Bureau of Internal Revenue Issuances
REVENUE MEMORANDUM ORDER
RMO No. 9-2025
February 27, 2025
Creation of Alphanumeric Tax Code of Selected Revenue Source under Revenue Regulations (RR) No. 2-1998
REVENUE MEMORANDUM CIRCULAR
RMC No. 17-2025
February 27, 2025
Lost two (2) sets of unused/unissued BIR Form No. 0535 – Taxpayer Information Sheet
REVENUE REGULATIONS
RR No. 5-2025
February 27, 2025
Amending Revenue Regulations No. 2-98 Relative to the Withholding Tax Rates on Certain Income Payments Subject to Creditable Withholding Tax Pursuant to Section 57 of the National Internal Revenue Code of 1997, as Amended by Republic Act No. 12066
RR No. 6-2025
February 27, 2025
Implementing Section 135 on Petroleum Products Sold to International Carriers and Exempt Entities or Agencies and the new Section 135-A on Refund of Excise Tax on Petroleum Products of the National Internal Revenue Code of 1997, as Amended by Republic Act No. 12066
RR No. 7-2025
February 27, 2025
Implementing the Amendments to Sections 27, 28, and 34 of the National Internal Revenue Code of 1997, as Amended by Republic Act No. 12066
RR No. 8-2025
February 27, 2025
Implementing Sections 112(C) and 135-A of the National Internal Revenue Code of 1997, as Amended by Section 9 and 11 of Republic Act No. 12066 on the Procedures in the Resolution of Requests for Reconsideration on the Denial of Claims for Refund
RR No. 9-2025
February 27, 2025
Implementing Pertinent Provision of Section 295(D) of the National Internal Revenue Code of 1997 (Tax Code), as Amended by Section 18 of Republic Act No. 12066, Particularly on the Treatment of Local Sales of Goods and/or Services by Registered Business Enterprises (RBEs)
RR No. 10-2025
February 27, 2025
Amending the Pertinent Provisions of Revenue Regulations No. 16-2005 to Implement the Value-Added Tax Provisions under Sections 106, 108, 109, and 112 the National Internal Revenue Code of 1997, as Amended by Republic Act No. 12066(Date Posted: February 27, 2025)
RR No. 11-2025
February 27, 2025
Implementing Sections 237 and 237-A of the National Internal Revenue Code of 1997 (Tax Code), as Amended by Republic Act No. 12066(Date Posted: February 27, 2025)
ADVISORIES
BIR ADVISORIES
Proposed Revenue Regulations to Implement Republic Act 12066, 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://bir-cdn.bir.gov.ph/BIR/pdf/CREATEMORE%20Draft%20RR.pdf
Advisory on the Schedule of Accessibility of the Online Registration and Update System (ORUS)
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
FIRB ISSUANCE
FISCAL INCENTIVES REVIEW BOARD
Official website: https://firb.gov.ph/
FIRB Advisory 001-2025
February 20, 2025
Circularizing the Implementing Rules and Regulations of Title XIII of Republic Act No. 8424 otherwise known as the “National Internal Revenue Code of 1997”, as Amended by Republic Act No. 12066
FOR: All Investment Promotion Agencies (IPAs), Other Government Agencies Administering Tax Incentives, Revenue Collecting Agencies, Registered Business Enterprises (RBEs) and Other Registered Entities, and All Other Key Stakeholders
This Advisory circularizes the IRR of Title XII of RA No. 8424 (NIRC of 1997), as amended by RA No. 12066 or the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act.
The IRR is issued in accordance with Section 32 of RA No. 12066, which mandates the Secretary of Finance and the Secretary of Trade and Industry to jointly promulgate the necessary rules and regulations for Title XII of the National Internal Revenue Code (NIRC) of 1997 within ninety (90) days form law’s effectivity
The CREATE MORE IRR was signed on February 17, 2025. Pursuant to Rule 25, Section 4 thereof, the IRR took effect on 20 February 2025 upon its publication in the Philippine STAR.
https://firb.gov.ph/download/firb-advisory-001-2025/
wpdmdl=4338&refresh=67b817f0c55c71740118000
FIRB Advisory No. 007-2024 – December 17, 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
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?
