Bureau of Internal Revenue Issuances
REVENUE MEMORANDUM ORDERS
RMO No. 13-2025
March 19, 2025
Creation of Alphanumeric Tax Code (ATC) for Value-Added Tax (VAT) and Final Withholding VAT on Digital Services from Non-Resident Digital Service Provider.
RMO No. 15-2025
March 21, 2025
Policies and Procedures on Recording of Collections, Tax Receivables and Acquired Assets in Compliance with Reportorial Requirements of the Commission on Audit – Governing Accounting Standards.
RMO No. 16-2025
March 21, 2025
Amendments on Revenue Memorandum Order No. 23-2021 on Guidelines and Procedures on Digital/Online Learning in the Bureau of Internal Revenue.
REVENUE MEMORANDUM CIRCULARS
RMC No. 20-2025
March 20, 2025
Clarification of certain policies, guidelines and procedures relative to the processing and issuance of Tax Clearance Certificate for Final Settlement of Government Contracts.
REVENUE DELEGATION OF AUTHORITY ORDERS
RDAO No. 14-2025
March 21, 2025
Delegates to the Assessment Division Chief of RR 8B-South NCR the authority to sign documents specified in the Order in view of the approved leave of RR 8B’s Regional Director.
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
Please be advised that the Online Registration and Update System (ORUS) will be accessible to taxpayers according to the schedule specified. The System will undergo maintenance of its unavailability.
SEC MEMORANDUM CIRCULAR No. 01, series of 2025
2025 FILING OF ANNUAL FINANCIAL STATEMENTS AND GENERAL INFORMATION SHEET
Click the link below to read the full news from the source:
https://www.sec.gov.ph/wp-content/uploads/2025/03/2025MC_mc-no-1-series-2025.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/
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
TAX AND BUSINESS RELATED NEWS
BIR WEEKENDER BRIEFS
Volume No. 16 Issue No 11 Week ending March 14, 2025 – (BIR Website)
Regional Director Dante Tan of RR 5-Caloocan City, together with RR 5 Legal Division Chief Lorna Cruz, RID Chief Jesus Reyes and Asst. Chief Grace Cruz, RDO Estrella Manalo and RDO Romel Morente, led the conclusion of destruction of illicit cigarettes and other articles at DiGaMa Waste Management Services Complex in Barangay Mitla, Porac, Pampanga last March 5
Click the link below to read the full news from the source:https://bir-cdn.bir.gov.ph/BIR/pdf/v16n11.pdf
FDA recommends 17 more medicines for VAT exemption
The Philippine Star / Rhodina Villanueva / March 16, 2025 – MANILA, Philippines
To continue with its drive to provide affordable healthcare to Filipinos, the Food and Drug Administration (FDA) has added 17 drug products to the list of essential medicines exempted from Value-Added Tax or VAT. “By expanding the list of VAT-exempt medicines, the FDA aims to make medicines affordable to the public and decrease expenses when seeking quality medical attention,” the FDA said in a statement. Under Republic Act 11534 or the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) law, drugs for hypertension, cancer, mental illnesses, tuberculosis, kidney diseases, diabetes and high cholesterol shall be exempted from VAT. Recommended for inclusion in the FDA list for VAT exemption are Gemigliptin, Sitagliptin and Sitagliptin Phosphate for diabetes, Amlodipine for high cholesterol and hypertension, and Risperidone for mental illness.
