Bureau of Internal Revenue Issuances
REVENUE MEMORANDUM CIRCULARS (RMC)
RMC No. 62-2024
May 16, 2024
Announces the availability of the “Taxpayer Classification Inquiry” functionality in the Online Registration and Update System
Tax And Business Related News
BIR WEEKENDER BRIEFS
Volume No. 15 Issue No 19 Week ending May 10, 2024
A total of 2 tax cases under BIR’s Run After Tax Evaders Program were filed by district offices on April 30 and May 2 against individuals for using spurious invoices and violating invoicing requirements.
Click the link below to read the full news from the source:
https://www.bir.gov.ph/images/bir_files/internal_communications_5/2024%20Weekender%20Briefs/v15n19%20FINAL%202.pdf
Lumagui: BIR raids 7 makeshift warehouses of illicit cigarettes in Palawan, 150M in tax liability
Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. reports that a successful raid of seven (7) makeshift warehouses in Brooke’s Point, Palawan, was conducted on May 1, 2024. The BIR seized 227,351 packs of illicit cigarettes. After inventory of the seized illicit products, the illicit traders and possessors were found responsible for Php 150,693,543 in tax liability. This is a particularly successful operation for the BIR because Palawan is considered a hotspot for the illicit cigarette trade. “The BIR is continuous in its war against illicit vape and cigarette trade, all over the Philippines. Whether the illicit trade is in Palawan or in Metro Manila, we will pursue them. Our regional and district offices have their orders to deploy all available manpower in curbing illicit vape and cigarette trade,” 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%20Release/PR32MAY1524.pdf
Lumagui: BIR vows to continue its War against Illicit Vape and Cigarettes in support of PBBM and the Private Sector Advisory Council-Agriculture Sector Group anti-smuggling drive
Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. has ordered all BIR officials to continue exerting all efforts in fighting against illicit vape and cigarette traders, whether the same be sold online or through brick-and-mortar stores. This order comes after the May 8, 2024, meeting of the Private Sector Advisory Council-Agriculture Sector Group in Malacañang, where President Ferdinand R. Marcos Jr. was present. Illicit vape and cigarette, whether sold online or through ordinary stores, is tax evasion. It is criminal in nature. The nationwide forces of the BIR have their orders to continue raiding and filing criminal cases against any individual or business that is involved in the illicit vape and cigarette trade. We have warned you as early as 2022. We have raided and filed criminal cases as early as 2022. Register your business and pay your taxes. You are destroying an industry that provides millions of jobs to Filipinos,” 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%20Release/PR31MAY1324.pdf
BIR conducts Briefing on the Ease of Paying Taxes Act for BIR Executives and Managers
Commissioner Romeo D. Lumagui, Jr., together with the Deputy Commissioners, spearheaded the conduct of the Briefing on the Ease of Paying Taxes Act and its Implementing Revenue Regulations for BIR Executives and Managers on May 2, 2024 via Zoom. The briefing was attended by all BIR officials nationwide, namely: the Assistant Commissioners, Head Revenue Executive Assistants, Chiefs-of-Staff, Regional Directors, Assistant Regional Directors, Division Chiefs and Assistant Division Chiefs in the National Office, Regional Offices and Revenue Data Centers, and Revenue District Officers and Assistant Revenue District Officers. Heads of offices were also advised to ensure that the briefing was accessible to their employees
Click the link below to read the full news from the source:
https://www.bir.gov.ph/images/bir_files/internal_communications_5/2024%20BIR%20Updates/BIR%20Updates%20Issue%20No.%209%20S.%202024.pdf
BIR conducts Briefing on the Ease of Paying Taxes Act for BIR Executives and Managers