WHAT ARE THE TAX INCENTIVES AVAILABLE?
- 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
Philippine Deposit Insurance Corporation
February 27, 2025
NOTICE TO THE PUBLIC NEW MAXIMUM DEPOSIT INSURANCE COVERAGE (MDIC)
MEMORANDUM NO. 2025-01
Effective 15 March 2025, the Maximum Deposit Insurance Coverage provided by the Philippine Deposit Insurance Corporation (PDIC) is increased to One Million Pesos (P1,000,000.00) per depositor, per bank.
https://www.pdic.gov.ph/rib-3_443
https://www.pdic.gov.ph/files/ccd/Notice%20to%20Depositors_for%20Memorandum%20No.%202025-01.pdf
https://www.pdic.gov.ph/files/ccd/Notice%20to%20the%20Public%20on%20the%20New%20MDIC.pdf
International Financial Reporting Standards
February 27, 2025
The International Accounting Standards Board (IASB) has recently issued a major update to the IFRS for SMEs Accounting Standard, which is currently required or permitted in 85 jurisdictions. This Standard aims to balance the information needs of lenders and other users of SMEs’ financial statements with the resources available to SMEs.
Highlights of the update include:
- a revised model for revenue recognition;
- bringing together the requirements for fair value measurement in a single location; and
- updating the requirements for business combinations, consolidations and financial instruments.
This update is effective for annual periods beginning on or after January 1, 2027, with early application permitted.
https://www.ifrs.org/news-and-events/news/2025/02/iasb-issues-major-update-smes-accounting-standard/
TAX AND BUSINESS RELATED NEWS
BIR WEEKENDER BRIEFS
Volume No. 16
Issue No 8 Week ending February 21, 2025 – BIR continues to celebrate the Tax Awareness Month by conducting nationwide Tax Compliance Verification Drive from February 10 to 14.
Click the link below to read the full news from the source:
https://bir-cdn.bir.gov.ph/BIR/pdf/v16n8%20highres.pdf
Lumagui: BIR files 8.5B Tax Evasion Case after Night Raid of Illicit Cigarette Factory & Warehouses in Bulacan & Valenzuela; Largest BIR Raid against Illicit Cigarette for 2024
BIR website/ February 24, 2025
The Bureau of Internal Revenue (BIR), led by Commissioner Romeo D. Lumagui Jr., is set to carry out the 2025 nationwide destruction activities across 12 designated sites from February 24 to 28, 2025, with Porac, Pampanga serving as the primary destruction hub. This large-scale operation is a joint effort spearheaded by the Office of the Commissioner through the Large Taxpayers Service and the Operations Group’s 19 Revenue Regions. According to Commissioner Lumagui, the destruction of the illicit goods demonstrates the BIR’s commitment to eradicating illicit trade and protecting legitimate businesses
Click the link below to read the full news from the source:
https://bir-cdn.bir.gov.ph/BIR/pdf/PR07FEB1725.pdf
Tax, customs collections climb in January
The Philippine Star / Keisha Ta-Asan / February 22, 2025 – MANILA, Philippines
The Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) recorded higher collections in January compared to the same period last year, according to the Department of Finance. Both agencies have also provided updates on their digitization efforts and enforcement programs. Finance Secretary Ralph Recto commended the BIR and BOC for posting higher collections last month. Recto also urged both agencies to fast-track their respective digitalization initiatives. For 2025, the BIR aims to roll out key digital initiatives, including the implementation of the electronic invoicing/receipt and sales reporting system, utilization of the internal revenue integrated system and the launch of Project 230x.
