Bureau of Internal Revenue Issuances
REVENUE MEMORANDUM CIRCULAR
RMC No. 19-2025
March 12, 2025
Missing two (2) original copies of unused/unissued BIR Form No. 1966 – Electronic Letter of Authority
REVENUE DELEGATION OF AUTHORITY ORDERS
RDAO No. 13-2025
March 13, 2025
Designates the Assistant Commissioner of the Enforcement and Advocacy Service as Officer-in-Charge of the Legal Group in view of the approved official travel of Legal Group’s OIC-Deputy Commissioner
ADVISORIES
2024 Annual Income Tax filing your return Due on or before April 15, 2025.
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.
Implementing the Amendments to Sections 27, 28, and 34 of the National Internal Revenue Code of 1997, as Amended by Republic Act No. 12066 or the “Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy
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)
Please be advised that the Online Registration and Update System (ORUS) will be accessible to taxpayers according to the following schedule:
Advisory on the Schedule of Accessibility of the Online Registration and Update System (ORUS)
Click the link below to read the full news from the source:https://bir-cdn.bir.gov.ph/BIR/pdf/TAX%20ADVISORY%20-%20ORUS%20Advisory%20FINAL%201.pdf
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/
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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
TAX AND BUSINESS RELATED NEWS
BIR WEEKENDER BRIEFS
Volume No. 16 Issue No 10 Week ending March 7, 2025
The BIR launched the Nationwide Destruction of Illicit Cigarettes conducted from February 24 to 28, 2025.
Click the link below to read the full news from the source:
https://bir-cdn.bir.gov.ph/BIR/pdf/v16n10.pdf
CTA junks tax refund for P117.9-M sought by Green Cross, Inc.
Manila Bulletin / Czarina Nicole Ong Ki / March 8, 2025
The Court of Tax Appeals (CTA) has denied for lack of merit the petition of Green Cross, Inc. which sought the refund of P117.9 million in alleged erronously paid taxes to the Bureau of Internal Revenue (BIR). From Nov. 16, 2018 to Dec. 17, 2019, Green Cross paid excise taxes amounting to P106,337,067.99 on the removal of its cologne products/splash colognes from their place of production. The firm also paid value-added taxes (VAT) on the excise taxes amounting to P11,636,439.79 from 2018 to 2019. When the BIR did not act on its claim, Green Cross filed with the CTA a petition for review on Nov. 16, 2020. The CTA’s second division denied the petition after trial. When its motion for reconsideration was also denied, Green Cross appealed its case to the CTA as a full court on May 8, 2024. Green Cross argued that the change in the type of tax imposed on “toilet waters” from percentage tax to excise tax did not result in the abandonment of the definition provided under Revenue Regulations (RR) No. 8-84, which was issued to implement sales or percentage tax on cosmetic products as imposed under Section 194(b) of the National Internal Revenue Code (NIRC) of 1977. It added that the absence of a new revenue regulation by the Secretary of Finance when the tax imposition on “toilet waters” shifted from percentage tax to excise tax indicates that the government intended the definition of “toilet waters” under RR No. 8-84 to remain in effect. However, the CTA en banc (full court) found its review “unmeritorious” and said that the definition of “toilet waters” under RR No. 8-84 cannot be invoked by Green Cross to support its claim for refund.
Click the link below to read the full news from the source:
https://mb.com.ph/2025/3/8/cta-junks-tax-refund-for-p117-9-m-sought-by-green-cross-inc
BIR Eastern Visayas collects P40-M unpaid taxes in 2024
Philippine News Agency / Sarwell Meniano / March 10, 2025) – PALO, Leyte
The Bureau of Internal Revenue (BIR) in Eastern Visayas has generated PHP40.19 million in taxes from 197 delinquent payers last year, making it the top performer among 25 revenue regional offices nationwide in terms of tax arrears collection. BIR Eastern Visayas regional office collection division chief Policarpo Tangile said in an interview Monday the region was recognized as the top performer nationwide after significantly exceeding the PHP9.3 million collection target from tax arrears in 2024. A collectible tax is considered arrears if not paid by taxpayers within the prescribed due date. The BIR field office here managed to collect unpaid taxes through the establishment of an accurate inventory and profile of delinquent accounts and the application of appropriate summary remedies, Tangile told the Philippine News Agency
Click the link below to read the full news from the source:
https://www.pna.gov.ph/articles/1245720
Review of factual issues no longer allowed in reconsideration of denied VAT refund claims ‘Let’s Talk Tax’
Business World / Kim M. Manuel / March 10, 2025
Revenue Regulations (RR) No. 08-2025, a review of questions of fact was not included as an option for taxpayers whose claims for VAT refunds were denied. In terms of factual issues, the taxpayer will no longer be provided with a chance to clear up any misinterpretations of the BIR, if any.
