Bureau of Internal Revenue Issuances
REVENUE REGULATIONS
RR No. 23-2025
September 3, 2025
Updated Policies, Guidelines and Procedures in the Implementation of the Tax Subsidy Granted by the Fiscal Incentives Review Board (FIRB) to the Armed Forces of the Philippines Commissary and Exchange Service (AFPCES).
REVENUE MEMORANDUM CIRCULARS
RMC No. 81-2025
September 3, 2025
Reiterating the Criteria and Guidelines on the Deductibility of Ordinary and Necessary Expenses Under Section 34(A)(1)(a) of the National Internal Revenue Code of 1997, as Amended
Full Text
REVENUE ADMINISTRATIVE ORDERS
RAO No. 4-2025
August 28, 2025
Renaming of Revenue Region (RR) No. 18 – Koronadal City to RR No. 18 – South Central Mindanao
REVENUE DELEGATION AUTHORITY ORDERS
RDAO No. 50-2025
August 28, 2025
Delegates to the Assessment Division Chief the authority to sign documents specified in the Order in view of the approved leave of RR 8A’s Regional Director.
RDAO No. 51-2025
September 2, 2025
Delegates to the Assessment Division Chief the authority to sign documents specified in the Order in view of the approved leave of RR 8B’s Regional Director.
RDAO No. 52-2025
September 2, 2025
Delegates to the OIC-Asst. Regional Director of RR No. 3-Cagayan Valley the authority to sign documents specified in the Order in view of the approved leave of RR 3’s OIC-Regional Director.
TAX ADVISORY
Advisory on Unavailability/Inaccessibility of All BIR Systems due to Security Solution Maintenance.
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https://bircdn.bir.gov.ph/BIR/pdf/Advisory%20Unavailability%20All%20BIR%20Systems%20(0029).pdf
Proposed Revenue Regulations on the Guidelines and Procedures in Administering the Advance Pricing Arrangement Program.
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https://bir-cdn.bir.gov.ph/BIR/pdf/Draft RR on APA_for public consultation.pdf
TAX LAW
REPUBLIC ACT No. 12214 – Capital Markets Efficiency Promotion Act (CMEPA)
BIR Website / signed May 29, 2025
AN ACT AMENDING SECTIONS 22, 24, 25, 27, 28, 32, 34, 38, 39, 42, 51, 52, 56, 57, 127, 149, 174, 176, 179, 190, 199, AND 258 OF REPUBLIC ACT NO. 8424, ОТHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED, AND FOR OTHER PURPOSES
REPUBLIC ACT No. 12079 – A VAT Refund for Non- Resident Tourists
Official Gazette / December 9, 2024
AN ACT CREATING A VAT REFUND MECHANISM FOR NON-RESIDENT TOURISTS, ADDING A NEW SECTION 112-A TO THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED, FOR THE PURPOSE
REPUBLIC ACT No. 12066 – CREATE MORE
Official Gazette / November 13, 2024
AN ACT AMENDING SECTIONS 27, 28, 32, 34, 57, 106, 108, 109, 112, 135, 237, 237-A, 269, 292, 293, 294, 295, 296, 297, 300, 301, 308, 309, 310, AND 311, AND ADDING NEW SECTIONS 135-A, 295-A, 296-A, AND 297-A OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED, AND FOR OTHER PURPOSES.
