Bureau of Internal Revenue Issuances
REVENUE MEMORANDUM CIRCULARS (RMC)
RMC No. 78-2024
July 15, 2024
Addendum to Revenue Memorandum Circular No. 47-2024 re: Contest for the Design of the New BIR Logo.
RMC No. 79-2024
July 15, 2024
Further Extending the Transitory Period Prior to Actual Imposition of Withholding Tax on Gross Remittances Made by Digital Financial Services Providers to Sellers/Merchants Prescribed under Revenue Regulations No. 16-2023.
RMC No. 81-2024
July 18, 2024
Tax Treatment of Sukuk (Islamic Bond) as Islamic Banking Arrangement Pursuant to the Tax Neutrality Provision of Republic Act No. 11439 (An Act Providing for the Regulation and Organization of Islamic Banks) as Implemented by Revenue Regulations No. 17-2020.
REVENUE MEMORANDUM CIRCULARS (RMC)
Revised Schedule of Zonal Values of Real Properties
RDO No. 57 – Biñan City, Laguna
Effectivity Date: July 4, 2024
https://bir-cdn.bir.gov.ph/BIR/pdf/RDO%20No.%2057%20-%20Bi%C3%B1an%20City,%20West%20Laguna%20(website).pdf
RDO No. 85 – Catarman, Northern Samar
Effectivity Date: July 4, 2024
https://bir-cdn.bir.gov.ph/BIR/pdf/rdo%20no.%2085%20-%20catarman%20(website).pdf
RDO No. 93B – Ipil, Zamboanga Sibugay
Effectivity Date: August 3, 2024
https://bir-cdn.bir.gov.ph/BIR/pdf/RDO%20NO.%2093B%20-ZAMBOANGA%20SIBUGAY.pdf
Advisory on Unavailability of PCs
Global issue wherein Crowdstrike platform is experiencing window hosts crashes / blue screen error related to the falcon sensor.
https://bir-cdn.bir.gov.ph/BIR/pdf/Advisory%20Unavailabilty%20of%20PC.pdf
Tax Law
Republic Act No. 12001
Official Gazette / June 13, 2024
An act instituting reforms in real property valuation and assessment in the Philippines, reorganizing the Bureau of Local Government Finance, granting of tax amnesty on real property and special levies on real property, and appropriating funds therefor
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Republic Act No. 12001 | Official Gazette of the Republic of the Philippines
Tax And Business Related News
BIR WEEKENDER BRIEFS
Volume No. 15 Issue No. 28 Week ending July 12, 2024
A BIR district office temporarily closed a business establishment in Naga City, Camarines Sur on July 8, 2024.
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https://bir-cdn.bir.gov.ph/BIR/pdf/v15n28%20FINAL.pdf
Lumagui: Electronic Marketplace Operators will impose Withholding Tax to Sellers/Merchants starting July 15, 2024
Bureau of Internal Revenue Commissioner Romeo D. Lumagui Jr. reiterates the imposition of withholding tax to sellers/merchants by electronic marketplace operators starting July 15, 2024, through Revenue Memorandum Circular (RMC) No. 79-2024. No more extensions will be given after the previous 90-day extension under RMC No. 55-2024. To clarify, RMC No. 79-2024 only extended the transitory period for digital financial services providers.
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https://bir-cdn.bir.gov.ph/BIR/pdf/PR41JUL1624.pdf
Lumagui: BIR & SEC Partnership will focus on running after Big-Time Corporate Tax Evaders
Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. entered into another historic partnership with the Securities and Exchange Commission (SEC) last July 17, 2024. The Memorandum of Agreement (MOA) and the Data Sharing Agreement (DSA) signed by the BIR and the SEC will facilitate a more streamlined information exchange between the agencies. The BIR will be able to focus on big-time corporate tax evaders through the documents that will be provided by the SEC.
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https://bir-cdn.bir.gov.ph/BIR/pdf/PR43JUL1824.pdf
Lumagui: BIR confiscates Flava Vape Vending Machine in cooperation with Netizen-Informant
The Netizen-Informant reported the presence of the illicit vending machine selling Flava vape products on Commissioner Lumagui’s page less than two (2) weeks ago. Seeing this, Commissioner Lumagui ordered the BIR to conduct surveillance operations to verify the target. Upon verification that the vending machine was indeed selling illicit vape, Commissioner Lumagui immediately ordered the confiscation of the machine and its contents.
