Bureau of Internal Revenue Issuances
REVENUE MEMORANDUM ORDERS
REVENUE MEMORANDUM CIRCULARS
RMC No. 21-2025
March 24, 2025
Clarifying the proper tax treatment of joint ventures/consortiums formed for the purpose of undertaking construction projects under Section 22 ( B ) of the NIRC of 1997, as amended, in relation to RR Nos. 10-2012 and 14-2023, and the administrative requirements for all joint ventures/consortiums pursuant to Section 236 of the same Code.
RMC No. 23-2025
March 27, 2025
Circularizing the Updated List of Accredited Microfinance Non-Government Organizations.
REVENUE DELEGATION OF AUTHORITY ORDERS
RDAO No. 15-2025
March 21, 2025
Designates the Deputy Commissioner of the Operations Group as Officer-in-Charge in view of the approved official travel of the Commissioner of Internal Revenue.
RDAO No. 16-2025
March 24, 2025
Delegates to the Legal Division Chief of RR 4-City of San Fernando, Pampanga the authority to sign documents specified in the Order in view of the approved leave of RR 4’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/
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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 12 Week ending March 21, 2025
A total of two (2) tax cases were filed by BIR district offices under the BIR’s Run After Tax Evaders (RATE) Program on March 12 and 13
Click the link below to read the full news from the source:https://bir-cdn.bir.gov.ph/BIR/pdf/v16n12.pdf
BIR Website hits 50 Million visits in record time
BIR Website / March 28, 2025
The Bureau of Internal Revenue (BIR), under the leadership of Commissioner Romeo D. Lumagui, Jr., celebrates a major milestone as its official website, www.bir.gov.ph, reached 50 Million visits as of March 2025. This significant achievement comes just eight months after the website’s launch in August 2024, reflecting the public’s growing reliance on the BIR’s digital services and information hub.
Click the link below to read the full news from the source:
https://bir-cdn.bir.gov.ph/BIR/pdf/PR15MAR2825.pdf
BIR reminds taxpayers to “Pay as you File” your 2024 Annual Income Tax Return on or before April 15, 2025
BIR Website / March 28, 2025
The Bureau of Internal Revenue (BIR), under the leadership of Commissioner Romeo D. Lumagui, Jr., reminds all taxpayers to PAY as they FILE their 2024 Income Tax Return (ITR) on or before April 15, 2025 to avoid penalties. For a hassle-free tax filing experience, the BIR requires taxpayers to file their 2024 AITR electronically using the Bureau’s e-Filing facilities, namely: Electronic BIR Forms (eBIRForms) or Electronic Filing and Payment System (eFPS) for those mandated to use it. Taxpayers without internet access may use the eLounge facility of the Revenue District Office (RDO) wherein they will be assisted in e-Filing their 2024 AITR. The BIR National Office will likewise establish an Electronic Filing (e-Filing)/Tax Assistance Center at the BIR National Training Center (NTC) Auditorium (inside the BIR Compound in Senator Miriam P. Defensor-Santiago Avenue, Quezon City) to cater all taxpayers. It will be open from March 24 to April 15, 2025 (excluding Sundays and holidays) from 8:00 AM to 5:00 PM.
