Bureau of Internal Revenue Issuances
REVENUE DELEGATION AUTHORITY ORDERS
RDAO No. 8-2025
February 5, 2025
Delegates to the HREA of the Assessment Service the authority to sign documents specified in the Order in view of the retirement of the Assessment Service’s OIC-Assistant Commissioner
RDAO No. 9-2025
February 6, 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. 10-2025
February 7, 2025
Delegates to the OIC-Assistant Commissioner of the Legal Service the authority to sign documents specified in the Order in view of the official travel of the Legal Group’s OIC-Deputy Commissioner
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.
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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
Lumagui: PBBM throws his support to the BIR’s War against Ghost Receipts, Illicit Vape, & Illicit Cigarette; Expect more BIR enforcement operations this 2025
Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. announced that the agency’s war against ghost receipts, illicit vape, and illicit cigarettes will soldier on this 2025. This announcement was made in relation to the speech made by President Ferdinand R. Marcos Jr. during the BIR Kick-Off event last Tuesday, where he declared that individuals and companies who engage in tax fraud will be held accountable.
Click the link below to read the full news from the source:
https://bir-cdn.bir.gov.ph/BIR/pdf/PR05FEB0625.pdf
Lumagui: BIR launches 2025 National Tax Campaign with theme “Buwis na Tapat, Tagumpay Nating Lahat
The Bureau of Internal Revenue (BIR), under the leadership of Commissioner Romeo D. Lumagui, Jr., officially launched its 2025 National Tax Campaign Kick-off on February 4, 2025, at the Philippine International Convention Center (PICC) in Pasay City. With the theme “Buwis na Tapat, Tagumpay Nating Lahat,” this year’s campaign underscores the crucial role of taxpayers in funding the country’s economic recovery and development through the timely and correct payment of taxes
Click the link below to read the full news from the source:
https://bir-cdn.bir.gov.ph/BIR/pdf/PR04FEB0425.pdf
Architectural firm wins tax case vs Makati
Business World / Chloe Mari A. Hufana/ February 2, 2025
THE Court of Tax Appeals (CTA) has ordered the City of Makati to refund over P800,000 in local business taxes to a professional architectural partnership firm, ruling the city had erroneously collected taxes from the company. The tax court en banc affirmed the ruling of the CTA Special Second Division, saying Casas+ Architects was entitled to a refund of erroneously paid local business taxes because the firm is engaged purely in the practice of architecture and related services. “As the Court in Division already found that [Casas+ Architects] is engaged in interior design and landscaping, which are encompassed by the practice of architecture, it ruled that respondent is purely engaged in the practice of profession,” Justice Corazon G. Ferrer-Flores wrote in a 15-page ruling promulgated and publicized on Jan. 27. In junking Makati’s petition, the tax court ruled the applicable provision for the case was Section 196 of the Local Government Code (LGC), which deals with claims for refunds of erroneously or illegally collected taxes. The city had argued that Section 195 of the LGC applied, which requires a protest within 60 days of a notice of assessment.
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https://www.bworldonline.com/the-nation/2025/02/02/650520/architectural-firm-wins-tax-case-vs-makati/
BI, PEZA data sharing agreement to strengthen visa processing
Philippine News Agency / February 2, 2025 – MANILA
The Bureau of Immigration (BI) and the Philippine Economic Zone Authority (PEZA) have formalized a data sharing agreement (DSA) to establish clear guidelines in the issuance and implementation of visas for foreign nationals employed in registered economic zones (ecozones). The agreement, signed in January, ensures that both agencies comply with legal frameworks in the processing of applications for visas, according to a news release Sunday.