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https://bir-cdn.bir.gov.ph/BIR/pdf/PR44JUL1824.pdf
Struggling to understand BIR invoicing rules? Here are the sample formats
Manila Bulletin / July 17, 2024
The Bureau of Internal Revenue (BIR) has released a detailed guide on invoicing requirements under Revenue Memorandum Circular No. 77-2024. Titled “GABAY PARA SA INVOICING REQUIREMENTS,” BIR Commissioner Romeo D. Lumagui Jr. offers businesses and taxpayers clear ways to adhere to proper invoicing procedures.
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Struggling to understand BIR invoicing rules? Here are the sample formats (mb.com.ph)
Recto welcomes the implementation of an interagency data-sharing system for a more efficient and modernized tax administration
Department of Finance / July 17, 2024
Finance Secretary Ralph G. Recto has welcomed the implementation of an interagency data-sharing system that will facilitate a more efficient and modernized tax administration process, helping the government boost much-needed revenues to accelerate the nation’s growth. Through a Memorandum of Agreement (MOA) signed on July 17, 2024 between SEC Chairperson Emilio B. Aquino and Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui, the BIR is the first agency to access the portal. This will empower the BIR to harmonize records of registered corporations and enhance tax collection efficiency.
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Recto welcomes the implementation of an interagency data-sharing system for a more efficient and modernized tax administration | Department of Finance (dof.gov.ph)
CTA junks P165.2-M tax refund or credits sought by HP PPS from BIR
Manila Bulletin / Czarina Nicole Ong Ki / July 12, 2024
For lack of jurisdiction, the Court of Tax Appeals (CTA) has dismissed the petition filed by HP PPS Philippines, Inc. which sought P165.2 million tax refund or tax credits from the Bureau of Internal Revenue (BIR) for fiscal year 2017. In dismissing the petition for lack of jurisdiction, the CTA’s first division said that HP PPS failed to establish the timeliness of its judicial appeal as it pointed out that an appeal must be filed within 30 days from receipt of a decision or ruling, or after the expiration of the period fixed by law for action.
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CTA junks P165.2-M tax refund or credits sought by HP PPS from BIR
CTA junks Ford Group Philippines’ P262-M tax refund
Manila Bulletin / Czarina Nicole Ong Ki / July 15, 2024
The Court of Tax Appeals (CTA) has denied the P262 million tax refund claimed by Ford Group Philippines, Inc. for the firm’s alleged excess and unutilized creditable withholding taxes (CWT) for 2018. Ruling on the issue, the CTA’s first division said that Ford failed to prove that the income payments subjected to CWTs were reported as part of its gross income in its annual ITR.
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CTA junks Ford Group Philippines’ P262-M tax refund (mb.com.ph)
DoF willing to forego taxes from offshore gaming firms
Business World / John Victor D. Ordoñez and Kyle Aristophere T. Atienza / July 16, 2024
The Department of Finance (DoF) on Tuesday said it could forego about P13 billion in tax and gaming revenues from Philippine Offshore Gaming Operations (POGO) if these are banned, adding that more investments could come in if crimes linked to these outfits are cut. Also on Tuesday, a political coalition urged the Marcos government to cancel the license of all POGOs that cater to the Chinese market, citing an internet gaming regulation banning websites from being accessed in the Philippines and countries where gambling is prohibited.
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DoF willing to forego taxes from offshore gaming firms – BusinessWorld Online (bworldonline.com)
SC affirms P258.63-M tax refund for PAL
Inquirer.net / July 18, 2024
Manila, Philippines — The Supreme Court has affirmed the decision of the Court of Tax Appeals (CTA) ordering the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC) to refund to a local airline company the P258.63 million in taxes it paid for imported fuel in 2005. In a decision promulgated on April 1 but made public only recently, the high tribunal’s Third Division said that Philippine Airlines (PAL) could qualify for a tax exemption on its import even if local products were available, as long as these were of subpar quality or significantly overpriced compared to their imported counterparts.
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SC affirms P258.63-M tax refund for PAL (inquirer.net)
BIR expecting H2 revenue boost from vaping industry
Business World / Beatriz Marie D. Cruz / July 17, 2024
The Bureau of Internal Revenue (BIR) expects to hit its collection target this year, citing encouraging signs of compliance by the vaping industry and the new withholding tax on online sellers. Starting June 1, the BIR ordered all vape manufacturers to mark their products with revenue stamps to ensure tax compliance. Mr. Lumagui also said that the recently imposed withholding tax on online sellers will help increase the BIR’s collections in the next six months.