Click the link below to reda the full news from the source:
https://bir-cdn.bir.gov.ph/BIR/pdf/PR14MAR2825.pdf
Lumagui: BIR throws its support to the DSWD & NCDA in their fight against Fake PWD IDs; BIR will monitor establishments which do not comply with the documentation & procedural requirements under R.R. No. 5-2017 in relation to tax deductions claimed for PWD-related transactions
BIR Website / March 26, 2025
Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. showed his support to the privileges granted to Persons with Disability (PWD) and his strong stance against fraudulent practices involving fake PWD identification cards (IDs) during the press conference held last March 21, 2025 with the Department of Social Welfare and Development (DSWD) and the National Council on Disability Affairs (NCDA). These privileges are crucial for empowering PWDs, ensuring their inclusion, and easing the financial burdens associated with their conditions. The BIR, in collaboration with other government agencies, remains steadfast in its commitment to uphold the integrity of tax incentives designed for PWDs
Click the link below to read the full news form the source:https://bir-cdn.bir.gov.ph/BIR/pdf/PR13MAR2625.pdf
Lumagui: BIR wins 5.7 Billion Tax Evasion case against Illicit Cigarette ring; CTA to issue Warrants of Arrest
BIR Website / March 25, 2025
Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. reports that the Department of Justice (DOJ) ruled in its favor, in relation to a Php 5.7 billion tax evasion case that it filed last February 7, 2025. After ruling in favor of the BIR, the DOJ filed two (2) criminal information before the Court of Tax Appeals (CTA) last March 13, 2025. The case filed by the BIR with the DOJ came after a multi-city raid executed by the BIR and the Criminal Investigation and Detection Group (CIDG) last November 6 and 7 in Valenzuela and Bulacan.
Click the link below to read the full news form the source:https://bir-cdn.bir.gov.ph/BIR/pdf/PR12MAR2525.pdf
BIR eyes P338 billion from excise taxes
The Philippine Star / Louise Maureen Simeon / March 22, 2025-MANILA, Philippines
The Bureau of Internal Revenue (BIR) targets to collect higher excise taxes of up to P338 billion this year as the government moves to improve the regulatory environment and continues to address illicit trade. BIR data showed that excise tax collection for 2025 is projected to hit P337.8 billion, up by more than 11 percent from last year’s P303 billion tax take. The excise tax collection forms part of the overall P3.232-trillion target of the BIR as set by the Cabinet-level Development Budget Coordination Committee. Excise tax is a levy on the production, sale or consumption of a commodity. It contributes around 12 percent to the overall collection of the BIR. Excisable products include alcohol, tobacco, sweetened beverages and minerals.
Click the link below to read the full news from the source:https://www.philstar.com/business/2025/03/22/2430103/bir-eyes-p338-billion-excise-taxes
PH is now VAT-free for foreign tourists
Department of Finance / March 24, 2025
The Philippines is now value-added tax (VAT) -free for foreign tourists with the recent signing of the implementing rules and regulations (IRR) for Republic Act No. 12079, or the VAT Refund for Non-Resident Tourists. RA 12079 aims to boost tourism and encourage more foreign tourists to shop and spend more in the Philippines, thereby bolstering economic growth. Its IRR was signed by Secretary Recto, along with Bureau of Customs (BOC) Commissioner Bienvenido Y. Rubio, and Bureau of Internal Revenue (BIR) Deputy Commissioner Marissa O. Cabreros, on March 24, 2025. It was witnessed by Department of Tourism (DOT) Secretary Christina Garcia-Frasco, Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA) Secretary Frederick D. Go, and Department of Trade and Industry (DTI) Secretary Maria Cristina Aldeguer-Roque. Under the IRR, non-resident tourists or foreign passport holders may apply for a VAT refund for locally purchased goods from accredited stores that are equivalent to at least PHP 3,000. The goods must be physically taken out of the Philippines by tourist as accompanied baggage within 60 days from the date of purchase
Click the link below to read the full news from the source:https://www.dof.gov.ph/ph-is-now-vat-free-for-foreign-tourists/
BIR reminds registered online sellers to file annual tax returns
Philippine News Agency / March 24, 2025 – MANILA
With the deadline for annual income tax returns less than a month away, Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui Jr. on Monday reminded self-employed individuals and online sellers to file their annual income tax returns (ITRs). The deadline for the annual filing of ITRs is on April 15. Speaking in Filipino in a Facebook video, Lumagui said those engaged in online selling and those operating a sole proprietorship, where the business is registered under an individual’s name rather than a corporation are required to file their annual ITRs using BIR Form 1701. For those whose annual sales exceed PHP3 million, they must also submit an Auditor’s Report and Financial Statements prepared and signed by an external auditor accredited by the BIR. “This ensures transparency, accuracy, and compliance with tax rules for businesses that have grown beyond the VAT threshold,” he said. Taxpayers who have received BIR Form 2307, or the Certificate of Creditable Tax Withheld at Source, are also reminded to attach it to their Form 1701 as proof of tax credits applied to their income tax due.