Click the link below to read the full news from the source:https://www.philstar.com/nation/2025/03/16/2428661/fda-recommends-17-more-medicines-vat-exemption
PEZA guidelines on pharmazones to boost investment, lower drug prices Philippine
News Agency / Darryl John Esguerra / March 16, 2025 – MANILA
The Philippine Economic Zone Authority (PEZA) has issued guidelines for the establishment and registration of pharmaceutical economic zones (pharmazones) to streamline regulatory processes, reduce drug prices, and attract global pharmaceutical investors to the country. Pharmazones will serve as hubs for firms engaged in various aspects of medical and drug manufacturing-related activities, most specially in research and development, clinical testing and trials. “These zones are expected to attract substantial pharma, medical, and healthcare-related investments, advance technology, and increase local production and research, creating numerous jobs and enhancing the country’s export potential, and positioning the Philippines as a competitive player in the global pharmaceutical market,” PEZA Director General Tereso Panga said in a statement Sunday. Under the newly approved guidelines, pharmazones located in the National Capital Region and other metropolitan areas must cover at least 10,000 square meters, while those in non-metropolitan regions must have a minimum land area of 50,000 square meters. Developers and operators of these ecozones will be entitled to fiscal incentives provided under Title XII of the amended Tax Code.
Click the link below to read the full news from the source:https://www.pna.gov.ph/articles/1246130
CTA denies Green Cross’ P118-M tax refund petition
Business World / Chloe Mari A. Hufana / March 17, 2025
THE COURT OF TAX APPEALS (CTA) has denied Green Cross, Inc.’s tax refund claim, affirming the imposition of excise taxes and related value-added tax (VAT) on its taxable goods, totaling nearly P118 million. The court en banc affirmed an earlier ruling that denied Green Cross’ request for a refund of P117,973,507.78 covering November 2018 to December 2019. It ruled that the company’s cologne products and splash colognes qualify as “toilet waters” and are subject to excise tax under prevailing tax laws. The tribunal held that the repeal of Revenue Regulations (RR) No. 8-84 — which defined “toilet waters” as scented preparations with more than 3% essential oils — was implicitly superseded by subsequent amendments to the National Internal Revenue Code (NIRC) of 1977, particularly Executive Order (EO) No. 273 in 1987. EO No. 273 reclassified the tax on “perfumes and toilet waters” from a percentage tax to an excise tax. The court said the rules and regulations governing the percentage tax under the old law are inconsistent with the policy framework for excise tax under Section 150(b) of the NIRC of 1997.
Click the link below to read the full news from the source:https://www.bworldonline.com/corporate/2025/03/17/659561/cta-denies-green-cross-p118-m-tax-refund-petition/
SEC sets 2025 deadlines for AFS, GIS filing
Business World / Revin Mikhael D. Ochave / March 17, 2025
THE Securities and Exchange Commission (SEC) has set the deadlines for filing corporate annual financial statements (AFS) and general information sheets (GIS) for 2025. The schedule is outlined in Memorandum Circular (MC) No. 1, issued on March 3, the SEC said in an e-mail statement over the weekend. “Filing of reportorial requirements is mandatory and must be faithfully complied with every year. We urge all corporations to keep track of the deadlines to avoid getting fined for noncompliance,” SEC Chairperson Emilio B. Aquino said. “The SEC is likewise authorized to suspend or revoke the corporate registration of duly registered companies for repeated failure to submit reports. We will be strictly implementing this authority as part of our efforts to enhance regulatory oversight over the corporate sector,” he added. Entities required to submit audited AFS include stock and nonstock corporations with total assets or total liabilities of at least P600,000; stock and nonstock foreign corporations with assigned capital or total assets, respectively, of at least P1 million; and regional operating headquarters of foreign corporations with total revenues of P1 million or more. “Corporations that do not meet the aforementioned threshold may submit their AFS duly certified by their treasurer or chief financial officer,” the SEC said. Under the MC, corporations with fiscal years ending on Dec. 31, 2024, must file their AFS according to the last digit of their SEC registration or license number. Those ending in 1 and 2 must file on May 2, 5, 6, 7, 8, 9, 12, 13, 14, 15, and 16; in 3 and 4 on May 19, 20, 21, 22, 23, 26, 27, 28, 29, and 30; in 5 and 6 on June 2, 3, 4, 5, 6, 9, 10, 11, and 13; in 7 and 8 on June 16, 17, 18, 19, 20, 23, 24, 25, 26, and 27; and in 9 and 0 on June 30, July 1, 2, 3, 4, 7, 8, 9, 10, and 11. Corporations whose fiscal years do not end on Dec. 31, 2024, must file their AFS within 120 calendar days from the end of their fiscal year. Annual reports of brokers and dealers with fiscal years ending on Dec. 31, 2024, must be filed by April 30. Those with different fiscal year-end dates must submit their reports within 110 calendar days after closing.