REPUBLIC ACT No. 12023 – VAT on Digital Services
Official Gazette / October 2, 2024
AN ACT AMENDING SECTIONS 105, 108, 109, 110, 113, 114, 115, 128, 236, AND 288 AND ADDING NEW SECTIONS 108-A AND 108-B OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED
TAX AND BUSINESS RELATED NEWS
BIR WEEKENDER BRIEFS
Volume No. 16 Issue No 36 Week ending September 5, 2025
Train-the-Trainers on the Revenue Regulations to Implement the Capital Markets Efficiency Promotion Act – One hundred fifty-six trainers from the national, regional and district offices participated in the Train-the-Trainers on the Revenue Regulations to Implement Republic Act No. 12214, Capital Markets Efficiency Promotion Act (CMEPA) conducted on August 27, 2025 at the National Training Center Auditorium, BIR National Office, Quezon City. Commissioner Romeo D. Lumagui, Jr. started the program with an inspirational message. Operations Group DCIR Marissa Cabreros, Information Systems Group DCIR Ma. Rosario Charo Enriquez-Curiba and Resource Management Group DCIR Teresita Angeles attended the opening ceremony. Detailed presentations were delivered as follows: Legal Group DCIR Larry Barcelo on the Salient Features of CMEPA; Regular LT Audit Division II Group Supervisors Mariesol Girang on RR No. 21-2025 (Passive Income) and Atty. Nelsie Arcolas on RR No. 20- 2025 (Stock Transaction Tax); Audit Information, Tax Exemption and Incentives Division Chief Monserrat Venus Axalan on RR No. 22-2025 (Personal Equity and Retirement Accounts); Excise LT Audit Division II Assessment Section Chief Marivic Bautista on RR No. 18-2025 (Excise Tax on Pickups); and Legal and Legislative Division (LLD) Atty. Edgar Allan Reyes II on RR No. 19-2025 (Documentary Stamp Tax). LLD Asst. Chief Brianna Kay Delos Santos and Atty. Raymund Ipio moderated the Open Forum for the participants. Internal Communications Division OIC-Asst. Chief Pinky Mateo discussed the Next Steps. Assessment Service ACIR MarizaUy delivered theClosing Remarks. And Run After Tax Evaders (RATE) Program and Filling Cases on August 27 to 29 formally filed a criminal complaint against a taxpayer for wilful failure to comply with duly issued summons, an offense punishable under Section 266 of the NIRC.
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https://bir-cdn.bir.gov.ph/BIR/pdf/v16n36.pdf
Proposed amnesty could cover taxes from as far back as 2007
Business World / Aubrey Rose A. Inosante / September 1, 2025
THE Department of Finance (DoF) said on Monday that a proposed general tax amnesty (GTA) will likely cover unpaid internal revenue taxes as far back as 2007. “The proposed general amnesty bill will cover all internal revenue taxes from 2024 and previous years. It could be up to 2007,” Finance Undersecretary Charlito Martin R. Mendoza said at a Senate Finance Committee briefing with the Development Budget Coordination Committee. In 2019, President Rodrigo R. Duterte rejected the GTA provisions of Republic Act No. 11213 but retained the estate tax amnesty. The tax amnesty program will involve an amnesty charge equivalent to a portion of the outstanding unpaid tax in exchange for immunity from civil, criminal, and administrative penalties.
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https://www.bworldonline.com/economy/2025/09/01/695116/proposed-amnesty-could-cover-taxes-from-as-far-back-as-2007/
Life insurers adapt to outdated tax rules ‘Let’s Talk Tax’
Business World / Paraluman Andres-Neagoe / September 1, 2025
The insurance industry is a vital pillar of the economy, serving both as a financial safety net and catalyst for long-term economic growth. By providing protection against life’s uncertainties such as illness, accidents, natural disasters, and death, insurance enables individuals and businesses to recover quickly and maintain financial stability. In the Philippines, the life insurance industry has evolved dramatically over the past decade, embracing digital transformation, expanding financial inclusion, and introducing innovative products such as Variable Unit-Linked (VUL) plans. Yet, despite this progress, the tax framework governing the industry remains largely unchanged, anchored in regulations issued more than 15 years ago. Tax regulations affecting life insurers, such as Revenue Memorandum Circulars (RMC) 30-2008 and 59-2008, were drafted in an era dominated by traditional whole life and term policies. While both RMCs introduced the taxation of VULs, these tax rules were unable to account for the complexities of modern insurance products, particularly those with varying investment components. As a result, outdated tax rules have created ambiguity both for the insurers and the BIR regarding the proper classification of income, applicable taxes, and the propriety of allowable deductions. These rules failed to match the pace of change in the business of insurance and have now become subject to various legal opinions and interpretations leading to disputes during BIR audits.
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https://www.bworldonline.com/economy/2025/09/01/695105/life-insurers-adapt-to-outdated-tax-rules/
BIR serves tax audit orders to flood control contractors
Philippine News Agency / September 2, 2025 – MANILA
The Bureau of Internal Revenue (BIR) has served Letters of Authority (LOAs) to the country’s top 15 flood control contractors during a Senate Blue Ribbon Committee hearing, formally launching parallel tax investigations into alleged irregularities in critical government projects. In a post in his official Facebook page, BIR Commissioner Romeo Lumagui Jr. said the LOAs were issued Monday under the bureau’s Run After Tax Evaders (RATE) program, empowering examiners to scrutinize the financial records and tax compliance of the country’s top flood control contractors. He assured senators that the BIR would give its full cooperation to both President Ferdinand R. Marcos Jr. and the Senate in uncovering irregularities. “Ang buwis ng taumbayan ay para sa totoong proyekto, hindi sa ghost projects (The people’s taxes are for real projects, not for ghost projects),” he said. The serving of the audit orders came as Lumagui also highlighted the bureau’s issuance of Revenue Regulation (RR) No. 17-2024, which requires contractors to present updated income tax returns and tax clearances before participating in public bidding. Lumagui said the new rules are meant to guarantee that all those who earn from government projects pay the correct taxes. RR 17-2024 strengthens Executive Order No. 398, Series of 2005, which mandates that all government contracts include a stipulation promoting full and correct tax payment.