Click the link below to read the full news from the source:https://www.pna.gov.ph/articles/1246718
BIR calls 2025 targets achievable, sees CREATE MORE downside risks
Business World / Aubrey Rose A. Inosante / March 24, 2025
THE Bureau of Internal Revenue (BIR) remains confident that it will meet its collection goal for major tax categories in 2025. However, the new law lowering corporate income tax rates for certain foreign enterprises poses a negative risk to collections, it added. This year’s collection goal is set at P3.232 trillion, up 13.36% compared to the P2.85 trillion in actual collections in 2024, according to Revenue Memorandum Order (RMO) No. 14-2025 released on March 20. “Official stance is that targets are achievable, with reservations owing to the CREATE MORE (Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy) law which gave away a lot of taxes to encourage investments,” BIR Assistant Commissioner Jethro M. Sabariaga told BusinessWorld via Viber over the weekend. The VAT on digital services, which imposes a 12% value-added tax on digital services on both resident and non-resident providers, is the only tax measure apart from CREATE MORE to have been signed.
Click the link below to read the full news from the source:https://www.bworldonline.com/economy/2025/03/24/661183/bir-calls-2025-targets-achievable-sees-create-more-downside-risks/
VAT refund system seen to boost PH shopping tourism
Philippine News Agency / Ma. Teresa Montemayor / March 24, 2025 – MANILA
The Value-Added Tax (VAT) Refund for Non-Resident Tourists Law would enhance the Philippines’ appeal as a shopping destination and boost economic growth by encouraging higher tourist spending, Department of Tourism (DOT) Secretary Christina Garcia Frasco said on Monday. Her statement came following the ceremonial signing of the implementing rules and regulations (IRR) for Republic Act No. 12079 at the Department of Finance (DOF) in Manila. Signed into law by President Ferdinand Marcos Jr. in December 2024, the measure establishes a VAT refund system that allows non-resident tourists to reclaim VAT on local purchases totaling at least PHP3,000. To qualify, the goods must be physically taken out of the country within 60 days of purchase. “The signing of the VAT refund law by our President and the subsequent signing of the IRR therefore come at an opportune time for our country, where tourism spending is at an all-time high,” Frasco said
Click the link below to read the full news from the source:https://www.pna.gov.ph/articles/1246714
CTA voids BIR’s P116-M tax assessment vs Barrio Fiesta
Business World / Chloe Mari A. Hufana / March 24, 2025
THE Court of Tax Appeals (CTA) has ruled in favor of Barrio Fiesta Manufacturing Corp., canceling the Bureau of Internal Revenue’s (BIR) tax deficiency assessment and the corresponding warrant of distraint and levy (WDL) worth nearly P116 million for 2013. The CTA Second Division, in a decision promulgated on March 17, granted Barrio Fiesta’s petition for review filed on Nov. 13, 2019. The dispute involved alleged deficiencies in income tax, value-added tax (VAT), expanded withholding tax (EWT), and withholding tax on compensation (WTC) for the taxable year 2013, initially assessed at P155.92 million, including increments, as indicated in the WDL. The amount was later revised to P119.3 million in the Final Decision on Disputed Assessment (FDDA) dated June 19, 2019.