Click the link below to read the full news from the source:https://www.bworldonline.com/corporate/2025/03/17/659560/sec-sets-2025-deadlines-for-afs-gis-filing/
A new tax reform measure for the capital markets ‘Let’s Talk Tax’
Business World / Marielle C. Baldemor/ March 17, 2025 –
Philippine taxation has undergone significant changes with the enactment of several tax reforms in 2024. These reforms include the Ease of Paying Taxes Act (RA No. 11976), the Real Property Valuation Act (RA No. 12001), the VAT on Digital Services (RA No. 12023), and the CREATE MORE Act (RA No. 12066), which generally aims to modernize the current tax system, making it simpler, fairer, and more efficient. Following the signing of the bicameral conference report by Congress, another significant tax reform is on its way: the Capital Market Efficiency Promotion Act (CMEPA), which consolidated Senate Bill No. 2865 and House Bill No. 9277. The CMEPA is designed to simplify the complex taxation of passive income in the Philippines. It also seeks to align and promote our capital markets within the context of financial globalization, increased international mobility, and financial inclusion.
Here, we summarize the key proposed amendments under the CMEPA Bill:
STANDARDIZED THE FINAL WITHHOLDING TAX (FWT) RATE ON INTEREST INCOME
One of the major shifts in CMEPA is the standardization of the FWT on interest income at 20%, except for non-resident aliens not engaged in trade or business (NRA-NETB) and non-resident foreign corporations (NRFC), whose interest income will still be subject to 25% FWT. This change effectively removes the preferential final tax rates for:
• 15% on interest income earned by Foreign Currency Deposit Units (FCDUs)
• Tax-exempt status on interest income of non-residents from FCDUs
• Tax-exempt status on long-term deposits and investments
CAPITAL GAINS TAX ON THE SALE OF SHARES ISSUED BY FOREIGN CORPORATIONS
Currently, capital gains on sales of unlisted local shares of individuals and corporations are subject to 15% capital gains tax (CGT), while gains on sales of foreign shares are subject to the progressive income tax rate for individuals and the corporate income tax rate for corporations. The CMEPA Bill seeks to remedy the disparity by imposing the same tax rate of 15% CGT on the sale of shares issued by foreign corporations not traded on a stock exchange.
LOWERING THE STOCK TRANSACTION TAX (STT)
To align the Philippines’ Stock Transaction Tax (STT) with the prevailing rates in other ASEAN-6 economies, CMEPA proposes reducing the STT on the sale or other disposition of shares of stock listed and traded through the stock exchange from 0.6% to 0.1% of the gross selling price or gross value in money of the shares.
LOWERING THE DOCUMENTARY STAMP TAX ON THE ORIGINAL ISSUANCE OF SHARES
Existing rules provide for a documentary stamp tax (DST) on debt instruments and bonds at P1.50 of P200 (0.0075%), while the DST imposed on the original issuance of shares is P2.00 of 200 (0.01%).
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2025/03/17/659921/a-new-tax-reform-measure-for-the-capital-markets/
CTA orders businessman to pay P6.6-M in deficiency income, value-added taxes for 2016
Manila Bulletin / Czarina Nicole Ong Ki / March 17, 2025
The Court of Tax Appeals (CTA) has ordered a businessman to pay the Bureau of Internal Revenue (BIR) P6.6 million in deficiency income and value-added taxes of his company for calendar year 2016. Redentor Agpuldo Tagala, proprietor of 7th Concept Trading and 7C Construction, filed a petition for review before the CTA seeking the cancellation and withdrawal of the Final Decision on Disputed Assessment (FDDA) dated Dec. 15, 2021 amounting to P10,108,681.35. The total amount represented income tax of P5,210,592.63, value-added tax of P4,828,088.72, and miscellaneous tax of P70,000. The FDDA was issued after the examination of the firm’s books of accounts and other accounting records for the taxable period from Jan. 1 to Dec. 31, 2016.
