Bureau of Internal Revenue Issuances
REVENUE REGULATIONS
RR No. 14-2025
April 25, 2025
Amending Section 14 of the Revenue Regulations No. 3-2025 on the prescribed policies and guidelines for the implementation of Republic Act No. 12023, titled “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,” imposing the Value-Added Tax on Digital Services.
(Date Posted: April 25, 2025)
REVENUE MEMORANDUM CIRCULAR
RMC No. 38-2025
April 23, 2025
Clarification on the requirement of submission of Taxpayer Identification Number of cooperative members for the issuance of Certificate of Tax Exemption in relation to RMC No. 158-2022.
RMC No. 39-2025
April 24, 2025
Circularizing the Updated List of Accredited Microfinance Non-Government Organizations.
RMC No. 40-2025
April 24, 2025
Clarification on the submission of proof of settlement of estate pursuant to Revenue Regulations No. 10-2023.
REVENUE MEMORANDUM ORDER
RMO No. 20-2025
April 24, 2025
Policies and Procedures in Processing One-Time Transaction (ONETT) of Cannot be Located (CBL) Taxpayers
REVENUE DELEGATION OF AUTHORITY ORDER
RDAO No. 20-2025
April 25, 2025
Designates the OIC-Assistant Commissioner of the Legal Service as Officer-in-Charge of the Legal Group in view of the official travel of the Legal Group’s OIC-Deputy Commissioner
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
SECURITIES AND EXCHANGE COMMISSION
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
DRAFT IMPLEMENTING RULES AND REGULATIONS (IRR) | Department of Finance
The Department of Finance invites stakeholders to a Public Consultation on the Draft Implementing Rules and Regulations of Republic Act No. 12079, otherwise known as “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.”, on 17 March 2025, 1:00 PM – 4:00 PM via Zoom.
Interested participants may register via this link:
https://bir-gov-ph.zoom.us/meeting/register/j5Rtidr5S4y1qStWCBSDHw
The Draft Implementing Rules and Regulations may be accessed at:
Stakeholders may submit their official position papers via e-mail at esiriban@dof.gov.ph as the e-mail subject, please use:
“[COMMENT ON DRAFT VAT REFUND FOR TOURIST IRR]”
NOTE:
* Only registered attendees will be accommodated.
* Meeting link to be sent to confirmed attendees.
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
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
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 WEEKENDS BRIEFS
Volume No. 16 Issue No 16 Week ending April 18, 2025 – (BIR Website)
BIR district offices conduct evaluation of CRM/POS Machines on April 11, 2025.
Click the link below to read the full news from the source:
https://bir-cdn.bir.gov.ph/BIR/pdf/v16n16.pdf
Lumagui: Top News Asia “Men of the Year” Award highlights success of BIR’s crackdown on Ghost Receipts; RAFT task force a “Turning Point for Corporate Accountability
BIR Website / April 23, 2025
Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. has been honored by Top News Asia magazine as one of the “Men of the Year”. Alongside other highranking government officials, Commissioner Lumagui is part of the cover of the said magazine for its April 2025 issue. The success of the Run After Fake Transactions (RAFT) task force, which is the BIR’s nationwide crackdown against Ghost Receipts, was also highlighted in a separate feature article in the said magazine.
Click the link below to read the full news from the source:
https://bir-cdn.bir.gov.ph/BIR/pdf/PR17APR2325.pdf
CTA affirms P15-M tax refund to Panay Power Corp.
