, Jr. received another prestigious award, he received the “Asia’s Influential Leader for Good Governance” award during the event hosted by Asia’s Influential Leader Awards last February 16, 2024. The award was given in recognition of his service as the Commissioner of the BIR since November 2022.
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/PR13FEB1724.pdf
Chambers urge BIR to revoke cross-border service tax rule
(Business World / 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. The Philippine Chamber of Commerce and Industry (PCCI) and Management Association of the Philippines (MAP) said on behalf of their co-signatories that foreign entities enter deals with Philippine clients on the understanding that the tax costs are manageable and that investments will be profitable. “RMC 05-2024 maintains that for cross-border services, the jurisdiction providing the essential service for income generation is entitled to tax the income,” the business group said. The services covered under the RMC are consulting, information technology outsourcing, financial, telecommunications, engineering and construction, education and training, tourism and hospitality, and other similar services.
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/
6 charged in sell, buy, use of ghost receipts
(Daily Tribune / Alvin Murcia / February 17, 2024)
The Department of Justice yesterday filed criminal charges in courts against five corporate officers and an accountant of two corporations in alleged involvement in “sell, buy, use of ghost receipts.” This was according to BIR Commissioner Romeo D. Lumagui Jr., who joined DoJ prosecutors in filing the cases.
Click the link below to read the full news from the source:
https://tribune.net.ph/2024/02/16/6-charged-in-sell-buy-use-of-ghost-receipts
BIR files criminal charges VS. 2 Ghost Corporations
(Balita.com / Marita Moaje / February 17, 2024)
The Bureau of Internal Revenue (BIR) on Thursday filed 14 criminal charges against the officers and accountants of two ghost corporations before the Quezon City Regional Trial Court and Metropolitan Trial Court.
Click the link below to read the full news from the source:
https://balita.com/bir-files-criminal-charges-vs-2-ghost-corporations/
Revenue regulations for EoPT expected by April
(Business World / Beatriz Marie D. Cruz / February 19, 2024)
THE Bureau of Internal Revenue (BIR) said it will release seven revenue regulations (RR) to clarify provisions of the Ease of Paying Taxes (EoPT) Act by April. RRs are issuances signed by the Finance Secretary, on the recommendation of the BIR Commissioner, specifying rules and regulations for the effective implementation of the National Internal Revenue Code (NIRC). The bureau has also yet to release revenue memorandum orders (RMOs) and revenue memorandum circulars (RMCs) to ensure the streamlined implementation of the law, Ms. Cabreros added.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2024/02/19/576627/revenue-regulations-for-eopt-expected-by-april/
New rules for tax treatment of foreign currency transactions
(Business World / Richard R. Ibarra / February 19, 2024)
Recently, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) 12-2024 setting new guidelines on the tax treatment of foreign currency transactions. This circular serves as a guide for taxpayers to navigate any conflicts that may arise between accounting rules and tax rules. Note, however, that the scope of the RMC excludes banks and other financial institutions and those using functional currencies other than the peso. When using the spot rate, taxpayers have the flexibility of deciding which spot rate to use, such as open, close, high, low, weighted average, etc. It is crucial, however, to adopt the spot rate consistently, both for financial and tax reporting purposes. Note that the use of the spot rate at the date of the transaction, as prescribed in the RMC, aligns with the provisions outlined in the accounting rules, Philippine Accounting Standard (PAS) 21.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2024/02/19/576631/new-rules-for-tax-treatment-of-foreign-currency-transactions/
PEZA investment approvals at P9.88 billion in year to date
(Business World / Justine Irish D. Tabile / February 19, 2024)
The new projects will be located in First Philippine Industrial Park II, Daiichi Industrial Park, Light Industry & Science Park III, Laguna Technopark, PHIVIDEC Industrial Estate – Economic Zone, Lima Technology Center, Mactan Economic Zone II, People Technology Complex, 1 Nito Tower in Cebu City, Embarcadero De Legazpi in Legazpi City, Light Industry & Science Park IV and Hermosa Ecozone Industrial Park. “These projects are anticipated to yield an investment of P9.88 billion, generating $591.476 million in exports and creating 2,243 direct jobs,” PEZA said.“In comparison to the corresponding period in 2023, the investments, exports, and jobs are 160.08%, 135.31%, and 319.25% higher, respectively,” it added.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2024/02/19/576637/peza-investment-approvals-at-p9-88-billion-in-year-to-date/
FDA okays VAT exemption of 22 more vital drugs
(Inquirer.Net / Dexter Cabalza / February 20, 2024)
Twenty-two more medicines for different diseases have been endorsed by the Food and Drug Administration (FDA) for exemption from the value-added tax (VAT) to make them more accessible to consumers. Senior citizens and persons with disabilities entitled to an additional 20-percent discount under the law can buy the same drug at an even lower price of P21.96—or 28.6 percent lower than its original retail price of P30.75. The 22 medicines are in addition to the more than 2,000 drugs indicated for the prevention and management of diabetes, hypertension, cancer, high cholesterol, mental illnesses, tuberculosis and kidney diseases, as well as medicines and medical devices specifically used for the prevention and treatment of COVID-19, that were exempted from VAT under the Tax Reform for Acceleration and Inclusion or Train Act or TRAIN Act (Republic Act No. 10963) andthe Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act (RA 11534).
