Bureau of Internal Revenue Issuances
REVENUE MEMORANDUM CIRCULARS
RMC No. 92-2024
August 27, 2024
Guidelines on the Proper Sale and Affixture of Loose Documentary Stamps to Taxable Documents
RMC No. 93-2024
August 27, 2024
Publishing the Full Text of the June 20, 2024 Letter from the Food and Drug Administration (FDA) of the Department of Health (DOH) Endorsing Updates to the List of VAT-Exempt Products Under Republic Act (R.A.) No. 10963 (TRAIN Law) and R.A. No. 11534 (CREATE Act)
RMC No. 95-2024
August 29, 2024
Clarifying certain issues on the filing of monthly Documentary Stamp Tax Declaration by Electronic Documentary Stamp Tax (eDST) taxpayers using BIR Form No. 2000 v 2018 pursuant to RMC No. 48-2024
RMC No. 96-2024
August 29, 2024
Amending certain provisions of RMC No. 5-2001 on the grounds and procedures for the implementation of Section 206 of the Tax Code on 1997 on Constructive Distraint
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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 continues to support affordable medicine, exempts from Value-Added Tax 15 additional medicines for Cancer, High Cholesterol, Hypertension, and Mental Illness.
Bureau of Internal Revenue Commissioner Romeo D. Lumagui, Jr. issued last August 27, 2024 Revenue Memorandum Circular No. 93-2024 exempting from VAT certain medicines for Cancer, High Cholesterol, Hypertension and Mental Illness. The circular was made in response to the updated list of VAT-Exempt Products from the Food and Drug Administration, under Republic Act No. 10963 and 11534. “The BIR has exempted from VAT an additional 15 medicines for Cancer, High Cholesterol, Hypertension and Mental Illness. The BIR is now a service-oriented agency, this includes the regular update of medicines that will fall under VAT-Exempt products. The BIR supports the government’s thrust in helping the public have access to more affordable healthcare and medicine,” Commissioner Lumagui stated.
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https://bir-cdn.bir.gov.ph/BIR/pdf/PR59AUG2824.pdf
Lumagui: National Internal Revenue Code exempts Carlos Yulo from paying taxes on Prizes, Awards, Rewards, Gifts, or Donations he received.
Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. clarified that Carlos Yulo, the two-time Olympic Gold Medalist, does not have to pay taxes for the prizes, awards, rewards, gifts, or donation he received by virtue of his historic performance in the 2024 Paris Olympics. The National Internal Revenue Code (NIRC), as amended, allows for Yulo to receive these cash and properties without paying taxes. Section 32(B)(7)(d) of the NIRC expressly provides that all prizes and awards granted to athletes in local and international sports tournaments and competitions held in the Philippines or abroad and sanctioned by their respective national sports associations shall be exempt from income tax. Section 32(B)(3) of the NIRC likewise categorically provides that the value of property acquired by gift, bequest, devise, or descent shall be excluded from gross income of the recipient and, therefore, exempt from income tax. Section 98 of the NIRC is clear that the donee or receiver is not liable to donor’s tax.
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https://bir-cdn.bir.gov.ph/BIR/pdf/PR58AUG2624.pdf
Lumagui: Organizers and Owners/Sellers of Illicit Vape should be held responsible for Philippine Vape Festival 2024 raid; Endorsers of the Festival should be careful in the brands or events they promote.
Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. reminds the organizers of the Philippine Vape Festival 2024, including the owners of stalls with illicit vape during the festival, for the raid that happened last Sunday. Vape products without an internal revenue stamp is an easily noticeable violation of taxation laws, yet the organizers and owners involved in the festival failed to comply with this basic requirement. Commissioner Lumagui also reminds celebrities and influencers to stop promoting illicit vapes, and instead, promote compliant vapes.
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https://bir-cdn.bir.gov.ph/BIR/pdf/PR57AUG2224.pdf
BIR warns of fake documentary stamps
BusinessWorld / Beatriz Marie D. Cruz / August 29, 2024
The Bureau of Internal Revenue (BIR) said taxpayers need to purchase documentary stamps from authorized revenue officers, noting that fake stamps are proliferating. “Loose documentary stamps shall only be purchased from and sold by the authorized specialized revenue collecting officers (SRCO)/revenue collection officers (RCO) assigned at the national office and revenue district office of this bureau,” the BIR said in a Revenue Memorandum Circular. The BIR said it has received reports of fake eDST system-printed and loose documentary stamps being affixed to taxable documents. Stamps were also being sold online or in physical stores, sometimes for more than the prescribed amount.
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BIR warns of fake documentary stamps – BusinessWorld Online (bworldonline.com)
Chasing after ghosts for tax purposes
BusinessWorld /Paolo John Dantes / August 28, 2024
Since 2023, the Bureau of Internal Revenue (BIR) has intensified its efforts to weed out and file cases against alleged violators of the provisions of the National Internal Revenue Code of 1997, as amended, (Tax Code). In fact, through its Run After Fake Transactions (RAFT) program, the BIR has filed multiple civil and criminal cases against approximately 70 taxpayers for allegedly selling or buying and using fake/“ghost” receipts to substantiate the expenses and corresponding input Value-Added Tax (VAT) claimed for tax purposes. The BIR also filed administrative cases against Certified Public Accountants allegedly involved in these schemes, moving to have their licenses revoked by the Professional Regulation Commission.