Philippine News Agency / Benjamin Pulta / April 16, 2025 – MANILA
The Court of Tax Appeals (CTA) has affirmed its earlier ruling in favor of the Panay Power Corporation’s claim for a refund of PHP15 million in unutilized and excess withholding tax for 2019. On June 1, 2020, Panay Power filed its annual income tax return (AITR) for the year 2019, which reflected an overpayment of some PHP26.25 million. On Feb. 22, 2022, it filed a petition before the Bureau of Internal Revenue (BIR) requesting for PHP 16,279,531.00 refund. Panay Power then filed a petition for review before the CTA on May 30, 2022. During the trial, the BIR contended that Panay Power is not entitled to the claim for refund of creditable withholding tax (CWT) since it did not provide supporting documents to show that income from which CWT being claimed was declared in the AITR; it failed to comply with the prescribed checklist of requirements to be submitted involving claims for unutilized CWT pursuant to Revenue Memorandum Order (RMO) No. 53-98 and failed to prove compliance with Revenue Regulations (RR) No. 2-2006; and it failed to present evidence to prove actual remittance of the alleged taxes to the BIR.
Click the link below to read the full news from the source:
https://www.pna.gov.ph/articles/1248220
BIR sees rise in online AITR filings this year
The Philippine Star / Louise Maureen Simeon / April 16, 2025 – MANILA, Philippines
The Bureau of Internal Revenue (BIR) is seeing the impact of its digital transformation efforts, with more Filipinos opting to file and pay their annual income tax returns (AITRs) online this tax season. BIR Commissioner Romeo Lumagui observed a noticeable decrease in foot traffic at district offices and filing centers during the AITR deadline yesterday. During his visit to BIR-Revenue Region 6 in Manila, Lumagui said he observed that the lines were shorter compared to last year, an indication that the agency’s electronic filing and payment system is effective.
Click the link below to read the full news from the source:
https://www.philstar.com/headlines/2025/04/16/2436357/bir-sees-rise-online-aitr-filings-year
BIR collection hits P669 billion in first quarter
The Philippine Star / Louise Maureen Simeon/ April 16, 2025 – MANILA, Philippines
The Bureau of Internal Revenue (BIR) saw its tax collection rise to P669 billion in the first quarter on the back of improved value-added tax (VAT) take. During the annual income tax return filing deadline on Tuesday, BIR Commissioner Romeo Lumagui Jr. said preliminary data showed that collections reached P668.79 billion from January to March. The amount is 13 percent higher than the P591.77 billion generated in the same period last year. The first quarter tax take is also near the P671.99-billion target for the three-month period. Lumagui said he is confident that the BIR would exceed the initial data as collections are still being consolidated with the Bureau of the Treasury.
Click the link below to read the full news from the source:
https://www.philstar.com/business/2025/04/16/2436301/bir-collection-hits-p669-billion-first-quarter
Tax court grants oil firm’s P85-M refund
Philippine Daily Inquirer / Kathleen De Villa / April 17, 2025 – MANILA, Philippines
The Court of Tax Appeals (CTA) has partially granted the petition of Shell Pilipinas Corp. (SPC) for a refund of about P85.5 million in excise taxes “illegally or erroneously collected” from the oil giant in 2020 for the sale of its bunker fuel to a tax-exempt entity. But of the original amount the company is seeking, the tax court reduced the refund to P84.97 million, representing 14.84 million liters of fuel oil imported, locally manufactured, and sold to Pioneer Float Glass Manufacturing Inc., a Philippine Economic Zone Authority-registered company, from January to June 2020. The court, in a 24-page decision on April 16, noted that the documentary evidence for the sale and deliveries of the remaining 90,000 liters of fuel oil worth P540,000 was denied for being “blurred or unreadable.”
Click the link below to read the full news from
https://newsinfo.inquirer.net/2053435/tax-court-grants-oil-firms-p85-m-refund
BIR: Vape regulation to trim excise tax gap
The Philippine Star / Louise Maureen Simeon / April 17, 2025 – MANILA, Philippines
The Bureau of Internal Revenue (BIR) is banking on the imposition of vape stamps to contribute to the further reduction of the excise tax gap this year. BIR commissioner Romeo Lumagui said the revenue agency is expecting that the shortfall in excise tax would narrow after it mandated vape sellers to use vape stamps to ensure proper tax collection. “We are hoping that with the increase in compliance with the vape players, we will be able to cut the gap,” Lumagui told reporters. 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/2025/04/17/2436529/bir-vape-regulation-trim-excise-tax-gap
Vape collections to prop up excise tax take
Business World / Aubrey Rose A. Inosante / April 16, 2025
Revenue Commissioner Romeo D. Lumagui said vape collections can help the bureau hit its excise tax goals this year. In 2025, the Bureau of Internal Revenue (BIR) has an P343.10 billion excise tax target, 12.76% higher than the recorded collection in 2024. “That’s what we are expecting because I was more counting on vape. Though cigarette consumption has really decreased, but the efforts continue, especially for vapes,” he told reporters on the sidelines of a briefing on Income Tax Return filing day.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2025/04/16/666502/vape-collections-to-prop-up-excise-tax-take/
GMA’s Script2010 scores P45M win vs. BIR—CTA says “Too Late!”