GENERAL OVERVIEW OF AN INPUT TAX REFUND – Tax refunds are considered tax exemptions and are construed strictly against the taxpayer. Based on the Tax Code, a tax refund must conform to certain rules, procedures, and pertinent documentary requirements for compliance by the taxpayer. Some of these include filing with the proper venue, adhering to the period prescribed by law, and submission of complete documentary requirements. Applications for tax refunds may be filed either with the Revenue District Office (RDO) or the Large Taxpayers District Office (LT) of the Bureau of Internal Revenue (BIR).
REVENUE REGULATIONS 08-2025
On Feb. 27, the BIR issued RR 08-2025 regarding Procedures in the Resolution of Requests for Reconsideration on the Denial of Claim for Refund on Value-Added Tax, among others. The RR covers all requests for reconsideration involving applications for refund filed on or after April 1, 2025.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2025/03/10/658456/review-of-factual-issues-no-longer-allowed-in-reconsideration-of-denied-vat-refund-claims/
DOF releases draft IRR VAT refund for foreign tourists
Philippine News Agency / Anna Leah Gonzales/ March 12, 2025) – MANILA
The Department of Finance (DOF) released the draft implementing rules and regulations (IRR) for Republic Act 12079 or the Value-Added Tax (VAT) Refund for Non-Resident Tourists. In a social media post late Tuesday, the DOF urged stakeholders to join a public consultation on the draft IRR. The IRR prescribes the guidelines and standards for implementing a VAT Refund System (VRS) in the Philippines. The draft IRR states that a tourist shall be eligible to refund the VAT paid on locally purchased goods if the goods are purchased by the tourist in person from duly accredited stores and the goods are physically taken out of the Philippines by the tourist as accompanied baggage, within 60 days from the date of purchase. Another requisite is if the value of the goods purchased per single transaction is at least PHP3,000 covered by a single invoice duly registered with the Bureau of Internal Revenue (BIR) provided that the amount shall be adjusted using the cumulative inflation for the past three years as published by the Philippine Statistics Authority. Under the draft IRR, Filipinos with dual citizenship shall be eligible for a VAT refund if they use their foreign passport when entering the Philippines. The VAT refund shall only apply to retail and tangible goods, such as clothing, apparel, electronics, gadgets, jewelry, accessories, souvenirs, food or non-food consumables, and other goods intended for personal use. The draft IRR states that tourists intending to avail of the VAT refund shall present their valid passport and e-travel system-issued QR code to the duly accredited store before purchasing eligible goods. The accredited store shall verify the identity and eligibility of the tourist for a VAT refund, input the tourist’s passport and purchase transaction details in the VRS, and issue a corresponding invoice with an indicator that the transaction is qualified for a VAT refund.
Click the link below to read the full news from the source:
https://www.pna.gov.ph/articles/1245909
A refresher on taxes for campaign contributions
Business World / Delila Dayag / March 12, 2025
Recently, the Bureau of Internal Revenue (BIR) issued RMC 16-2025 to remind candidates and everyone else participating in the May 12 elections of their tax obligations. As a rule, campaign expenditures of political parties and candidates in local and national elections are subject to 5% creditable withholding tax (CWT). Likewise, purchases made by individuals or juridical persons intended to be given as campaign contribution to political parties and candidates are subject to 5% CWT. The withholding tax system helps our government ensure that election-related income is taxed and provides a way to monitor the reporting of these transactions. Aside from withholding taxes, any candidate, political party, or party-list group, win or lose, is required to file with the Commission on Elections (Comelec) a Statement of Contributions and Expenditures as provided under the Omnibus Election Code. Without this, they may not claim their expenses as deductions from the campaign contributions.