Click the link below to read the full news from the source:
https://newsinfo.inquirer.net/1906856/fda-okays-vat-exemption-of-22-more-vital-drugs
CTA denies Rema Tip Top’s claim for P1.3M tax refund
(Manila Bulletin / Czarina Nicole Ong Ki / February 21, 2024)
The Court of Tax Appeals (CTA) has denied the petition of Rema Tip Top Philippines, Inc. (RTTPI) which sought a P1.37 million tax refund representing its input value added tax (VAT) for the fourth quarter of 2015. RTTPI assailed the decision and resolution of the CTA’s third division which denied its refund claim and challenged the ruling before the CTA’s full court on Oct. 12, 2022. The court’s third division had ruled that RTTPI failed to establish that it had unutilized input tax that may be refunded in its favor, while RTTPI insisted that its zero-rated sales were properly substantiated.
Click the link below to read the full news from the source:
https://mb.com.ph/2024/2/21/cta-denies-rema-tip-top-s-claim-for-p1-3-m-tax-refund
7 condo units seized from Napoles Firm up for BIR auction
(Abogado.com.ph / February 21, 2024)
Seven condominium units in Manila seized from JCLN Global Properties Development Corp., a realty firm operated by two children of businesswoman and alleged pork barrel scam mastermind Janet Lim Napoles are being auctioned off by the Bureau of Internal Revenue (BIR). The BIR said it reserved the “right to reject any or all bids received and to withdraw properties from the auction sale.”
Click the link below to read the full news from the source:
https://abogado.com.ph/7-condo-units-seized-from-napoles-firm-up-for-bir-auction/
How FAR will RMC 5-2024 take us?
(Business World / Crystabelle Cruz-Lucas / February 21, 2024)
One of the hot topics in tax circles is Revenue Memorandum Circular (RMC) No. 5-2024, which was issued by the Bureau of Internal Revenue (BIR) to clarify the tax treatment of cross-border services, applying the Supreme Court (SC) decision in Aces Philippines Cellular Satellite Corp. v. Commissioner of Internal Revenue. The RMC imposes Philippine withholding tax on payments for services rendered by non-resident foreign corporations (NRFCs), even if rendered entirely outside the Philippines, as long as the utilization or consumption happens within the Philippines. Because of the widespread impact and apparent shift in the tax treatment, the new issuance has raised uncertainty on the proper taxation of service fees paid to NRFCs by service recipients in the Philippines.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2024/02/21/577135/how-far-will-rmc-5-2024-take-us/
Bill reducing stock transaction tax approved by House plenary
(Business World / Beatiz Marie D. Cruz / February 21, 2024)
THE House of Representatives approved on Wednesday a bill seeking to reduce the tax on stock transactions to 0.1% from 0.6% currently. Legislators during the plenary session approved House Bill No. 9277, or the proposed Capital Markets Efficiency Promotion Act, through voice vote. “If we look at the cost of capital in Philippines and also in our taxes on capital markets, we are the ones with the highest stock transaction tax,” he said during interpellation on Tuesday.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2024/02/21/577139/bill-reducing-stock-transaction-tax-approved-by-house-plenary/
Corporate registration suspended for 117,885 firms
(Business World / Revin Mikheal D. Ochave / February 22, 2024)
THE Securities and Exchange Commission (SEC) has suspended the corporate registration of 117,885 corporations for failing to submit their annual reports for over five years. The suspension order also encompasses corporations that initiated business operations but subsequently remained inactive for over five consecutive years, according to a SEC order dated Feb. 16.
Click the link below to read the full news from the source:
https://www.bworldonline.com/corporate/2024/02/22/577092/corporate-registration-suspended-for-117885-firms/
Taxing pixels: Taking a byte out of the digital pie
(The Philippine star Global / Kim Micheal G. De Jesus / February 22, 2024)
Still pending with the committee on ways and means of the Senate is House Bill (HB) 4122, which aims to impose 12 percent VAT on digital services provided by digital service providers (DSP). DSPs are service providers that operate online platforms for the purpose of buying and selling goods or services, or for facilitating transactions related to the provision of digital services on behalf of individuals. Thus, this includes non-resident foreign entities which are engaged in the performance of all kinds of services in the Philippines for a fee whether rendered electronically or otherwise. A Senate bill (SB 250) is also being evaluated by the same committee proposing the imposition of VAT on any person (including non-resident DSPs) who sells, barters, exchanges, leases goods or properties including those digital or electronic in nature or those rendering services including those rendered electronically.
Click the link below to read the full news from the source:
https://www.philstar.com/business/2024/02/22/2335082/taxing-pixels-taking-byte-out-digital-pie
SEC launches online portal for corporation amendments
(The Philippines Star / Richmond Mercurio / February 23, 2024)
The Securities and Exchange Commission (SEC) is making it easier for corporations to file amendments to their articles of incorporation or by-laws through a newly launched online portal. The SEC said applications for amendments to a corporation’s articles of incorporation and by-laws can be made through the Electronic Application for Modification of Entity Data (eAMEND) portal starting today. Changes in provisions regarding purposes, capitalization, and reclassification of shares of corporations, as well as other amendments to the articles of incorporation not covered in the first classification will also undergo regular processing. The SEC said it would automatically purge applications due to failure to provide the required details and upload the documentary requirements, failure to comply with the compliance order from the receipt of email notification, in cases of incomplete or non-compliant submission, as well as failure to pay the amendment fees, within 60, 30, and 45 calendar days, respectively.
Click the link below to read the full news from the source:
https://www.philstar.com/business/2024/02/23/2335360/sec-launches-online-portal-corporate-amendments
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