Click the link below to read the full news from the source:
https://www.philstar.com/business/2025/02/22/2423196/tax-customs-collections-climb-january
BIR collects over P4B after ‘ghost receipts’ crackdown
Business World / Aubrey Rose A. Inosante / February 23, 2025
MORE THAN P4 billion has been collected from issuers of so-called “ghost receipts,” with further assessments and prosecutions ongoing, the Bureau of Internal Revenue (BIR) said. “We have collected more than P4 billion for 2024,” BIR Commissioner Romeo D. Lumagui, Jr. told reporters on Thursday from users of such receipts, whose issuers are non-existent corporations, facilitating the evasion of value-added tax. He said collections are expected to at least double as prosecutions make their way through the courts.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2025/02/23/655065/bir-collects-over-p4b-after-ghost-receipts-crackdown/
Subic sees more business, jobs with CREATE MORE Act
Philstar.com / E.H. Edejer / February 23, 2025-SUBIC BAY FREEPORT, Philippines
The Subic Bay Metropolitan Authority (SBMA) expects to generate more investments and employment in this free port following the signing of the implementing rules and regulations (IRR) of Republic Act 12066, or the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act. “CREATE MORE will create more investments, more jobs and definitely more opportunities for all of us,” said SBMA Senior Deputy Administrator for Business and Investment Renato Lee III on Thursday. The IRR of RA 12066, or the CREATE MORE Law, was signed on Monday, February 17, by Department of Finance Secretary Ralph Recto and Department of Trade and Industry Secretary Ma. Cristina Roque, who are also co-chairs of the Fiscal and Incentives Review Board
Lee also said Subic investors will mostly benefit from RA 12066 because of the following:
- the option to choose either the special corporate income tax of 5% or enhanced deductions;
- more incentives to high-value investments with a capital of more than P15 billion and in sectors considered import-substituting or export sales;
- additional relief to registered business enterprises by reducing the corporate income tax rate to 20% from 25%;
- increased deduction on electricity expenses to 100% from 50%;
- additional 50% deduction for expenses related to trade fairs and tourism reinvestments until 2034;
- flexible work arrangements for call centers, without compromising their tax incentives;
- zero VAT rating for local purchases and VAT-exempt importations for export-oriented enterprises; and
- tax and duty exemption on donations to public schools and government-owned and controlled corporations.
Aside from these, the CREATE MORE Law also maximized the benefits of the net operating loss carry-over by changing the reckoning period from “year of loss” to the “last year of the project’s income tax holiday entitlement period,” Lee explained. “VAT incentives will also be liberalized by shifting from “direct and exclusive use” to “directly attributable” requirements for goods and services,” he noted. “This broadens the scope of VAT incentives covering necessary services such as janitorial, security, financial consultancy, marketing, and administrative services,” Lee added.
Click the link below to read the full news from the source:
https://www.philstar.com/business/2025/02/23/2423620/subic-sees-more-business-jobs-create-more-act
Rules on VAT exemption, zero rating for exporters out next month
Philippine Daily Inquirer / Alden M. Monzon / February 24, 2025
The Export Marketing Bureau (EMB) of the Department of Trade and Industry plans to release a new set of procedures for local exporters seeking value-added tax (VAT) exemption and zero rating by next month. “Digital services consumed by export-oriented enterprises are VAT zero-rated as well,” said Sykimte. Export-oriented enterprises must also avail of VAT-zero rating on local purchases of goods and services as well as VAT-exempt importation on the basis of the certificate of accreditation issued by the EMB. This, however, is subject to the conduct of a post-audit investigation by BIR that the goods or services and importation are directly attributable to the activity of the export-oriented enterprise.
Click the link below to read the full news from teh source:
https://business.inquirer.net/507979/rules-on-vat-exemption-zero-rating-for-exporters-out-next-month
Abalos to push for Local Government Code amendments, tax cuts
Philippine News Agency / Wilnard Baceloia / February 24, 2025-MANILA
Former Interior Secretary and senatorial candidate Benjamin Abalos Jr. on Friday emphasized the need to amend the Local Government Code, arguing that the law, enacted over 31 years ago, needs to be updated to reflect modern realities. “After three decades, we’ve seen the flaws. The objective was good, but we have to be practical. Some provisions are no longer feasible,” he said in an interview. Abalos cited infrastructure projects like village halls and schools, which are currently designated as village and local government responsibilities but often require national support due to funding issues. He also pointed to tertiary healthcare as an issue, noting that provincial governments often struggle to fund necessary medical services such as intubation and specialist care. He said his proposals are based on consultations with governors, mayors, and village leaders. He also called for increased benefits for job order workers, particularly productivity-based incentive pay, noting the constraints from Commission on Audit and Department of Budget and Management policies.