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https://www.pna.gov.ph/articles/1243171
Tax conversations with C-Suites – ‘Suits The C-Suite’
World Business / Miguela R. San Juan, Joan Rouella P. Corrales, and Gerardo C. Caiga / February 2, 2025
Although Mr. Wong highlighted potential challenges, such as attracting investments and securing energy resources, he and his fellow speakers discussed how initiatives like CREATE MORE and various tax incentives can positively influence project design, benefiting not only large corporations but also small businesses, which he considers the “lifeblood of this country.” This presents opportunities for small businesses to grow, co-locate, and foster an ecosystem that strengthens their market presence. However, Mr. Mulingbayan pointed out that while incentives are a key motivator for doing business in the Philippines, some aspects have become outdated and no longer reflect the current costs of doing business. When asked how to address this issue, he proposed that collaboration between real estate developers and government agencies, such as the Board of Investments (BoI) and the Bureau of Internal Revenue (BIR), is essential to update and better align these incentives with today’s economic conditions. Mr. Madrid considers CREATE MORE a milestone for the IT and BPO industry. He noted the streamlining of processing refunds, lengthening of tax holidays, reduction of ambiguity, and increasing the stability of the incentives. He finds CREATE MORE to be an attractive feature for enhancing the ease of doing business with an immediate impact on industry
THE IMPACT OF AI
Regarding the impact of AI, Mr. Mulingbayan highlighted its significant role in enhancing efficiency in areas such as design, concepts, and marketing/advertising. On a similar note, Mr. Wong emphasized the role of AI and digital technology in enabling fair competition for smaller players in the market.
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https://www.bworldonline.com/economy/2025/02/02/650476/tax-conversations-with-c-suites-2/
Senate passes mining tax regime measure
Business World / John Victor D. Ordonez / February 3, 2025
THE SENATE approved on third and final reading on Monday a bill setting up a five-tier margin-based royalty and windfall profit system for the mining industry, which is expected to raise the government’s share of mining profits. By a vote of 18-1 with zero abstentions, the chamber approved Senate Bill No. 2826, a priority measure that sets royalty tiers ranging range from 1% to 5%, while the five-tier windfall profit tax system will range from 1% to 10%. Currently, mining firms pay corporate income tax, excise tax, royalty, local business tax, real property tax and fees to indigenous communities. The House of Representatives approved its version of the bill in September.
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https://www.bworldonline.com/economy/2025/02/03/650813/senate-passes-mining-tax-regime-measure/
BIR rules P7,000 uniform allowance for gov’t employees not taxable
Business World / Aubrey Rose A. Inosante/ February 3, 2025
THE Bureau of Internal Revenue (BIR) has upheld the tax exemption on the P7,000 uniform or clothing allowance of government employees. “Pursuant to Sections 4 and 244 in relation to Section 33 of the Tax Code of 1997, these regulations are hereby promulgated to further amend RR Nos. 2-98, as amended, with respect to de minimis benefits which are exempted from income tax on compensation as well as from fringe benefits tax in relation to the implementation of Republic Act No. 11466,” the BIR said in a revenue regulation dated Jan. 30. This regulation will take effect after 15 days following publication. In April 2024, the Department of Budget and Management (DBM) announced in a budget circular an increase in the uniform grant to P7,000 annually to qualified government employees. This clothing grant was P6,000 previously. The DBM circular covered civilian government personnel occupying regular, contractual, or casual positions; appointive or elective posts; and those rendering services on a full-time or part-time basis
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https://www.bworldonline.com/economy/2025/02/03/650804/bir-rules-p7000-uniform-allowance-for-govt-employees-not-taxable/
Non-taxability of employee de minimis benefits – ‘Let’s Talk Tax’
Business World / Joselle Mariano / February 3, 2025
Capping off the first month of 2025, the Bureau of Internal Revenue (BIR) issued Revenue Regulations (RR) No. 004-2025 (RR No. 4-25), amending the rules on certain de minimis benefits. It increased the uniform and clothing allowance to P7,000, which was formerly P6,000 under RR No. 11-2018 (RR No. 11-18); and included cash and gift certificates used as employee achievement awards.
BUT WHAT EXACTLY ARE DE MINIMIS BENEFITS? De minimis benefits can be best described as non-taxable compensation granted by employers to their employees holding managerial and rank-and-file positions that are mandated by law. Although RR No. 2-98, as amended by RR No. 11-18, defines de minimis benefits to form part of compensation, it must be made clear that these benefits are not subject to income tax, as well as withholding tax on compensation income.
