Bureau of Internal Revenue Issuances
REVENUE REGULATIONS (RR)
RR No. 12-2024
June 20, 2024
Amending Sections 5 and 6 of RR No. 3-2019 on the validity of Certificate Authorizing Registration and its revalidation
REVENUE MEMORANDUM ORDERS (RMO)
RMO No. 23-2024
Date of Issue June 14, 2024
Prescribes the guidelines, policies and procedures in the implementation of the risk-based approach in the verification and processing of Value-Added Tax (VAT) refund claims, as introduced in Republic Act No. 11976 (Ease of Paying Taxes Act)
REVENUE MEMORANDUM CIRCULARS (RMC)
RMC No. 67-2024
June 18, 2024
Clarifying the Deadline for Filing of Documentary Stamp Tax Return and Payment of the Corresponding Taxes
RMC No. 68-2024
June 19, 2024
Circularizing the availability of the revised BIR Form No. 2550Q [Quarterly Value-Added Tax (VAT) Return] April 2024 (ENCS)
REVENUE DELEGATIONS OF AUTHORITY ORDERS(RDAO)
RDAO No. 12-2024
June 19, 2024
Delegates to OIC-Assistant Regional Director of RR No. 16-Cagayan de Oro City the authority to sign Contract to Sell and/or Deed of Absolute Sale for the purchase of land.
Tax And Business Related News
BIR WEEKENDER BRIEFS
Volume No. 15 Issue No. 24 Week ending June 14, 2024
BIR RR 5-Caloocan and its district office seized master cases of illicit and counterfeit tobacco products with fictitious excise stamp tax against numerous traders in Valenzuela City.
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/v15n24%20highres.pdf
BIR removes deadline on the use of Official Receipts and extends deadline for compliance with new invoicing requirements under EOPT Act
Following the issuance of Revenue Regulations (RR) No. 7-2024 prescribing the amendments in the registration procedures and invoicing requirements brought about by the passage of the Ease of Paying Taxes (EOPT) Act, the Bureau of Internal Revenue (BIR), under the leadership of Commissioner Romeo D. Lumagui, Jr., amended the Transitory Provisions of the said regulations to provide relief to taxpayers in complying with the new invoicing requirements.
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/PR38JUN2124.pdf
Lumagui: BIR will allow the use of the remaining Official Receipts until fully consumed, Inventory Report & Notice can be submitted through Email
Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. ordered the BIR to allow the use of the remaining Official Receipts until they are fully consumed, instead of only until December 31, 2024. Further, the submission of Inventory Reports and/or Notices required in compliance with the transitory provisions of Revenue Regulation No. 7-2024 can now be done through email. These pronouncements under Revenue Regulation No. 11-2024 and Revenue Memorandum Circular No. 66-2024, were issued for the purpose of making the transition to the system under the Ease of Paying Taxes Act (EOPT) more accommodating to taxpayers.
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/PR38JUN2024.pdf
Chief Justice Gesmundo: CTA Serves as Safeguard against Abuse of Tax Power
Supreme Court Website / June 17, 2024
The CTA has exclusive appellate jurisdiction to review by appeal decisions involving violations of the National Internal Revenue Code and the Tariff and Customs Code, as well as those involving local tax cases and assessment and taxation of real property. Acknowledging that the world today is not what it was when the tax court was founded 70 years ago, the Chief Justice encouraged the CTA “to be attuned to the changing needs of the present, and to remain adaptable to innovations and prepared for the challenges of the future,” challenging them to change the expectations of the public in judicial institutions, especially as the tax court continues to make important contributions to the country’s development.
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Chief Justice Gesmundo: CTA Serves as Safeguard against Abuse of Tax Power – Supreme Court of the Philippines (judiciary.gov.ph)
Supreme Court rules in favor of privacy rights
The Manila Times / Xela Leona Laqui / June 20, 2024
In the recent case Integrated Bar of the Philippines v. Purisima (GR 211772 and 212178, April 18, 2023), the Supreme Court invalidated portions of Sections 2(1) and 2(2) of Bureau of Internal Revenue (BIR) Revenue Regulations (RR) 4-2014 or the “Guidelines and Policies for the Monitoring of Service Fees of Professionals” for violating the right to privacy of the professionals and their clients.