Click the link below to read the full news from the source:
https://www.pna.gov.ph/articles/1244810
When related party transactions and transfer pricing issues surface during tax assessments ‘Let’s Talk Tax’
Business World / Marie Fe F. Dangiwan / February 24, 2025
While these contributions among related parties are indeed undeniable benefits of being a member of a group of companies, they can be problematic during a tax audit by the Bureau of Internal Revenue (BIR). Related party transactions (RPTs) are generally considered a red flag by the BIR. In fact, in the background section of Revenue Regulation (RR) 19-2020, which requires the submission of Information Return on Transactions with Related Parties, the BIR states that transactions with related parties have been subject to abuse by taxpayers intending to evade taxes by concluding transactions between them at unreasonable prices.
1. Services rendered by non-resident foreign corporations – Examples of these are management services such as the services rendered by the groups’ head of operations or head of finance. Another example is the marketing services of the head office in pursuing and winning global clients. Although the BIR will normally not inquire about the pricing policy of these purchases, the BIR normally construes these services as rendered in the Philippines, and hence, subject to final withholding taxes and withholding VAT.
2. Services rendered to non-resident foreign corporations – A significant number of companies in the Philippines have an arrangement where the Philippine entities sell or render, primarily or exclusively, their products and services to their non-resident foreign related parties.
3. Allocation of expenses or reimbursement-at-cost – Normally these are expenses incurred by related parties for the benefit of the group. Examples of these are software subscriptions and other technology costs, and allocation of rent and utilities for an office space leased by a related party occupied by two or more related parties. In some sense, it may be referred to as a pass-through cost because the related party was only an agent between the taxpayer and the third-party service provider. However, depending on the specific facts and circumstances of each case, the party initially paying the expenses on behalf of the group should charge an appropriate arm’s length markup for its function in arranging and paying for the acquired services on behalf of its related parties.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2025/02/24/655310/when-related-party-transactions-and-transfer-pricing-issues-surface-during-tax-assessments/
BIR destroys over P219-M fake cigarettes in Caraga
Philippine News Agency / Alexander Lopez / February 24, 2025) – BUTUAN CITY
The Bureau of Internal Revenue (BIR), Revenue Region (RR) No. 17 in the Caraga Region, joined the nationwide destruction of illicit cigarettes on Monday by incinerating its previously confiscated smuggled cigarettes, which totaled over PHP219 million. The contraband was destroyed here at the Richmond Plywood Corporation in Purok 1, Barangay Mahogany, led by RR-17 Director Jose Eric Furia.
Click the link below to read the full news from the source:
https://www.pna.gov.ph/articles/1244752
BIR chief: At least ₱8 billion collected from ghost receipt-linked businesses in 2024
Manila Bulletin / Derco Rosal / February 24, 2025
While businesses involved in ghost selling have paid over ₱4.3 billion as of December 2024, the Bureau of Internal Revenue (BIR) chief expects this amount to double to at least ₱8 billion once ongoing assessments are completed. Earlier this month, the BIR reported that the Run After Fake Transactions (RAFT) program led to the filing of cases against ghost sellers and buyers, with initial collections last year surging more than seven times the ₱600 million total in 2023. BIR Commissioner Romeo Lumagui Jr. told reporters during the kick-off of the national tax campaign that the country’s main tax agency’s initial collection from corporations involved in “ghost receipts” or fraudulent transactions is still small compared to its total collection.
Click the link below to read the full news from the source:https://mb.com.ph/2025/2/24/bir-chief-at-least-p8-billion-collected-from-ghost-receipt-linked-businesses-in-2024#google_vignette
Tax deductions offered for donations to 6 priority government programs
Manila Bulletin / Ben Arnold De Vera / February 24, 2025
The government is offering tax deductions to private donors supporting six priority programs in this year’s list of the state planning agency National Economic and Development Authority (NEDA). Earlier this month, NEDA came out with the 2025 National Priority Plan (NPP), which listed down key initiatives in the sectors of culture, economic development, education, health, human settlements, science, sports, and youth development. Among the six prioritized projects are five under attached agencies of the Department of Science and Technology (DOST), including Philippine Science High School System’s (PSHS) Research and Development Science Laboratories (RDSL), Science Education Institute’s (SEI) Access to Resources and Innovations in Science Education (ARISE): 21st Century Learning Environment Model, and Technology Application and Promotion Institute’s (TAPI) Invent School Program (ISP). Also, two programs under the DOST’s Science and Technology Information Institute (STII) are part of the 2025 NPP: Science and Technology Academic Research-Based Openly Operated KioskS (STARBOOKS), and Continuing Operation and Broadcast of the DOST’s Science and Technology Channel (DOSTv). Under the Tax Code, corporate and individual donors contributing to any activity, program, or project included in the NPP can fully deduct their monetary donations from their taxable income for the year the donation is made. Donors can claim these deductions when filing their annual income tax returns (ITRs) in the following year. The government is offering tax deductions to private donors supporting six priority programs in this year’s list of the state planning agency National Economic and Development Authority (NEDA).
