Bureau of Internal Revenue Issuances
TAX REMINDER
- 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
- Mandating all taxpayers to file their AITR through eBIRForms or eFPS, whichever is applicable, and its attachments thru eAFS. NO MANUAL filing of AITRs are allowed in all Large Taxpayers Services (LTS) Offices and Revenue District Offices with certain limited exception.
- Availability of BIR eFiling/Tax Assistance Centers
TAX ADVISORY
ALL TAXPAYERS SHALL ELECTRONICALLY FILE THEIR AITRs (through eBIRForms or eFPS, whichever is applicable), including its attachement/s (through eAFS).
NO MANUAL FILING OF AITRs in all Large Taxpayers Services (LTS) offices, Revenue District Offices (RDOs), nor in the eFiling/TAC at the BIR NTC – Auditorium EXCEPT FOR: Senior Citizens (SC) or Persons with Disabilities (PWDs) filing their own returns; employees deriving purely compensation income with two or more employers (concurrently or successively) during the taxable year; employees whose spouse is not entitled to substituted filing; and employees qualified for substituted filing but opted to file for AITR for purposes of promotion, loans, scholarships, foreign travel requirements, etc.
Taxpayers who have electronically filed and/or paid their AITR, including its attachments NEED NOT SUBMIT THE PRINTED COPY OF THE ELECTRONICALLY FILED RETURN to the concerned LTS office or RDO for stamping.
BANK BULLETIN NO. 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.
Advisory on Availability/Accessibility for Electronic Documentary Stamp Tax System (eDST).
REVENUE MEMORANDUM ORDERS (RMO)
RMO No. 12-2024
March 25, 2024
Creates Alphanumeric Tax Code (ATC) for Final Withholding Tax on Gross Income Earned by Foreign Nationals Employed and Assigned in the Philippines by Offshore Gaming License
REVENUE MEMORANDUM CIRCULARS (RMC)
Tax And Business Related News
BIR WEEKENDER BRIEFS
Volume No. 15 Issue No. 12 Week ending March 22, 2024
BIR Revenue District Offices continue to intensify the conduct of tax enforcement activities from March 13 to 19, 2024 to enhance taxpayers’ voluntary compliance with the tax laws and regulations.
https://www.bir.gov.ph/images/bir_files/internal_communications_5/2024 Weekender Briefs/v15n12 highres.pdf
Lumagui: BIR has issued over 100,000 Digital TIN IDs
As the Bureau of Internal Revenue Commissioner Romeo D. Lumagui Jr ushers in the year 2024, a significant milestone has been reached with the issuance of 102,046 Digital TIN ID (as of March 25, 2024) through the Bureau’s Online Registration and Update System (ORUS). “Reaching the 100,000 mark for Digital TIN IDs issued by the BIR shows our effort to promote Excellent Taxpayer Service and expand our digital services to taxpayers. This is in line with the government’s thrust to promote Ease of Doing Business,” said Commissioner Romeo D. Lumagui, Jr.
https://www.bir.gov.ph/images/bir_files/internal_communications_1/2024/Press Release/PR21MAR2724.pdf
Rotary Club of Makati Recognizes BIR Commissioner Jun Lumagui as Youth Leadership Role Model
In a prestigious ceremony held on March 15, 2024, at the Manila Polo Club, the Rotary Club of Makati honored Bureau of Internal Revenue (BIR) Commissioner Jun Lumagui with the Youth Leadership Role Model award. This recognition was bestowed upon Commissioner Lumagui during the club’s 58th Charter Anniversary celebration and Paing Hechanova Youth Leadership Awards Night. Commissioner Lumagui was commended for his outstanding leadership at the BIR, where he has played a pivotal role in driving the agency to unprecedented success in tax revenues. Under his leadership, the BIR has implemented proactive strategies and campaigns against tax evaders, resulting in impressive revenue growth for the government.
https://www.bir.gov.ph/images/bir_files/internal_communications_1/2024/Press Release/PR20MAR1824.pdf
Lumagui: BIR raids Laguna warehouse with 100,000+ bottles of Flava vape.
Bureau of Internal Revenue Commissioner Romeo D. Lumagui Jr. reported that a raid of a warehouse located in San Pablo City, Laguna resulted into the confiscation of 1,029 master boxes (102,900 bottles) of vape products and the arrest of two individuals. The raid was made in coordination with the Philippine National Police Criminal Investigation and Detection Group, Laguna Provincial Field Unit.
https://www.bir.gov.ph/images/bir_files/internal_communications_1/2024/Press Release/PR19MAR1424.pdf
Wagi! Napoles scores rare legal victory vs BIR in tax dispute
(Abogado.com.ph / March 23, 204)
Businesswoman and alleged pork barrel scam mastermind Janet Lim Napoles has scored a rare legal victory, this time against the Bureau of Internal Revenue (BIR), after she was acquitted of charges of underdeclaring her income, not filing income tax returns, and not paying the correct taxes within a span of several years. In a March 21 decision penned by Associate Justice Corazon Ferrer-Flores, the Court of Tax Appeals’ Second Division acquitted Napoles of charges of substantially underdeclaring her income and that of her husband in their ITRs for taxable years 2004 to 2009, and failing to file her ITRs for 2010 to 2012, and failing to pay the correct amount of taxes in those years. The court said the prosecution failed to prove Napoles’ guilt.
