Bureau of Internal Revenue Issuances
REVENUE MEMORANDUM CIRCULARS
RMC No. 101-2024
September 9, 2024
Suspension of work in the government offices in the National Capital Region and Region IV-A (CALABARZON) in view of the continuous rainfall brought by the Southwest Monsoon and Tropical Storm “Enteng”.
RMC No. 102-2024
September 9, 2024
Circularizing Proclamation No. 665 dated August 15, 2024 by the Office of the President, amending Proclamation No. 368 S. 2023 declaring regular holidays and special (non-working) days for the year 2024.
RMC No. 103-2024
September 12, 2024
Circularizing Republic Act No. 11999, otherwise known as the “Bulacan Special Economic Zone and Freeport Act”.
RMC No. 104-2024
September 12, 2024
Celebration of the 22nd Anniversary of the Development Policy Research Month.
RMC No. 105-2024
September 12, 2024
Implementation of increased biodiesel blend requirements, and updating of the requirements for permit to operate for Downstream Oil Industry participants.
Tax And Business Related News
Lumagui: New BIR Web Portal reaches 10 Million Visitors
Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. announced that the new BIR web portal (www.bir.gov.ph), which was publicly launched during the agency’s 120th Anniversary last August 1, 2024, has reached more than ten (10) million visitors. The new BIR web portal is a priority project of Commissioner Lumagui and is part of his Excellent Taxpayer Service and Digitalization programs.
Click the link below to read the full news from the source:
https://bir-cdn.bir.gov.ph/BIR/pdf/PR64SEP1224.pdf
Lumagui: BIR strengthens partnership with Top Business Groups in an effort to improve Taxpayer Service; adds another 3 for a total of 12 business groups
Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. continues the BIR’s productive relationship with its Multi-Sectoral Group through a Memorandum of Agreement signing held last September 10, 2024. The Multi-Sectoral Group represents the different industries under the private sector. Through the Multi-Sectoral Group, the private sector can voice out their concerns with current and proposed polices and regulations of the BIR. Regular dialogues and consultations with the private sector is in keeping with Commissioner’s Lumagui thrust for excellent taxpayer service.
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https://bir-cdn.bir.gov.ph/BIR/pdf/PR63SEP1124.pdf
Lumagui: Revenue Regulations No. 15-2024 Levels the Playing Field Between Brick-and-Mortar Stores and Online Businesses; E-marketplace Platforms, Online Sellers, and Content Creators Must Strictly Follow RR No. 15-2024
Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. has issued Revenue Regulations No. 15-2024 (RR No. 15-2024) that prescribes the policies of the BIR in relation to the registration of brick-and-mortar stores and online businesses. RR No. 15-2024 was issued for the purpose of levelling the playing field between physical stores and online stores by regulating them equally, and taxing them uniformly. Section 8 of RR No. 15-2024 provides that business operations may be suspended through the issuance of a Closure/Take Down Order against physical or online businesses. The closure of such business operations does not preclude the BIR from filing tax evasion cases under its Run After Tax Evaders program.
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https://bir-cdn.bir.gov.ph/BIR/pdf/PR62SEP0924.pdf
Recto welcomes Senate concurrence to ratify the PH’s participation in an international tax cooperation convention that will stop tax evasion and avoidance
Department of Finance / September 12, 2024
Finance Secretary Ralph G. Recto has welcomed the passage of Senate Resolution No. 139, concurring with the ratification of the Philippines’ participation in the Convention on Mutual Administrative Assistance in Tax Matters (MAAC), which will help stop tax evasion and avoidance in the country. The MAAC is the most comprehensive multilateral instrument available for all forms of administrative cooperation between signatories in the assessment and collection of taxes. The Finance Chief expects the MAAC to significantly improve tax administration in the Philippines since it gives the government access to data exchange, assessment, and enforcement tools with over a hundred partner signatories. Furthermore, it allows the Philippines to enter into agreements on simultaneous tax examinations and exchanges of information (EOI).