Click the link below to read the full news from the source:https://www.bworldonline.com/corporate/2025/03/24/661048/cta-voids-birs-p116-m-tax-assessment-vs-barrio-fiesta
Tourist VAT refund law touted for ‘multiplier effect’
Business World / Aubrey Rose A. Inosante / March 24, 2025
FINANCE Secretary Ralph G. Recto said the law offering value-added tax (VAT) refunds for tourists will have a multiplier effect on the economy equivalent to nearly double actual visitor spending. Mr. Recto made the remarks during the signing of the law’s implementing rules and regulations (IRR), according to a Department of Finance (DoF) statement on Monday. Mr. Recto said the Philippines must have a simple, accessible, and culturally inclusive VAT refund process that allows businesses, and tourists to maximize its benefits. “The IRR tasks the DoF with engaging the services of reputable and internationally recognized VAT refund operators to provide end-to-end solutions to the government. Such refunds may be made electronically or in cash to enhance the ease of doing business,” he said.
Click the link below to read the full news from the source:https://www.bworldonline.com/economy/2025/03/24/661432/tourist-vat-refund-law-touted-for-multiplier-effect/
PEZA makes pitch to China manufacturers who could relocate to skirt Trump tariffs
Business World / Justine Irish D. Tabile / March 24, 2025
THE Philippine Economic Zone Authority (PEZA) said is refocusing its efforts on attracting Chinese investment, betting that some companies there will try to sidestep US tariffs. “PEZA counts Chinese investors, including those from Taiwan and Hong Kong, among our best bets for foreign direct investment attraction for this year and for succeeding years to come,” PEZA Director General Tereso O. Panga said. Meanwhile, a US-Irish company with 20 production facilities in China, as well as a number of MNCs, have transferred part of its operations. He said PEZA continues to field inquiries from global industry leaders based in China, including companies producing vitamins and dietary supplements, solar cells, and TV monitors and projector screens. To date, PEZA has registered 118 Mainland companies. These account for P28.7 billion in investments and 16,327 jobs
Click the link below to read the full news from the source:https://www.bworldonline.com/economy/2025/03/24/661431/peza-makes-pitch-to-china-manufacturers-who-could-relocate-to-skirt-trump-tariffs/
Philippines launches VAT refund for foreign tourists
Manila Bulletin / March 24, 2025
The Philippines has officially launched a value-added tax (VAT) refund system for foreign tourists, aiming to significantly boost tourism revenue by encouraging increased spending on local goods. According to the Department of Finance (DOF), the refund scheme initiative, formalized through the signing of the implementing rules and regulations (IRR) for Republic Act No. 12079, or the VAT Refund for Non-Resident Tourists, is designed to enhance the country’s appeal as a shopping destination. Under the new regulations, non-resident tourists holding foreign passports can claim a VAT refund on locally purchased retail goods valued at ₱3,000 or more, provided these items are taken out of the country as accompanied baggage within 60 days of purchase. These law include the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act and the Public Private Partnership (PPP) Code.
Click the link below to read the full news from the source:https://mb.com.ph/2025/3/24/ph-launches-vat-refund-for-foreign-tourists
DOJ files P5.7-B tax evasion case vs. 5 illicit cigarette traders
Philippine News Agency/Benjamin Pulta/ March 25, 2025 – MANILA
The Department of Justice (DOJ) said Tuesday it has filed a PHP5.7 billion tax evasion case against five Chinese nationals implicated in the trade of illicit cigarettes in various locations in Valenzuela and Bulacan. In a statement, the DOJ said the cases for violation of Section 258 (Unlawful Pursuit of Business) in relation to Section 236, and Section 263 (Unlawful Possession of Articles subject to Excise Tax without Payment of the Tax) of the National Internal Revenue Code of 1997 were filed before the Court of Tax Appeals on March 14. “In light of this development, warrants of arrest against the five accused Chinese nationals are expected to be issued in the soonest possible time,” the DOJ said.
