Bureau of Internal Revenue Issuances
REVENUE REGULATIONS
RR No. 15-2025
April 29, 2025
Revised Private Retirement Benefit Plan Regulations
Full Text
REVENUE MEMORANDUM CIRCULAR
RMC No. 42-2025
April 25, 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.
RMC No. 43-2025
April 28, 2025
Publishing full text of Memorandum Circular No. 80 dated April 3, 2025 from the Office of the President entitled, “Directing all Government Agencies and Instrumentalities, and Encouraging Local Government Units and the Private Sector, to support the Celebration of the 2025 National Innovation Day.”
RMC No. 44-2025
April 28, 2025
Publishing full text of Memorandum Circular No. 79 dated March 27, 2025 from the Office of the President entitled, “Directing all Government Agencies and Instrumentalities, and Encouraging Local Government Units, to support the 2025 National Crime Prevention Program.”
RMC No. 45- 2025
April 30, 2025
Circularizing Cooperative Development Authority, Department of Finance and Bureau of Internal Revenue Joint Administrative Order No. 001-2025 entitled “Rules to Implement the Penalty Provision under Section 308 of the NIRC of 1997, as amended by R.A. No. 11534, otherwise known as the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, as implemented by Department of Finance, Department of Trade and Industry Joint Administrative Order (DOF-DTI JAO) No. 001-2023, issued on 9 March 2023.”
REVENUE MEMORANDUM ORDER
RMO No. 21-2025
April 28, 2025
Amending portion of RMO No. 5-2025 which prescribes the Agency Performance Indicators and Targets for CY 2025-2028.
RMO No. 22-2025
April 29, 2025
Amending the Guidelines in the Processing and Issuance of Certificate of Tax Exemption under Revenue Memorandum Order No. 38-2019 Entitled as “Tax Exemption of Non-Stock, Non-Profit Corporations Under Section 30 of the National Internal Revenue Code of 1997, as Amended”.
RMO No. 23-2025
April 30, 2025
Appropriate Filing of Criminal Actions Arising from Administrative Complaint and Official Report.
REVENUE DELEGATION AUTHORITY ORDERS
RDAO No. 21-2025
April 30, 2025
Delegates to the OIC-Assistant Regional Director of RR 14-Eastern Visayas the authority to sign documents specified in the Order in view of the mandatory retirement of RR 14’s Regional Director.
TAX ADVISORY
All taxpayers mandated to submit required attachments to the AITRs through the Electronic Audited Financial Statements (eAFS) System.
Click the link below to read the full news from the source:
https://bir-cdn.bir.gov.ph/BIR/pdf/Tax%20Advisory_eAFS20250429.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
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”
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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
CTA junks Lepanto Consolidated Mining’s P40-M tax refund claim
Manila Bulletin / Czarina Nicole Ong Ki / April 24, 2025
The Court of Tax Appeals (CTA) has denied the P40 million tax refund sought by the Lepanto Consolidated Mining Company for its alleged unutilized input value-added tax (VAT) attributable to zero-rated sales for 2018. In its petition, Lepanto Consolidated Mining said that it exported all of its total sales, which are purportedly eligible for VAT zero-rating under Section 106(A)(2)(a)(1) of the National Internal Revenue Code (NIRC) of 1997, as amended by Republic Act No. 10963, the Tax Reform for Acceleration and Inclusion Act (TRAIN Law). The Bureau of Internal Revenue (BIR) denied the firm’s claim for refund in a letter dated Nov. 27, 2020. Within 30 days from receipt of the denial letter, Lepanto filed before the CTA a petition for feview on Feb. 10, 2021.
Click the link below to read the full news from the source:
https://mb.com.ph/2025/4/24/cta-junks-lepanto-consolidated-mining-s-p40-m-tax-refund-claim#google_vignette
BIR tax filings rise over 20% this year
The Philippine Star / Louise Maureen Simeon / April 25, 2025 – MANILA, Philippines
The Bureau of Internal Revenue (BIR) recorded a more than 20-percent increase in electronic tax filings this year due to ramped up campaign and digitalization efforts. In an interview with PTV yesterday, BIR Commissioner Romeo Lumagui Jr. said there has been a good turnout in the filing and payment of the annual income tax return (AITR) this year. “We saw about a 22.5-percent increase from last year’s filing. It was a good turnout,” Lumagui said. Data showed that there were 1.98 million electronic filers from Jan. 1 to April 23, a 22.5-percent increase from the 1.62 million logged in the same period in 2024. The BIR is still validating data for the manual filers.