Click the link below to read the full news to read the full news from the source:
https://mb.com.ph/2025/2/24/tax-deductions-dangled-private-donors-to-6-gov-t-projects-sought
Cigarettes owing P6.4B in taxes face destruction
Business World / Aubrey Rose A. Inosante / February 24, 2025
THE Bureau of Internal Revenue (BIR) started destroying seized cigarettes representing P6.4 billion in unpaid taxes this week in Pampanga. In a statement on Monday, the BIR said it will destroy 14.3 million packs of cigarettes at 12 sites between Feb. 24 and 28. “This initiative is a testament to our commitment to uphold the law and deter illicit activities. This is the rational next step from the nationwide raids we conducted since 2022 and the filing of the criminal cases against these individuals and corporations,” Commissioner Romeo D. Lumagui, Jr. said.
Click the link below to read the full news news from the source:https://www.bworldonline.com/economy/2025/02/24/655316/cigarettes-owing-p6-4b-in-taxes-face-destruction/
CTA junks case filed by Dole PH vs Davao City on environmental taxes
Manila Bulletin / Czarina Nicole Ong Ki / February 24, 2025
The Court of Tax Appeals (CTA) has denied for lack of jurisdiction the petition of Dole Philippines, Inc.-Stanfilco Division against the Davao City local government and its officials led by former mayor Rodrigo R. Duterte on environmental tax assessments. Dole Philippines, which is engaged in the business of producing and exporting fresh bananas, pineapples, and other agricultural crops, filed a petition for review on Oct. 20, 2023 and argued against the decisions issued by the Regional Trial Court (RTC) Branch 17 of Davao City which dismissed its appeal from the denial of its payment under protest of Environmental Tax assessments for 2015 and 2016. On Feb. 23, 2007, then mayor Duterte approved the Watershed Code which stated that environmental tax “shall be imposed” on all agricultural and other economic undertakings in the agro-forestry/non-tillage areas and prime agricultural areas of not less than 50 hectares at the rate of P0.25 per square meters.
Click the link below to read the full news from the source:https://mb.com.ph/2025/2/24/cta-junks-case-filed-by-dole-ph-vs-davao-city-on-environmental-taxes
BIR to destroy P2.1-B worth of illicit cigarettes
Philippine News Agency / Anna Leah Gonzales / February 24, 2025 – MANILA
The Bureau of Internal Revenue (BIR) is set to destroy PHP2.1 billion worth of illicit cigarettes in 12 designated sites from Feb. 24 to 28, 2025. In a statement Monday, the BIR said a total of 14.3 million packs of illicit cigarettes with an estimated tax liability of PHP6.4 billion and illicit cigarette-making machines will be destroyed. Digama Waste Management Services in Porac, Pampanga will serve as the primary destruction hub. BIR Commissioner Romeo Lumagui Jr. said the destruction of the illicit goods demonstrates the BIR’s commitment to eradicating illicit trade and protecting legitimate businesses.
Click the link below to read the full news from the source:https://www.pna.gov.ph/articles/1244726
Senator seeks accountability in botched resale of seized cigarettes
Philippine News Agency / Wilnard Bacelonia / February 25, 2025-MANILA
Senator Sherwin Gatchalian on Tuesday called for accountability within the Bureau of Customs against those involved in the alleged attempt to resale PHP270 million worth of seized contraband cigarettes in Capas, Tarlac. The smuggled cigarettes were reportedly seized from the Port of Subic from July 2021 to June 2022, and were consigned to Hongcim International Corp. and Proline Logistics Philippines Inc. These were scheduled for disposal in 2023 by Hazchem North, the owner of which is now under investigation after it was learned that he allegedly instructed an environmental consultant to find a buyer for the goods. In a statement, Gatchalian urged authorities to put an end to what he described as a long-standing illicit practice, warning that anything less than full accountability would be a betrayal of public trust.