Thus, the following shall be considered de minimis benefits and form part of the non-taxable compensation of employees as of RR Nos. 4-25, amending certain provisions of RR No. 11-18, and RR No. 2-98:
a. Monetized unused vacation leave credits of private employees up to 10 days;
b. Monetized value of vacation and sick leave credits paid to government officials and employees;
c. Medical cash allowance to dependents of employees up to P1,500 per semester or P250 per month;
d. Rice subsidy up to P2,000 or one 50kg sack of rice per month amounting to not more than P2,000;
e. Uniform and clothing allowance not exceeding P7,000 per annum.
f. Actual medical assistance, e.g., medical allowance to cover medical and healthcare needs, annual medical/executive check-up, maternity assistance, and routine consultations, not exceeding P10,000 per annum;
g. Laundry allowance up to P300 per month;
h. Employee achievement awards, e.g., for length of service or safety achievement, in any form, whether in cash, gift certificate or any tangible personal property, with an annual monetary value not exceeding P10,000 received by the employee under an established written plan which does not discriminate in favor of highly paid employees;
i. Gifts given during Christmas and major anniversary celebrations not exceeding P5,000 per employee per annum;
j. Daily meal allowance for overtime work and night/graveyard shift not exceeding 25% of the basic minimum wage on a per region basis;
k. Benefits under a Collective Bargaining Agreement and productivity incentive schemes provided that the total annual monetary value received from both CBA and productivity incentives schemes combined up to P10,000 per employee per annum.
Click the link below to read the full news
https://www.bworldonline.com/economy/2025/02/03/650803/non-taxability-of-employee-de-minimis-benefits/
DOJ files before CTA tax evasion cases vs 3 industrial firms, corporate officers
Manila Bulletin/ Jeffrey Damicog/ February 3, 2025
Three industrial corporations and their corporate officers have been charged with tax evasion before the Court of Tax Appeals (CTA), the Department of Justice (DOJ) said on Monday, Feb. 3. In a statement, Justice Secretary Jesus Crispin C. Remulla identified those charged as Total Metal Corporation with 14 counts, Equator Energy Corporation with four counts, and Limhuaco Metal Industrial, Incorporated with two counts. With the filing of the cases, the DOJ said “warrants of arrest against the above-named corporations and their corporate officers are expected to be issued in the soonest possible time.” The corporations and their officers were charted with violations of Sections 254 and 255 in relation of Section 253(d) and 256 of the National Internal Revenue Code (NIRC) of 1997 as amended. “Defrauding the government its due is similar to robbing off our citizens these essential services they deserve and ultimately need,” Remulla said.
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https://mb.com.ph/2025/2/3/doj-files-before-cta-tax-evasion-cases-vs-3-industrial-firms-corporate-officers
NTA backs moratorium on higher tobacco excise taxes
The Philippine Star/ Jasper Emmanuel Arcalas / February 3, 2025) – MANILA, Philippines
The National Tobacco Administration (NTA) is supporting a moratorium on tobacco excise tax hikes to curb illicit tobacco trade in the country. In a letter to the House of the Representatives, NTA administrator and CEO Belinda Sanchez said she supports the proposed moratorium, arguing that it offers a “practical” and “targeted” solution against illicit cigarette trade. “By pausing the excise tax increase for 2026, we can temporarily stabilize the market and reduce the price disparity between legitimate and illicit cigarettes,” Sanchez told lawmakers led by House committee on ways and means chairperson Rep. Joey Salceda. At present, tobacco excise taxes increase by five percent annually, with a base tax of P60 per pack. Illicit cigarettes are sold at around P40 per pack, lower than the excise tax imposed by the government. However, the House of Representatives recently passed on second reading House Bill 11360, which seeks to impose a lower tax rate on tobacco products, doing away with the moratorium. HB 11360 replaced HB 11279, which earlier proposed a moratorium. Under HB 11360, the government will adopt an odd-even scheme in hiking the tobacco excise taxes: two percent every even-numbered year and four percent every odd-numbered year until 2035. The Bureau of Internal Revenue (BIR) collected as much as P176.48 billion in tobacco excise taxes in 2021 before it continuously dropped to P160.4 billion in 2022 and P134.91 billion by 2023.
Click the link below to read the full news from the source:
https://www.philstar.com/business/2025/02/03/2418710/nta-backs-moratorium-higher-tobacco-excise-taxes
BIR collects P2.06T via e-payments by end of Oct.
Business World / Aubrey Rose A. Inosante / February 4, 2025
THE Bureau of Internal Revenue (BIR) said on Tuesday that it collected P2.06 trillion via e-payments in the 10 months to October. The BIR said e-payments accounted for 85% of total collections. “We see that more and more people are actually using our e-services and paying online,” BIR Commissioner Romeo D. Lumagui, Jr. said on the sidelines of the National Tax Campaign Kick-off.