Bilyonaryo.com / April 19, 2025
Bilyonaryo Felipe Gozon’s GMA Network just bagged a legal win worth P45.4 million, thanks to its events arm Script2010 Inc. and some serious BIR blunders. The Court of Tax Appeals (CTA) threw out the Bureau of Internal Revenue’s latest attempt to revive a tax deficiency case dating back to 2011, saying the agency missed its chance—again. In a February 17, 2025 ruling, the CTA En Banc denied the BIR’s petition for review after it bungled the procedure yet again by filing the wrong kind of motion. “Final na ‘to,” the CTA essentially said, reminding the taxman that it already ruled in favor of Script2010 in 2020—canceling the P45M tax assessment because the prescriptive period had lapsed.
Click the link below to read the full news from the source:
https://bilyonaryo.com/2025/04/19/gmas-script2010-scores-p45m-win-vs-bir-cta-says-too-late/money/
Health experts urge PHL Congress to hike ‘sin taxes,’ boost funding vs obesity
Business World / Kenneth Christiane L. Basilio / April 21, 2025
PHILIPPINE lawmakers should raise the taxes on sugary and alcoholic drinks as well as cigarettes to curb consumption and generate revenue for public health programs, health experts said. The extra revenue could help fund Philippine Health Insurance Corp.’s (PhilHealth) expanded benefit packages as well as state programs against obesity, said Madeleine de Rosas-Valera, a former Health undersecretary. “Maybe we need a 10% increase in sin taxes per year,” she said in an interview, adding that tax increase rates under the law are not enough to fund the state health insurer. The Philippines levies “sin taxes” on alcoholic beverages and tobacco products to deter consumption, with annual tax rate hikes of 6% and 5%, respectively, according to the Bureau of Internal Revenue. Sugary drinks are taxed a flat P6 or P12 depending on the type of sweeteners used without yearly increases, based on Republic Act No. 10963 or the 2018 Tax Reform for Acceleration and Inclusion Law. The Finance department last year said it is not keen on raising taxes on sin products.
Click the link below to read the full news from the source:
https://www.bworldonline.com/the-nation/2025/04/21/667082/health-experts-urge-phl-congress-to-hike-sin-taxes-boost-funding-vs-obesity/
Simplified VAT refunds under CREATE MORE ‘Let’s Talk Tax’
Business World / Gemmalu O. Molleno-Placido / April 21, 2025
To be fair, several laws have been passed showing that the government is serious about making things easier for investors. One important law is Republic Act 12066, or the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy, also known as the “CREATE MORE” Act, which was signed into law on Nov. 11.
One of the main features of CREATE MORE is the amendment of Section 112 of the National Internal Revenue Code (NIRC), which outlines the new process for VAT refunds. Pursuant to this, the BIR issued Revenue Regulation (RR) 10-2025 on Feb. 25 and Revenue Memorandum Circular (RMC) 30-2025 on April 10. These regulations were issued to implement the VAT provisions of CREATE MORE. In addition, RA 12079, an act creating a VAT refund mechanism for non-resident tourists, was signed on Dec. 6.