Click the link below to read the full news from the source:
https://mb.com.ph/2025/3/17/cta-orders-businessman-to-pay-p6-6-m-in-deficiency-income-value-added-taxes-for-2016
Retail group backs new VAT refund rules
Philippine Daily Inquirer / Alden M. Monzon / March 17, 2025 – MANILA, Philippines
The Philippine Retailers Association has welcomed the release of the draft implementing rules and regulations (IRR) that will operationalize the value-added tax (VAT) refund measure. The measure aims to implement a refund process for foreign tourists, making shopping in the Philippines more attractive compared to neighboring countries with similar VAT refund schemes The Department of Finance released the draft IRR last March 12, prescribing the initial guidelines and standards for the planned VAT Refund System (VRS). The draft IRR show that tourists may qualify for a VAT refund on locally purchased goods if the items are bought in person from accredited stores and are taken out of the Philippines as accompanied baggage within 60 days of purchase. The VAT refund applies exclusively to retail and tangible goods, including electronics, clothing, gadgets, accessories, souvenirs, consumables, and other items intended for personal use. The minimum purchase amount per transaction was pegged at P3,000, documented under a single invoice registered with the Bureau of Internal Revenue (BIR). Claudio announced that a public consultation on the draft IRR is scheduled for March 17.
Click the link below to read the full ews from the source:https://business.inquirer.net/513330/retail-group-backs-new-vat-refund-rules
Duterte’s sway on voters may stall tax reforms, wage hike push—ING
Manila Bulletin / Derco Rosal / March 17, 2025
Political uncertainty in the Philippines could intensify as former President Rodrigo Duterte’s influence on voters grows, potentially diverting attention from tax reforms and the proposed ₱200 wage increase. According to the Netherlands-based financial giant ING, midterm elections usually have no significant impact on policies, but the upcoming May 12 polls “could heighten political uncertainty,” which has been fueled by the recent International Criminal Court (ICC) arrest of Duterte. Deepali Bhargava, Asia-Pacific research head at ING, said the arrest of the strongman on “alleged crimes against humanity has sparked concerns about its potential impact on the upcoming midterm elections in the Philippines.” “Moreover, the proposed daily minimum wage hike of ₱200—which sparked significant debate around how the wage hikes could work to the detriment of businesses and consumers—could be pushed to the back burner as well,” it also noted. ING expects local economic stability to hold despite political uncertainties, as its forecasts point to controlled inflation and a narrowing fiscal deficit. February inflation surprisingly dropped to 2.1 percent, the lowest in five months, and a hairline below the central bank’s forecast of 2.2 percent to three percent. According to ING, inflation remains a major consideration in the monetary policy decisions of the Bangko Sentral ng Pilipinas (BSP).