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Chasing after ghosts for tax purposes – BusinessWorld Online (bworldonline.com)
All aboard: Revisiting TRAIN’s impact on individuals
BusinessWorld / Joen Jacob G. Ramas / August 26, 2024
One of the major divers of tax reform is Republic Act No. 10963, otherwise known as the Tax Reform for Acceleration and Inclusion (TRAIN) Law, signed in December 2017 and taking effect on January 1, 2018. The TRAIN Law’s promises and objectives were multifaceted. Under the law, excise taxes were increased on automobiles, tobacco, and petroleum products to push for a sustainable future. Sweetened beverages were also slapped with excise taxes to combat diseases and health concerns stemming from excessive consumption. Further, personal income tax brackets were revamped by removing the personal exclusions and lowering the graduated income tax rates — a radical change.
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All aboard: Revisiting TRAIN’s impact on individuals – BusinessWorld Online (bworldonline.com)
Senate eyes CREATE MORE bill passage next week
BusinessWorld / John Victor D. Ordoñez and Beatriz Marie D. Cruz / August 28, 2024
The Senate plans on approving “next week” a measure that will lower income tax on both local and foreign companies, according to the Senate president. Senators aim to wrap up the period of amendments on Senate Bill No. 2762, the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) bill, Senate President Francis “Chiz” G. Escudero said at a forum in Manila, Wednesday. The House of Representatives passed its version of the bill on final reading in March. The priority measure removes value-added tax (VAT) on goods and services to essential services such as janitorial, security, financial consultancy, marketing and human resources.
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Senate eyes CREATE MORE bill passage next week – BusinessWorld Online (bworldonline.com)
Philippines can become Asia’s shopping hub: Frederick Go urges E-Visa and VAT refund reforms
Bilyonaryo.com / August 29, 2024
The Philippines has the potential to become the “shopping capital of Asia” if the government implements an electronic visa system and a value-added tax (VAT) refund scheme for foreign travelers, according to Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go. Speaking at the National Retail Conference and Expo (NRCE) 2024 in Pasay City, Go emphasized the importance of making it easier for tourists to visit the Philippines. Go also supported the Philippine Retailers Association’s (PRA) proposal to introduce VAT refunds for non-resident tourists. The proposed VAT refund should be in the range of 60 to 90 percent, aligning with practices in other Asian countries.
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Philippines can become Asia’s shopping hub: Frederick Go urges E-Visa and VAT refund reforms (bilyonaryo.com)
PBBM to enforce VAT on digital transactions—Recto
Manila Bulletin / August 27, 2024
The Department of Finance (DOF) said that President Marcos will soon sign the law imposing value-added tax (VAT) on foreign digital service providers, such as Netflix. During a Senate Finance subcommittee hearing on Tuesday, Aug. 27, Finance Secretary Ralph G. Recto said the DOF and the Bureau of Internal Revenue (BIR) are in the process of crafting the implementing rules and regulations (IRR) for this new law. To recall, the bicameral conference committee approved the bill’s final version on June 27, which sets a 12 percent VAT on foreign digital service providers. This legislation is a priority for the Marcos administration.
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PBBM to enforce VAT on digital transactions—Recto (mb.com.ph)
PCC concerns ignored: DTI and CTA uphold safeguard duties on imported cement
Bilyonaryo.com / August 25, 2024
The Philippine Competition Commission’s (PCC) warnings had little impact on the decision to uphold safeguard duties on imported cement, as both the Department of Trade and Industry (DTI) and the Court of Tax Appeals (CTA) rejected a petition filed by five cement importers, including Philcement Corporation, owned by the del Rosario family. Philcement, along with Cohaco Merchandising & Development Corp., Fortem Cement Corporation, NGC Land Corporation, and Pabaza Import and Export Inc., sought a refund of P384.64 million in safeguard duties imposed on cement imports in 2019. By June 30, 2024, Philcement’s payments had ballooned to P1.24 billion.
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PCC concerns ignored: DTI and CTA uphold safeguard duties on imported cement (bilyonaryo.com)
TMAP set to host first International Tax Summit
The Manila Times / August 25, 2024
The Tax Management Association of the Philippines (TMAP) will be hosting its first International Tax Summit at Makati Shangri-La on Aug. 29, 2024. The summit will feature discussions of various developments in international taxation and its impact on the Philippine taxation, including the following topics: Philippine Legislative Agenda, base erosion and profit shifting or BEPS 2.0 in action, ease of doing business in the Association of Southeast Asian Nations (Asean)/Taxation of Mergers and Acquisitions, Asean tax enforcement practices, impact of carbon border adjustment mechanism on Philippine industries and first global ethics standards on tax planning.
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TMAP set to host first International Tax Summit | The Manila Times
Recto: DOF’s 2025 budget proposal prioritizes digitalization for efficient tax administration and public service, adheres to the highest standards of fiscal discipline
Department of Finance / August 27, 2024
Finance Secretary Ralph G. Recto has underscored to the members of the Senate that the Department of Finance (DOF)’s 2025 budget proposal prioritizes digitalization for efficient tax administration and public service, and assured that it adheres to the highest standards of fiscal discipline to deliver economic prosperity for Filipinos. “Our proposed budget every year is always a faithful reflection of our strategic priorities under the Bagong Pilipinas brand of governance,” he said in his presentation at the Senate budget hearing on August 27, 2024. “The items discussed today are part and parcel of a larger effort to improve tax administration efficiency, deliver more responsive public service delivery, and provide economic prosperity for the Filipino people,” he added. Guided by the Medium-Term Fiscal Program, the DOF ensures that the government attains its revenue targets annually to reduce deficit and debt gradually in a realistic manner, while creating more jobs, increasing people’s incomes, and decreasing poverty in the process.
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Recto: DOF’s 2025 budget proposal prioritizes digitalization for efficient tax administration and public service, adheres to the highest standards of fiscal discipline | Department of Finance
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