Click the link below to read the full news from the source:
https://www.pna.gov.ph/articles/1244820
Peza approves P53-B projects in Jan-Feb 2025
Philippine News Agency / Kris Crismundo / February 25, 2025 – MANILA
The Philippine Economic Zone Authority (Peza) has approved P52.93 billion worth of investment pledges in the first two months of the year. Panga is also looking forward to more investment approvals in PEZA this year with the recent signing of the implementing rules and regulations of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, which irons out concerns of some investors. “The IRR supports PEZA’s core mandate to drive investment growth, create jobs, and promote sustainable development, especially in the countryside. We now provide even more benefits to investors who wish to locate in the Philippines,” he said. “The CREATE MORE Act is a game changer in the entry of foreign [direct] investments into the country which encourages more international investors to come given the longer set incentives being offered,” Trade Secretary and Peza Board Chair Ma. Cristina Roque added.
Click the link below to read the full news from the source:
https://business.inquirer.net/508325/peza-approves-p53-b-projects-in-jan-feb-2025
Tax court voids BIR’s P355.48-M assessment on cement company
Business World / Chloe Mari A. Hufana / February 25, 2025
THE COURT of Tax Appeals (CTA) has ruled in favor of Holcim Philippines Manufacturing Corp., canceling a P355.48-million deficiency capital gains tax (CGT) assessment previously levied by the Bureau of Internal Revenue (BIR), citing that the BIR’s right to assess the tax had expired. According to Section 203 of the National Internal Revenue Code of 1997, “internal revenue taxes shall be assessed within three (3) years after the last day prescribed by law for the filing of the return.” In ruling in favor of the cement company, the tribunal also rejected the BIR’s argument for a ten-year assessment period, as it failed to provide convincing evidence that Holcim willfully filed a false return. The CTA stated that to prove a misstatement was deliberate or willful, “clear and convincing evidence must be presented for the ten (10)-year prescriptive period to be invoked.
Click the link below to read the full news from the source:
https://www.bworldonline.com/corporate/2025/02/25/655293/tax-court-voids-birs-p355-48-m-assessment-on-cement-company/
PEZA OKs P23-B investments in Feb.
Business World / Justine Irish D. Tabile / February 26, 2025
THE PHILIPPINE Economic Zone Authority (PEZA) approved P22.78 billion in investment pledges in February, an increase of 130.5% from P9.89 billion worth of pledges approved a year ago. At a meeting on Feb. 20, the PEZA Board approved 26 new and expansion projects that are expected to generate $241.79 million in exports and create 7,793 jobs. Nine of the projects are in export manufacturing, while eight are information technology and business process management projects. Four of the projects are economic zone (ecozone) developments, while three are domestic market projects and two are involved in developing facilities. Meanwhile, Trade Secretary and PEZA Board Chairman Ma. Cristina A. Roque said the higher investment approvals could also be attributed to the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act. “The CREATE MORE Act is a game changer in the entry of foreign direct investments into the country, which encourages more international investors to come given the longer set incentives being offered,” she said. President Ferdinand R. Marcos, Jr. in November signed the CREATE MORE Act, which seeks to make the country more competitive and attractive to investors. PEZA said it anticipates the entry of more investments after the CREATE MORE Act’s implementing rules and regulations (IRR) were signed last week. “The IRR supports PEZA’s core mandate to drive investment growth, create jobs and promote sustainable development, especially in the countryside. We now provide even more benefits to investors who wish to locate in the Philippines,” Mr. Panga said. The IRR provides clearer guidelines on the transitory rules for pre-CREATE registered business enterprises (RBE) to continue receiving their previously granted tax incentives. The RBEs may also avail themselves of additional incentives or measures under CREATE MORE.