Click the link below to read the full news from the source:
https://mb.com.ph/2025/3/17/duterte-s-election-influence-may-stall-tax-reforms-p200-wage-hike-push-ing
Flat tax seen easing burden on top earners — think tank
Business World / Kenneth Christiane L. Basilio/ March 18, 2025
POLICYMAKERS should consider simplifying the income tax regime via a flat, with top earners currently a disproportionate burden, possibly jeopardizing fiscal stability, according to a House of Representatives think-tank. In a report, the Congressional Policy and Budget Research Department (CPBRD) said legislators could explore changes to the income tax system, saying that the Tax Reform for Acceleration and Inclusion (TRAIN) Law is overburdening top earners, with the effect of narrowing the tax base. It recommended a 10% or 15% flat tax for those earning more than P250,000 a year to simplify the tax code and make it more fair to taxpayers.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2025/03/18/660236/flat-tax-seen-easing-burden-on-top-earners-think-tank/
Hopes pinned on FTAs, CREATE MORE law to spur export growth
Business World / Justine Irish D. TAbile/ March 18, 2025
EXPORTERS said they are banking on the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act and free trade agreements (FTAs) to serve as export growth drivers this year. “Our exports of goods and services may only reach $110 billion this year,” Philippine Exporters Confederation, Inc. (Philexport) President Sergio Ortiz-Luis, Jr. said at a general membership meeting on Tuesday. These risks include weather disturbances, extreme natural disasters, an acute and protracted global economic slowdown in major economies, ongoing geopolitical tensions and conflicts, trade wars, and protectionist trade policies, especially in the US, he added. He called the CREATE MORE Act and the proposed FTA with the European Union (EU) as potential silver linings. “The CREATE MORE Act is expected to effectively position the Philippines as a key investment destination,” he said. “An FTA between the Philippines and the EU is likewise on track for completion next year, with significant progress made during last month’s second round of talks,” he added. He said that the FTA will not only enhance market access for goods, services, and investment, but also address emerging trade areas such as critical growth, materials, climate change, environmental sustainability, labor, and governance.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2025/03/18/660255/hopes-pinned-on-ftas-create-more-law-to-spur-export-growth/
N. Cotabato collects P4.5-B in taxes, debt-free in 2024
Philippine News Agency/ Che Palicte/ March 18, 2025
KIDAPAWAN CITY, North Cotabato – North Cotabato province collected PHP4.5 billion in taxes under its general and special funds in 2024, surpassing its estimated income of PHP4.1 billion and maintaining its status as a debt-free province, Governor Emmylou Taliño-Mendoza announced Tuesday. In her State of the Province Address (SOPA), Mendoza highlighted the province’s strong financial performance, noting that local tax revenue reached PHP100.7 million, exceeding the PHP77 million target by 130.81 percent.
Click the link below to read the full news from the source:
https://www.pna.gov.ph/articles/1246282
Ilocos Norte town farmers get P33.7-M aid from tobacco excise tax
Philippine News Agency/ Leilanie Adriano/ March 18, 2025 – LAOAG CITY
Registered farmers’ associations in Bacarra town, Ilocos Norte province on Tuesday received PHP33.7 million worth of farm machinery and equipment purchased through the municipality’s share from tobacco excise tax. The beneficiaries received combine harvesters, hand tractors with trailers, cultivators, water pumps, mist blowers, brush cutters, transplanters, and irrigation hoses, among others. “The municipal government of Bacarra remains committed to the fair, transparent, and equitable allocation of the tobacco excise tax under Republic Act 7171 and Republic Act 8240, amounting to PHP33,741,478, for the benefit of our hardworking farmers,” Bacarra town mayor Nicomedes dela Cruz said in an interview.
Click the link below to read the full news from the source:
https://www.pna.gov.ph/articles/1246287
Steam purchases in Philippines to include 12% VAT starting June
Philstar.com / Dominique Nicole Flores / March 19, 2025 – MANILA, Philippines
Buying video games on Steam may become more costly for Filipino gamers as a 12% value-added tax (VAT) takes effect starting June 1. This means consumers will pay an additional P120 for a P1,000 video game, with the tax automatically reflected in the final price before purchase. In-game purchases and downloadable content (DLCs) will also be subject to the 12% VAT as they are counted as digital purchases. Steam, the digital distribution platform for PC games, announced the tax collection for the Philippines on its website. The move follows the passage of Republic Act 12023 or the VAT on Digital Services Law, which taxes digital transactions for both local and foreign digital service providers. The law amends the National Internal Revenue Code of 1997 — or the Tax Code — to cover digital services such as media, music, video games, video-on-demand and online advertisements. Platforms like Netflix, Spotify, Amazon, Disney+ and Lazada are among those affected. President Ferdinand “Bongbong” Marcos Jr. signed the measure into law on Oct. 2, 2024.