Commissioner Romeo D. Lumagui, Jr., together with the Deputy Commissioners, spearheaded the conduct of the Briefing on the Ease of Paying Taxes Act and its Implementing Revenue Regulations for BIR Executives and Managers on May 2, 2024 via Zoom. The briefing was attended by all BIR officials nationwide, namely: the Assistant Commissioners, Head Revenue Executive Assistants, Chiefs-of-Staff, Regional Directors, Assistant Regional Directors, Division Chiefs and Assistant Division Chiefs in the National Office, Regional Offices and Revenue Data Centers, and Revenue District Officers and Assistant Revenue District Officers. Heads of offices were also advised to ensure that the briefing was accessible to their employees
Click the link below to read the full news from the source:
https://www.bir.gov.ph/images/bir_files/internal_communications_5/2024%20BIR%20Updates/BIR%20Updates%20Issue%20No.%209%20S.%202024.pdf
BIR conducts 1st EOPT Roadshow for Metro Manila taxpayers
Commissioner Romeo D. Lumagui, Jr., together with the Deputy Commissioners, Assistant Commissioners and Head Revenue Executive Assistants, and other revenue officials, spearheaded the conduct of the first Ease of Paying Taxes (EOPT) Roadshow for Metro Manila taxpayers on April 29, 2024 at the Reception Hall of the Philippine International Convention Center in Pasay City. Almost 2,000 participants, comprised mostly of taxpayers under the Large Taxpayers Service (LTS) and Revenue Region Nos. 5-Caloocan City; 6-City of Manila; 7A-Quezon City; 7B-East NCR; 8A-Makati City; and 8B-South NCR attended the roadshow. Also present were officials under LTS, Regional Directors, Revenue District Officers, and other concerned personnel from the Metro Manila Revenue Regions and Revenue District Offices.
Click the link below to read the full news from the source:
https://www.bir.gov.ph/images/bir_files/internal_communications_5/2024%20BIR%20Updates/BIR%20Updates%20Issue%20No.%208%20S.%202024.pdf
Tax court denies Ford Group’s appeal in P365M refund claim
Abogado.com.ph / May 11, 2024
The Court of Tax Appeals has denied the petition for review filed by automobile manufacturer Ford Group Philippines Inc. in connection with its refund claim for P365 million representing excess and unused creditable withholding taxes. In a May 8 decision penned by Associate Justice Ma. Belen Ringpis-Liban, the tax court’s Second Division ruled in favor of the Bureau of Internal Revenue (BIR) and rejected Ford’s petition for review “for lack of merit.”
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Tax court denies Ford Group’s appeal in P365M refund claim (abogado.com.ph)
CTA denies LKY Property Holdings’ plea for P44.25M tax refund
Manila Bulletin / Jeffrey Damicog / May 12, 2024
The Court of Tax Appeals (CTA) has dismissed the petition for P44.25 million tax refund sought from the Bureau of Internal Revenue (BIR) by LKY Property Holdings, Inc. In a decision, the CTA’s first division said refunds for erroneously collected taxes must be made within two years from the payment of the taxes. LKY asked the CTA to order BIR to refund P44.25 million in erroneously collected documentary stamp tax (DST) and creditable withholding tax (CWT) in 2014.
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CTA denies LKY Property Holdings’ plea for P44.25M tax refund (mb.com.ph)
Delay VAT refunds scored
Business World / John Victor D. Ordonez / May 12, 2024
THE GOVERNMENT must push for stricter penalties against internal revenue officers who cause delays in value-added tax (VAT) refund claims, economists and tax experts said at the weekend. Last week, Senator Sherwin T. Gatchalian filed a bill proposing to transfer the responsibility of processing VAT refunds to the Department of Finance (DoF) Revenue Operations Group from the Bureau of Internal Revenue (BIR) as companies give up on their claims due to delays. “Transferring the tax refund mandate to the DoF is no assurance that this proposed new VAT refund body will not implement the same inefficiencies as the BIR, in the guise of ensuring maximum government revenues from business activities,” Terry L. Ridon, a public investment analyst and convenor of think tank InfraWatch PH, said in a Facebook Messenger chat. “The Senate should look into stiffer penalties against BIR officials in the event of unreasonable delays in processing VAT refunds and other tax claims.”