Click the link below to read the full news from the source:
https://www.bworldonline.com/top-stories/2025/02/26/655633/peza-oks-p23-b-investments-in-feb/
CTA denies petition of E-Power Security on tax liabilities
Manila Bulletin / Czarina Nicole Ong Ki / February 26, 2025
The Court of Tax Appeals (CTA) has denied the petition of E-Power Security and Investigation Services, Inc. which sought the suspension of the collection of the disputed tax liability for taxable year 2015 by the Bureau of Internal Revenue (BIR). On Nov. 21, 2022, the CTA’s first division dismissed the case filed by E-Power Security for lack of jurisdiction. The firm, engaged in providing security guard services, filed a petition for review before the CTA as a full court. E-Power Security said the CTA as a full court should reverse and set aside the adverse decision it earlier received as the Formal Letter of Demand (FLD) issued was not validly served.
Click the link below to read the full news from the source:
https://mb.com.ph/2025/2/26/cta-denies-petition-of-e-power-security-on-tax-liabilities
Marcos digitalizes government services
Philippine News Agency/ February 27, 2025
Said the President: “Digitalization is the call of today, not the call of the future, but of the present. It is here. It is needed, and it is needed today. Government must fully embrace digitalization to provide better service to the people, through its vital frontline services and its back-end functions.” Marcos emphasized that digitalization is a must as it will not only make doing business easy and efficient but also help the country combat graft and corruption. “Digitalization will support the government’s data-driven, science-based planning and decision-making. It is the greatest and most powerful tool, not just to improve ease of doing business, but also against many forms of graft and corruption,” he said. President Marcos noted that the digitalization efforts will eventually be integrated into the payment systems in the country, including government banks. A big part of this digital shift is the National Government Portal, which makes government services easier for people to access. It connects different government agencies and offices, and helps them work better together. This project supports the President’s dream of a government that is efficient and transparent. All these dovetails with the eGov PH Super App, the recent launch of which was characterized by the President as an extremely important step in heading down the road to digitalizing the bureaucracy both at the national and local levels.
Click the link below to read the full news from the source:
https://www.pna.gov.ph/articles/1245005
Suspension of TIN requirement for coop tax exemption pushed in Senate
Philippine News Agency / Wilnard Bacelonia / February 27, 2025 – MANILA
Senator Sherwin Gatchalian is calling for the suspension and review of a Bureau of Internal Revenue (BIR) rule requiring all cooperative members to obtain taxpayer identification numbers (TINs) before their cooperatives can qualify for tax exemptions. During the Senate Ways and Means Committee hearing on Thursday, Gatchalian argued that the rule, implemented under Revenue Memorandum Circulars (RMC) Nos. 76-2010 and 124-2020, contradicts the Philippine Cooperative Code of 2008 (Republic Act 9520) and imposes unnecessary compliance burdens on cooperatives, especially those composed of informal workers. “The BIR’s requirement creates confusion and makes it impractical for small cooperatives to comply. We need immediate action, not just a review,” Gatchalian said. He said RA 9520 grants tax exemptions to cooperatives registered with the Cooperative Development Authority (CDA), provided they obtain a certificate of tax exemption (CTE) from the BIR. However, the BIR’s circulars require all cooperative members to have TINs, a requirement not imposed on other tax-exempt entities. Gatchalian raised concerns over technical issues, noting that BIR’s Online Registration and Update System (ORUS) frequently experiences downtime and accessibility problems, making it difficult for cooperative members to secure TINs. He also cited inconsistencies in the implementation of the rule across various Revenue District Offices (RDOs), which has led to confusion and compliance challenges for cooperatives. He also warned that requiring all members to obtain TINs could violate the Data Privacy Act, as tax filings should only require the cooperative’s TIN.