Click the link below to read the full news from the source:
https://www.philstar.com/business/2025/03/19/2429596/steam-purchases-philippines-include-12-vat-starting-june
Penalties await coops failing to submit tax incentive reports
The Philippine Star / Louise Maureen Simeon / March 18, 2025 – MANILA, Philippines
The government will impose penalties on cooperatives that fail to comply with tax incentive reporting under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. In a joint administrative order, the Department of Finance, Cooperative Development Authority (CDA) and Bureau of Internal Revenue (BIR) issued the guidelines that will govern the imposition of appropriate penalties for failure to submit mandated reports on tax incentives and benefits data. This will cover all CDA-registered cooperatives with a valid and subsisting certificate of tax exemption (CTE) from the BIR. The CREATE Act prescribes the penalties for non-compliance with the filing and reportorial requirements by cooperatives registered with the CDA. Based on the order, cooperatives are mandated to provide their annual tax incentives report (ATIR) and annual benefits report (ABR), both of which must be submitted within 30 days from the statutory deadline for filing tax returns and payment of taxes, covering all tax incentives and benefits of the preceding taxable year. Failure to do so will result in the issuance of a show cause order and another 15 days to comply and submit justification for the non-compliance. In case of partial or incomplete submission, the CDA will send a notice of deficiency wherein cooperatives will also be given 15 days to comply. Non-compliance will result in a show cause order. Upon determination of the CDA and after due process, any registered cooperative that fails to comply with reportorial requirements will be fined P100,000 for the first offense and P500,000 for the second offense.
Click the link below to read the full news from the source:
https://www.philstar.com/business/2025/03/18/2429092/penalties-await-coops-failing-submit-tax-incentive-reports
CTA denies petition of meat processors vs higher tarrif on imported mechanically deboned meat
Manila Bulletin / Czarina Nicole Ong Ki / March 19, 2025
The Court of Tax Appeals (CTA) has denied the petition filed by members of the Philippine Association of Meat Processors, Inc. (PAMPI) which challenged the implementation by the Bureau of Customs (BOC) of the increased tariff on the importation of mechanically deboned meat (MDM).The firms’ plea for a temporary restraining order (TRO) was denied by the CTA’s first division which eventually ruled in favor of the BOC. They elevated the case to the CTA as a full court. Their petition was denied. The issue stemmed from Republic Act No. 11203, Rice Tariffication Law, which took effect on March 5, 2019. The BOC issued a Customs Memorandum Circular (CMC) No. 131-2019 on May 23, 2019 providing for the application of the higher Most Favored Nation (MFN) rate (40 percent for MDM). The district collector of the Manila International Container Port then ordered the petitioners to pay additional duties amounting to P230,387,073, which reflected the uncollected tariff differential of 35 percent for MDM for the period of March 5, 2019 to May 16, 2019.
Click the link below to read the full news from the source:https://mb.com.ph/2025/3/19/cta-denies-petition-of-meat-processors-vs-higher-tarrif-on-imported-mechanically-deboned-meat
Stock trading expected to surge with 83% transaction tax cut under CMEPA
Manila Bulletin / James A. Loyola / March 19, 2025
The Philippine equities market hopes to see a surge in trading activity after the anticipated enactment of the Capital Market Efficiency Promotion Act (CMEPA), which includes slashing the stock transaction tax (STT) by 83 percent. During the Philippine Stock Exchange’s (PSE) InvestPH investor conference, Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go said this should be the result of the forthcoming law’s provision reducing the STT to 0.1 percent from 0.6 percent. “The most important part of the bill that relates to the PSE and to the capital markets is it reduces [STT] from 60 basis points to 10 basis points. Upon signing of the law, CMEPA will standardize the final withholding tax (FWT) to 20 percent. It will also reduce the documentary stamp tax (DST) on original issuance of shares to 0.0075 percent from the current 0.01 percent.
