Bureau of Internal Revenue Issuances
REVENUE MEMORANDUM CIRCULAR (RMC)
RMC No. 29-2024
February 26, 2024
Extends the deadline for the submission of the Certificate of Compensation Payment/Tax Withheld (BIR Form No. 2316) and clarifications in relation thereof.
RMC No. 30-2024
February 26, 2024
Circularizes the Entry into Force, effectivity and applicability of the Philippines-Brunei Double Taxation Agreement.
RMC No. 31-2024
February 27, 2024
Clarifies on the TIN Verification being required by employers from newly-hired employees.
RMC No. 32-2024
February 28, 2024
Notifies the loss of twenty-eight (28) sets of unused/unissued BIR Form No. 0535 – Taxpayer Information Sheet.
RMC No. 33-2024
February 29, 2024
Announces the availability of additional functionalities of the Contact Center Solution and Chatbot Revie (Access the BIR Website (www.bir.gov.ph). And Dial BIR Hotline No. (02) 8538-3200).
BANK BULLETIN
Bank Bulletin No. 2024-1
Reminds all Authorized Agent Banks to accept tax returns/payments of internal revenue taxes on April 6 and April 13, 2024 and to extend their banking hours up to 5:00 P.M. for the period April 1-15, 2024.
Department of Trade and Industry
ADVISORY: Call for Inputs and Comments on the Draft Implementing Rules and Regulations of Republic Act No. 1967 or the Internet Transactions Act of 2023
February 28, 2024
We are inviting the public to review and submit their comments on the draft Implementing Rules and Regulations of RA 11967 otherwise known as the Internet Transactions Act.
Signed by President Ferdinand R. Marcos, Jr. on 5 December 2023, the Internet Transactions Act (ITA) of 2023 is aimed at building trust in eCommerce by providing a regulatory framework for both consumer and merchant protection.
The Public is encouraged to submit in writing their comments and suggestions until 12 March 2024 addressed to ecommerce2@dti.gov.ph.
Draft Implementing Rules and Regulations of the Internet Transactions Act of 2023 for comments.
Tax And Business Related News
BIR WEEKENDER BRIEFS
Volume No. 15 Issue No.8 Week ending February 23, 2024
CIR Romeo D. Lumagui, Jr. together with DCIR Maridur Rosario, ACIR Janette Cruz and personnel from the Public Information and Education (headed by Chief Meilin Hirang), awarded Plaques of Appreciation last February 20, 2024 to Chairman Ramil Gutierrez, Jeramiel Gutierrez (representing President Daryl Abueva) and PR Committee Member Jose Cuento, Jr. of the Out-of-Home Advertising Association of the Philippines (OHAAP) at the Office of the Commissioner of Internal Revenue.
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/v15n8 highres.pdf
Lumagui: Courts order the issuance of Warrants of Arrest against big-fish vape seller Tap Fog and its conspirators, estimated tax liability of P1.2B.
The Bureau of Internal Revenue, headed by Commissioner Romeo D. Lumagui Jr., wins in its criminal case with the Department of Justice against Tap Fog and its conspirators. The case stemmed from a raid that was headed by Commissioner Lumagui last November 2022, he was the Deputy Commissioner of the Operations Group during said raid. After winning the case before the DOJ, criminal information was filed before the Court of Tax Appeals and the Metropolitan Trial Court. Both courts have already ordered the issuance of warrants of arrest against the Tap Fog group.
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/PR15FEB2624.pdf
Favorable beverage tax outcomes depend on ‘efficient design’ – Word Bank –
(Business World / Luisa Maria Jacinta C. Jocson / February 25, 2024)
POSITIVE OUTCOMES from a sugar-sweetened beverage taxes like reduced consumption and improved health will depend on how well the tax is designed, the World Bank (WB) said. “Sugar-sweetened beverage (SSB) taxes are an important fiscal and health policy tool since they raise tax revenue and improve health by reducing demand, as well as reduce health expenditures by alleviating the burden on the health system,” the bank said in a note.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2024/02/25/577717/favorable-beverage-tax-outcomes-depend-on-efficient-design-wb/
CTA affirms decision granting part of geothermal company’s refund claim
(Business World / John Victor D. Ordonez / February 26, 2024)
THE COURT of Tax Appeals (CTA) has upheld its decision to grant Philippine Geothermal Production Co., Inc.’s (PGPCI) refund claim in the amount of P23.27 million representing its excess input value-added tax (VAT) traced to zero-rated sales for the first three quarters of 2016. In a decision dated Feb. 20, the tribunal said the PGPCI did not need to directly trace its input tax to 0% VAT for it to seek a valid refund.
Click the link below to read the full news from the source:
https://www.bworldonline.com/corporate/2024/02/26/577751/cta-affirms-decision-granting-part-of-geothermal-companys-refund-claim/
Interesting updates on interest expenses
(Business World / Nikkolai F. Canceran / February 26, 2024)
In last week’s article, my colleague discussed the new rules on the treatment of foreign currency transactions for internal revenue tax purposes. That article provided clarifications and guidelines on the use of appropriate forex rates in recording and reporting foreign currency transactions for tax purposes. Now, let’s do a deep dive into the Bureau of Internal Revenue’s (BIR) recently issued Revenue Memorandum Circular (RMC) No. 19-2024. This RMC provides clarification on the tax treatment of interest expense paid or incurred on indebtedness in connection with the taxpayer’s profession, trade, or business and other related matters. According to BIR, it has been observed that the differences in the treatment of interest expense in the financial statements and tax returns give rise to several issues and concerns for both the BIR and the taxpayers. Hence, the BIR issued the RMC to assist taxpayers in properly treating the interest expense for tax purposes.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2024/02/26/577998/interesting-updates-on-interest-expense/
Recto begins series of worksite visits on ODA projects to ensure efficient implementation, starts with Metro Manila Subway
(Department of Finance / February 26, 2024)
Secretary Ralph G. Recto began his series of worksite visits on official development assistance (ODA)-funded infrastructure projects to ensure their efficient implementation, starting with the Metro Manila Subway on February 26, 2024.