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https://www.pna.gov.ph/articles/1257827
Follow the money: Tax expert urges task force to probe ghost projects, shady JVs, donor ties
Bilyonaryo.com / September 2, 2025
The government should go beyond surface-level audits and set up a permanent, inter-agency task force to investigate “ghost” projects, shady joint ventures, campaign donor ties, and politically-connected firms, according to Asian Consulting Group founder and chief tax advisor Mon Abrea. “When taxes are the lifeblood of government, corruption is the hemorrhage,” Abrea said. “With billions lost to ‘ghost’ flood control projects and unexplained wealth, we must follow the money, enforce the law without fear or favor, and fund classrooms, hospitals and climate resilience—not the lavish lifestyles of a few.” Under the Anti-Money Laundering Law, banks, financial institutions, and real estate brokers are already required to flag politically exposed persons (PEPs) — including officials, their relatives, and close associates. To strengthen oversight on the wealthy, Abrea suggested a 10% minimum tax for self-employed professionals, a dedicated unit to track lifestyle-income mismatches and offshore assets, and stricter enforcement of the global minimum tax and transfer pricing rules for related-party deals and intangible assets.
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https://bilyonaryo.com/2025/09/02/follow-the-money-tax-expert-urges-task-force-to-probe-ghost-projects-shady-jvs-donor-ties/money/
What taxpayers need to know about the BIR’s updated registration requirements ‘Top of Mind’
The Philippine Star / Christelle Ann Torio / September 2, 2025
In its efforts to promote efficiency, transparency and accountability in government transactions, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) 74-2025, which effectively updates the Checklist of Documentary Requirements (CDRs) for applications, registrations and requests processed through its frontline services. This update is consistent with the BIR’s ongoing reform agenda and aligned with Republic Act (RA) 11032 or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018. RMC 74-2025 serves as a critical reminder to all taxpayers, whether individuals, business owners, corporations, or their authorized representatives, that only applications with complete and properly executed documentary submissions will be accepted and processed. Incomplete applications will be outrightly rejected, reinforcing the BIR’s commitment to efficient service delivery. The circular consolidates and clarifies the requirements for various registration-related and application-based transactions submitted to the BIR’s frontline services. Among its key updates are provisions specifically affecting One Person Corporations (OPCs) and corporate submissions such as Secretary’s Certificates.
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https://www.philstar.com/business/2025/09/02/2469737/what-taxpayers-need-know-about-birs-updated-registration-requirements
Recto: DOF ensures funding for the nation’s progress; national budget to be closely scrutinized to make sure that no taxpayer peso is wasted
Department of Finance / September 2, 2025
Finance Secretary Ralph G. Recto vowed to guard every taxpayer’s money as he reaffirmed the Department of Finance’s (DOF) critical role in funding the nation’s progress, stressing that the 2026 National Expenditure Program (NEP) will be under strict scrutiny to ensure that no peso is wasted. “It is us in the DOF who must raise the money to build the roads that connect us, to ensure every Filipino has access to quality education and healthcare, to secure our food supply, and to create opportunities for all to dream bigger,” he said during the Development Budget Coordination Committee (DBCC) Briefing for the Senate Committee on Finance on the Fiscal Year 2026 National Budget on September 2, 2025.