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Recto welcomes Senate concurrence to ratify the PH’s participation in an international tax cooperation convention that will stop tax evasion and avoidance | Department of Finance (dof.gov.ph)
Recto lauds PH Tax Academy for expanding training programs, urges further scale-up to boost revenue collections for national development
Department of Finance / September 10, 2024
Finance Secretary Ralph G. Recto has commended the Philippine Tax Academy (PTA) for expanding its training programs last year and urged the agency to further scale these efforts to strengthen public personnel’s tax administration capabilities in order to boost revenue collections for national development. The PTA is a government-owned and controlled corporation (GOCC) serving as a learning institution for tax collectors and administrators of the government and applicants from the private sector. It develops and implements curriculums containing technical aspects of tax collection, administration, and compliance, as well as career orientation and development for its applicants. In an effort to broaden its mandate, the PTA is actively exploring opportunities to extend its services to meet the needs of other DOF-attached agencies and GOCCs, such as the National Tax Research Center (NTRC) and the Bases Conversion and Development Authority (BCDA).
Click the link below to read the full news from the source:
https://www.dof.gov.ph/recto-lauds-ph-tax-academy-for-expanding-training-programs-urges-further-scale-up-to-boost-revenue-collections-for-national-development/
EoPT invoicing, clarified
BusinessWorld / Angelika Valmonte / September 11, 2024
When the Ease of Paying Taxes (EoPT) Act was signed into law, one of the key reforms introduced was the change in the invoicing and accounting requirements for VAT-registered persons, particularly sellers of services. In a landmark move, the EoPT removed the official receipt (OR) as the primary document for sales of services, and replaced it with the invoice, with the goal of streamlining the required documentation and aligning it with sales of goods. The transition is welcome but not without its challenges. Earlier this year, the BIR issued several Revenue Regulations (RR) to implement the revised invoicing requirements of the EoPT: RRs 3-2024, 7-2024 and 11-2024. While the requirements took effect on April 27, 2024, questions still come to mind when reviewing these RRs. Fortunately, the BIR released Revenue Memorandum Circular (RMC) 77-2024 as clarification.
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https://www.bworldonline.com/economy/2024/09/11/620908/eopt-invoicing-clarified/
Pay P236-M back taxes, court tells BGC operator
Philippine Daily Inquirer / Kathleen de Villa / September 13, 2024
Manila, Philippines — The Court of Tax Appeals (CTA) has directed Fort Bonifacio Development Corp. (FBDC), operator of Bonifacio Global City (BGC), to pay P235.96 million in income tax and value-added tax (VAT) due more than a decade ago. The amount accounts for P230.9 million in tax deficiencies and P5.06 million in VAT, inclusive of a 25 percent surcharge and 20 percent deficiency interest that FBDC is liable to pay for the year 2012. The order was based on a petition for review filed in 2020 by FBDC seeking the nullification and revocation of the Bureau of Internal Revenue’s (BIR) tax assessments worth P256.08 million.
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https://newsinfo.inquirer.net/1982789/pay-p236-m-back-taxes-court-tells-bgc-operator
OECD-developed tax cooperation convention comes into force in Philippines
The Philippine Star / Louise Maureen Simeon / September 13, 2024
Manila, Philippines — The tax cooperation convention drawn up by the Organization for Economic Cooperation and Development (OECD) is now in full force in the Philippines to address tax evasion in the country. This came after the Senate passed a resolution concurring with the ratification of the Philippines’ participation in the Convention on Mutual Administrative Assistance in Tax Matters (MAAC). With the MAAC in place, the government can access tax information on other jurisdictions, decrease the risk of a downgrade on the country’s tax transparency and save time, financial and human resources on treaty negotiations. The country will also gain third-party information to support assessment and enforcement programs like the Bureau of Internal Revenue’s Run After Tax Evaders program. To ensure the integrity of the cooperation, the MAAC contains safeguards to protect the confidentiality of information exchanged between tax authorities, upholding taxpayers’ right to privacy.