Click the link below to read the full news from the source:
https://abogado.com.ph/wagi-napoles-scores-rare-legal-victory-vs-bir-in-tax-dispute/
Dam water not subject to wealth tax, SC rules
(Inquirer.Net / Jane Bautista / March 24, 2024)
The Supreme Court has ruled that dam water is an appropriated water already removed from natural resources, and thus, can no longer be subject to national wealth tax. In a 28-page decision promulgated in October 2023 but made public only on Friday, the high court en banc said the Court of Appeals erred when it affirmed a local court’s ruling, which found the Metropolitan Waterworks and Sewerage System (MWSS) was liable to pay the provincial government of Bulacan a share in the utilization and development of national wealth. “The moment that water from Angat River is already appropriated and impounded into the Angat Dam, it ceases to form part of natural resource,” the high tribunal said in a decision penned by Associate Justice Henri Jean Paul Inting.
Click the link below to read the full news from the source:
https://newsinfo.inquirer.net/1922311/dam-water-not-subject-to-wealth-tax-sc-rules
SEC wants SMEs to embrace sustainability
(The Philippine Star / Richmond Mercurio / March 24, 2024)
MANILA, Philippines — The Securities and Exchange Commission (SEC) wants to instill sustainability into the business practices of not only big companies but also the small and medium enterprises. To achieve this, the SEC has launched a nationwide roadshow to promote sustainable practices among SMEs and large businesses. The SEC said it is currently updating the guidelines to reflect the latest developments in global sustainability frameworks.
Click the link below to read the full news from the source:
https://www.philstar.com/business/2024/03/24/2342775/sec-wants-smes-embrace-sustainability
BIR attempts ‘friendly’ tack
(The Philippine Star / Louise Maureen Simeon / March 24, 2024)
MANILA, Philippines — February is not just the love month, it also marks the start of a yearlong campaign for the Bureau of Internal Revenue (BIR) to encourage the public to pay their tax obligations. After all, collecting P3.05 trillion is no easy task. The BIR kicked off last month its national tax campaign with a grand event attended by large taxpayers, social media influencers and BIR partners from both the private and public sector as part of its annual effort to generate more income for the government. BIR electronic filings have increased versus manual filing with 2.1-million e-filers in 2023, up five percent from a year ago. Roughly 68 percent of registered tax payers also prefer to file their taxes electronically. Overall, the tax base has broadened to 5.5 million registered business taxpayers. Lumagui also used the campaign to encourage more social media influencers and content creators to comply with tax laws amid a widening adoption of various social media platforms as a lucrative source of income. This has been one of BIR’s priorities last year.
Click the link below to read the full news from the source:
https://www.philstar.com/business/2024/03/24/2342772/bir-attempts-friendly-tack
DOF pushes for excise tax on single-use plastic bags, a win-win solution to address climate change
(Department of Finance / March 25, 2024)
The Department of Finance (DOF) presented to industry stakeholders a win-win solution to address climate change with its proposal to impose an excise tax on single-use plastic bags (SUPs). The proposed measure seeks to curb the high volume of mismanaged plastics in the country and serves as the Philippines’ contribution to the global movement of reducing pollution and adopting more sustainable practices while raising revenues to spur economic growth.