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https://www.dof.gov.ph/recto-dof-ensures-funding-for-the-nations-progress-national-budget-to-be-closely-scrutinized-to-make-sure-that-no-taxpayer-peso-is-wasted/
SEC plans revised REIT rules by Q4
Business World / Ashley Erika O. Jose / September 2, 2025
THE Securities and Exchange Commission (SEC) is planning to release the revised rules for Republic Act No. 9856, or the REIT Act, by the fourth quarter (Q4). “We are doing the rounds before we rewrite the rules — the implementing rules and regulations (IRR) for the REIT… I think we can release the exposure draft maybe in the third quarter or early fourth quarter,” SEC Chairperson Francisco Ed. Lim told BusinessWorld on the sidelines of the Philippine Investment Conference 2025 last week. In July, the corporate regulator said it was planning to revise real estate investment trust (REIT) rules to help strengthen the Philippine capital market by expanding eligible assets, lengthening the reinvestment period, and attracting broader participation.
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https://www.bworldonline.com/corporate/2025/09/02/695177/sec-plans-revised-reit-rules-by-q4/
BSP imposes maximum penalties on erring supervisors
Philippine News Agency / Anna Leah Gonzales / September 2, 2025 MANILA
The Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) approved the imposition of maximum penalties in the administrative cases against two supervisors allegedly involved in falsifying attendance records of four BSP staffers dismissed in 2024. In a statement Tuesday, the BSP said the decision approved on Aug. 20 includes the formal dismissal from service and disqualification from holding public office. “While they have been previously separated from service, the formal dismissal includes forfeiture of retirement benefits, cancellation of civil service eligibility, perpetual disqualification from holding public office and a bar from taking civil service exams,” the central bank said. The BSP said the MB’s decision followed a comprehensive deliberation of the issue, taking into account the investigative report submitted by the BSP’s legal department.
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https://www.pna.gov.ph/articles/1257832
2026 budget focuses on projects with highest multiplier effect: Recto
Philippine News Agency / Wilnard Bacelonia / September 2, 2025- MANILA
Finance Secretary Ralph Recto on Tuesday assured senators that the proposed PHP6.79-trillion national budget for 2026 would focus on projects with the “highest multiplier effect”. Recto, speaking before the Development Budget Coordination Committee’s briefing at the Senate, said the National Expenditure Program was designed to fund infrastructure, education, health, agriculture, and social welfare. “Walang ghost projects dapat. Walang kurapsyon. Walang sayang na piso (There should be no ghost projects. No corruption. No wasted peso),” Recto said, adding that good spending is the best way to encourage tax compliance. He said the government would allocate 5 to 6 percent of gross domestic product for infrastructure, 4 percent for education, and roughly 4 percent for health, agriculture, and social welfare programs. Recto also reported that the economy continues to outperform expectations despite the global backdrop of wars, trade tensions, and climate risks.
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https://www.pna.gov.ph/articles/1257796
BIR collections miss target for first 8 months
Business World / Aubrey Rose A. Inosante / September 3, 2025
THE Bureau of Internal Revenue (BIR) said it collected P2.06 trillion in the first eight months, falling short of its P2.18-trillion target. According to a document circulated during a House briefing on Wednesday, the BIR said the preliminary total of P2.06 trillion failed to hit the target by 5.70%. Year on year, 8-month collections were up 7.27%. The BIR is tasked with collecting P3.219.5 trillion over the full year, according to the 2026 Budget of Expenditures and Sources of Financing report.
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https://www.bworldonline.com/editors-picks/2025/09/03/695673/bir-collections-miss-target-for-first-8-months/
In House hearing, DOF bats for 1st general tax amnesty in almost 20 years
Manila Bulletin / Ellson Quismorio / September 3, 2025
The Department of Finance (DOF) has laid out a proposal before the House Committee on Ways and Means to implement a sweeping tax amnesty program covering unpaid internal revenue taxes as far back as 2007. The proposed amnesty would apply to all unpaid internal revenue taxes up to taxable year 2024, with taxpayers settling obligations through an amnesty charge in exchange for immunity from civil, criminal, and administrative cases. “This measure revives a provision previously vetoed by former President Rodrigo Duterte in 2019, which left only the estate tax amnesty in place,” Asuncion said. Revenue projections are being finalized, but the DOF expects the measure to support deficit-reduction targets.
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https://mb.com.ph/2025/09/03/in-house-hearing-dof-bats-for-1st-general-tax-amnesty-in-almost-20-years
DoF: No word yet from US on tariff threat over digital taxes
Business World / Aubrey Rose A. Inosante / September 3, 2025
THE GOVERNMENT has not received any formal communication from the US regarding potential new tariffs targeting countries with digital tax regimes, Department of Finance (DoF) Secretary Ralph G. Recto said. “There have been no communications to us,” Mr. Recto told reporters on the sidelines of a Senate briefing on Tuesday. US President Donald J. Trump, posting on Truth Social last month, warned of “substantial additional tariffs” on nations that impose digital taxes. Asked whether he is weighing the possibility of tariff retaliation, Mr. Recto said, “I don’t give it much importance as of now.” The Philippines began implementing a digital tax law, Republic Act No. 12023, this year. It imposes a 12% value-added tax on nonresident digital service providers such as Netflix, Amazon, and Google.