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https://www.philstar.com/business/2024/09/13/2384819/oecd-developed-tax-cooperation-convention-comes-force-philippines
TMAP successfully holds tax summit
The Manila Times / September 11, 2024
The Tax Management Association of the Philippines (TMAP) wrapped up a successful first International Tax Summit with a full day of discussions and conversations on local and international tax issues. Speakers from all over the world shared their expertise on different topics. Internal Revenue Commissioner Romeo Lumagui Jr. highlighted the bureau’s goal of full digitalization and current initiatives of running after fake transactions and tax evaders. TMAP 2024 President Jacqueline Villar cited the importance of an international tax forum for Philippine tax practitioners to be abreast of local and international trends. TMAP members looked forward to the second edition next year.
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TMAP successfully holds tax summit | The Manila Times
PHL government urged to impose new taxes to fund health programs for poor
BusinessWorld / Kyle Aristophere T. Atienza / September 8, 2024
The Philippines needs new health taxes to fund nutrition programs amid spiraling prices that have worsened malnutrition, which is likely experienced by near-poor households, according to an economist. “New resources are needed to subsidize the nutritional requirements of the poor,” Filomeno S. Sta. Ana III, coordinator at advocacy group Action for Economic Reforms, said in an e-mail. A tax on sweetened beverages could be earmarked for nutrition programs, he added. “The first win is that such health taxes discourage the consumption of unhealthy or harmful products such as tobacco, alcohol and sweetened beverages,” he said. “The second win is that the revenues from these taxes are earmarked for health and nutrition.” A “catastrophic event” in the family or a nationwide shock could affect them and make them absolutely poor, Mr. Sta. Ana said.
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https://www.bworldonline.com/the-nation/2024/09/08/619557/phl-government-urged-to-impose-new-taxes-to-fund-health-programs-for-poor/
LGUs to get P21B from tobacco taxes
BusinessWorld / Beatriz Marie D. Cruz / September 8, 2024
Local government units (LGUs) will receive P21 billion from the excise taxes collected from domestically manufactured tobacco and cigarettes, the Department of Budget and Management (DBM) said. In a memorandum, the DBM said P17 billion in excise taxes on Virginia tobacco cigarettes will go to provinces, pro-rated based on the volume of production. Some P4 billion worth of Burley and native tobacco excise taxes will go to the provinces in accordance with the volume of their leaf production. The sharing scheme for Burley and native tobacco is 50% to the provinces and the remaining 50% shared out by volume of production among municipalities and cities.
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https://www.bworldonline.com/economy/2024/09/08/619636/lgus-to-get-p21b-from-tobacco-taxes/
Japanese investors in the Philippines still awaiting P200-billion VAT refunds, says chamber exec
Manila Bulletin / Ben Arnold De Vera / September 13, 2024
Up to now, Japanese investors mostly in the Philippines’ manufacturing sector are still awaiting the refund of value-added tax (VAT) credits totaling P200 billion from the government, a chamber official said. Moving forward, Japanese firms in the country are “fully” supporting the passage of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) bill to fast-track VAT refunds, Japanese Chamber of Commerce and Industry of the Philippines (JCCIP) vice president and executive director Nobuo Fujii told Manila Bulletin on the sidelines of a business matching event on Friday, Sept. 13. The CREATE MORE bill was aimed at addressing some of the problems that foreign investors supposedly encountered when the CREATE Law was enacted in 2021, at the height of the pandemic-induced economic recession. The bill has already hurdled the two houses of Congress, and is just awaiting the President’s signature to become law.