First, all candidates receiving donations or spending for their campaign have the duty to register or update their registration with the BIR. Further, those receiving donations and campaign contributions must secure a Non-VAT BIR Printed invoice purchased from the Revenue District Office (RDO) where they are registered. The invoice shall be issued for every contribution (whether in cash or kind).
Second, all political parties or party-list groups and candidates must comply with the tax return filing and remittance requirements. This includes the following:
1. Monthly remittance of CWT using BIR Form No. 0619-E on or before the 10th day of the month after the tax was withheld;
2. Filing and payment of the quarterly withholding tax return (BIR Form No. 1601-EQ) on or before the last day of the month after the end of the quarter after the tax was withheld. This must include the Quarterly Alphalist of Payees (QAP);
3. Filing the Annual Information Return of CWT (BIR Form No. 1604-E) as well as the Statement of Contributions and Expenditures duly stamped “Received” by the Comelec on or before March 1, 2026; and
4. Reporting any unutilized/excess campaign funds as taxable income.
Third, political parties and party-list groups are expected to keep adequate books and other accounting records such as a Cash Receipts Journal and a Cash Disbursements Book as the basis for the Statement of Contributions and the Statement of Expenditures for submission to the Comelec. On the other hand, individual candidates may opt to use a simplified set of bookkeeping records if it can provide accurate information. The records of contributions and expenditures, together with all pertinent documents, must be preserved for a period of three years from the close of the taxable year during which the election was held (or until Dec. 31, 2028 for the 2025 elections).
Finally, every candidate and Treasurer of the political parties or party-list groups must submit the Statement of Contributions and Expenditures to Comelec and the RDO where the candidates, political parties or party-list groups are registered within 30 days after the election.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2025/03/12/659086/a-refresher-on-taxes-for-campaign-contributions/
BIR-S. Cotabato collects P3.7-B revenue in 2024, eyes higher target
Philippine News Agency / Edwin Fernandez / March 12, 2025-KORONADAL CITY, South Cotabato
The Bureau of Internal Revenue (BIR) district office in this province collected over PHP3.7 billion in revenues in 2024, marking a 14.9-percent increase from the previous year’s PHP3.3 billion. In a statement Wednesday, Aileen Punzalan, head of Revenue District Office (RDO) 111, announced the achievement during the launch of the BIR’s 2025 Tax Campaign kickoff at the EMR Convention Center. “Our tax collection last year of PHP3.7 billion is significantly higher than the PHP3.3 billion collected in 2023, reflecting a PHP484.6 million increase,” Punzalan said. For 2025, the agency has set a target of PHP4.3 billion, a 14-percent increase from the 2024 collection.
Click the link below to read the full news from the source:
https://www.pna.gov.ph/articles/1245939
Dual citizens to be eligible for tourist VAT refund program — draft IRR
Business World / Aubrey Rose A. Inosante / March 12, 2025
DUAL CITIZENS will be allowed to avail of the value-added tax (VAT) refund for tourists if they enter the country using their foreign passport, according to draft implementing rules and regulations (IRR) released by the Department of Finance. The IRR draft considers Filipinos with dual citizenship who use their foreign passport to enter the country as falling under the definition of “tourist.” President Ferdinand R. Marcos, Jr. signed Republic Act No. 12079, also known as “Act Creating a VAT Refund Mechanism for Non-Resident Tourists,” in December. The law allows tourists to claim VAT refunds on purchases worth at least P3,000 from government-accredited stores. A public consultation on the IRR is scheduled for March 17.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2025/03/12/659094/dual-citizens-to-be-eligible-for-tourist-vat-refund-program-draft-irr/
PEZA taps BDO for investment promotion tie-up
Business World / Justine Irish D. Tabile / March 12, 2025
THE Philippine Economic Zone Authority (PEZA) said it appointed BDO Unibank, Inc. as its investment promotion partner. In a Facebook post on Wednesday, PEZA said it signed a memorandum of understanding (MoU) with BDO on March 10. “This MoU solidifies a powerful synergy between PEZA’s mandate and BDO’s extensive network, its status as the only globally recognized Philippine bank with full international coverage, and its financial expertise in supporting trade, commerce, and investments,” said PEZA.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2025/03/12/659087/peza-taps-bdo-for-investment-promotion-tie-up/
How accountants can help drive business success
The Manila Times / Leomar R. Cabarles / March 12, 2025