Click the link below to read the full news from the source:
https://www.bworldonline.com/the-nation/2024/05/12/594390/delayed-vat-refunds-scored/
Invoicing requirements under EoPT Act
Business World / Runell Alvyn V. Sarmiento / May 13, 2024
In our earlier article, “Removal of the 5-Year Validity of Receipts and Invoices,” I explained that the Philippine tax system is mostly driven by supporting documents and that the deductibility of allowable expenses and claiming of input value-added tax (VAT) rely heavily on valid invoices. With the implementation of the Ease of Paying Taxes (EoPT) Act, changes are now in effect in the way taxpayers provide proof for their sales and purchases. One of the many changes under the EoPT Act is that the invoice takes the place of the official receipt as the primary document to evidence the sale of services. An invoice shall now be the primary supporting document for both sales of goods and services. Taxpayers, especially service providers, should adapt to these changes. The Bureau of Internal Revenue (BIR), through Revenue Regulations (RR) No. 7-2024, which took effect on April 27, laid down the new rules of invoicing brought about by the EoPT Act.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2024/05/13/594777/invoicing-requirements-under-eopt-act/
House panel approves bill expanding road tax to some three-wheeler types
Business World / Kenneth Christine L. Basilio / May 14, 2024
A HOUSE of Representatives committee on Tuesday approved a bill that seeks to extend the road users’ tax to include some types of “unconventional” three-wheeled vehicles, with the measure expected to generate P17 billion in revenue for the government over the next four years. Under House Bill No. 10038, owners of such vehicles would have to pay a road user’s tax amounting to P2,080 in 2024, P2,560 in 2025, and P3,040 in 2026. The bill prescribes a 5% increase from the 2026 tax rate for the following years. The measure sets into law a Land Transportation Office (LTO) memorandum issued four years ago prescribing tax rates on three-wheeled vehicles.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2024/05/14/595101/house-panel-approves-bill-expanding-road-tax-to-some-three-wheeler-types/
EoPT on tax filling and withholding: A closer look
Business World / Renz Anthony K. Boaloy / May 15, 2024
With the signing of the Ease of Paying Taxes (EoPT) Act (Republic Act No. 11976), taxpayers expect to benefit from improvements in the manner of tax filing and payment, as well as in the withholding of taxes. The Bureau of Internal Revenue (BIR) has issued Revenue Regulations (RR) No. 4-2024 to implement these changes. MANNER OF FILING AND PAYMENT- Under RR 4-2024, the filing of tax returns is to be done electronically via any of the available platforms. Taxpayers have the option to use either the eBIRForm offline package or the Electronic Filing and Payment System (eFPS). Meanwhile, the payment may be made either electronically using any of the available platforms, or manually to any authorized agent bank (AAB) or revenue collection officer (RCO). Manual filing is only allowed in case of the unavailability of electronic platforms. Prior to the EoPT Act, certain taxpayers were required to enroll in eFPS, such as Taxpayer Account Management Program (TAMP) taxpayers, enterprises enjoying fiscal incentives (PEZA, BoI, etc.), large taxpayers, and top withholding agents, among others. While there’s no specific discussion in the EoPT Act, I believe that these taxpayers should continue to use eFPS in the filing and payment of their tax returns as manual filing will only be allowed in case the eFPS facility is unavailable. Further, it is still more convenient to file and pay taxes through eFPS.
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https://www.bworldonline.com/economy/2024/05/15/595418/eopt-on-tax-filing-and-withholding-a-closer-look/
BIR seizes P150-M cigarettes
Business World / Luisa Maria Jacinta C. Jocson / May 15, 2024
THE BUREAU of Internal Revenue (BIR) has seized illicit cigarettes with tax losses amounting to over P150 million. In a statement on Wednesday, the agency said that it seized 227,351 packs of illegal cigarettes from a raid of seven warehouses in Palawan. “After inventory of the seized illicit products, the illicit traders and possessors were found responsible for P150.69 million in tax liability. This is a particularly successful operation for the BIR because Palawan is considered a hotspot for the illicit cigarette trade,” the agency said.