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https://www.bworldonline.com/economy/2025/09/03/695674/dof-no-word-yet-from-us-on-tariff-threat-over-digital-taxes/
Legarda Leviste wants to cut VAT to 10%, eyes P7,000 anual savings per family
Manila Bulletin / Ellson Quismorio / September 3, 2025
Batangas 1st district Rep. Leandro Legarda Leviste has filed a measure that would slash the current value-added tax (VAT) rate from 12 percent to 10 percent in a bid to provide relief to millions of Filipino families. Legarda Leviste, 32, filed for this purpose on Wednesday, Sept. 3 House Bill (HB) No. 4302, or the proposed VAT Reduction Act of 2025. “This bill is about giving ordinary Filipinos a break. The VAT is regressive, hitting the poor and middle class the hardest. Lowering it makes our tax system more progressive,” the self-made billionaire said. Although the measure has the potential to forego P200 billion in annual VAT collections, it will also equate to an estimated P7,000 savings per household each year. Since the Expanded VAT Law raised the rate from 10 to 12 percent in 2005, VAT collections have grown nearly eight-fold, from P156.67 billion in 2005 to P1.20 trillion in 2024, according to data from the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC).
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https://mb.com.ph/2025/09/03/legarda-leviste-wants-to-cut-vat-to-10-eyes-p7000-anual-savings-per-family
Philippines eyes new ‘top-up’ tax on large global firms
Manila Bulletin / Derco Rosal / September 3, 2025
With more than ₱50 billion in revenues being forgone due to the non-imposition of top-up taxes on large multinational enterprises (MNEs) in the Philippines, the Department of Finance (DOF) is eyeing to slap “very large” corporations with such a levy to contain the flight of potential tax earnings. Finance Undersecretary Karlo Fermin S. Adriano told the House committee on ways and means on Wednesday, Sept. 3, that besides the excise tax on single-use plastics (SUPs), general tax amnesty, and estate tax amnesty, the DOF is also pushing to legislate the qualified domestic minimum top-up tax (QDMTT) in the 20th Congress—another tax measure that will amass additional revenues from MNEs. To note, domestic tax incentives are covered by the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Law.
Tax amnesties – Speaking to the Lower House, Adriano also outlined the coverage, rates, discounts, and exclusions of the planned general tax amnesty, which has been attracting massive interest from businesses, according to Sen. Imee Marcos. According to Adriano, general tax amnesty would cover collections of the Bureau of Internal Revenue (BIR), including income, withholding, capital gains, donor’s, value-added (VAT), percentage, excise, and documentary stamp (DST) taxes. For the Bureau of Customs (BOC), it would cover VAT and excise on importations, whether or not assessments have been issued. When it comes to tax rates, the DOF seeks to set it at two percent of a taxpayer’s total assets as of the end of 2024, or alternatively, an amnesty rate based on total net worth as of the same date. Individual taxpayers will be subject to an amnesty rate of five percent or ₱75,000, whichever is higher.
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https://mb.com.ph/2025/09/03/dof-seeks-domestic-top-up-tax-on-large-multinational-firms-to-recoup-over-50-billion-in-lost-revenues
Draft APA Blueprint: What taxpayers can expect ‘Taxwise Or Otherwise’
Business World / Joyce Anne Boaloy / September 3, 2025
With the prevalence of transfer pricing (TP) regimes, keeping up with new rules and guidelines is becoming more crucial. Recently, the Bureau of Internal Revenue (BIR) released draft Revenue Regulations (RR) outlining the proposed implementation of Advance Pricing Agreements (APA) in the Philippines. Following the release of the draft, the BIR held a public consultation to gather comments from taxpayers. APA is an arrangement relevant to controlled transactions between related parties that determines an appropriate set of criteria (e.g., TP method, comparables, appropriate adjustments) to set reasonable transfer pricing for those controlled transactions. The draft RR provides that APAs can be valid for a fixed period of up to five years in the Philippines. APA is a voluntary application by a taxpayer to help mitigate TP audit risk and to reduce the likelihood of double taxation. If the terms and conditions of the APA are met, the covered transactions are shielded from audit and TP adjustments by the tax authorities in the relevant jurisdictions. The APA process, as outlined in the draft RR, consists of five stages: (1) Early engagement and pre-filing, (2) Formal filing of an APA, (3) Review of the APA application and negotiation, (4) Formal agreement, and (5) Implementation and compliance monitoring. The BIR is targeting a 12–24-month timeline to conclude APA applications (whether unilateral, bilateral, or multilateral), depending on case complexity and taxpayer cooperation.