Click the link below to read the full news from the source:https://www.pna.gov.ph/articles/1246748
VAT refund for foreign tourists seen to boost countryside growth
Philippine News Agency / Wilnard Bacelonia / March 25, 2025 – MANILA
The launch of the value-added tax (VAT) refund mechanism for foreign tourists is a crucial step in positioning the Philippines as a premier travel destination in the region, Senator Sherwin Gatchalian said Tuesday. Gatchalian said the long-awaited measure is expected to spur tourism-driven development beyond urban centers, with tourists’ spending helping to fuel local economies, boost consumption, and create jobs. RA 12079 aims to attract more foreign tourists to shop and spend in the Philippines by allowing them to claim VAT refunds on qualified purchases, thereby stimulating economic activity. Under the IRR, non-resident tourists holding foreign passports may claim VAT refunds on locally purchased goods worth at least PHP3,000 from accredited stores. These goods must be taken out of the country within 60 days of purchase and must be for personal use. Eligible items include retail and tangible goods such as clothing, electronics, jewelry, accessories, souvenirs, and consumables.
Click the link below to read the full news from the source:https://www.pna.gov.ph/articles/1246729
5 Chinese nationals charged in court for P5-B unpaid taxes
Manila Bulletin/ Jeffrey Damicog / March 25, 2025
Five Chinese nationals have been charged before the Court of Tax Appeals (CTA) for failure to pay more than P5 billion in taxes for large stocks of cigarettes seized from several locations in Valenzuela City last year, the Department of Justice (DOJ) said on Tuesday, March 25. In a statement, the DOJ said the charges against the accused were filed by the Valenzuela City Office of the City Prosecutor after conducting a preliminary investigation of the complaints filed by the Bureau of Internal Revenue (BIR) and the Philippine National Police-Criminal Investigation and Detection Group (PNP-CIDG). “In light of this development, Warrants of Arrest against the 5 accused Chinese nationals are expected to be issued in the soonest possible time,” said the DOJ. Charge sheets released by the DOJ showed that two separate cases were filed before the CTA for unlawful possession of articles subject to excise tax without payment under Section 263 of Republic Act (RA) 8424, the National Internal Revenue Code of 1997, as amended.
Click the link below to read the full news from the source:https://mb.com.ph/2025/3/25/5-chinese-nationals-charged-in-court-for-p5-b-unpaid-taxes
Taxing plastics: The proposed excise tax on single-use plastics – ‘Top of Mind’
The Philippine Star/ Jelica D. Perez / March 25, 2025
Plastic production around the world continues to increase due to the durability of such material, and its affordability in terms of production cost. The flip side, however, is that most countries struggle to manage the volume of plastic waste that they produce. As a result, a significant portion of plastic waste ends up in bodies of water, clogging waterways and drainage systems, which can be harmful not only to people but also to the marine ecosystem. With the purpose of addressing the issue on plastic waste, the government seeks to impose excise tax on single-use plastic (SUP) bags or secondary level plastics made of synthetic or semisynthetic organic polymer, such as “ice,” “labo,” or “sando” bags, with or without handle, used as packaging for goods or products. House Bill 4102 or the Single-Use Plastic Bags Tax Act, which was approved on Third Reading by the House of Representatives in 2022, proposes an excise tax in the amount of P100 for every kilogram of SUP bags removed from the place of production or released from the custody of the Bureau of Customs. On the other hand, Senate Bill 1844, which was filed in 2023, proposes a lesser excise tax rate in the amount of P20 for every kilogram of SUP bags. The excise tax rate imposed will thereafter be increased by four percent every year through revenue regulations. The proposed law further provides that the incremental revenues from the said excise tax will be allocated to programs of the Department of Environment and Natural Resources for the implementation of Republic Act 9003 or the Ecological Solid Waste Management Act of 2000 in municipalities.
