Bureau of Internal Revenue Issuances
REVENUE MEMORANDUM ORDERS (RMO)
REVENUE MEMORANDUM CIRCULARS (RMC)
RMC No. 57-2024
April 29, 2024
Publishes the full text of the Inter-Agency Task Force (IATF) Memorandum Circular dated April 12, 2024 titled “Guidelines on Filing Appeals for the Grant of the FY 2023 Performance-Based Bonus (PBB) and the years thereafter”.
REVENUE DELEGATION OF AUTHORITY ORDERS (RDAO)
RDAO No. 8-2024
May 2, 2024
Designates Head Revenue Executive Assistant of the Project Management and Implementation Service as Officer-In-Charge and gives her the authority to sign all necessary documents concerning the said office in view of the approved leave of absence of PMIS Assistant Commissioner.
RDAO No. 9-2024
May 2, 2024
Authorizes the Assistant Regional Director of RR No. 1 – Calasiao, Pangasinan to sign several documents specified in the Order in view of the approved leave of absence of RR No. 1’s Regional Director.
RDAO No. 10-2024
May 3, 2024
Authorizes the OIC-Assistant Regional Director of RR No. 16 – Cagayan de Oro City to sign several documents specified in the Order in view of the retirement of RR No. 16’s Regional Director.
Tax And Business Related News
BIR WEEKENDER BRIEFS
Volume No. 15 Issue No. 17 Week ending April 26, 2024
BIR Revenue District Office filed a RATE before the Cabanatuan City Prosecutor’s Office on April 19.
Click the link below to read the full news from the source:
https://www.bir.gov.ph/images/bir_files/internal_communications_5/2024 Weekender Briefs/v15n17 FINAL.pdf
Lumagui: Criminal Cases filed against Trading Company using P200M+ Fake Receipts supplied by Company Accountant and her Relatives
Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. reports that the BIR has filed criminal cases today, May 2, 2024, before the Department of Justice (DOJ) against the corporate officers and accountant of a trading company for using P 200,557,697.25 worth of fake receipts. The company used these fake receipts by claiming them as part of its cost of sales for the taxable year 2021. The accountant of the company supplied the receipts of fake businesses owned by her relatives. “The use of fraudulent receipts, whether it be fake receipts or ghost receipts, is tax evasion. This case is particularly deceitful because it was the company accountant which provided for a way to get fake receipts. The company accountant conspired with her relatives to create fake businesses so the company can use the fake receipts of those businesses in claiming expenses. As early as 2023 we have warned business owners not to follow the advice of crooked accountants. The BIR will make sure you will share a jail cell with them,” Commissioner Lumagui stated.
Click the link below to read the full news from the source:
https://www.bir.gov.ph/images/bir_files/internal_communications_1/2024/Press Release/PR29MAY0224.pdf
Lumagui: Nationwide EOPT Roadshow is a sign of BIR’s inclusive approach to taxpayers
Bureau of Internal Revenue Commissioner Romeo D. Lumagui Jr. is part of the Ease of Paying Taxes (EOPT) Roadshow (Metro Manila Cluster) held on April 29, 2024, at the PICC Reception Hall in Pasay City. The EOPT Roadshow, aims to educate taxpayers on the updates brought about by the EOPT law to our taxation system. The BIR will be holding roadshows all over the Philippines for the purpose of educating taxpayers about the EOPT law and the new regulations issued by the BIR in furtherance of the EOPT law. These roadshows are a manifestation of Commissioner Lumagui’s commitment to his standard of Excellent Taxpayer Service, a part of which is having an inclusive approach to taxpayers.
Click the link below to read the full news from the source:
https://www.bir.gov.ph/images/bir_files/internal_communications_1/2024/Press Release/PR28APR2924.pdf
Lumagui: BIR grants 90-day extension for compliance with Withholding Tax on Online Sellers/Merchants under Revenue Regulations No. 16-2023
(Department of Finance / April 20, 2024)
Bureau of Internal Revenue Commissioner Romeo D. Lumagui Jr. granted an extension of the transitory period for compliance with Revenue Regulations No. 16-2023 (RR No. 16- 2023) that implements a withholding tax system on gross remittances made by electronic marketplace operators and digital financial services providers to sellers/merchants. Revenue Memorandum Circular No. 55-2024 extended the transition period by adding another 90-days for compliance, or until July 14, 2024. The extension was made after considering the private sector’s request in relation to implementing RR No. 16-2023.