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https://www.bworldonline.com/economy/2025/09/03/695661/draft-apa-blueprint-what-taxpayers-can-expect/
City gov’t collects over P3.1-M tax from flood control contractors
Philippine News Agency / Perla Lena / September 3, 2025 – ILOILO CITY
The local government here has collected more than PHP3.1 million in taxes from four flood mitigation projects implemented by two contractors recently named by President Ferdinand R. Marcos Jr. as having projects across regions in the country. “This follows my directive to the City Treasurer’s Office (CTO) to review over 90 ongoing projects of the Iloilo City District Engineering Office (ICDEO) funded under the General Appropriations Fund from 2022 to 2025,” Iloilo City Mayor Raisa Treñas said in a statement on Wednesday. During the review, it was revealed that St. Timothy Construction Corporation and Alpha and Omega General Contractor & Development Corporation had no valid Mayor’s Permit.
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https://www.pna.gov.ph/articles/1257909
DOF moves to tighten approval process for flood control projects
Department of Finance / September 3, 2025
In line with the directive of President Ferdinand R. Marcos Jr. to intensify flood control efforts nationwide, the Economy and Development (ED) Council Investment Coordination Committee – Cabinet Committee (ICC-CC), chaired by Finance Secretary Ralph G. Recto, has approved the adoption of a resolution aggregating flood control and management projects within a single river basin. Approved by the ICC-CC on August 12, 2025, the said resolution was recommended by the Infrastructure Development Committee (InfraCom) Sub-Committee on Water Resources (SCWR) to allow the government to conduct a comprehensive review of the flood management projects and to ensure that these are shovel-ready before their implementation. The current ICC guidelines only require evaluation of projects above the PHP 2.5 billion threshold. Thus, most of the existing flood control projects, which were treated individually, did not undergo the ICC evaluation process.
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https://www.dof.gov.ph/dof-moves-to-tighten-approval-process-for-flood-control-projects/
Gov’t adjusts LGUs’ nat’l tax shares
Business World / Aubrey Rose A. Inosante / September 3, 2025
THE Department of Budget Management (DBM) has announced an adjustment in the national tax allotment (NTA) shares of local government units (LGUs) with the adoption of new population census. In a memorandum issued on Wednesday, the DBM has informed the LGUs of their adjusted NTA shares for fiscal year 2026, which reflect the latest demographic data by province, city, municipality, and barangay, as approved under Presidential Proclamation No. 973 signed on July 11. Under the Local Government Code, LGUs are entitled to 40% of national government tax revenues, though it is allowed to deduct certain items, such as Special Purpose Funds, from the NTA calculation.
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https://www.bworldonline.com/the-nation/2025/09/03/695679/govt-adjusts-lgus-natl-tax-shares/
DTI: Review up for all companies facing potential license revocation
Philippine News Agency / Joann S. Villanueva / September 4, 2025-MANILA
The Department of Trade and Industry (DTI) said Wednesday a comprehensive review is in the pipeline for companies “facing potential license revocation” as the government focuses on infrastructure projects after the discovery of anomalies. It said the review “aims to uphold transparency and accountability” after the Philippine Contractors Accreditation Board (PCAB) issued a resolution revoking the licenses of construction companies owned by businesswoman Sarah Discaya. The review, it said, will be made “once the resigned Executive Director of the Philippine Contractors Accreditation Board submits the necessary turnover documents.” “This also reflects DTI’s commitment to ensure fair practices and protect industry integrity in government procurement and licensing,” it added. Discaya, during a Senate hearing on Monday, admitted she owns the St. Gerrard Construction Gen. Contractor & Dev’t Corp., Alpha & Omega Gen. Contractor & Dev’t Corp., St. Timothy Construction Corp., Amethyst Horizon Builders and Gen. Contractor & Dev’t Corp., St. Matthew General Contractor & Development Corp., Great Pacific Builders and General Contractor, Inc., YPR General Contractor and Construction Supply, Inc., Waymaker OPC, and Elite General Contractor and Development Corp. These firms are under scrutiny vis-à-vis the investigation into the government’s various infrastructure projects, some of which have been proven to be ghost projects, or have been reported as finished but not in reality.