Click the link below to read the full news from the source:https://www.philstar.com/business/2025/03/25/2430807/taxing-plastics-proposed-excise-tax-single-use-plastics
BIR wins ₱5.7-billion tax evasion case vs. illicit cigarette traders
Manila Bulletin / Jun Ramirez / March 25, 2025
The Bureau of Internal Revenue (BIR) has secured a major victory in a ₱5.7-billion tax evasion case after the Department of Justice (DOJ) ruled in its favor. The case, which the BIR filed in February, resulted in the DOJ filing two criminal charges with the Court of Tax Appeals (CTA) on March 13, 2025. The charges stem from a large-scale raid conducted by the BIR and the Criminal Investigation and Detection Group (CIDG) late last year, targeting illegal cigarette operations in Valenzuela City and Bulacan.
Click the link below to read the full news from the source:https://mb.com.ph/2025/3/25/bir-wins-5-7-billion-tax-evasion-case-vs-illicit-cigarette-traders
IRR on VAT refund for tourists signed
The Philippine Star/ Louise Maureen Simeon / March 25, 2025 – MANILA, Philippines
The government expects inbound tourism to further pick up following the signing of the implementing rules and regulations (IRR) for the value-added tax (VAT) refund for foreign tourists. The Department of Finance (DOF) and its attached agencies, the Bureau of Internal Revenue (BIR) and the Bureau of Customs signed yesterday the IRR of Republic Act 12079 or the VAT Refund for Non-Resident Tourists. he IRR mandates the DOF to engage the services of reputable and internationally recognized VAT refund operators to provide end-to-end solutions to the government.
Click the link below to read the full news from the source:https://www.philstar.com/business/2025/03/25/2430812/irr-vat-refund-tourists-signed
VAT refund law to boost Philippine tourism as shopping hub for foreign tourists—DOT
Manila Bulletin / Trixee Rosal / March 25, 2025
The implementation of the Value-Added Tax (VAT) Refund for Non-Resident Tourists Law is expected to attract more foreign visitors and position the Philippines as a premier shopping destination in Asia, the Department of Tourism (DOT) said. DOT Secretary Christina Garcia-Frasco emphasized that the signing of the law’s Implementing Rules and Regulations (IRR) on Mar. 24 at the Department of Finance (DOF) in Manila marks a key milestone in strengthening the country’s global tourism competitiveness. Signed by President Ferdinand Marcos Jr. in December 2024, Republic Act No. 12079 allows foreign tourists to claim VAT refunds on goods worth at least P3,000, provided the items are taken out of the country within 60 days from the date of purchase.
Click the link below to read the full news from the source:https://mb.com.ph/2025/3/25/vat-refund-law-to-boost-philippine-tourism
BIR to prosecute fake PWD ID users, sellers
Manila Bulletin / Jun Ramirez / March 26, 2025
The Bureau of Internal Revenue (BIR) is launching a nationwide crackdown on fake Persons with Disability (PWD) identification cards to protect legitimate PWD privileges and prevent government revenue losses. In a statement, BIR Commissioner Romeo D. Lumagui Jr. expressed that the bureau maintains a strong stance against fraudulent practices, highlighting the agency’s dedication to upholding tax incentives intended for PWDs. Lumagui noted that the BIR will fully implement all tax privileges granted by law to legitimate PWDs, while strictly enforcing documentation requirements under Revenue Regulations (RR) No. 5-2017 for businesses claiming tax deductions. Under Republic Act (RA) No. 7277, as amended by RA 9442 and 10754, establishments providing the mandated 20-percent discount and value-added tax (VAT) exemption to qualified PWDs can claim these discounts as tax deductions, provided they adhere to the documentation and procedural requirements outlined in RR 5-2017. Proper documentation, including invoices reflecting the PWD’s name and ID number, is essential for claiming tax deductions, Lumagui noted. He added that these documents serve as evidence of compliance with tax laws, ensuring that businesses support PWD welfare while adhering to regulations.