Click the link below to read the full news from the source:
https://www.bir.gov.ph/images/bir_files/internal_communications_1/2024/Press Release/PR26APR1624.pdf
The IRR of Ease of Paying Taxes Act
(Business World / Kyle Mikko C. Augustin / April 29, 2024)
The passage of the Ease of Paying Taxes (EoPT) Act, or Republic Act No. 11976, sparked hope among taxpayers, who envisioned a smoother journey in navigating tax-related complexities. The Bureau of Internal Revenue (BIR) deserves commendation for its receptiveness to public feedback and ongoing efforts to simplify tax processes. With the recent issuance of the Implementing Rules and Regulations (IRR) for the EoPT Act that took effect on April 27, clarity in its provisions has emerged, marking a positive step towards enhancing tax compliance. Considering these advancements, it is imperative for taxpayers to strategically plan for the effective implementation of the law. Businesses must proactively address various aspects outlined in the IRR. Key areas for planning include maximizing opportunities for claiming output VAT credits, devising robust systems for monitoring uncollected receivables, establishing comprehensive documentation practices to meet evidence requirements, and implementing measures to ensure ongoing compliance with regulatory mandates. By strategically planning and addressing these factors, businesses can navigate the implementation of the EoPT Act more effectively. Taxpayers are actively engaging in the practical implementation and enforcement of the provisions outlined in the IRR of the EoPT Act. Full compliance with these regulations demands a comprehensive understanding of the requirements and proactive measures to ensure adherence.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2024/04/29/591783/the-irr-of-ease-of-paying-taxes-act/
DoF counting on easier compliance to raise tax take
(Business World / Luisa Maria Jacinta C. Jacson / April 29, 2024)
THE recently passed Ease of Paying Taxes (EoPT) law is expected to help the government improve its revenue performance by streamlining tax compliance, the Department of Finance (DoF) said. “Hopefully, especially with this new law, we will be able to simplify tax compliance and therefore generate additional revenues for the government,” Finance Undersecretary Charlito Martin R. Mendoza told reporters on Monday. “The taxpayers, we hope, will voluntarily comply with their tax obligations and therefore avoid tax evasion,” he added.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2024/04/29/591784/dof-counting-on-easier-compliance-to-raise-tax-take/
CTA denies, for lack of jurisdiction, Franklin Baker’s petition for P59.1M tax refund
(Manila Bulletin / Czarina Nicole Ong Ki / April 30, 2024)
For lack of jurisdiction, the Court of Tax Appeals (CTA) has denied the claim for P59.1 million additional tax refund sought by Franklin Baker Company of the Philippines for input value added tax (VAT) attributable to zero-rated sales for 2018. Franklin Baker, a firm engaged in the global supply of desiccated coconut products, applied for tax credits or refund amounting to P87.8 million on July 15, 2020. A total of P28.7 million was granted by the Bureau of Internal Revenue (BIR) on Oct. 2, 2020. The firm’s additional claim for the refund of P59.1 million was denied with the BIR’s ruling that the firm failed to substantiate its claim. It elevated the issue before the CTA.
Click the link below to read the full news from the source:
https://mb.com.ph/2024/4/30/cta-denies-for-lack-of-jurisdiction-franklin-baker-s-petition-for-p59-1-m-tax-refund
Philippines lagging other jurisdictions in taxing digital transactions
(Business World / John Victor D. Ordonez / May 1, 2024)
A 12% VALUE-ADDED TAX (VAT) on digital transactions is long overdue, with the Philippines lagging many countries in implementing one, a tax professional said. “If the government does not tax digital transactions, it is ignoring a good source of taxes.” Senate Bill No. 2528, which seeks to require foreign online streaming platforms with subscribers in the Philippines to pay 12% VAT, is set for floor debate at the chamber.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2024/05/01/592308/philippines-lagging-other-jurisdictions-in-taxing-digital-transactions/#google_vignette
SEC urges firms to file required reports Compliance rise to 66% from just 20% of registration corporations
(Manila Bulletin / James A. Loyola / May 1, 2024)
The Securities and Exchange Commission (SEC) is urging companies to be more diligent in complying with their reportorial requirements instead of complaining about the huge increase in fines and penalties recently imposed by the commission after a lengthy amnesty period. “We’re not happy penalizing them at all. It’s an exercise of good corporate governance, submitting your financial statements, (and) general information sheet to your regulators, complying with orders of the SEC. That’s good corporate governance,” said SEC Chairperson Emilio B. Aquino.
Click the link below to read the full news from the source:
https://mb.com.ph/2024/5/1/sec-calls-on-firms-to-file-required-reports
BIR plans to change logo, over 300 submission made
(The Philippine Star / Louise Maureen Simeon / May 2, 2024)
MANILA, Philippines — The Bureau of Internal Revenue (BIR) has received over 300 submissions from the public as it moves to change its 120-year-old logo and make it more representative of its mandate for nation building. BIR Commissioner Romeo Lumagui said the revenue agency collected more than 300 entries for the contest it opened last month for the design of the new BIR logo.
