Bureau of Internal Revenue Issuances
REVENUE MEMORANDUM ORDERS (RMO)
RMO No. 18-2024
May 28, 2024
Modifies Alphanumeric Tax Code for Creditable Withholding Tax on certain income payments by joint ventures/consortiums.
RMO No. 19-2024
May 29, 2024
Requests data or information and/or representatives by the Legal and Legislative Division from other BIR offices in relation to Congressional/Senate hearings, agency meetings and others.
RMO No. 20-2024
May 29, 2024
Amends certain provisions of Revenue Memorandum Circular No. 37-2024, re: TIN inquiry thru Electronic Mail (eMail).
REVENUE MEMORANDUM CIRCULARS (RMC)
RMC No. 63-2024
May 27, 2024
Revenue Memorandum Circular No. 63-2024 announces the availability of BIR Form No. 1702-MX January 2018 (ENCS) in the Electronic Filing and Payment System (eFPS).
Tax And Business Related News
BIR WEEKENDER BRIEFS
Volume No. 15 Issue No 21 Week ending May 24, 2024
A total of 4 tax cases were filed by BIR Revenue District Offices under the Bureau’s Run After Tax Evaders (RATE) Program between May 17 and 21 against erring taxpayers.
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/v15n21 FINAL.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.
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/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.
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/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 BIR Updates/BIR Updates Issue No. 9 S. 2024.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 BIR Updates/BIR Updates Issue No. 8 S. 2024.pdf
CTA junks Sanyo’s petition vs P51.9M deficiency tax assessment issued by BIR
Manila Bulletin / Czarina Nicole Ong Ki / May 27, 2024
The Court of Tax Appeals (CTA) has affirmed its division’s ruling that denied the petition of Sanyo Seiki Stainless Steel Corporation against the Bureau of Internal Revenue’s (BIR) P51.99 million deficiency income tax assessment issued in 2006.The BIR sent a Letter Notice to Sanyo on Oct. 23, 2007. It said the company underdeclared its importations by P585,068,575 and, thus, yielding an unpaid VAT in the amount of P70,208,229. In response, Sanyo maintained that its records were correct as it pointed out that the discrepancy found by the BIR was caused by its previous accountant who incorrectly classified its “ordinary goods for resale and use for production” as “capital goods.”
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CTA junks Sanyo’s petition vs P51.9M deficiency tax assessment issued by BIR (mb.com.ph)
Ex-DOF exec convicted anew for tax credit scam
The Philippine Star / Elizabeth Marcelo / May 27, 2024
MANILA, Philippines — The Sandiganbayan has sentenced former Department of Finance (DOF) executive director Uldarico Andutan Jr. to up to 60 years in prison in connection with the multibillion-peso tax credit scam in the 1990s. In a 118-page decision promulgated on May 23, the anti-graft court’s Seventh Division found Andutan guilty of six counts of violation of Section 3 (e) of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act. He was sentenced to a minimum of six years to a maximum of 10 years in prison for each count of the offense or a total of 36 to 60 years for the six counts. He was also perpetually disqualified from holding public office.
Click the link below to read the full news from the source:
https://qa.philstar.com/nation/2024/05/27/2358253/ex-dof-exec-convicted-anew-tax-credit-scam
Almost there: VAT on digital services
Business World / Nikkolai F. Canceran / May 27, 2024
Last week, the Senate, in a unanimous vote, approved on third and final reading Senate Bill No. 2528, which seeks to impose a 12% value-added tax (VAT) on digital services delivered by either resident or nonresident digital service providers with no physical presence in the Philippines. According to the Department of Finance, the bill is expected to bring in P83.8 billion in revenue from 2024 to 2028. The final step to reaping this additional revenue is the approval of the President once the bill is forwarded to his office. Let’s look at the proposed changes to the National Internal Revenue Code (Tax Code).
VAT ON DIGITAL SERVICES
The bill proposes to add a proviso in Section 105 of the Tax Code stating that any person who, in the course of trade or business, renders services, including digital services, is subject to VAT. An additional proviso states that digital services delivered by nonresident digital service providers are considered performed or rendered in the Philippines if the digital services are consumed in the Philippines. This additional proviso will cover digital services even if rendered or performed outside the Philippines, as they are subject to Philippine VAT rules for as long as they are consumed in the Philippines.