Click the link below to read the full news from the source:https://mb.com.ph/2025/3/26/bir-to-prosecute-fake-pwd-id-users-sellers
Paperless invoicing and sales reporting – ‘Taxwise or Otherwise’
Business World / Mary Rose Lara / March 26, 2025
The electronic invoicing system was first introduced via an amendment to the National Internal Revenue Code (NIRC or Tax Code) through the TRAIN Law, effective January 2018, and further amended by the recently signed CREATE MORE. To implement the updated provisions on electronic invoices, electronic sales reporting and additional allowable deductions, the BIR issued Revenue Regulations (RR) No. 11-2025.
ISSUANCE OF ELECTRONIC INVOICES
In compliance with the BIR’s directive, an Electronic Invoicing/Receipting System (EIS) was established where the data required to be transmitted are stored and processed using the Sales Data Transmission System. From the initial coverage of taxpayers required to issue electronic invoices based on the earlier RR No. 8-2022, the regulations added the following taxpayers to the list of those required to comply: (1) those classified as Large Taxpayers under the Ease of Paying Taxes (EoPT) Act and RR No. 8-2024 and (2) taxpayers using Computerized Accounting Systems (CAS), Computerized Books of Account (CBA) with electronic invoicing and other invoicing software.
ELECTRONIC SALES REPORTING REQUIREMENTS
The Electronic Sales Reporting System (ESRS) is the electronic reporting or process of storing, transmitting and/or receiving the electronic invoice data, through direct system-to-system data transfer without manual entry, to the BIR in a structured electronic format. The purpose of the system is for the taxpayers to electronically report their sales data to the BIR.
TAX INCENTIVES — ADDITIONAL DEDUCTION
As an incentive to taxpayers required or those who voluntarily comply with the electronic invoicing and sales data reporting requirements, an additional deduction from the taxable income will be allowed to help offset the cost of setting up the electronic reporting sales system. Micro and small taxpayers can additionally claim up to 100% of their total cost, while medium and large taxpayers can claim an additional deduction based on 50% of their total cost. This additional deduction may be availed of only once within the taxable year when the electronic sales reporting system is completed or when final payment for such a system is made. Additionally, imports connected with the electronic sales reporting system are exempt from taxes. In 2022, when RR No. 8-2022 was issued to promulgate the e-invoicing and electronic sales reporting provisions of the TRAIN Law, the EIS was put in place and a platform was made available to taxpayers who joined the BIR’s pilot program. Other covered taxpayers have been waiting for developments on when the e-invoicing/sales reporting would be rolled out for the rest of them. This RR No. 11-2025 seems to have answered that long-hanging question. Under RR No. 11-2025, covered taxpayers are given one year from the effectivity of the regulations (i.e., until March 14, 2026) to comply with the electronic invoicing requirements.
Click the link below to read the full news from the source:https://www.bworldonline.com/economy/2025/03/26/662042/paperless-invoicing-and-sales-reporting/
Palace bullish on VAT refund for foreign tourists
Philippine News Agency/Darryl John Esguerra/March 26, 2025 – MANILA
The government is optimistic that the newly implemented value-added tax (VAT) refund program for foreign tourists would further boost the country’s tourism and retail sectors. In a press briefing in Malacañang on Wednesday, Palace Press Officer Claire Castro said the new scheme is among the government initiatives to increase tourist arrivals and encourage more foreign tourists to spend more in the Philippines, thus bolstering economic growth. President Ferdinand R. Marcos Jr. signed Republic Act (RA) 12079, or the VAT Refund for Non-Resident Tourists, into law in December 2024. The IRR for RA 12079 was signed on Tuesday. Under the law, foreign tourists will be entitled to claim a refund on the VAT for goods personally purchased at accredited retail outlets, provided these goods are taken out of the country within 60 days and meet a minimum transaction requirement of PHP3,000.