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https://www.bworldonline.com/economy/2025/02/04/651142/bir-collects-p2-06t-via-e-payments-by-end-of-oct/
BIR collects record P2.85 trillion tax in 2024
Inquirer.Net / Luisa Cabato / February 4, 2025 -MANILA, Philippines
The Bureau of Internal Revenue (BIR) collected almost P3 trillion in taxes in 2024—the most in two decades, President Ferdinand “Bongbong” R. Marcos Jr. announced on Tuesday.
In his speech during the 2025 BIR National Tax Campaign kickoff in Pasay City, Marcos said the bureau collected P2.85 trillion in 2024, surpassing its P2.52 trillion record in 2023.
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https://newsinfo.inquirer.net/2031425/marcos-on-bir-collection-for-2024
We will hold those who circumvent our tax system accountable—Marcos
Manila Bulletin /Betheena Unite / February 4, 2025
President Marcos has issued a stern warning to those who continue to exploit the country’s tax system that they will be held accountable. ”I have said this before: We will hold those who continue to circumvent our system accountable,” Marcos said in his speech during the 2025 National Tax Campaign Kick-Off of the Bureau of Internal Revenue (BIR) on Tuesday, Feb. 4. Marcos made the statement even after noting that the fight against tax fraud has made significant progress, citing initiatives undertaken by the BIR. “The fight against tax fraud is also making significant progress,” Marcos said. The President cited that the bureau’s Run After Fake Transactions led to the filing of cases against ghost sellers and buyers and the collection of more than P4.3 billion, a significant jump from the more than P600 million collected in 2023.
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https://mb.com.ph/2025/2/4/we-will-hold-those-who-circumvent-our-system-accountable-marcos
Bill strengthening excise tax administration on tobacco products breezes through House
Manila Bulletin / Ellson Quismorio / February 4, 2025
On the strength of 177 affirmative votes, the House of Representatives approved on third and final reading the measure strengthening the administration of excise tax on tobacco products. House Bill (HB) No.11286, which covers cigars, cigarettes, heated tobacco products, vapor products and novel tobacco products, was passed during plenary session Monday night, Feb. 3. Only four congesssmen voted against the bill’s passage, according to Deputy Speaker Cebu 5th district Rep. Vicent Franco “Duke” Frasco, who presided over the session. The measure seeks to amend the National Inteenal Revenue Code of 1997, as amended. A key provision of HB No.11286 is the creation of the Inter-Agency Tobacco Illicit Trade Council, to be chaired by the Department of Finance (DOF). It is tasked to implement appropriate measures in suppressing illicit trade of the covered products. The bill requires the mandatory registration of manufacturing equipment for tobacco products within 30 days from acquisition or disposal. It also enumerates the responsibilities of digital platforms in ensuring the absence of illicit covered products in their respective platforms. The measure further grants the Bureau of Internal Revenue (BIR), through the National Telecommunications Commission (NTC), the power to remove illicit product listings on digital platforms.
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https://mb.com.ph/2025/2/4/bill-strengthening-excise-tax-administration-on-tobacco-products-breezes-through-house
Unified and inclusive PWD ID system
The Philippine Star/ Emmeline Aglipay-Villar / February 4, 2025
The proliferation of fake persons with disabilities (PWD) identification cards (IDs) has been causing consternation among both establishments and legitimate PWDs. These IDs were issued to make it easier for PWDs to claim the rights and entitlements that they are due under the law in order to help offset their costs and difficulties in other areas of their daily lives which are caused by their disabilities. However, unscrupulous individuals exploit these fake IDs to illegally avail of the benefits intended for genuine PWDs, such as the 20 percent discount on goods and services and the exemption from Value Added Tax.
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https://www.philstar.com/opinion/2025/02/04/2419006/unified-and-inclusive-pwd-id-system
E-business one-stop shops eyed for a hundred more LGUs in 2025
Inquirer.Net / Alden M. Monzon / February 4, 2025) – MANILA, Philippines
The head of the government’s anti-red tape body on Monday said they are targeting to have a hundred local government units (LGUs) establish their own fully-functional online one-stop business shops this year to further improve the ease of doing business in the country. Anti-red Tape Authority (ARTA) Secretary Ernesto Perez said they were able to get 113 out of a total of 1,483 LGUs to be fully compliant with the law which requires a centralized hub for business requirements. “This year, we are targeting another 100 so that by the end of the year, 200 local government units shall have operationalized an electronic business one-stop shop,” Perez said during a press conference in Quezon City. “But our ultimate goal is that before the end of this administration, all 1,483 local government units should have set up and operationalized an electronic business one-stop shop,” he said further.