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https://www.pna.gov.ph/articles/1257980
Recto: Enhanced mining regime transforms PH natural wealth into investments, jobs, and sustainable growth for Filipinos
Department of Finance / September 4, 2025
Finance Secretary Ralph G. Recto assured the public that the enactment of the long-awaited enhanced mining fiscal regime will continue to protect the environment and transform the country’s natural resources into a key driver of sustainable growth, attracting investments, generating jobs, and boosting revenues to support the delivery of quality public services. “With this law, we send a very clear and powerful message. Progress shall never come at the cost of our people nor our planet. Minerals are finite. Once extracted, they are gone forever. But if we use them wisely, tax them fairly, protect our environment as we mine, and ensure that revenues return to the people, then their value will outlive all of us,” President Ferdinand R. Marcos, Jr. said in his speech during the ceremonial signing of the law on September 4, 2025. Signed on September 4, 2025, Republic Act (RA) 12253, or the Enhanced Fiscal Regime for Large-Scale Metallic Mining Act, simplifies the mining fiscal regime by removing complex tax distinctions among different mining agreements.
Click the link below to read the full news from the source:
https://www.dof.gov.ph/recto-enhanced-mining-regime-transforms-ph-natural-wealth-into-investments-jobs-and-sustainable-growth-for-filipinos/
Philippines to keep digital VAT amid Trump tariff woes
Philippine Daily Inquirer / Ian Nicolas P. Cigaral / September 4, 2025- MANILA, Philippines
Finance Secretary Ralph Recto said the Philippines would not exempt American technology giants from the 12 percent digital value-added tax (VAT) already in place, dismissing concerns that US President Donald Trump’s tariffs could force a policy shift. Recto told reporters that Manila could not recalibrate tax policy around uncertain trade actions, even as Trump’s protectionist turn has unsettled allies and put pressure on smaller economies to adjust. Republic Act No. 12023, signed by President Marcos last October, requires foreign digital platforms—Americans or otherwise—to pay VAT on services consumed in the Philippines. Digital services include online search engines, marketplaces, cloud services, online media, online advertising and digital goods.
Click the link below to read the full news from the source:
https://business.inquirer.net/545001/ph-to-keep-digital-vat-amid-trump-woes
Muntinlupa LGU urges public to avail of real property tax amnesty
Manila Bulletin / Jonathan Hicap / September 4, 2025
The Muntinlupa City government encouraged the public to avail of the real property tax amnesty being offered under Republic Act 12001. The law, otherwise known as the Real Property Valuation and Assessment Reform Act, approved in June last year, stated that the amnesty will “cover penalties, surcharges, and interests from all unpaid real property taxes, including Special Education Fund, idle land tax, and other special levy taxes, prior to the effectivity of this Act.” The real property tax amnesty can be availed of within two years after the effectivity of the law or until July 5 next year, the Muntinlupa City government said.
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https://mb.com.ph/2025/09/04/muntinlupa-lgu-urges-public-to-avail-of-real-property-tax-amnesty
Philippines targets fairer share from mining with new tax law
Business World / Reuters / September 4, 2025 – MANILA
Philippine President Ferdinand Marcos Jr signed into law on Thursday a measure overhauling the country’s mining tax system to ensure a more equitable share of revenues for the government and greater transparency in the extractive sector. The new law introduces a simplified and progressive tax structure for large-scale metallic mining operations, replacing a fragmented regime that varied depending on the type of mining agreement.
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https://www.bworldonline.com/top-stories/2025/09/04/695785/philippines-targets-fairer-share-from-mining-with-new-tax-law/
DoF asks Congress to prioritize key tax reforms
Business World / Kenneth Christiane L. Basilio / September 4, 2025
THE DEPARTMENT of Finance (DoF) wants the 20th Congress to prioritize several tax measures to help support the government’s fiscal consolidation effort, a Finance official said on Wednesday. The government is considering a domestic top-up tax for multinational companies in the Philippines and an excise tax on single-use plastics, alongside general tax and estate tax amnesties, Finance Undersecretary Karlo Fermin S. Adriano said. The proposal was one of the 28 priority bills identified by the Legislative-Executive Development Advisory Council in the 19th Congress. While it was approved by the House on third reading in 2022, the measure never made it out of the Senate Ways and Means Committee. The DoF is looking at levying a P150-per-kilogram tax on single-use plastics with an annual 4% increase, Mr. Adriano said. “Previously, it only covered single-use plastic bags, like semi-transparent plastics and sando bags. Now, we’re considering to expand the coverage,” he said.