DEFINITION OF DIGITAL SERVICE AND DIGITAL SERVICE PROVIDER
The bill provides that “digital service” refers to any service that is supplied over the internet or other electronic network with the use of information technology and where the supply of the service is essentially automated. These services include but are not limited to: (1) online search engines; (2) online marketplaces or e-marketplaces; (3) cloud services; (4) online media and advertising; (5) online platforms; and (6) digital goods. On the other hand, “digital service provider” refers to a resident or nonresident supplier of digital services to a consumer who consumes digital services subject to VAT in the Philippines. A nonresident digital service provider has no physical presence in the Philippines.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2024/05/27/597810/almost-there-vat-on-digital-services/
Gov’t urged to prioritize improved tax administration over new taxes
Business World / John Victor D. Ordonez / May 28, 2024
THE GOVERNMENT must push for stricter and more efficient tax administration and collection over imposing new taxes to fund the Marcos administration’s flagship projects, a strategy economists favor in order to avoid fanning inflation. He echoed the sentiment of new Senate President Francis “Chiz” G. Escudero, who stated last week that he favored improving tax collection and prevent leakages in government spending before considering new taxes. “Senate President Escudero’s commitment to supporting improved tax collection instead of imposing new taxes provides a welcome respite to a nation confronting continuing economic uncertainties due to inflation, joblessness and a weaker peso,” Mr. Ridon said in a Facebook Messenger chat.
Click the link below to read the full news from the source:
https://www.bworldonline.com/the-nation/2024/05/28/598053/govt-urged-to-prioritize-improved-tax-administration-over-new-taxes/#google_vignette
BIR: Illicit trade, vaping drain P6 Billion in excise taxes
Manila Bulletin / Xander Dave Ceballos / May 28, 2024
Some P6 billion in excise taxes from the tobacco industry have been lost so far this year due to illicit trade and shift to electric cigarettes, an official from the Bureau of Internal Revenue (BIR) said. Venus Gaticales, BIR chief of excise large taxpayers field operations division, told reporters that revenue declined by P6.6 billion from February to April compared to the same period a year ago. This latest data adds up to the first quarter loss of P5.49 billion or a 20 percent decrease from P27.47 billion to P21.97 billion, based on data from the BIR. Gaticales said that the drop in excise taxes from tobacco may be attributed shifting of preference for electric cigarettes or vapes.
Click the link below to read the full news from the source:
https://mb.com.ph/2024/5/28/bir-illicit-trade-vaping-drain-p6-billion-in-excise-taxes
DOF expects two-year process for tax system digitalization
Manila Bulletin / Chino S. Leyco / May 28, 2024
Finance Secretary Ralph G. Recto admitted the daunting challenge of digitizing the government’s tax system, prompting the need to explore non-tax revenue sources for additional funding. Recto told Manila Bulletin on Tuesday, May 28, that the Marcos administration’s digitalization initiatives to improve tax administration could take about two years to reach their full effectiveness. At the Philippine Economic Briefing last Monday, Recto cited the importance of improving tax administration in the e-commerce sector through digitalization, but “admittedly, [it] will take some time.” “In the meantime, we have strategically tapped into non-tax revenue streams to generate additional funds without imposing new or increased taxes on our people,” Recto said. The United Nations E-Government Survey revealed that the Philippines falls behind its regional peers in key areas of digital development such as digital transformation and trade, digital government, and digital security.
Click the link below to read the full news from the source:
https://mb.com.ph/2024/5/28/dof-expects-two-year-process-for-tax-system-digitalization
BIR urged to boost info drive on new invoicing rule to avoid fines
Business World / John Victor D. Ordonez / May 29, 2024
A PHILIPPINE senator is urging the Bureau of Internal Revenue (BIR) to double up on efforts to inform taxpayers of a new rule requiring invoices instead of official receipts when filing taxes, to spare companies from unnecessary penalties. Under the new Ease of Paying Taxes Act, signed by President Ferdinand R. Marcos, Jr. in January, taxpayers must start issuing valid invoices instead of official receipts in declaring output taxes and claiming input taxes for both sales of goods and services. If a sale is exempt from value-added tax (VAT) the term “VAT-exempt sale” must be written or printed on the invoice. “I urge the BIR to enhance its information dissemination campaign on the changes brought about by the Ease of Paying Taxes Act, particularly on the issuance of invoices in place of official receipts to ensure that taxpayers are well-informed on the said changes,” Senator Sherwin T. Gatchalian, who sponsored the Senate bill of the measure, said in a statement.