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https://business.inquirer.net/504897/e-business-one-stop-shops-eyed-for-a-hundred-more-lgus-in-2025
Government securities for the non-resident foreign investor – ‘Top of Mind’
The Philippine Star / Erika Loise Laforteza / February 4, 2025
Foreign investment is well-known to be one of the top priorities of the Marcos administration. Not only has the President been traveling abroad to promote the Philippines as an investment destination, but various government agencies have been implementing changes to streamline government rules and processes in a bid to encourage foreign investment. An initiative of the Bureau of the Treasury (BTr) aligns with this push. In a memorandum, the BTr introduced a streamlined process to claim tax treaty relief in the National Registry of Scripless Securities (NRoSS). The NRoSS is the government facility used by participants to take part in the trade of government securities. Government securities are defined in Revenue Regulations 20-03 as securities issued by the National Government or any of its agencies, instrumentalities and political subdivisions. Securities, as defined by the Tax Code, include shares of stock in a corporation and rights to subscribe for or to receive such shares, and bonds, debentures, notes or certificates, or other evidence of indebtedness issued by a corporation, including those issued by a government or political subdivisions. In the case of government bonds, a 20 percent final withholding tax (FWT) is generally imposed on the interest income of a non-resident investor. A lower rate may be claimed by the non-resident under an applicable tax treaty, subject to compliance with treaty conditions and administrative requirements. Under Revenue Memorandum Order 14-2021, whenever a treaty benefit is invoked, a request for confirmation (RFC) or tax treaty relief application (TTRA) must be filed. This requires the collation and submission of several documents to support the RFC/TTRA application. As a result, some may find the application process overwhelming as documents must be gathered from multiple stakeholders in the investment process.
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https://www.philstar.com/business/2025/02/04/2418974/government-securities-non-resident-foreign-investor
CTA denies P3-M tax credit or refund of Avaloq PH
Manila Bulletin/ Czarina Nicole Ong Ki/February 5, 2025
The Court of Tax Appeals (CTA) has denied the petition of Avaloq Philippines Operating Headquarters which sought from the Bureau of Internal Revenue (BIR) a tax refund of P3 million for its zero-rated sales for the 3rd and 4th quarters of 2017. Avaloq Philippines is engaged in the sourcing and procurement of raw materials and components, among other related businesses. It filed with the BIR an application for tax credits or refunds for its unutilized input value added tax (VAT) attributable to its zero-rated sale of services for Sept. 1, 2017 to Dec. 31, 2017 amounting to P3,055,913.90. The application was denied on Dec. 18, 2019, with the BIR ruling that it lacked factual and legal basis. Avaloq Philippines then brought the case to the CTA on Jan. 17, 2020 via a petition for review. Avaloq Philippines argued that the sales were paid for in acceptable foreign currency and the proceeds have been duly accounted for. It added that the input taxes due from the purchases of goods and services directly attributable to zero-rated sales of petitioner were duly supported by VAT invoices or official receipts.
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https://mb.com.ph/2025/2/5/cta-denies-p3-m-tax-credit-or-refund-of-avaloq-ph
DOF chief: Low inflation allows BSP to further cut interest rates
Philippine News Agency / Anna Leah Gonzales / February 5, 2025 – MANILA
The steady inflation rate will allow the Bangko Sentral ng Pilipinas (BSP) to further reduce interest rates to boost consumer spending and economic growth, Finance Secretary Ralph Recto said. The Philippine Statistics Authority reported on Wednesday that the country’s headline inflation remained at 2.9 percent. Core inflation, which excludes selected volatile food and energy items, also eased to 2.6 percent in January from 2.8 percent in December 2024. “Magandang balita ito (This is good news). This is a strong indicator of the government’s commitment to keeping prices stable and signals that the BSP has more flexibility to further reduce interest rates,” Recto said in a statement. “Lower interest rates mean cheaper borrowing costs for our consumers and businesses. This will provide greater purchasing power for our people and stronger momentum for investments and growth,” he added.
