Bureau of Internal Revenue Issuances
REVENUE MEMORANDUM CIRCULARS
RMC No. 91-2024
August 14, 2024
Clarification on Registration Procedures Pursuant to Revenue Regulations No. 7-2024, as amended by Revenue Regulations No. 11-2024.
BIR ADVISORIES
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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
Lumagui: BIR seizes 5,385 Vape Products during raid of Philippine Vape Festival 2024 on a Sunday
Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. reported that a total of 5,385 illicit vape products were seized during the successful raid of the Philippine Vape Festival 2024 last Sunday, August 18, 2024. The raid was conducted based on surveillance by the BIR Illicit Trade Task Force (ITTF) during the festival’s opening day. The BIR-ITTF discovered that all vape products displayed and offered for sale have no corresponding internal revenue stamps. Having confirmed that the vape products were illicit, the BIR-ITTF proceeded with the Sunday raid, with the assistance of Las Pinas police.
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https://bir-cdn.bir.gov.ph/BIR/pdf/PR56AUG1924.pdf
Lumagui: BIR raids Philippine Vape Festival 2024, confiscates Illicit Vape Products
Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. reports an ongoing raid of the Philippine Vape Festival 2024 being held in Las Pinas today, August 18, 2024. Surveillance of the event confirmed that there were vape products without internal revenue stamps. Upon seeing vape products without internal revenue stamps, Commissioner Lumagui, together with the BIR Illicit Trade Task Force (ITTF) proceeded to raid the event, and confiscate the illicit vape products.
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https://bir-cdn.bir.gov.ph/BIR/pdf/PR55AUG1824.pdf
House bill exempting athlete gifts from taxes OKd
BusinessWorld / Kenneth Christiane L. Basilio / August 14, 2024
The House of Representatives on Wednesday passed on second reading a bill that seeks to exempt from taxes rewards and incentives given to athletes competing in international sports events. In a voice vote, congressmen agreed to exempt all gifts from taxes to encourage donations from private companies, which athletes can use for their training. “All incentives, rewards, bonuses and other forms of emoluments… whether from public or private persons or entities received by national athletes who compete or win in international sports competitions… shall be exempt from any and all national or local taxes,” according to House Bill (HB) No. 10723. The bill will retroactively take effect in January, covering the incentives received by athletes who competed in the recently concluded 2024 Paris Summer Olympics.
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House bill exempting athlete gifts from taxes OKd – BusinessWorld Online (bworldonline.com)
Ongpin family’s Alphaland Southgate wins case as CTA nullifies BIR’s P3.76 billion tax claim
Bilyonaryo.com / August 19, 2024
The Court of Tax Appeals (CTA) 2nd Division has overturned the Bureau of Internal Revenue’s (BIR) ₽3.76-billion tax assessment against the Ongpin family’s Alphaland Southgate Tower Inc. The ruling, issued on August 13, 2024, found that the tax demand was invalid due to the lack of authority of the revenue officer who signed the assessment. The CTA also rejected the BIR’s argument that Alphaland Southgate’s petition was late, confirming that the company’s challenge was timely. The court’s decision prohibits the BIR from collecting any amounts related to the disputed assessment.
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Ongpin family’s Alphaland Southgate wins case as CTA nullifies BIR’s P3.76 billion tax claim (bilyonaryo.com)
DOF gains Netflix support for VAT on foreign digital services
Manila Bulletin / Xander Dave Ceballos / August 21, 2024
Senior Netflix officials support the bill on 12 percent value-added tax (VAT) for foreign digital service providers, citing it would level the playing field between local and international digital service providers, according to the Department of Finance (DOF). In June, lawmakers approved the harmonized version of House Bill 4122 and Senate Bill 2528 during the bicameral conference. This version of the bill aims to impose a 12 percent VAT on digital transactions by non-resident digital service providers such as Netflix, Disney, and HBO. Under the measure, taxpayers subject to the percentage tax are limited to those who fall below the VAT threshold of P3 million in annual sales set under the Tax Reform for Acceleration and Inclusion Act. The BIR may allow the blocking or suspension of the digital providers’ services should they fail to withhold and remit the 12 percent VAT on transactions with clients in the Philippines. Around P20 billion in estimated revenues are expected to be collected by the government from the VAT on digital services every year, Recto said.
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DOF gains Netflix support for VAT on foreign digital services (mb.com.ph)
Tax compliance on internet transactions
BusinessWorld / Maria Jonas Yap / August 21, 2024
The Internet Transactions Act (ITA), which became effective on Dec. 20, with implementing rules issued on May 24, was established to build trust in e-commerce and protect and uphold the interests of consumers. It recognizes the right of online buyers to pursue repair, replacement, refund and other remedies in cases of defect, malfunction and losses. On the other hand, it protects merchants from last-minute cancellation of confirmed orders or bogus buyers. With the ITA, the Bureau of Internal Revenue (BIR) issued Revenue Regulations (RR) No. 15-2024 on Aug. 15 requiring all persons engaged in business including online sellers and service providers to comply with the policies, as well as registering with the BIR on or before the commencement of business, the filing of proper tax returns, and the payment of the applicable taxes.
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Tax compliance on internet transactions – BusinessWorld Online (bworldonline.com)
Doctors and taxes
BusinessWorld / Eleanor Lucas Roque / August 19, 2024
A few days ago, I received a frantic call from a relative asking for tax advice. She just started her medical practice, which she has always dreamed of. She consulted an accountant and is in the process of signing the retainer. Upon receiving the proposal, she was surprised at the amount of bookkeeping and tax work that needs to be done. Not knowing anything about taxes, she asked me if she and her would-be accountant were going in the right direction. In the process of sending her a long text of all the things she needs to understand, I thought of all the other young doctors and professionals who are in the same predicament. So, if you are a young doctor, lawyer, or dentist starting your practice, here are some tax compliance requirements for you.
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Doctors and taxes – BusinessWorld Online (bworldonline.com)
BIR warns influencers endorsing illicit vape products
Manila Bulletin / Jun Ramirez / August 22, 2024
The Bureau of Internal Revenue (BIR) has warned celebrities and influencers against promoting vape products that may not comply with tax regulations. In a statement on Thursday, Aug. 22, BIR Commissioner Romeo D. Lumagui Jr. urged public figures to verify the tax compliance of the vape products they endorse. This warning follows a recent raid at the Philippine Vape Festival 2024, during which authorities confiscated illegal vapes.
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BIR warns influencers endorsing illicit vape products (mb.com.ph)
Tax agencies hit 58% of 2024 target at end-July
Manila Bulletin / Xander Dave Ceballos / August 19, 2024
The Department of Finance (DOF) announced that the government’s two main tax agencies have already achieved over half of their full-year collection target in just the first seven months of the year, primarily fueled by digitalization efforts. Tax revenues from the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC) already reached P2.22 trillion, representing 58 percent of the government’s target for this year, based on the report from the DOF. “The BIR will ramp-up the implementation of its digitalization programs, intensify its tax enforcement programs, and run after delinquent accounts,” DOF Secretary Ralph G. Recto said during his meeting with the BIR and BOC on Friday.
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Tax agencies hit 58% of 2024 target at end-July (mb.com.ph)
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