Second, the refund of input VAT arising from (a) cancellation of VAT registration and (b) cessation or dissolution of business. For VAT refunds due to cancellation of VAT registration, the claim must be filed within two years from the date of cancellation and the taxpayer application for the issuance of a tax credit certificate or cash refund for any unused input tax which may be used in payment of his other internal revenue taxes, or apply for a refund for any unused input tax. For cancellation of registration due to cessation or dissolution, the taxpayer may claim within two years from the date of the issuance of the BIR tax clearance.
Third, the VAT refund on locally purchased goods of non-resident tourists under RA 12079. The law requires the government to engage the services of one or more reputable, globally recognized, and experienced VAT refund operators that will provide end-to-end solutions to establish and operate the refund system for tourists. The details are covered by separate Implementing Rules and Regulations (IRR) of RA 12079 issued by the Department of Finance (DoF), the BIR and Bureau of Customs (BoC). As yet, the BIR has not issued the detailed rules and regulations outlining the requirements for the processing of VAT refunds.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2025/04/21/667064/simplified-vat-refunds-under-create-more/
Government urged to consider tax relief on insurance premiums
The Philippine Star / Louise Maureen Simeon / April 22, 2025 – MANILA, Philippines
A tax relief measure on insurance premiums in the Philippines could boost overall coverage in a country that still has a very low level of social protection penetration. In an interview with The STAR, Prudential plc CEO Anil Wadhwani, the parent firm of leading insurance company Pru Life UK, said proper incentives could serve as a significant accelerator in insurance penetration. As of end-2024, the share of the insurance sector to the country’s gross domestic product (GDP) still remains below two percent. “It (tax relief) does not only benefit the end-consumer, but the overall economy. Insurance is a long-term business and it kind of becomes a catalyst to invest and support broader economic growth,” Wadhwani said.
Click the link below to read the full news from the source:
https://www.philstar.com/business/2025/04/22/2437342/government-urged-consider-tax-relief-insurance-premiums
DOF simplifies tax breaks availment for education initiatives
Philippine News Agency / Joann Villanueva / April 23, 2025 – MANILA
The Department of Finance (DOF) has issued a revenue regulation aimed at consolidating education-related tax incentives to boost investments in human capital development. Revenue Regulations (RR) No. 13-2025 aims to simplify and consolidate outdated procedures that have hampered access to tax incentives granted under existing laws for education and training, the DOF said in a statement Wednesday. The regulation, signed by Finance Secretary Ralph Recto on March 17, 2025 upon the recommendation of Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui Jr., took effect on April 17, or 15 days after its publication on the BIR website. It ensures ease of doing business while encouraging investments in primary to tertiary education, as well as technical education and skills development.
Click the link below to read the full news from the source:
https://www.pna.gov.ph/articles/1248591
Tax exemption rules simplified for education, training investments
Business World / Luisa Maria Jacinta C. Jocson / April 23, 2025
The Bureau of Internal Revenue (BIR) said it simplified the tax exemption application process for education and upskilling projects. BIR Revenue Regulations No. 13-2025 aim to “simplify and consolidate outdated procedures that have hampered access to tax incentives granted under existing laws for education and training.” The revenue regulations were signed in March and took effect on April 17. “The new regulations enhance the ease of doing business, while supporting investments in primary to tertiary education, technical education, and skills development,” the Department of Finance said.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2025/04/23/667917/tax-exemption-rules-simplified-for-education-training-investments/
BIR reports 22.5% rise in tax filings this year
Philippine News Agency / Filane Mikee Cervantes / April 24, 2025 – MANILA
The Bureau of Internal Revenue (BIR) on Thursday reported a 22.5 percent increase in annual income tax return (ITR) filings this year, attributing it to its early tax awareness campaign and digitalization efforts. During an interview on PTV-4’s Bagong Pilipinas Ngayon, BIR Commissioner Romeo Lumagui Jr. said the increase was seen from January through the April 15 deadline, with fewer people physically visiting revenue offices. “Well, naging maganda po ang turnout nitong huling araw ng filing… tumaas po tayo. Nakakuha po tayo ng 22.5 percent increase from last year’s tax filing kaya naging maganda ang naging turnout nitong tax filing season na ito (The turnout on the last day of filing was good… We recorded a 22.5 percent increase from last year’s tax filing),” Lumagui said. He said the increase was due to the early kickoff of the tax awareness campaign in February, now officially designated as “Tax Awareness Month,” as well as the improved implementation of online filing systems. Lumagui noted a visible drop in the number of taxpayers physically visiting BIR offices and filing centers this season, indicating that more individuals are now using digital platforms to submit and pay their taxes.