In the Philippines, where businesses include small shops, medium-sized family-owned enterprises, and international conglomerates, accountants have a unique opportunity to be more than just compliance officers. They can be strategic advisors, risk managers, and catalysts for business growth. Accountants have a deep understanding of financial data, but their real value lies in interpreting this information to guide business decisions. In the Philippines, where micro, small and medium enterprises (MSMEs) comprise over 90 percent of businesses, many entrepreneurs struggle with financial literacy. Accountants can help business owners make sense of their numbers, identify profitable opportunities, and plan for sustainable growth. They can dispense advise on budgeting and forecasting, pricing strategies, cost management, profitability analysis, and even expansion and diversification plans, ensuring businesses remain competitive in a dynamic market. The Philippine tax system can be overwhelming, with frequent changes in tax laws and complex compliance requirements from the Bureau of Internal Revenue, local government units, and other relevant government agencies.
Click the link below to read the full news from the source:
https://www.manilatimes.net/2025/03/12/business/top-business/how-accountants-can-help-drive-business-success/2071323
How accountants can help drive business success
The Manila Times / Leomar R. Cabarles / March 12, 2025
In the Philippines, where businesses include small shops, medium-sized family-owned enterprises, and international conglomerates, accountants have a unique opportunity to be more than just compliance officers. They can be strategic advisors, risk managers, and catalysts for business growth. Accountants have a deep understanding of financial data, but their real value lies in interpreting this information to guide business decisions. In the Philippines, where micro, small and medium enterprises (MSMEs) comprise over 90 percent of businesses, many entrepreneurs struggle with financial literacy. Accountants can help business owners make sense of their numbers, identify profitable opportunities, and plan for sustainable growth. They can dispense advise on budgeting and forecasting, pricing strategies, cost management, profitability analysis, and even expansion and diversification plans, ensuring businesses remain competitive in a dynamic market. The Philippine tax system can be overwhelming, with frequent changes in tax laws and complex compliance requirements from the Bureau of Internal Revenue, local government units, and other relevant government agencies.
Click the link below to read the full news from the source:
https://www.manilatimes.net/2025/03/12/business/top-business/how-accountants-can-help-drive-business-success/2071323
Recto: New privatization guidelines allow gov’t to maximize non-tax revenues, encourage participation from ordinary Filipino
Department of Finance / March 13, 2025
Finance Secretary Ralph G. Recto underscored that the newly issued guidelines of the Privatization Council (PrC) that aim to expedite the disposition of non-performing public assets will allow the national government to collect additional non-tax revenues while also encouraging ordinary Filipinos to acquire and invest in these assets. “Privatization of non-performing assets is among the strategic moves to raise much-needed revenues to fund the growing needs of our people. And by opening the doors for ordinary Filipinos to take part, we are also creating investment opportunities for them while contributing to nation-building,” the Finance Chief said. “These assets do not generate economic activity or government income (by way of taxes) while it actually costs the national government money to maintain them. We allocate budgetary support for the Privatization Management Office [PMO] for upkeep and pre-disposition activities, and instead of raising revenue and helping stimulate the economy, these assets are a burden,” DOF Undersecretary for Privatization and Partnerships Group (PPG) Catherine L. Fong added.
Click the link below to read the full news from the source:
https://www.dof.gov.ph/recto-new-privatization-guidelines-allow-govt-to-maximize-non-tax-revenues-encourage-participation-from-ordinary-filipinos/
New guidelines on gov’t assets disposal to boost non-tax revenues
Philippine News Agency / Anna Leah Gonzales / March 13, 2025 – MANILA
The newly issued guidelines for the disposition of government assets will allow the government to maximize non-tax revenues, the Department of Finance (DOF) said. In a statement Thursday, the DOF said it is ramping up efforts to boost non-tax revenues through privatization, in line with Executive Order No. 323, which established the Inter-agency Privatization Council (PrC) and the Privatization and Management Office (PMO). The PrC oversees all national government privatization initiatives while the PMO handles the disposition of assets of government financial institutions and certain government-owned or controlled corporations (GOCCs).