TAX AMNESTY
The Finance department is also proposing a general tax amnesty for outstanding income, withholding, capital gains, and other percentage taxes, with rates set at 2% of a taxpayer’s total assets as of December 2024 or 5% of total net worth, whichever is higher. Lawmakers in the House and Senate are pushing for a general tax amnesty that will impose a 2% amnesty tax rate dependent on the total assets of taxpayers up to 2024.
VAT CUT
Meanwhile, DoF’s Mr. Adriano said a House proposal to cut the value-added tax (VAT) rate to 10% from the current 12% could widen the budget deficit if enacted. Batangas Rep. Leandro Antonio L. Leviste filed House Bill (HB) No. 4302 on Tuesday seeking to lower the VAT rate, arguing the current tax system is “regressive” and should be reduced to make taxation more progressive.
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https://www.bworldonline.com/editors-picks/2025/09/04/695689/dof-asks-congress-to-prioritize-key-tax-reforms/
Lower 10% VAT eyed
The Philippine Star / Delon Porcalla / September 4, 2025 – MANILA, Philippines
A billionaire lawmaker has filed a bill in the House of Representatives seeking to reduce the 12 percent value-added tax (VAT) to 10 percent – a move intended to ease inflation and ultimately lower the prices of basic commodities for Filipino consumers. House Bill 4302, also known as the “VAT Reduction Act of 2025,” authored by Rep. Leandro Leviste of the first district of Batangas, proposes to slash by two percentage points the current VAT to 10 percent, providing relief to millions of Filipino households. “Reducing VAT is a direct and efficient way to address inflation. It avoids leakages and cuts administrative costs associated with redistribution,” Leviste explained.
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https://www.philstar.com/business/2025/09/04/2470261/lower-10-vat-eyed
Pay taxes or be blacklisted’: Isko Moreno warns flood control contractors
Manila Bulletin / Diann Calucin / September 4, 2025
Manila City Mayor Francisco “Isko Moreno” Domagoso on Thursday, September 4, warned flood control contractors with P247 million in unpaid taxes that they will be blacklisted from securing city permits if they fail to settle their obligations. Citing a report from the Office of the City Treasurer, Domagoso said contractors for 305 flood control projects have yet to pay the required contractors’ tax amounting to P247 million, with only nine projects compliant, having paid a total of P8.09 million. The delinquent projects, he noted, cover prior years, 2024 carry-overs, and 2025 allocations listed on the SumbongSaPangulo.ph website.
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https://mb.com.ph/2025/09/04/pay-taxes-or-be-blacklisted-isko-moreno-warns-flood-control-contractors
Marcos signs into law new mining tax system
The Philippine Star / Alexis Romero / September 5, 2025
Miners laud more consistent rules MANILA, Philippines — President Marcos yesterday signed into law a measure that seeks to simplify the country’s mining fiscal regime and ensure a fairer government share from natural resources, a move seen to promote a fairer and more transparent mining tax system while protecting the environment. A priority measure of the administration, Republic Act 12253 or the Enhanced Fiscal Regime for Large-Scale Metallic Mining Act establishes a simplified and uniform fiscal framework for the mining sector and enhances environmental safeguards. It also aims to provide fiscal predictability and stability for investors through clear tax guidelines, provide incentives to long-term investments and improve the mining sector’s competitiveness. “Transparency is now the rule, accountability our standard, and fairness the measure by which we move forward,” Marcos said. “In light of this, the Bureau of Internal Revenue (BIR) and the Bureau of Customs will examine and audit all sales and exports of minerals and inspect mining company records, in coordination with the Mines and Geosciences Bureau.” The disbursement of local governments’ shares from mining taxes will also be streamlined to address delays. The law also allocates 10 percent of mining royalty from inside mineral reservations to the exploration efforts of the MGB, establishment of mineral valuation laboratories and facilities by the Metals Industry Research and Development Center and the acquisition of BIR tools.
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https://www.philstar.com/business/2025/09/05/2470498/marcos-signs-law-new-mining-tax-system
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