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https://mb.com.ph/2024/9/13/japanese-investors-in-philippines-still-awaiting-p200-billion-vat-refunds-says-chamber-exec
CREATE MORE law to help PH office market
Philippine Daily Inquirer / Alden M. Monzon / September 13, 2024
A proposed law which is now waiting for the president’s approval is expected to bring some stability to the country’s office market, which has been significantly hit by the pandemic and the ban on online gaming operations. In a commentary, property management firm Colliers said that the Create More Act (Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy) will bring benefits to the industry. “(T)he clarity provided under Create More on key issues such as VAT (value-added tax) exemption, zero-rating, and work-from-home arrangements offers investors greater regulatory stability and transparency, which are crucial in making the country a viable destination to set up business,” the firm said.
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https://business.inquirer.net/479777/create-more-law-to-help-ph-office-market
CREATE MORE ushers in era of hybrid work: Can it drive economic growth?
Manila Bulletin / Gabriell Christel Galang / September 12, 2024
The work-from-home (WFH) model is on track to become a permanent component of the Philippine business landscape as the CREATE MORE bill—officially known as the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy—nears its final approval. The bicameral conference committee recently greenlit the bill, which features a reduction in corporate taxes from 25 percent to 20 percent. Another key element attracting attention is Section 26 of the Senate’s version of CREATE MORE, which permits registered business enterprises (RBEs) to adopt WFH arrangements for up to 50 percent of their workforce. Economists interviewed by the Manila Bulletin explained the broader implications of this development, suggesting that the emergence of a hybrid work model—combining remote and in-office work—could have a positive impact on the overall economy.
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https://mb.com.ph/2024/9/12/create-more-ushers-in-era-of-hybrid-work-can-it-drive-economic-growth
Love beyond death and taxes
BusinessWorld / Aaron Paul A. Santos / September 9, 2024
Most of us work tirelessly to secure a good life for ourselves and our families, striving to ensure that our loved ones enjoy comfort and security even when we are no longer around. Under Philippine succession laws, the transfer of property, rights, and obligations to heirs is facilitated either through a will or by operation of law. While death is more often considered tragic, the legal framework includes provisions to support our loved ones and potentially generate further income from our property even after a person’s demise. However, transferring property upon death is subject to estate tax, which is an excise tax imposed at a rate of 6%. In addition, transfer taxes are levied by local government units for the transfer of real property, with rates of up to 0.50%, if located in the provinces, or 0.75%, if located within the National Capital Region. These taxes are calculated based on the property’s value at the time of death and must be settled before any distribution to heirs can occur. Thus, effective tax planning is essential to manage the estate’s tax obligations.
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https://www.bworldonline.com/economy/2024/09/09/620264/love-beyond-death-and-taxes/
BIR intel officer acquitted of graft charge on appeal
Malaya Business Insight / Peter Tabingo / September 10, 2024
The Sandiganbayan has reversed and set aside its November 7, 2023 decision that affirmed the conviction of Bureau of Internal Revenue (BIR) – Special Investigation Division intelligence officer Francis Mercado on one count of graft. In its 17-page resolution issued September 6, 2024, the anti-graft courts First Division granted the defendant’s motion for reconsideration saying a second look on the evidence on record showed the prosecution failed to establish Mercado’s guilt beyond reasonable doubt.
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https://malaya.com.ph/news_news/bir-intel-officer-acquitted-of-graft-charge-on-appeal/
Ex-DOF official Andutan gets more jail time over tax credit fraud
Rappler / September 10,2024
The Sandiganbayan has convicted Uldarico Andutan Jr., former deputy executive director of the Department of Finance (DOF)’s now-defunct One-Stop Shop Inter-Agency Tax Credit and Duty Drawback Center (OSS Center), of five counts of graft in connection with the alleged fraudulent issuance of tax credit certificates (TCCs) to textile companies from 1995 to 1996. Andutan was meted 6 to 10 years of imprisonment for each count, or a total of 30 to 50 years. He is also barred from holding public office.
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https://www.rappler.com/philippines/ex-dof-official-uldarico-andutan-jr-guilty-graft-tax-credit-fraud-september-2024/
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