Click the link below to read the full news from the source:
https://www.bworldonline.com/the-nation/2024/05/15/595413/bir-seizes-p150-m-cigarettes/
Philippine Senate Oks vat on digital transactions
Business World / John Victor D. Ordonez / May 15, 2024
The Senate on Wednesday night approved on second reading a bill that seeks to impose a 12% value-added tax on digital transactions on nonresident foreign online marketplaces with customers in the Philippines. The Department of Finance expects the tax measure to bring in P83.8 billion in revenue from 2024 to 2028. The House of Representatives approved a similar measure in November 2022. Under Senate Bill No. 2528, these marketplaces without a physical presence in the Philippines must withhold and remit VAT on transactions coursed through their online platforms.
Click the link below to read the full news from the source:
https://www.bworldonline.com/the-nation/2024/05/15/595461/philippine-senate-oks-vat-on-digital-transactions/
Tax discounts OK’d on 2nd Reading
Business World / Kenneth Christiane L. Basilio / May 15, 2024
THE HOUSE of Representatives on Wednesday approved on second reading two bills seeking to enhance the tax discounts being provided to senior citizens and persons with disabilities (PWDs), standardizing the 20% tax discount being provided to them across all establishments. Through voice voting, congressmen agreed to expand state welfare provided to the elderly and PWDs by granting additional tax discounts to utility bills as well as medical perks. “The bills will further expand senior citizen and disability benefits, emphasizing that supporting these sectors is a shared duty between the state and society,” Albay Rep. Jose Maria Clemente S. Salceda told BusinessWorld in a Viber message about House Bills (HB) No. 10312 and 10314. The bills seek to harmonize the tax discounts being provided to senior citizens and PWDs by allowing them to claim additional business discounts on top of the 20% tax discount provided by Republic Act (RA) No. 9994.
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https://www.bworldonline.com/the-nation/2024/05/15/595412/tax-discounts-okd-on-2nd-reading/
Nasugbu goes after RCI’s unpaid real estate taxes
Philippine Star / Richmond Mercurio / May 16, 2024
MANILA, Philippines — The municipality of Nasugbu, Batangas is seeking to collect from Roxas and Co. Inc. (RCI) unpaid real property taxes. Nasugbu Mayor Antonio Barcelon on May 13, served a notice to RCI for the revocation of its business permit should the company continue to fail to settle its real property taxes which have become due and demandable to date.
Click the link below to read the full news from the source:
https://www.philstar.com/business/2024/05/16/2355353/nasugbu-goes-after-rcis-unpaid-real-estate-taxes
Excise tax review put forward as inflation containment measure
Business World / Beatriz Marie D. Cruz / May 16, 2024
THE GOVERNMENT should consider a review of excise taxes on commodities to help ease inflation as legislated wage hikes loom. “At this point, the businessmen are not passing on their costs to the consumer because business is not exactly very good,” Philippine Chamber of Commerce and Industry chairman George T. Barcelon said via telephone. Mr. Barcelon called on the government to review the excise tax for key commodities like fuel and agricultural products, as rising food and transport costs fanned inflation to 3.8% in April.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2024/05/16/595799/excise-tax-review-put-forward-as-inflation-containment-measure/
Tax court clears ousted chief justice Sereno
Philippine Daily Inquirer/Kathleen de Villa/May 17, 2024
The Court of Tax Appeals (CTA) has revoked the collection of more than P8.85 million from former Chief Justice Maria Lourdes Sereno, finding the Bureau of Internal Revenue (BIR) to be in violation of the tax code. The amount supposedly represented Sereno’s income tax deficiencies from 2011 to 2016. In a 45-page decision on May 14, the two-member CTA Special Second Division granted Sereno’s petition for a review of the final decision on disputed assessment (FDDA) which the BIR issued in January 2022 in response to her objections over her alleged tax dues.
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https://newsinfo.inquirer.net/1941541/tax-court-clears-ousted-chief-justice-sereno
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