Click the link below to read the full news from the source:
https://www.pna.gov.ph/articles/1245968
CTA junks appeal of private individual vs BIR’s warrants of levy, garnishment
Manila Bulletin / Czarina Nicole Ong Ki / March 13, 2025
The Court of Tax Appeals (CTA) has denied the petition of a private individual who sought a reversal of the warrant of distraint or levy (WDL) and warrant of garnishment (WOG) issued against him by the Bureau of Internal Revenue (BIR). When another attempt to lift the WDL and WOG was denied, Matias filed a petition for review before the CTA’s second division on Oct. 26, 2022. His petition was dismissed for lack of jurisdiction. Matias then elevated his case before the CTA as a full court on Nov. 10, 2023. In its ruling, the CTA en banc said: “To complete the picture, while the WDL and WOG assailed by petitioner (Matias) fall within other matters arising under the NIRC (National Internal Revenue Code), as amended, recognized under Section 7(a)(l) of RA No. 1125, as amended by RA No. 9282, the Court in Division found that petitioner failed to seasonably challenge these collection measures, within the 30-day reglementary period to appeal, as required in Section 11 of the same law, leading to the dismissal of CTA Case No. 11025, for lack of jurisdiction:. “Based on the allegations in the Petition for Review, petitioner received the WDL and the [WOG] “sometime in March or April 2022.” “Even assuming that the said warrants were received on the last day of April 2022, petitioner should have appealed to [the Court in Division] on or before May 30, 2022. “Instead of doing so, petitioner merely sent letters twice to the Regional Director of BIR Revenue Region No. 1[,] requesting for the lifting of the foregoing warrants. ”These letter-requests to the Regional Director did not interrupt the running of the reglementary period [,] let alone serve to extend the 30-day period to appeal. It was only when petitioner’s request was denied by the Regional Director that he was prompted to file the present Petition for Review on Oct. 26, 2022. ”By that time, the 30-day period to appeal had long elapsed.
Click the link below to read the full news from the source:
https://mb.com.ph/2025/3/13/cta-junks-appeal-of-private-individual-vs-bir-s-warrants-of-levy-garnishment
DOF issues draft rules on VAT refund for tourists
The Philippine Star / Louise Maureen Simeon / March 13, 2025-MANILA, Philippines
The Department of Finance (DOF) has released the draft implementing rules and regulations (IRR) for the refund of value-added tax (VAT) on local goods purchased by tourists in a bid to promote the Philippines as a shopping destination. The draft rules were issued as the DOF invited stakeholders to a public consultation next week to clarify concerns and gather suggestions that will help ensure the proper implementation of the refund mechanism. The draft IRR aims to prescribe the guidelines, procedures and standards for the implementation of a VAT refund system for tourists (VRS) in the Philippines. Based on the proposed rules, a tourist may get a refund of the VAT paid on locally purchased goods if these are bought from duly accredited stores and are taken out of the Philippines as accompanied baggage within 60 days from the date of purchase. The refund will only apply to retail and tangible goods such as clothing, apparel, electronics, gadgets, jewelry, accessories, souvenirs, food or non-food consumables and other goods intended for personal use. The value of the goods purchased per single transaction should also be equivalent to at least P3,000, covered by a single invoice duly registered with the Bureau of Internal Revenue (BIR). The draft regulations state that Filipinos with dual citizenship may avail themselves of a VAT refund if they use their foreign passport in entering the Philippines. To avail themselves of the refund, tourists should present their valid passport and electronic travel system-issued QR code to accredited stores prior to the purchase of eligible goods. Upon verification, stores will then input a tourist’s passport and purchase transaction details in the VRS and issue a corresponding invoice, indicating that a refund is qualified. At the airport or seaport, this will be validated, approved and paid by the VRS operator in Philippine currency either in cash or electronically. The tourist will be charged with a service fee for the refund processing. Apart from the DOF and BIR, implementing agencies include the departments of Tourism, Trade and Industry, Transportation, Information and Communications Technology, National Economic and Development Authority and Bureau of Customs. It was December last year when President Marcos signed Republic Act 12079 that aims to stimulate more spending, promote the Philippines as a premier global shopping destination and put a spotlight on the country’s local products.