Click the link below to read the full news from the source:https://www.pna.gov.ph/articles/1246822
Private sector: New VAT refund policy to attract more foreign shoppers
Manila Bulletin / Dexter Barro II/ March 26, 2025
The Private Sector Advisory Council (PSAC) said the implementation of a value-added tax (VAT) refund system is poised to be a “game-changer” for the country’s tourism industry, driving substantial economic growth. PSAC said the refund scheme, embodied under Republic Act (RA) No. 12079, is one of its key recommendations to President Ferdinand “Bongbong” Marcos Jr. Enacted in December last year, the implementing rules and regulations (IRR) of RA 12079 was signed on Monday, March 24. Under the law’s IRR, non-resident tourists on foreign passports can reclaim VAT on locally purchased goods from accredited stores worth at least ₱3,000—provided that these items are exported within 60 days. Internationally recognized VAT refund operators will be tapped by the government to provide access to refund services, either electronically or in cash. The VAT refund program is part of a broader set of PSAC-backed initiatives, which also includes the expansion of hotel incentives under the 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://mb.com.ph/2025/3/26/private-sector-lauds-rollout-of-vat-refund-for-foreign-tourists
Senators oppose removing tax privileges for OFWs
Manila Bulletin/ Hannah L. Torregoza/ March 27, 2025
Two senators on Thursday, March 27 rejected the possibility of removing the tax privileges granted to overseas Filipino workers (OFWs). Senate Minority Leader Aquilino “Koko” Pimentel IIII rejected this proposition which was first raised by presidential legal adviser and former senator Juan Ponce Enrile. Senate President Francis “Chiz” Escudero had warned OFWs of the repercussions of such plans saying that it would not only affect the Philippine economy, but more so, will have a negative impact on their own families here in the country. “Our OFWs should be allowed to express their opinions and sentiments through legal means without fear of any retaliation from Congress. That is their right. They should be allowed to freely do it,” Gatchalian said in a statement. “As the Chairman of the Ways and Means Committee in the Senate, I am not in favor of removing the tax privileges of our OFWs as this is a recognition of their hardwork and sacfrices for our country,” he added.
Click the link below to read the full news from the source:https://mb.com.ph/2025/3/27/senators-oppose-removing-tax-privileges-for-of-ws
SEC says no filing yet on lower MPO requirement
Business World/ Revin Mikhael D. Ochave / March 27, 2025
THE Securities and Exchange Commission (SEC) said it has not received any formal proposal to reduce the minimum public ownership (MPO) requirement for large initial public offerings (IPOs). “It didn’t reach us. Once it reaches us, that’s the time we will tell you. But for now, there’s none,” SEC Chairperson Emilio B. Aquino told reporters on the sidelines of the 2025 International Tax and Investment Conference hosted by the Asian Consulting Group in Pasay City on Wednesday.
Click the link below to read the full news from the source:https://www.bworldonline.com/corporate/2025/03/27/662030/sec-says-no-filing-yet-on-lower-mpo-requirement/
BIR: Don’t miss April 15 ITR deadline to avoid penalties
Manila Bulletin / Jun Ramirez / March 28, 2025
The Bureau of Internal Revenue (BIR) is reminding taxpayers to file and pay their 2024 income tax returns (ITR) by the April 15, 2025 deadline to prevent incurring penalties. In a statement on Friday, March 28, BIR Commissioner Romeo D. Lumagui, Jr. said that adhering to the deadline is important to ensure a smooth tax filing experience.
The BIR has mandated electronic filing for the 2024 Annual Income Tax Return (AITR), utilizing platforms like Electronic BIR Forms (eBIRForms) and the Electronic Filing and Payment System (eFPS) for those required to use it. For taxpayers lacking internet access, Revenue District Offices (RDOs) will provide eLounge facilities with assistance for e-filing. Additionally, a dedicated Electronic Filing/Tax Assistance Center will operate at the BIR National Training Center (NTC) Auditorium in Quezon City from March 24 to April 15, 2025, excluding Sundays and holidays, between 8:00 AM and 5:00 PM.
Click the link below to read the full news from the source:https://mb.com.ph/2025/3/28/bir-don-t-miss-april-15-itr-deadline-to-avoid-penalties
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