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BIR expecting H2 revenue boost from vaping industry – BusinessWorld Online (bworldonline.com)
Claiming excess taxes paid under the EoPT
Business World / Lorenzo V. Matibag / July 15, 2024
One such notable change in the current tax rules is Republic Act No. 11976, or the “Ease of Paying Taxes Act” (EoPT). The new law changed the procedures for claiming tax refunds of excess creditable withholding taxes. To implement the amendatory provisions on tax refund provisions, the Bureau of Internal Revenue (BIR) issued Revenue Regulations (RR) No. 05-2024. The regulations took effect on April 11, and it will affect tax refund claims beginning July 1 onwards. The new law and regulations also included significant changes with respect to value-added tax refunds and refunds by reason of cessation of business. The focus of this article is on claims for refunds of unutilized excess creditable withholding taxes (CWT) and taxes erroneously or illegally received, or penalties imposed without authority.
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Claiming excess taxes paid under the EoPT – BusinessWorld Online (bworldonline.com)
Modernizing property valuation
Business World / Lois Ann Caroline Sarajan / July 17, 2024
At present, there are three bases for the valuation of real property for tax purposes: (1) the Bureau of Internal Revenue’s (BIR) Schedule of Zonal Values (SZVs), (2) Local Government Units’ (LGU) Schedule of Market Values (SMVs), and (3) the market values from the highest selling price from recent sales of property in the vicinity, whichever is higher. This rule is usually the root of disagreement between taxpayers and the government.
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Modernizing property valuation – BusinessWorld Online (bworldonline.com)
Eyes on businesses: SEC, Customs, BIR, BI team up for enhanced oversight, tax collection
Bilyonaryo.com/July 17, 2024
The Securities and Exchange Commission (SEC) is partnering with other government agencies to enhance business transparency and boost state revenues. The SEC’s initial collaboration, under the SCORE Protocol, involves a data-sharing agreement with the Bureau of Internal Revenue (BIR). This agreement allows the BIR access to essential documents for tax assessments and collection, while the SEC gains access to the BIR’s Tax Identification Number verification system to improve identity validation and oversight of the corporate sector and capital market. This coordinated effort aims to streamline regulatory processes and enhance data sharing between agencies, leading to more efficient tax collection and corporate oversight.
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Eyes on businesses: SEC, Customs, BIR, BI team up for enhanced oversight, tax collection (bilyonaryo.com)
Imposition of 1% withholding tax on online sellers takes effect
The Philippine Star / Louise Maureen Simeon / July 17, 2024
Manila, Philippines — The Bureau of Internal Revenue (BIR) has formally imposed the one percent withholding tax on online platform providers as the government moves to level the playing field among businesses. In his latest revenue memorandum circular, BIR Commissioner Romeo Lumagui Jr. said all electronic marketplace operators were ordered to impose the withholding tax to sellers and merchants last July 15.
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Imposition of 1% withholding tax on online sellers takes effect | Philstar.com
BIR orders Facebook, Lazada to weed out unregistered online sellers
Manila Bulletin / Xander Dave Ceballos / July 17, 2024
Online marketplaces like Facebook and Shopee may be shut down if unregistered online sellers are still able to sell on their platforms, Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. said. Lumagui told reporters on Wednesday, July 17, that online sellers whose businesses are not registered with the BIR should not be allowed by the online marketplaces.
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BIR orders Facebook, Lazada to weed out unregistered online sellers (mb.com.ph)
BIR misses first-semester collection target by 3%
Manila Bulletin / Chino S. Leyco / July 15, 2024
The Bureau of Internal Revenue (BIR), the government’s main tax agency, fell short of its tax collection target for the first half of the year, data released by the Department of Finance (DOF) revealed. A report on the DOF’s official Facebook page showed that the BIR, responsible for generating nearly 70 percent of the government’s yearly income, amassed P1.36 trillion from January to June 2024.
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BIR misses first-semester collection target by 3% (mb.com.ph)
SEC rolls out 5 new digital services to simplify registration, tax processes
Manila Bulletin / James A. Loyola / July 17, 2024
The Securities and Exchange Commission (SEC) has launched the third wave of its digital initiatives consisting of five new services that will make company registration more efficient and promote data sharing for enhanced tax administration. The Commission on July 17, 2024, unveiled the SEC Zuper Easy Registration Online (ZERO), Electronic Submission Authentication Portal (eSAP), SEC Foreign Investments Registration Station (FIRST) Green Lane Unit, Electronic Application For Modification Of Entity Name And Data (eAMEND), and Swift Corporate and Other Records Exchange (SCORE) Protocol.
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SEC rolls out 5 new digital services to simplify registration, tax processes (mb.com.ph)
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