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Supreme Court rules in favor of privacy rights | The Manila Times
A regional look at VAT/GST refund processes
Business World / Adriel Joshua Zaki Sim / June 19, 2024
Republic Act No. 11976, otherwise known as the Ease of Paying Taxes (EoPT) Act, is a landmark legislative measure aimed at simplifying tax compliance procedures and reducing the administrative burdens on taxpayers. Particularly for the value-added tax (VAT) refund process, the EoPT Act and its implementing regulations introduced a risk-based classification approach where only the medium- and high-risk claims are subject to mandatory verification or audit. In addition, taxpayers are now allowed to elevate the case to the Court of Tax Appeals (CTA) in case of inaction by the BIR within the 90-day period.
Click the link below to read the full news from the source:
A regional look at VAT/GST refund processes – BusinessWorld Online (bworldonline.com)
Cigarette, vape seizures valued at P7.2 billion in foregone taxes
Business World / Luisa Maria Jacinta C. Jocson / June 20, 2024
The Bureau of Internal Revenue (BIR) said seized tobacco and vapor products this year would have generated P7.2 billion in revenue had they entered the market through regular channels. “What we have caught so far for this year is quite a lot. For cigarettes, we’ve confiscated more than 500,000 packets. For vape products, we have confiscated 170,000 units. For all of these, the estimated tax liability is at P7.2 billion,” BIR Commissioner Romeo D. Lumagui, Jr. said in a television interview. The BIR urged vape manufacturers to mark their products with revenue stamps to signify tax compliance.
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Cigarette, vape seizures valued at P7.2 billion in foregone taxes – BusinessWorld Online (bworldonline.com)
Clarifying invoicing requirements: RR No. 7-2024
Business World / John Patrick L. Paumig / June 17, 2024
On June 13, the BIR released Revenue Regulations (RR) No. 11-2024, amending the transitory provisions of RR No. 7-2024 and extending the statutory deadlines for compliance with the new Invoicing requirements under the Ease of Paying Taxes (EoPT) Act. RR No. 7-2024 became a key regulation in implementing EoPT, serving as a framework to guide taxpayers in navigating the new Invoicing requirements. While the implementation of EoPT may be challenging, the BIR remains dauntless and patient in addressing taxpayer concerns by releasing timely regulations.
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Clarifying invoicing requirements: RR No. 7-2024 – BusinessWorld Online (bworldonline.com)
LGUs to receive P1.034-trillion NTA in 2025
Business World / Beatriz Marie D. Cruz / June 16, 2024
LOCAL government units (LGUs) will receive a National Tax Allotment (NTA) of P1.034 trillion in 2025, the Department of Budget and Management (DBM) said. In a memorandum, the DBM said P237.96 billion will be released to provinces, P239.05 billion to cities, P350.68 billion to municipalities, and P206.92 billion to barangays. NTAs are the 40% share of National Government (NG) revenue from three years prior. The 2025 NTA is thus based on government revenue reported in 2022.
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LGUs to receive P1.034-trillion NTA in 2025 – BusinessWorld Online (bworldonline.com)
BIR urges online platforms to carry only vape products with tax stamps
Business World / June 16, 2024
The Bureau of Internal Revenue (BIR) issued a warning to online platforms to ensure that vape sellers are duly registered and comply with the tax stamp rules. “Online platforms should only allow duly registered online sellers with the BIR, to sell vapes online,” it said in a statement. “The BIR is monitoring both online platforms and brick-and-mortar stores selling vape products for possible violations of BIR regulations on vape products,” it said. The BIR had required all vape products to bear the internal revenue stamps starting June 1.
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BIR urges online platforms to carry only vape products with tax stamps – BusinessWorld Online (bworldonline.com)
Government losing P5 billion in taxes from vape smuggling, illegal sale
The Philippine Star / Louise Maureen Simeon / June 20, 2024
MANILA, Philippines — The government is losing at least P5 billion in revenues from the continued smuggling and illegal selling of vape products. Consumer group Bantay Konsyumer, Kalsada, Kuryente (BK3) raised the concern of smuggling of vape products. It is estimated that Philippine consumption of vape is now at P13 billion.
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Government losing P5 billion in taxes from vape smuggling, illegal sale | Philstar.com
DOF: Real property valuation reform to increase LGU revenues
Manilla Bulletin / Chino S. Leyco / June 15, 2024
The Department of Finance (DOF) said the Real Property Valuation and Assessment Reform Act (RPVARA) will enable local government units (LGUs) to achieve financial independence. The RPVARA will establish a single system of valuation for real properties that is aligned with international standards to be used for local and national taxation, among other purposes.
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DOF: Real property valuation reform to increase LGU revenues (mb.com.ph)
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