Click the link below to read the full news from the source:
https://www.philstar.com/business/2024/05/02/2351835/bir-plans-change-logo-over-300-submissions-made
No need to revise revenue targets yet – Finance chief
(Business World / Luisa Maria Jacinta C. Jocson / May 2, 2024)
THERE IS NO NEED to revise revenue targets yet as the government is still on track to meet its fiscal targets on the back of efforts to enhance tax administration, Finance Secretary Ralph G. Recto said. “Our revenue collection today seems to be on target. No need to revise it yet,” Mr. Recto told reporters on Monday. Latest data from the Treasury showed that the National Government’s budget gap widened by 0.65% to P272.6 billion in the first quarter, as state revenues jumped by 14.05% to P933.7 billion.
Click the link below to read the full news from the source:
https://www.bworldonline.com/top-stories/2024/05/02/592267/no-need-to-revise-revenue-targets-yet-finance-chief/#google_vignette
SEC yet to implement fee hikes, awaits assessment
(Business World / Revin Mikheal D. Ochave / May 2, 2024)
THE Securities and Exchange Commission (SEC) said its proposed higher fees and charges have not yet been implemented as it is awaiting a third-party assessment. “We just have the increased fines and penalties,” SEC Commissioner McJill Bryant T. Fernandez told reporters on the sidelines of a forum in Taguig City on April 29. “We have not implemented the fees and charges yet,” he added. SEC Chairperson Emilio B. Aquino said the commission had already sent a regulatory impact assessment of the proposal to the Anti-Red Tape Authority (ARTA).
Click the link below to read the full news from the source:
https://www.bworldonline.com/corporate/2024/05/02/592213/sec-yet-to-implement-fee-hikes-awaits-assessment/#google_vignette
New MSME Dev’t Plan focuses on digitalization – DTI
(Manila Bulletin / Khriscielle Yalao / May 2, 2024)
Digitalization is at the heart of the national government’s new micro, small, and medium enterprises (MSME) Development Plan 2023-2028, which aims to integrate artificial intelligence (AI) and digital technologies to strengthen domestic enterprises. “The new MSME Development Plan is more than a policy document; it is a blueprint for the future, ensuring that our enterprises are competitive, innovative, and resilient,” said Trade and Industry (DTI) Secretary Alfredo Pascual in a statement. “By focusing on digitalization, we are preparing our MSMEs to meet the challenges of the modern economy and ensuring they continue to be a critical driver of our nation’s growth,” he added.
Click the link below to read the full news from the source:
https://mb.com.ph/2024/5/2/new-msme-dev-t-plan-focused-on-digitalization-dti
BIR files rap vs accountancy firm tagged in P200-M worth of Fake receipts
(Phlistar.com / Ian Laqui / May 1, 2024)
MANILA, Philippines — The Bureau of Internal Revenue (BIR) filed criminal charges against corporate officers and an accountant of a trading company for using more than P200 M worth of fake receipts. In a press release on Thursday, the tax bureau said that it lodged a complaint before the Department of Justice about the firm’s use of fake receipts worth P200,577,697.25 claiming that it is a part of its “cost of sales” for tax year 2021.
Click the link below to read the full news from the source:
https://www.philstar.com/business/2024/05/02/2352103/bir-files-rap-vs-accountancy-firm-tagged-p200-m-worth-fake-receipts
DOF leads conclusion of PH-Cambodia double taxation agreement to protect Filipinos taxing rights and increase trade and investment across economic borders
(Department of Finance / May 3, 2024)
The Department of Finance (DOF) has led the conclusion of the draft double taxation agreement (DTA) between the Philippines and Cambodia on April 19, 2024 to protect Filipinos’ taxing rights and increase trade and investment across economic borders. “The conclusion of this DTA marks a significant milestone in strengthening the Philippines and Cambodia’s economic ties. Through this effort, we have not only complied with our commitment to completing the ASEAN DTA network, but the DOF and the BIR have also ensured that the taxing rights of Filipinos here and abroad are equitably preserved and protected,” Finance Secretary Ralph G. Recto said. Under the terms of the agreement, both Cambodia and the Philippines agree to mitigate the burden of double taxation on individuals and businesses operating across borders, which may contribute to the elimination of barriers to trade and investment and encouragement of cross-border economic activities.
Click the link below to read the full news from the source:
https://www.dof.gov.ph/dof-leads-conclusion-of-ph-cambodia-double-taxation-agreement-to-protect-filipinos-taxing-rights-and-increase-trade-and-investment-across-economic-borders/
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