Click the link below to read the full news from the source:
https://www.dof.gov.ph/dof-pushes-for-excise-tax-on-single-use-plastic-bags-a-win-win-solution-to-address-climate-change/
Further clarification on taxation of cross-border services
(Business World / Sharmaine Louise Sanchez-Jimenez/ March 25, 2024)
In our previous article, “Taxation of cross-border services,” we featured Revenue Memorandum Circular (RMC) No. 5-2024, in which the Bureau of Internal Revenue (BIR) clarified the proper tax treatment of cross-border services in light of the Supreme Court En Banc Decision in Aces Philippines Cellular Satellite Corp. vs. The Commissioner of Internal Revenue (CIR) and provided a new framework for assessing the final withholding tax and the final withholding value-added tax (VAT) on services provided by non-resident foreign corporations (NRFCs) to Philippine businesses. Let us briefly recall the salient provisions of RMC No. 05-2024 in our previous article. ISSUES RAISED IN RMC NO. 5-2024 The RMC attracted various inquiries from taxpayers and other stakeholders since it appears that cross-border services, as well as reimbursable or allocable expenses, albeit entirely rendered outside the Philippines, are considered income sourced within the Philippines, hence subject to final withholding tax and VAT following the “Benefit-Received Theory.” CLARIFICATIONS ON RMC NO. 5-2024 The concerns came to the knowledge of the BIR. Hence, the BIR recently issued RMC No. 38-2024 to address and clarify the issues raised on RMC No. 05-2024. Let’s discuss the key clarifications in RMC No. 38-2024.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2024/03/25/584094/further-clarifications-on-taxation-of-cross-border-services/
Senate seeks probe of VAT refund delays
(Business World / John Victor D. Ordonez / March 25, 2024)
SENATOR has filed a resolution seeking to investigate delays associated with value-added tax (VAT) refunds after complaints by foreign companies. Senate Resolution No. 978, which Senator and Ways and Means Committee Chairman Sherwin T. Gatchalian filed on March 19, seeks an inquiry in aid of legislation into the large volume of denied VAT refunds and to make it easier for companies to apply for refunds. He cited complaints from Japanese companies that threatened to leave the Philippines after finding it difficult to secure timely VAT refunds. “The failure of the VAT refund system to timely refund the money of the taxpayers threatens businesses, investments and local employment thus leading to a significant negative impact on the economy as a whole,” according to a copy of the Senate resolution.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2024/03/25/584099/senate-seeks-probe-of-vat-refund-delays/
Recto: No new taxes until end Marcos term
(Inquirer.Net / Ian Nicolas P. Cigaral / March 25, 2024)
There will be no new taxes during the remaining years of the Marcos administration, Finance Secretary Ralph Recto said, adding that the government would instead cut unnecessary spending and improve revenue collection efficiency to boost its fiscal health. Speaking to reporters on the sidelines of the induction ceremony for new officers of the Economic Journalists Association of the Philippines (Ejap) last week, Recto said the fiscal situation was “not that bad” for the government to slap new taxes. But the finance chief admitted that improving revenue generation would take time, as the government would have to digitalize its system so it can catch up with the rapid growth of e-commerce, where taxmen are having trouble collecting revenues. “Let’s try to improve tax collection efficiency … You know, the challenge is we’re moving toward e-commerce. It’s harder to collect in e-commerce,” Recto said.
Click the link below to read the full news from the source:
https://business.inquirer.net/451667/recto-no-new-taxes-until-end-of-marcos-term
Marcos declares half-day work on March 27
(Business World / John Victor D. Ordonez / March 25, 2024)
PHILIPPINE President Ferdinand R. Marcos, Jr. has ordered the suspension of work in government offices from 12 noon onwards on Wednesday, March 27 so state workers can observe the Catholic Holy Week. Under Memorandum Circular No. 45 signed by Executive Secretary Lucas P. Bersamin and published on Monday, agencies that handle health services, disaster response and other vital services will not be covered by the memo.
Click the link below to read the full news from the source:
https://www.bworldonline.com/the-nation/2024/03/25/584140/marcos-declares-half-day-work-on-march-27/
SEC opens new office in Butuan
(Business World / Revin Mikheal D. Ochave / March 25, 2024)
THE SECURITIES and Exchange Commission (SEC) has opened its 11th extension office in the country in Butuan City as part of expanding the corporate regulator’s presence in the southern Philippines. “Choosing Butuan as the newest location for our extension office was an easy decision to make, as the high number of business name registrations in the area shows its potential to become a thriving business hub in the future,” SEC Chairperson Emilio B. Aquino said in a statement released on Monday.
Click the link below to read the full news from the source:
https://www.bworldonline.com/the-nation/2024/03/25/584119/sec-opens-new-office-in-butuan/
SC grants petition to determine Malampaya contractor’s tax liabilities
(Business World / Chloe Mari A. Hufana / March 26, 2024)
THE SUPREME COURT (SC) granted a state plea to determine a Malampaya project contractor’s tax liabilities, ruling that the absence of a valid assessment for deficiency taxes in her case does not undermine her civil liability for unpaid taxes. The CTA en banc had reserved from imposing civil liability for unpaid taxes on Ms. Tiotangco despite finding her guilty of two criminal tax violations in a decision rendered in 2020 because of the “lack of a valid assessment.”
Click the link below to read the full news from the source:
https://www.bworldonline.com/the-nation/2024/03/26/584333/sc-grants-petition-to-determine-malampaya-contractors-tax-liabilities/
Foreign partners, tech, simpler tax system seen to boost PHL mineral sector
(Business World / John Victor D. Ordonez / March 27, 2024)
THE PHILIPPINES needs to prioritize securing funding support and new technology from other countries to enhance its mineral processing capacity, alongside efforts to simplify taxes for the mining sector, according to economists and industry players. The Philippines is under pressure to simplify its mining tax regime to make it competitive with other countries and boost state revenue from the sector. It also seeks miners to invest in processing to increase the value of mineral exports.
Click the link below to read the full news from the source:
https://www.bworldonline.com/corporate/2024/03/27/584411/foreign-partners-tech-simpler-tax-system-seen-to-boost-phl-mineral-sector/
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