Bureau of Internal Revenue Issuances
REVENUE MEMORANDUM ORDERS
REVENUE DELEGATION OF AUTHORITY ORDERS
RDAO No. 22-2025
May 5, 2025
Delegates to the OIC-Assistant Regional Director of RR 11-Iloilo City the authority to sign documents specified in the Order in view of the mandatory retirement of RR 11’s OIC-Regional Director.
RDAO No. 23-2025
May 6, 2025
Delegates to the Chief of the Excise Large Taxpayers Field Operations Division the authority to sign documents specified in the Order in view of the approved leave of the Head Revenue Executive Assistant of the Large Taxpayers Service-Excise.
RDAO No. 24-2025
May 8, 2025
Designates the Assistant Commissioner of the Administrative Service as Officer-in-Charge of the Resource Management Group in view of the approved leave of the Resource Management Group’s Deputy Commissioner.
TAX ADVISORY
Tax Advisory: All taxpayers are advised that the ORUS shall be temporarily unavailable beginning May 1, 2025
Click the link below to read the full news from the source:
https://bir-cdn.bir.gov.ph/BIR/pdf/TAX%20ADVISORY%20ORUS%2005.01.25.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”
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 WEEKENDER BRIEFS
Volume No. 16 Issue No 17 Week ending April 25, 2025 – (BIR Website)
BIR revenue district offices Conducted Tax Compliance Verification Drive to TAMP Taxpayers on April 15 and 22. And last day of Tax filing for AITR year 2024.
Click the link below to read the full news from the source:
https://bir-cdn.bir.gov.ph/BIR/pdf/v16n17%20hr_compressed.pdf
BIR WEEKENDER BRIEFS
Volume No. 16 Issue No 18 Week ending May 2, 2025 – (BIR Website)
BIR revenue district offices file criminal cases against erring taxpayers on April 23 and 28.
Click the link below to read the full news from the source:
https://bir-cdn.bir.gov.ph/BIR/pdf/v16n18%20web.pdf
BIR WEEKENDER BRIEFS
Volume No. 16 Issue No 19 Week ending May 9, 2025 – (BIR Website)
BIR revenue district offices conducted tax mapping and Tax Compliance Verification Drive at all business establishment on April 30 and May 6.and Evaluation of CRM/POS Machines.
Click the link below to read the full news from the source:
https://bir-cdn.bir.gov.ph/BIR/pdf/v16n19.pdf
DepEd hails interagency collaboration to simplify tax incentives
The Manila Times / May 1, 2025
THE Department of Education (DepEd) has welcomed the issuance of Revenue Regulations (RR) 13-2025 as a major breakthrough in advancing President Ferdinand Marcos Jr.’s education agenda. Issued by the Department of Finance-Bureau of Internal Revenue (DOF-BIR), the new regulation consolidates and simplifies the procedures for availing tax incentives. RR 13-2025 grants eligible private sector partners the following streamlined tax incentives: exemption from donor’s tax prescribed under Section 101 (A)(2) and (B)(2) of the Tax Code; deduction from gross income for costs directly, actually, and exclusively incurred for the programs, plus an additional 50 percent deduction for such contribution/donation subject to certain conditions; valuation flexibility for different types of donations: cash assistance, consumable goods, personal property, services, or real estate — based on book value, market value, or depreciated value, whichever is applicable.