Click the link below to read the full news from the source:https://mb.com.ph/2025/3/19/stock-trading-to-surge-once-transactionh-tax-is-slashed-83-under-cmepa#google_vignette
BIR destroys P156-M worth of illicit cigarettes in N. Mindanao
Philippine News Agency / Nef Luczon \/ March 20, 2025 – CAGAYAN DE ORO CITY
The Bureau of Internal Revenue (BIR) destroyed PHP156.25 million worth of illicit cigarettes in Northern Mindanao as part of its nationwide crackdown on tax evasion, officials said Thursday. BIR Revenue Region 16 Officer in Charge Raihana Menelifa Lucman said the two-day destruction of the illicit goods that began Wednesday underscores the agency’s commitment to enforcing tax laws.
Click the link below to read the full news from the source:https://www.pna.gov.ph/articles/1246440
SEC partners with DTI to streamline business registration
Philippine Daily Inquirer/ Alden M. Monzon/ March 20, 2025 – MANILA, Philippines
The Department of Trade and Industry and the Securities and Exchange Commission signed a memorandum of agreement to integrate business registration databases, streamlining the transition of sole proprietorships into corporations. The “Swift Corporate and Other Records Exchange (SCOPE) Protocol” was signed at the SEC office in Makati on Wednesday. Trade Undersecretary Kris Ablan told the Inquirer that the collaboration could double the speed of incorporation by reducing background checks between the two government agencies.
Click the link below to read the full news from the source:https://business.inquirer.net/513874/sec-partners-with-dti-to-streamline-business-registration
Towards a flat income tax of 10% to 15% ‘My Cup of Liberty’
Business World / Bienvenido S. Oplas Jr. / March 20, 2025
An interesting study was released recently by the Congressional Planning and Budget Research Department (CPBRD) of the House of Representatives entitled “Progressivity, Fairness, and Efficiency: An Evaluation of the Impact of the TRAIN Law on the Distribution of the Income Tax Burden,” CPBRD Policy Brief No. 2025-04. The authors were David Joseph Emmanuel Barua Yap, Jr., Edrei Y. Udaundo, and Jubels C. Santos. The old name of the CPBRD was the Congressional Planning and Budget Office (CPBO) and I worked there from 1991-1999. Among the study’s findings were that the tax share of the top earners — those who earned at least P1.35 million in 2017 and P1.43 million in 2023 — increased from 72.4% (P183 billion) to 88.1% (P258 billion) under the Tax Reform for Acceleration and Inclusion (TRAIN) Law of 2017. See this report about it in BusinessWorld by Kenneth Basilio, “Flat tax seen easing burden on top earners — think tank” (March 18). Among the recommendations of the CPBRD paper are that there should be a flat income tax of 10% to 15%, VAT should be hiked from 12% to 14%, and that there be a 10% reduction in government bureaucracy. I support these suggestions except the value-added tax (VAT) hike to 14%. Currently our 12% VAT is among the highest in Asia, with most of our neighbors having VAT or sales taxes of 7-10%.
Click the link below to read the full news from the source:https://www.bworldonline.com/editors-picks/2025/03/20/660354/towards-a-flat-income-tax-of-10-to-15/
SEC open to lower public float for large IPOs
Business World / Ashley Erika O. Jose / March 20, 2025
COMPANIES planning to list on the Philippine Stock Exchange, Inc. (PSE) with an initial public offering (IPO) exceeding P5 billion may seek relief to offer less than the required 20% public float, as the Securities and Exchange Commission (SEC) considers providing flexibility on the rule. “If there are requests for exemptive relief, then that’s assessed on a case-to-case basis,” SEC Commissioner McJill Bryant T. Fernandez told reporters on the sidelines of the InvestPH 2025 forum on Wednesday. “Ultimately, the idea is we are firm with the 20%, [but] it gives you some relief and there’s a period you should comply with the 20%,” he also said. Globe Telecom, Inc. recently said it would seek regulatory relief from the 20% minimum public ownership (MPO) rule for the planned GCash IPO. “There is a 20% minimum requirement for IPOs, but we have been able to get an approval from the SEC,” PSE President Ramon S. Monzon told reporters separately.
Click the link below to read the full news from the source:https://www.bworldonline.com/corporate/2025/03/20/660485/sec-open-to-lower-public-float-for-large-ipos/
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