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https://www.pna.gov.ph/articles/1245038
CTA affirms 2023 decision in favor of Rappler, Maria Ressa
Manila Bulletin / Czarina Nicole Ong Ki / February 27, 2025
The Court of Tax Appeals (CTA) has affirmed its 2023 decision that acquitted Rappler Holdings Corporation (RHC) and its president and Chief Executive Officer (CEO) Maria A. Ressa of their tax charges and absolved them of civil liability for alleged unpaid tax obligations in 2015. In a full court decision promulgated last Feb. 21, the CTA affirmed the rulings handed down by its first division on the dismissal of the four criminal charges against RHC and Ressa. The dispositive portion of the CTA’s full court decision stated: “Wherefore, premises considered, the instant Verified Petition for Review (of the Resolution dated May 18, 2023, on the Civil Aspect) and Verified Petition for Certiorari are denied for lack of merit. “The assailed Decision dated Jan. 18, 2023 and the assailed Resolution dated May 18, 2023 rendered by the First Division of this Court in CTA Crim. Case Nos. 0-679, 0-680, 0-681 and 0-682 are affirmed. So ordered.”
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https://mb.com.ph/2025/2/27/cta-affirms-2023-decision-in-favor-of-rappler-maria-ressa#google_vignette
DOJ files before CTA tax evasion cases vs construction firm, corporate officers
Manila Bulletin / Jeffrey Damicog / February 27, 2025
The Department of Justice (DOJ) filed with the Court of Tax Appeals (CTA) tax evasion charges against a construction firm and its corporate officers and also sought payment of more than P176 million in alleged tax liabilities for “use of ghost receipts.” Justice Secretary Jesus Crispin C. Remulla said the eight counts of tax evasion charges were filed against Hilmarc Construction Corporation, a government contractor, and its corporate officers Efren M. Canlas, Robert B. Henson, and Cristina Elisse F. Canlas. The firm and its officers were charged with violations of Sections 254 (Attempt to Evade or Defeat Tax) and 255 (Failure to Supply Correct and Accurate Information) in relation to Sections 253(d) and 256 of the Tax Code,the DOJ said in a statement issued on Thursday, Feb. 27.
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https://mb.com.ph/2025/2/27/doj-files-before-cta-tax-evasion-cases-vs-construction-firm-corporate-officers
DOJ files P176-M tax evasion rap vs. government contractor
Philippine News Agency / Benjamin Pulta / February 27, 2025 – MANILA
The Department of Justice (DOJ) on Thursday said it has filed a PHP176 million tax evasion case against one of the country’s top government contractors over the alleged use of ghost receipts. In a news release on Thursday, the DOJ said eight information against Hilmarc’s Construction Corporation before the Court of Tax Appeals (CTA) on Feb. 26 for violation of Sections 254 (Attempt to Evade or Defeat Tax) and 255 (Failure to Supply Correct and Accurate Information) in relation to Sections 253(d) and 256 of the Tax Code. Justice Secretary Jesus Crispin Remulla said the criminal cases, which stemmed from the complaint filed by the Bureau of Internal Revenue (BIR) before the DOJ, were filed against the said corporation and its officers for allegedly using fictitious receipts from ghost companies to maliciously evade the payment of taxes. Consequently, it said fraudulent receipts/invoices were used to claim input tax in its value-added tax (VAT) returns, and as an expense in its Income Tax Returns filed with the BIR. “Ghost receipts should have no place in the commerce of man as it hinders our growth and prosperity as a nation, may this filing of cases be a warning to those who continue to defraud the State of its due,” he said.
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https://www.pna.gov.ph/articles/1245034
BIR Eastern Visayas collects P15.78-B in 2024
Philippine News Agency / Sarwell Meniano / February 28, 2025 – PALO, Leyte
Tax collection of the Bureau of Internal Revenue (BIR) in Eastern Visayas reached PHP15.78 billion in 2024, surpassing its PHP15.34 billion goal and exceeding year-ago collection, the agency reported Friday. The BIR regional office here surpassed its PHP13.15 billion total collection in 2023, with all the region’s six revenue district offices (RDOs) posting increases in collection, said BIR-Eastern Visayas Director Edith Yap in an interview. Eastern Visayas ranks fourth among the 22 revenue regional offices in terms of tax collection performance last year. Yap told the Philippine News Agency higher revenue collection is buoyed by the implementation of several infrastructure projects in the region last year, noting that at least 53 percent of total collection last year came from government projects. Meanwhile, the ISO Certification of BIR revenue regions and RDOs has improved the business registration process, the process of retrieval and verification of batch control sheet reports and tax returns from authorized agent banks, and the processing and issuance of tax clearance and certificates.
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https://www.pna.gov.ph/articles/1245092
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