Click the link below to read the full news from the source:
https://www.bworldonline.com/the-nation/2024/05/29/598401/bir-urged-to-boost-info-drive-on-new-invoicing-rule-to-avoid-fines/
EoPT Law: Streamlining tax refunds
Business World / Leizelyn De Villa / May 29, 2024
Perhaps one of the more welcome changes under the Ease of Paying Taxes (EoPT) Law is the clarified and streamlined process of tax refund applications. To implement the amendment, the Bureau of Internal Revenue (BIR) issued Revenue Regulation (RR) No. 5-2024, which covers VAT refund claims under Section 112(C), unutilized excess income tax credit/refunds under Section 76(C) and refund of taxes erroneously or illegally received or penalties imposed without authority under Sections 204(C) and 229 of the Tax Code. In today’s article, I’d like to focus on the revised rules on the refund or issuance of a tax credit certificate (TCC) for excess income taxes and taxes/penalties erroneously paid.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2024/05/29/598348/eopt-law-streamlining-tax-refunds/
ARTA targets 200 LGUs for one-stop shop compliance (ANTI-RED TAPE AUTHORITY OFFICE OF THE PRESIDENT)
Business World / Adrian H. Halili / May 30, 2024
THE ANTI-RED Tape Authority (ARTA) said it hopes to bring 200 local government units (LGUs) to compliance this year with the electronic Business One-Stop Shop (eBOSS) program. ARTA Secretary Ernesto V. Perez said only 35 LGUs are fully compliant with eBOSS, with Baras, Rizal the most recent addition to the list. Republic Act No. 11032 of 2018, or the Ease of Doing Business and Efficient Government Service Delivery Act had required LGUs to fully comply with eBOSS by June 17, 2021.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2024/05/30/598714/arta-targets-200-lgus-for-one-stop-shop-compliance/
Recto welcomes toll fee hikes exemption of agri-trucks beginning June 1 to reduce food inflation and ensure stability of food prices
Department of Finance / May 30, 2024
Finance Secretary Ralph G. Recto has welcomed the decision to exempt trucks carrying agricultural goods from toll fee hikes and avail of rebates beginning June 1, 2024 in order to reduce food inflation and ensure the stability of food prices. “I thank our government agencies as well as our partner toll expressway concessionaires and operators for their full cooperation. This measure will prevent the second round effects of toll rate increases onto food inflation and ensure that we keep food prices stable and affordable for our consumers,” he said.
Click the link below to read the full news from the source:
https://www.dof.gov.ph/recto-welcomes-toll-fee-hikes-exemption-of-agri-trucks-beginning-june-1-to-reduce-food-inflation-and-ensure-the-stability-of-food-prices/
Government loses P25 Billion revenues from ilicit cigarette trade
The Philippine Star / Kiesha Ta-Asan / May 30, 2024
MANILA, Philippines — The Bureau of Internal Revenue (BIR) said revenue losses from the illicit cigarette trade stood at P25.5 billion in 2023 and P6.6 billion as of April this year.nBIR chief of excise large taxpayers field operations division Venus Gaticales said revenue from excise taxes declined by P25.5 billion or 15.9 percent in 2023 mainly due to illicit trade.
Click the link below to read the full news from the source:
https://www.philstar.com/business/2024/05/30/2358917/government-loses-p25-billion-revenues-illicit-cigarette-trade
BIR: Vape trade must affix tax stamp by June 1
Manila Bulletin / Jun Ramirez / May 31, 2024
The Bureau of Internal Revenue (BIR) has reminded vape sellers that they have until Saturday, June 1, to affix tax stamps on their products before distributing them to buyers. BIR Commissioner Romeo D. Lumague, Jr. warned that any unstamped vape products will be seized, and owners will face charges of tax evasion. The BIR chief issued Revenue Regulations No. 59-2024, implementing a tax stamp system for vapes similar to that used for other cigarette products. This system aims to monitor sales and ensure the proper collection of excise and income taxes.
Click the link below to read the full news from the source:
https://mb.com.ph/2024/5/31/bir-vape-traders-must-affix-tax-stamp-by-june-1
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