Click the link below to read the full news from the source:
https://www.dof.gov.ph/recto-begins-series-of-worksite-visits-on-oda-projects-to-ensure-efficient-implementation-starts-with-metro-manila-subway/
Philippines as a global tax leader
(Business Mirror / Joel L. Tan-Torres / February 26, 2024)
One of the growing trends in international taxation is toward improving dispute resolution of tax treaty-related matters. Presently, the Philippines has 43 tax treaties with other countries. These treaties are relied upon by taxpayers and the Bureau of Internal Revenue (BIR) to mitigate double taxation of income of enterprises conducting business in various taxing global jurisdictions. One mechanism provided for in these treaties to avoid double taxation is the Mutual Agreement Procedures (MAP).
Click the link below to read the full news from the source:
https://businessmirror.com.ph/2024/02/26/philippines-as-a-global-tax-leader-13/
BIR steps up monitoring of vape sellers after major tax evasion case
(Manila Bulletin / Xander Dave Ceballos / February 26, 2024)
The Bureau of Internal Revenue (BIR) said it is now closely monitoring the vape industry following a successful enforcement action against a “big-fish” for tax evasion. BIR Commissioner Romeo D. Lumagui Jr. said the agency had won the case against vape seller Tap Fog and its conspirator before the Department of Justice (DOJ) for an alleged tax liability of P1.2 billion.
Click the link below to read the full news from the source:
https://mb.com.ph/2024/2/25/bir-steps-up-monitoring-of-vape-sellers-after-major-tax-evasion-case#google_vignette
SC approves P600M tax settlement of Citysuper, operator of Landmark Trinoma
(Manila Bulletin / Rey G. Panaligan / February 27, 2024)
The Supreme Court (SC) has approved the P600 million compromise agreement between the Bureau of Internal Revenue (BIR) and Citysuper, Inc. to settle fully the firm’s tax deficiencies for taxable year 2011. Citysuper, which “operates under the commercial name of Landmark Trinoma, and is engaged in selling of merchandise and products through groceries and department stores,” has paid the P600 million tax deficiencies including the more than P10.2 million in documentary stamp tax.
Click the link below to read the full news from the source:
https://mb.com.ph/2024/2/27/sc-approves-p600-m-tax-settlement-of-citysuper-operator-of-landmark-trinoma
Cheaper medicines for the public
(Malaya Business Insight / February 27, 2024)
SENIOR citizens started to enjoy the full 20 percent discount on medicine and other products and services in July 2010 with the signing of the implementing rules and regulations (IRR) of the Expanded Senior Citizens Act of 2010. The IRR exempts senior citizens from the 12 percent value-added tax (VAT), effectively allowing them a full 20 percent discount on purchases. Now, not only the seniors but also the general public is about to reap the benefits of VAT-free medicine, or at least certain medicines for particular diseases. Earlier, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular No. 17, series of 2024, containing the list of additional medicines to be covered by VAT exemption as provided by Republic Act 10963 or the Tax Reform for Acceleration and Inclusion Act. The BIR revised the list of over 2,000 VAT-exempt medicines, adding 22 more drugs. These pharmaceutical items are intended 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.
Click the link below to read the full news from the source:
https://malaya.com.ph/news_opinion/cheaper-medicines-for-the-public/?amp
Taxability of retirement benefits
(Business World / Mary Keit Anne Santos / February 28, 2024)
Generally, retirement benefits received by an employee pursuant to Republic Act (RA) No. 7641 and RA No. 4917 are tax-exempt, subject to certain conditions. RA No. 7641, commonly known as the Retirement Law, grants an employee retirement benefits upon reaching the age of 60 years but not beyond 65 years, which is the compulsory retirement age, provided such employee has served at least five years and the retirement benefits are availed of only once. On Jan. 22, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 13-2024, clarifying the tax treatment of retirement benefit expenses for financial reporting and tax purposes to bridge the gap between the two.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2024/02/28/578576/taxability-of-retirement-benefits/
SC Opens One-Stop-Shop for Court Concerns
(Supreme Court of the Philippines / February 28, 204)
Chief Justice Alexander G. Gesmundo takes a tour of the new One-Stop-Shop building with Atty. Maria Teresa B. Sibulo, First Division Clerk of Court. (Photo Courtesy of the Supreme Court Public Information Office) The Supreme Court recently opened its One-Stop Shop building at the gate of the New Building along Padre Faura Street, Ermita, Manila following the need for a more systematic, organized, and efficient workflow of court processes in the frontlines.
Click the link below to read the full news from the source:
https://sc.judiciary.gov.ph/sc-opens-one-stop-shop-for-court-concerns/
PhilHealth premium hike may still be suspended – Marcos
(Philippine Daily Inquirer / February 29, 2024)
MANILA, Philippines— President Ferdinand Marcos Jr. remains open to suspending the 5-percent increase in monthly premiums implemented by the Philippine Health Insurance Corp. (PhilHealth) this year, saying he wants to make sure any hike in contributions will lead to improved insurance coverage and benefits.
Click the link below to read the full news from the source:
https://newsinfo.inquirer.net/1911825/marcos-philhealth-rate-hike-may-still-be-suspended
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