Click the link below to read the full news from the source:
https://www.manilatimes.net/2025/05/01/tmt-newswire/deped-hails-interagency-collaboration-to-simplify-tax-incentives/2102541
PEZA eyes second pharma ecozone
Business World / Justine Irish D. Tabile / May 1, 2025
THE Philippine Economic Zone Authority (PEZA) is looking to proclaim a second pharmaceutical economic zone (pharma zone) within the year. “Some people are vying from other areas. But obviously they would want to see the performance of this park first,” PEZA Director General Tereso O. Panga told BusinessWorld on the sidelines of the official launch of the Victoria Industrial Park late Wednesday.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2025/05/01/669922/peza-eyes-second-pharma-ecozone/
The Laffer Curve of tobacco taxation; the declining unemployment rate
Business World / Bienvenido S. Oplas, Jr. / May 1, 2025
Consider this as Part 3 counting previous articles on the same topic in this column, “The Laffer Curve of Philippine tobacco taxation” (May 22, 2023) and “The Laffer Curve of Philippine tobacco taxation, redux” (June 6, 2024). There are a few persistent proposals now to further raise the “sin tax” or “health tax,” or what I consider more appropriately called the “double talk tax.” The products in question are alcohol, tobacco, vapes, and sugar sweetened beverages (SSB). The idea is that by raising the tax rates of these “harmful to health” products, consumption of them will decline while government revenues for universal healthcare go up. Nice twin goals. But these twin goals conflict, not supplement each other. Because while the advocates of this move want more people to avoid these products, they also want more billions of pesos yearly in taxes from consumers of these products. Meaning they are implicitly happy when there are more drinkers, smokers, vapers, and consumers of SSB who send more billions to the government. Hence, I call it “double talk tax.”
Click the link below to read the full news from the source:
https://www.bworldonline.com/editors-picks/2025/05/01/669555/the-laffer-curve-of-tobacco-taxation-the-declining-unemployment-rate/
When the BIR waits too long ‘Taxwise or Otherwise’
Business World / Edelweiss Chua / May 7, 2025
Tax assessments can be a significant source of worry and concern for taxpayers. The process, from submitting the required documents to dealing with the multiple notices from the Bureau of Internal Revenue (BIR), can feel overwhelming. Certain provisions of the law, particularly regarding due process, can also be misunderstood, considering several amendments that have been introduced over the years. This may result in missed opportunities for both the taxpayers and the BIR at some stages of the assessment and collection process. With respect to the collection process, the general understanding of most is that the BIR has five years from the date of issuance of the assessment to pursue collection, whether through the BIR’s issuance of a warrant of distraint or garnishment, or by a proceeding in court. The period is normally reckoned from the date of issuance of the Final Assessment Notice (FAN). However, as ruled by the Supreme Court (SC), certain instances may suspend the running of the period, or in some cases, a shorter period may apply
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2025/05/07/671141/when-the-bir-waits-too-long/
Simplifying VAT refunds and expanding incentives with CREATE MORE
www.msn.com / Jonathan Casey Angala / May 7, 2025
In keeping with its mandate to promulgate the necessary rules and regulations for the effective implementation of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy Act (CREATE MORE), the Bureau of Internal Revenue has released Revenue Regulations (RR) 10-2025 last Feb. 25, 2025. This regulation introduces amendments to RR 16-2005, also known as the Consolidated VAT Regulations, as amended, particularly on VAT zero-rated and VAT-exempt transactions and the key changes made to the process of VAT refund claims. Under CREATE MORE, the local sale of goods and services to export-oriented enterprises which are directly attributable to the enterprises’ export-oriented activity are subject to zero VAT, provided the 70 percent export sales threshold is satisfied. This is based on Sections 106 and 108 of the Tax Code, as amended. As elaborated by RR 10-2025, the task of determining compliance (or non-compliance) by export-oriented enterprises is given to the Export Management Bureau (EMB) of the Department of Trade and Industry (DTI) which shall issue a certification for the taxable period applicable. However, the issuance of the certificate by the EMB is without prejudice to the conduct of a post audit/investigation by the BIR. Another noteworthy change under CREATE MORE is the reversion of the treatment of sales of raw materials or packaging materials to a non-resident buyer for delivery to a resident local export-oriented enterprise to be used in manufacturing, processing or repacking in the Philippines of the non-resident buyer’s goods and paid in acceptable foreign currency inwardly remitted into the Philippine banking system from 12 percent VAT to zero percent VAT.