Click the link below to read the full news from the source:
https://www.pna.gov.ph/articles/1248648
DOF streamlines tax perks for education
The Philippine Star / Keisha Ta-Asan / April 24, 2025 – MANILA, Philippines
The Department of Finance (DOF) has rolled out new regulations aimed at simplifying access to tax incentives for education-related initiatives, in a bid to attract more private sector investments in the country’s human capital development. Finance Secretary Ralph Recto on March 17 signed Revenue Regulations (RR) 13-2025, which took effect on April 17 following its publication on the Bureau of Internal Revenue (BIR) website. The measure was endorsed by BIR Commissioner Romeo Lumagui Jr. “By prioritizing education, we are accelerating not only national development, but more importantly, we are creating more opportunities to uplift the lives of every Filipino through strategic human capital investments,” Recto said.
Click the link below to read the full news from the source:
https://www.philstar.com/business/2025/04/24/2437839/dof-streamlines-tax-perks-education
9 more essential medicines exempted from VAT
The Philippine Star / Rhodina Villanueva / April 25, 2025 – MANILA, Philippines
The Food and Drug Administration (FDA) has added nine drug products to the list of essential medicines that are exempted from value-added tax (VAT) as mandated by law. In its Advisory No. 2025-0498, the FDA endorsed nine more medicines that must be VAT-exempt as provided by Republic Act No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. The move aims to make the medicines affordable to the public. The agency added, “In this regard, provided below are the latest updates on the list of VAT-exempt health products pursuant to RA No. 11534, effective upon the issuance of this advisory.” Included in the list are medicines for cancer: Bortezomib 3.5 mg (powder for injection); Docetaxel (as trihydrate) 20 mg/mL (80 mg/4mL) (concentrate for solution for IV infusion); Lenvatinib (as mesylate) 10 mg (hard gelatin capsule) and 4 mg (capsule); Lenalidomide 7.5 mg and 20 mg (capsule); and Paclitaxel 6 mg/mL (60 mg/10mL) (solution for injection), 6 mg/mL (100.2 mg/16.7 mL) (solution for injection), and 300 mg/2.73 mL (concentrate solution for IV infusion). Meanwhile, medicine for diabetes added to the list is Saxagliptin (as hydrochloride) + Dapagliflozin (as propanediol monohydrate) 5 mg/10 mg (film-coated tablet). For hypertension, added is Losartan potassium + Rosuvastatin (as calcium) + Amlodipine (as camsilate) 100 mg/ 20 mg/ 5 mg, 100 mg/ 10 mg/ 5 mg, 50 mg/ 20 mg/ 5 mg, 50 mg/ 10 mg/5 mg (film-coated tablet). Also included is medicine for kidney disease: Peritoneal Dialysis Solution with 2.5 percent Dextrose. Each 100 mL (formulation) contains: Dextrose Anhydrous BP 2.5g, Sodium Chloride BP 538 mg, Sodium Lactate BP 448 mg, Calcium Chloride BP 25.7 mg, Magnesium Chloride BP 5.08 mg (dialysis solution – intraperitoneal). For tuberculosis, added to the list is Rifampicin + Isoniazid + Pyrazinamide 75 mg/ 50 mg/ 150 mg (dispersible tablet). Under CREATE, certain health products including drugs for hypertension, cancer, mental illnesses, tuberculosis, kidney diseases, diabetes and high cholesterol, shall be exempted from VAT.
Click the link below to read the full news from the source:
https://www.philstar.com/headlines/2025/04/25/2438192/9-more-essential-medicines-exempted-vat
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