Click the link below to read the full news from the source:
https://www.philstar.com/business/2025/03/13/2427883/dof-issues-draft-rules-vat-refund-tourists
Tax authorities must run after hard-to-tax big businesses—ADB report
Manila Bulletin / Derco Rosal / March 13, 2025
To increase government revenues, tax authorities such as the bureaus of Internal Revenue (BIR) and of Customs (BOC) in the Philippines should set their sights on bigger enterprises and other entities that are difficult to tax, according to an Asian Development Bank (ADB) report. Hard-to-tax businesses are those that fail to register voluntarily or, even when registered, underreport their income and expenses. For high-income and wealthy taxpayers, the ADB researchers recommended making use of “specialized approaches.” That means tax policies for these taxpayers should follow best practices from developed economies like those in the Organization for Economic Cooperation and Development (OECD), including the Netherlands, Canada, Italy, the United Kingdom (UK), Spain and the United States (US). Likewise, the researchers said revenue authorities like the BIR and the BOC—the main tax-collection agencies of the Philippines—should actively participate in global efforts to track and enforce taxes on high-income and wealthy individuals, “especially those whose income and wealth is highly mobile” or can be easily moved across countries. This would help prevent tax evasion and ensure the rich pay their fair share, no matter where they keep their wealth. Banks and other financial institutions should also take part in tax enforcement, the researchers said. They should be required to report relevant financial information to tax authorities like the BIR. Further, the researchers said that tax authorities should “strengthen tax withholding on wages and salaries through targeted compliance measures on large and medium employers and on certain forms of capital income, such as interest income and dividends.”
Click the link below to read the full news from the source:
https://mb.com.ph/2025/3/13/tax-authorities-must-run-after-hard-to-tax-big-businesses-adb-report
Scope, limitations of BIR mission orders
The Manila Times / Rey Christian M. Guintibano / March 13, 2025
IN our column on Jan. 23, we discussed the Bureau of Internal Revenue’s (BIR) Tax Compliance Verification Drive (TCVD), commonly known as tax mapping. One key requirement for Revenue Officers (ROs) to conduct tax mapping is to have a valid mission order (MOs). MOs issued by the BIR are based on Section 6(C) of the Tax Code, which grants the Commissioner of Internal Revenue the authority to order inventory-taking of a taxpayer’s goods, or place a business under surveillance, if there is reason to believe it is not declaring the correct income, sales, or receipts for tax purposes. The BIR has issued several regulations requiring MOs in tax enforcement activities. The MOs must specify: (1) the exact names of the ROs conducting the tax mapping, (2) the specific area covered, and (3) the date and time of the operation. RMO 3-2009, which governs surveillance and stock-taking activities under Oplan Kandado, requires an MO signed by the concerned Regional Director (RD) or Assistant Commissioner (ACIR) before conducting surveillance.
Click the link below to read the full news from the source:
https://www.manilatimes.net/2025/03/13/business/top-business/scope-limitations-of-bir-mission-orders/2072141
SEC pushes for stricter compliance with audit quality and financial reporting
Business World / Revin Mikhael D. Ochave / March 14, 2025
THE Securities and Exchange Commission (SEC) is pushing for stricter compliance with audit quality and financial reporting among companies as part of efforts to improve governance in the local corporate sector. “The SEC remains steadfast in its commitment to ensure that companies strictly comply with accounting policies and uphold audit quality as it continues to promote good governance in the corporate sector,” SEC Chairperson Emilio B. Aquino said in an e-mail statement on Thursday.
Click the link below to read the full news from source:
https://www.bworldonline.com/corporate/2025/03/14/659284/sec-pushes-for-stricter-compliance-with-audit-quality-and-financial-reporting/
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