Click the link below to read the full news from the source:
https://www.philstar.com/business/2025/04/25/2438087/bir-tax-filings-rise-over-20-year
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. “FDA is directed to identify and transmit the VAT-exempt health products to other implementing agencies,” the FDA said. 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.”
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
CTA denies P60-M tax refund claimed by Sony Philippines
Manila Bulletin / Czarina Nicole Ong Ki / April 26, 2025
The Court of Tax Appeals (CTA) has denied the petition of Sony Philippines, Incorporated for a tax refund of P60 million representing alleged unutilized creditable withholding taxes (CWT) for the fiscal year that ended on March 31, 2019. Sony Philippines filed an application for tax credits or refund for P60,157,273. When the Bureau of Internal Revenue (BIR) denied the application, the firm elevated its case before the CTA. In its answer, the BIR told the tax court that Sony Philippines failed to exhaust administrative remedies; it is not entided to the claim for refund; it should prove that the alleged claim for refund was filed within the two (2)-year period;, it failed to prove that income related to CWT was declared in the annual income tax return; and the claim for refund is tainted with procedural infirmity due to firm’s failure to submit complete documents to support its administrative claim for refund. In denying Sony Philippines’ petition for lack of merit, the CTA ruled that the firm failed to prove that the income payments from which taxes were withheld were declared as part of its gross income in its annual income tax return (ITR).
Click the link below to read the full news from the source:
https://mb.com.ph/2025/4/26/cta-denies-p60-m-tax-refund-claimed-by-sony-philippines
Taxes no more ‘Hidden Agenda’
The Philippine Star / Mary Ann LL. Reyes / April 26, 2025
Finance Secretary Ralph Recto earlier announced plans to increase the rates for capital gains, donor and estate taxes to 10 percent from the present six percent The planned increase is part of the Government Revenues Optimization through Wealth Tax Harmonization or GROWTH Bill, which in turn is part of the comprehensive tax reform package that aims to simplify the country’s tax system. According to Recto, the increase can generate about P300 billion from 2025 to 2030. He believes that this will not affect the masses, since it is not consumption-based but is instead a financial tax. As explained by the Bureau of Internal Revenue (BIR), capital gains tax (CGT) is a tax imposed on the gains presumed to have been realized by the seller from the sale, exchange or other disposition of capital assets located in the Philippines, including pacto de retro sales and other forms of conditional sale.
Click the link below to read the full news from the source:
https://www.philstar.com/business/2025/04/26/2438337/taxes-no-more
FDA lists more medicines for VAT exemption
Philippine News Agency / MA. Teresa Montemayor / April 28, 2025 – MANILA
The Food and Drug Administration (FDA) has updated its list of medicines that are exempt from value-added tax (VAT). As indicated in Advisory No. 2025-0498, the FDA added new medicines for hypertension, cancer, mental illnesses, tuberculosis, kidney diseases, diabetes and high cholesterol for VAT-exemption.
These include:
For cancer:
–Bortezomib 3.5 mg Powder for Injection (IV/SC)
–Docetaxel (as trihydrate) 20 mg/mL (80 mg/4mL) Concentrate for Solution for I.V. Infusion
–Lenvatinib (as mesylate) 10 mg Hard Gelatin Capsule, 4 mg Capsule
–Lenalidomide 7.5 mg, 20 mg Capsule
–Paclitaxel 6 mg/mL (60 mg/10mL), (100.2mg/16.7 mL) Solution for Injection (IV), 6 mg/mL, 300 mg/2.73 mL Concentrate Solution for IV Infusion
For diabetes:
–Saxagliptin (as hydrochloride) + Dapagliflozin (as propanediol monohydrate) 5 mg/10 mg Film-Coated Tablet
For hypertension:
–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
For kidney problems:
–Peritoneal Dialysis Solution with 2.5% Dextrose Formulation: Each 100 mL 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:
–Rifampicin + Isoniazid + Pyrazinamide 75 mg/ 50 mg/150 mg Dispersible Tablet
In a news release Monday, the FDA said the move is in line with President Ferdinand R. Marcos Jr.’s directive to make medicines cheaper and more accessible to Filipinos. It is also in accordance with Section 12 of Republic Act 11534 or Corporate Recovery and Tax Incentives for Enterprises Act, which aims for lower taxes on health products.
Click the link below to read the full news from the source:
https://www.pna.gov.ph/articles/1248901
BIR files P8.7-B tax evasion raps vs. illegal vape businesses
Philippine News Agency / Benjamin Pulta / April 29, 2025 – MANILA
The Bureau of Internal Revenue (BIR) on Tuesday filed before the Department of Justice (DOJ) criminal charges for tax evasion against large-scale illicit vape businesses for failure to pay PHP8.68 billion in taxes. In a statement, BIR Commissioner Romeo Lumagui Jr. said the charges involve illegal vape traders selling the brand names Flava, Denkat and Flare. “Today, the BIR has filed criminal cases for tax evasion against large-scale illicit vape businesses. They have failed to pay PHP8,681,028,850.82 in taxes. We have warned all those who want to enter the vape industry to register with the BIR and pay proper taxes. This is what happens when you keep violating our tax laws.” Lumagui said. The criminal charges include unlawful possession of vape products without payment of excise tax under Section 263; tax evasion under Section 254; and failure to file excise tax returns under Section 255, all in violation of the National Internal Revenue Code of 1997, as amended. The recovery of deficiency excise taxes and penalties which have not been paid by the illicit vape traders, amounting to almost PHP9 billion, are included in the criminal charges filed by the BIR.
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https://www.pna.gov.ph/articles/1248990
DOF: No new taxes, fiscal position remains robust
Department of Finance / April 29, 2025
The Department of Finance (DOF) categorically refuted reports alleging the imposition of new taxes and stressed that there is no need for additional revenue measures at this time, given the government’s robust fiscal position. Finance Secretary Ralph Recto on Tuesday said that the government is properly managing its finances, ensuring that public needs are met without burdening the citizenry with new taxes. Secretary Recto particularly highlighted the strong double-digit growth of tax collections in the first quarter of the year, which reaffirms the country’s fiscal stability. To sustain this momentum, the DOF is committed to ensuring the successful implementation of critical measures that would retain and attract more investments as well as generate more revenues for the government, such as the CREATE MORE Act; the Ease of Paying Taxes (EOPT) Act; the amendments to the Foreign Investment Act, the Retail Trade Liberalization Act, and the Public Service Act; and the Public-Private Partnership (PPP) Code, among other measures.
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https://www.dof.gov.ph/dof-no-new-taxes-fiscal-position-remains-robust/
Lawmaker lauds dropping of proposed capital gains tax hike
Philippine News Agency / Filane Mikee Cervantes / April 29, 2025 – MANILA
The chairperson of the House Ways and Means committee on Tuesday commended the Department of Finance’s (DOF) decision to withdraw proposed increases in capital gains, donor’s, and estate taxes as a “practical approach” that protects middle-class families while supporting economic stability. In a statement, Albay Representative Joey Salceda reported that the DOF opted to shelve the proposal considering that the government is “on track to meet its fiscal consolidation goals” with a “double-digit growth in tax collection.” The scrapped tax proposals were originally included in the draft Capital Markets Efficiency Promotion Act (CMEPA), intended to strengthen fiscal buffers for economic shocks.
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https://www.pna.gov.ph/articles/1249018
Gov’t revenues, expenditures sustain growth in Q1
Philippine News Agency / Anna Leah Gonzales / April 29, 2025 – MANILA
The national government’s revenue collections and expenditures continued to grow in the first quarter of the year, data from the Bureau of the Treasury (BTr) showed. In its latest cash operations report released on Tuesday, the BTr said revenue collections rose by 6.90 percent to PHP998.2 billion from PHP933.7 billion in the first quarter of 2024. Of the total, tax collections increased by 13.55 percent to PHP931.5 billion due to the strong performance of the Bureau of Internal Revenue and the Bureau of Customs. “The revenue agencies’ sustained growth for the third consecutive month was driven by their ongoing revenue enhancement measures, particularly the intensified campaign against the use of fake receipts, intensified crackdown on illicit trade, digitalization, and improvements in tax payment facilitation, among other initiatives,” the BTr said.