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https://www.pna.gov.ph/articles/1243423
Supreme Court clarifies period for VAT refund claims
GMA Integrated News / Joahna Lei Casilao/ February 5, 2025
The Supreme Court (SC) has clarified the prescriptive periods for value-added tax (VAT) refund claims. In a 21-page decision, the SC Third Division said the 120-day period for the Commissioner of Internal Revenue (CIR) to resolve a claim filed before June 2014 will begin once the taxpayer indicates that his submission of documents is complete. The following are the guidelines for administrative VAT refund claims filed before June 11, 2014:
* The 120-day period begins from the date of filling the administrat9ive claim with complete documents or when the taxpayer indicates that it will no longer submit additional documents.
* If the BIR requests additional documents, the taxpayer has 30 days to comply, and the 120-day period begins upon submission or expiration of the given period.
* If the BIR does not notify the taxpayer that the submission is incomplete, the 120-day period begins from the date the taxpayer voluntarily submitted additional documents.
* The Taxpayer must file the administrative claim within two years from the end of the taxable quarter.
However, under the RMC 54-2014, dated June 11, 2014, taxpayers are required to submit all necessary documents when filing an administrative claim and cannot provide additional documents later. Due to this, the court said following are for claims filed from June 11, 2014 to December 31, 2017:
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https://www.gmanetwork.com/news/topstories/nation/935277/supreme-court-clarifies-period-for-vat-refund-claims/story/
SC rules in favor of shipping firm in VAT case
Business World / Chloe Mari A. Hufana / February 5, 2025
THE Supreme Court (SC) ruled in favor of Dohle Shipmanagement Philippines Corp. (Dohle) in a value-added tax (VAT) case, in which it clarified the prescriptive periods for filing VAT refund claims with the Bureau of Internal Revenue (BIR). In a decision publicized on Feb. 5, 2025, and written by Associate Justice Alfredo Benjamin S. Caguioa, the SC’s Third Division affirmed that for VAT refund claims filed before June 11, 2014, the 120-day period for the BIR to resolve a claim starts when the taxpayer determines that its submission of documents is complete. For claims filed before June 11, 2014, the 120-day period begins when the taxpayer files a complete claim or indicates no further documents will be submitted. If the BIR requests additional documents, the taxpayer has 30 days to comply, and the 120-day period starts upon submission or after the 30 days.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2025/02/05/651548/sc-rules-in-favor-of-shipping-firm-in-vat-case/
Marcos to public: Pay your taxes
The Philippine Star/ Helen Flores / February 5, 2025 – MANILA, Philippines
President Marcos yesterday urged the public to pay taxes and assured the people that tax evaders will be held accountable. “We will hold those who continue to circumvent our system accountable,” Marcos said at the Bureau of Internal Revenue (BIR)’s national tax campaign kickoff in Pasay. Over P2.85 trillion in taxes was collected by the BIR last year, surpassing the P2.52 trillion in 2023, Marcos noted. This was the highest amount posted in two decades, he said.
Click the link below to read the full news from the source:
https://www.philstar.com/headlines/2025/02/05/2419292/marcos-public-pay-your-taxes
BIR chief warns tax fraudsters: ‘Expect criminal cases’ in 2025
Manila Bulletin / Jun Ramirez / February 6, 2025
The Bureau of Internal Revenue (BIR) will aggressively continue its campaign against ghost receipts, illicit vape products, and illegal cigarettes throughout 2025, Commissioner Romeo D. Lumagui Jr. announced. Lumagui’s statement follows President Ferdinand Marcos Jr.’s recent warning during the BIR’s 2025 tax campaign launch, emphasizing that individuals and businesses engaged in tax fraud will be held accountable. The commissioner highlighted the success of the Run After Fake Transactions (RAFT) program, which led to multiple cases being filed against ghost sellers and buyers, resulting in over P4.3 billion collections, a significant increase from the P600 million collected in 2023. Additionally, the agency’s intensified crackdown on ghost receipts, Illicit vape products, and other excisable goods generated more than P110 million last year. Since 2024, the Department of Justice (DOJ) has consistently issued favorable rulings on criminal cases filed by the RAFT task force against ghost receipt buyers.
Click the link below to read the full news from the source:
https://mb.com.ph/2025/2/6/bir-to-intensify-crackdown-on-tax-fraud-in-2025
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