Click the link below to read the full news from the source:
https://www.msn.com/en-ph/news/national/simplifying-vat-refunds-and-expanding-incentives-with-create-more/ar-AA1EcAyT?ocid=entnewsntp&pc=LCTS&cvid=14a0b36bf0d94885b157c1fb711a5c63&ei=13
SEC unveils 6 new digital platforms to enhance services
Business World / Revin Mikhael D. Ochave / May 7, 2025
THE Securities and Exchange Commission (SEC) on Tuesday launched six digital platforms and an in-house data center aimed at improving the delivery of its regulatory services. “We envision the data center to strengthen our response to disruptions by having the ability to handle everything from one place and through our own team of technical experts,” SEC Chairperson Emilio B. Aquino said at the launch event in Makati City.
Click the link below to read the full news from the source:
https://www.bworldonline.com/corporate/2025/05/07/670750/sec-unveils-6-new-digital-platforms-to-enhance-services/
Nine medical technology firms expected to register with PEZA within the year
Business World / Justine Irish D. Tabile / May 7, 2025
NINE medical technology companies will pursue registrations with the Philippine Economic Zone Authority (PEZA) within the year, according to the Medical Device Association of the Philippines (MDAP). MDAP President Luis Ramon V. Rodriguez said attracting investment from original equipment manufacturers and device assemblers will help reduce import dependence. “There are companies that are trying to find their way to PEZA to do assembly. There is a Malaysian company, a Taiwanese company, an Israeli company, and a Korean company,” he said.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2025/05/07/671145/nine-medical-technology-firms-expected-to-register-with-peza-within-the-year/
Legarda lauds signing of Adjusted DFA Retirement Benefits Act
Philippine News Agency / May 8, 2025 – MANILA
Senator Loren Legarda lauded the signing into law of Republic Act (RA) 12181, known as the Adjusted DFA Retirement Benefits Act, which honors the service of officers and employees of the Department of Foreign Affairs (DFA) and strengthens the foundations of Philippine diplomacy. President Ferdinand R. Marcos Jr. on Monday signed the new law, which Legarda principally authored and co-sponsored in the Senate. “Our foreign service officers operate in complex and often high-risk environments, tasked with safeguarding national interests and strengthening bilateral and multilateral ties,” Legarda said in a news release on Thursday.
Click the link below to read the full news from the source:
https://www.pna.gov.ph/articles/1249638
How to comply with the BIR’s invoicing requirements
The Manila Times / Elaisha Nelle C. Espinosa / May 8, 2025
REPUBLIC Act 11976, or the Ease of Paying Taxes Act, which took effect last Jan. 22, 2024, introduced significant changes to the invoicing requirements of the Bureau of Internal Revenue (BIR). Section 21 of the law, which amended Section 113 of the National Internal Revenue Code (Tax Code), mandates that all value-added tax (VAT)-registered persons and/or entities, regardless of the amount of transaction, should issue VAT invoices for every sale, barter or exchange of goods or services or lease of properties. Under Revenue Regulation (RR) 7-2024, the implementing regulations for the law, VAT invoices are now the primary documents evidencing sales transactions and will be used as the basis for a seller’s output VAT liability, or a buyer’s input VAT claims. They may also prove the fact of payment and/or receipt of such payment for the goods and services. Upon RR 7-2024’s effectivity on April 27, 2024, official receipts (ORs), order slips and debit/credit memos, among others, are now considered supplementary documents only and are not valid for claiming input VAT by the buyers.
Click the link below to read the full news from the source:
https://www.manilatimes.net/2025/05/08/business/top-business/how-to-comply-with-the-birs-invoicing-requirements/2108093
Comelec urged to provide overtime pay, tax exemption for poll watchers
Philstar.com / Dominique Nicole / May 8, 2025 – MANILA, Philippines
A teachers’ union in Metro Manila urged the Commission on Elections (Comelec) to grant overtime pay to teachers serving as Electoral Board members and poll watchers. In a statement on Wednesday, May 7, the Alliance of Concerned Teachers – National Capital Region (ACT-NCR) said the Comelec “refuses to acknowledge” that teacher-poll watchers are entitled to overtime compensation for extended work hours on election day. “Teachers who will serve as poll workers on election day will be required to work for over 24 hours straight, yet Comelec refuses to acknowledge this as overtime work deserving of additional compensation,” ACT-NCR Union President Ruby Bernardo said. She stressed that teachers will have to wake up early and report for duty with little sleep to assist marginalized sectors — such as senior citizens, persons with disabilities and pregnant women — during early voting hours. Early voting runs from 5 a.m. to 7 a.m., ahead of the regular voting schedule from 7 a.m. to 7 p.m. If Electoral Board members are required to cover both, their workday could stretch to 14 hours or more.