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https://www.pna.gov.ph/articles/1249062
DOF denies imposition of new taxes, warns vs. disinformation
Philippine News Agency / Anna Leah Gonzales / April 29, 2025 – MANILA
The Department of Finance (DOF) on Tuesday denied reports alleging the imposition of new taxes, noting that the government’s fiscal position remains robust. In a statement, Finance Secretary Ralph Recto said the government is properly managing its finances, ensuring that public needs are met without burdening the citizenry with new taxes. “Strategic measures were prepared to ensure fiscal sustainability and provide necessary buffers amid rising global economic uncertainty due to political tensions, prolonged higher interest rates, and unpredictable trade policies. But given our current strong fiscal performance, these are not needed at this time,” he said. Recto highlighted the double-digit growth of tax collections in the first quarter of the year, which he said reaffirms the country’s fiscal stability. For the first quarter of 2025, total tax collections increased by 13.55 percent to PHP931.5 billion. “At this point, current revenues are more than sufficient to support our expenditure requirements. We are meeting our obligations, funding key programs, and growing the economy without having to impose new taxes on our kababayan,” Recto said.
Click the link below to read the full news from the source:
https://www.pna.gov.ph/articles/1249025
Strong tax collections allow government to forego new taxes, says finance chief
Manila Bulletin / Derco Rosal / April 29, 2025
President Marcos’ chief economic manager stated that the government’s current revenues are more than sufficient to cover its expenses even without imposing new taxes, as total tax collections grew by double digits to over ₱930 billion in the first quarter of the year. Tax collections climbed by nearly 14 percent in the first three months of 2025, totaling ₱931.5 billion. By value, the government had increased its tax revenues by ₱111.1 billion from ₱820.4 billion a year ago.
Click the link below to read the full news from the source:
https://mb.com.ph/2025/4/29/strong-tax-collections-allow-govt-to-forego-new-taxes-says-finance-chief#google_vignette
CWT certificates: Tax savings in disguise ‘Top of Mind’
The Philippine Star / Ellaine Jane Milca / April 29, 2025
Tax credits can significantly lower a taxpayer’s tax liability but are often underutilized. Unlike deductions, which reduce taxable income, tax credits directly reduce the amount of tax owed. After determining taxable income and applying any relevant deductions, tax liability is calculated as a percentage of the income after deductions. From that amount, any applicable tax credits are subtracted from the calculated liability, and the result is the final tax due. One underutilized tax credit is the Certificate of Creditable Tax Withheld at Source (CWT Certificate or BIR Form 2307). Many taxpayers fail to recognize the value of these certificates, even though they can significantly reduce overall tax liability. Revenue Regulations 02-98, as amended, outlines the rules for claiming CWT as a refund or tax credit. It states that the amount of creditable tax withheld can be used as a tax credit against the payee’s income tax liability for the taxable quarter in which the income was earned or received.
Click the link below to read the full news from the source:
https://www.philstar.com/business/2025/04/29/2439027/cwt-certificates-tax-savings-disguise
Salceda welcomes DOF’s cancellation of tax hike on capital gains
Manila Bulletin / Joseph Pedrajas / April 29, 2025
House Ways and Means Committee chair and Albay 2nd district Rep. Joey Salceda welcomed Department of Finance (DOF) Secretary Ralph Recto’s withdrawal of the proposed tax increase on capital gains, which the lawmaker previously opposed. Salceda earlier objected to Recto’s suggestion in the draft of the “GROWTH Bill”, as he said it could have a possible impact on the creation of middle-class wealth. The Bicolano commended the finance chief’s “openness” to a dialogue as well as “his responsiveness to sound economic reasoning” and “trademark practical approach to fiscal policy”. The DOF, in a letter dated April 29, informed Salceda that it was withdrawing the proposed measure, citing stronger-than-expected revenue collections, a double-digit growth rate in tax collections, and steady progress toward the government’s fiscal consolidation goals.
Click the link below to read the full news from the source:
https://mb.com.ph/2025/4/29/salceda-welcomes-dof-s-cancellation-of-tax-increase-on-capital-gains
Tax collection up by 14% in Q1 2025 to P 931.5B
Philippine Daily Inquirer / Ian Nicolas P. Cigaral / April 30, 2025 – MANILA, Philippines
The Marcos administration posted a double-digit tax collection growth in the first quarter on the back of stronger tax administration, which was boosted by the government’s digitalization efforts. Latest data from the Department of Finance (DOF) showed tax revenues amounted to P931.5 billion in the three months ending in March, up by 14 percent year-on-year.
Click the link below to read the full news from the source:
https://business.inquirer.net/522548/tax-collection-up-by-14-in-q1-2025-to-p-931-5b
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