Click the link below to read the full news from the source:
https://www.philstar.com/headlines/2025/05/08/2441460/comelec-urged-provide-overtime-pay-tax-exemption-poll-watchers
Iloilo City entices investors with tax incentives in key growth areas
Philippine News Agency / Perla Lena / May 8, 2025 – ILOILO CITY
The city government here is looking forward to more investments with the passage of “The Iloilo City Investment Incentives Code of 2025,” expanding tax privileges for new businesses in key growth areas. The updated ordinance expands tax perks for businesses investing in designated growth areas —an effort aimed at unlocking the potential of long-idle lands and attracting large-scale developments. Velma Jane Lao, head of the Local Economic Development and Investment Promotion (LEDIP) office of the city, said it is an opportunity for developers and owners of idle lands to develop their property.
Click the link below to read the full news from the source:
https://www.pna.gov.ph/articles/1249689
Netflix increases subscription prices in the Philippines due to VAT; Disney+ catching up in subscribers
Philstar.com / Jan Milo Severo / May 8, 2025 – MANILA, Philippines
Streaming platform Netflix has reportedly increased the price of its monthly subscription in the Philippines from 12% to 13.5%. This is reportedly as a response to Republic Act (RA) 12023, which imposes a 12% value-added tax (VAT) on foreign digital service providers (DSPs), including streaming platforms, online advertising, and e-commerce. The basic plan is now P279 per month, standard plan is P449 per month, and premium is now P619 per month. The price hike is now in effect for new subscribers, while existing users will see the changes reflect on their bill starting June 1.
Click the link below to read the full news from the source:
https://www.philstar.com/entertainment/2025/05/08/2440758/netflix-increases-subscription-prices-philippines-due-vat-disney-catching-subscribers
BIR reminds candidates to declare unused campaign funds
The Philippine Star / Louise Maureen Simeon / May 9, 2025 – MANILA, Philippines
As the campaign period winds down, the Bureau of Internal Revenue (BIR) has reminded candidates to declare unused election funds so they could be subject to income tax. In an interview with PTV yesterday, BIR Commissioner Romeo Lumagui called on national and local candidates to declare any unutilized campaign resources. “They can keep the excess from the contributions they receive. There’s no problem with that as long as candidates pay the income tax,” Lumagui said. Before the campaign started in March, the BIR already laid down the regulations including the five percent creditable withholding tax on expenses of all individual candidates and party-lists.
Click the link below to read the full news from the source:
https://www.philstar.com/headlines/2025/05/09/2441706/bir-reminds-candidates-declare-unused-campaign-funds
National and Bangsamoro Governments approve review of BARMM’s share in the national tax collections to promote fiscal autonomy and development
Department of Finance / May 9, 2025
The Intergovernmental Fiscal Policy Board (IFPB) has resolved to commence the review of the Annual Block Grant (Block Grant) formula for the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) to promote greater fiscal autonomy and development in the region. The IFPB is co-chaired by Finance Secretary Ralph G. Recto for the National Government and Minister of Finance, Budget and Management Ubaida Pacasem for the Bangsamoro Government. The review is in accordance with Section 22, Article XII of Republic Act No. 11054 or the Bangsamoro Organic Law (BOL) which requires the review of the Block Grant formula every 5 years.
Click the link below to read the full news from the source:
https://www.dof.gov.ph/national-and-bangsamoro-governments-approve-review-of-barmms-share-in-the-national-tax-collections-to-promote-fiscal-autonomy-and-development/
Download File:
