TAX ADVISORY
The updated software patch with the newly created Alphanumeric Tax Codes (ATCs) for Alphalist Data Entry Module version 7.4 is now available at the “Downloadables” section of the BIR Website
Click the link below to read the full news from the source:
https://bircdn.bir.gov.ph/BIR/pdf/Tax%20Advisory%20re%20Updated%20Software%20Patch%20of%20the%20newly%20created%20ATCs%20for%20Alphalist%20Data%20Entry%20v%207.4.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 47 Week ending November 21, 2025 – BIR Website
Charlito Martin R. Mendoza Officially Assumes Leadership of the BIR – The Bureau of Internal Revenue (BIR) officially welcomed its newly appointed Commissioner Charlito Martin R. Mendoza during a turnover ceremony held on November 17, 2025 at the RDL Center, BIR Compound, Quezon City. The event marked the formal transition of leadership as the bureau bid farewell to former Commissioner Romeo D. Lumagui, Jr. Selected officials from the Department of Finance, Deputy Commissioners, Assistant Commissioners, Regional Directors, Revenue District Officers, and employees attended the event held after the flag-raising ceremony.
Click the link below to read the full news from the source:
https://bir-cdn.bir.gov.ph/BIR/pdf/v16n47%20hr.pdf
Recto warns VAT cut may hike debt, risk credit downgrade
Philippines News Agency / Wilnard Bacelonia / November 14, 2025-MANILA
Finance Secretary Ralph Recto on Tuesday cautioned lawmakers against proposals to reduce the value-added tax (VAT) rate from 12 percent to 10 percent, warning that such moves could lead to revenue losses and force the government to borrow even for its regular expenses.
Click the link below to read the full news from the source:
https://www.pna.gov.ph/articles/1260973
Japan may triple departure tax to tackle overtourism
Philippines News Agency / Jiji Press / November 15, 2025 – TOKYO
The Japanese government and the ruling coalition are considering a plan to raise the so-called departure tax from the current JPY1,000 per person to JPY3,000 or more to fund measures against overtourism, informed sources said Thursday. The specific size of the increase will be discussed during fiscal 2026 tax system reform talks at the end of the year.
Click the link below to read the full news from the source:
https://www.pna.gov.ph/articles/1263349
Recto: 10% growth in collection needed to ensure revenue stream
Philippines News Agency / Anna Leah Gonzales / November 16, 2025 – MANILA
Department of Finance (DOF) Secretary Ralph Recto said tax revenues need to grow by 10.2 percent annually from 2025 to 2028 to ensure that the country has a reliable revenue stream. In a statement Thursday, Recto said the over 10 percent growth would push total revenues to hit nearly PHP6 trillion by the end of President Ferdinand R. Marcos Jr.’s term.
Click the link below to read the full news from the source:
https://www.pna.gov.ph/articles/1261130
CTA voids P1.65-B tax case vs Manila
Business World / Erika Mae P. Sinaking / November 16, 2025
THE Court of Tax Appeals (CTA) has ruled in favor of the City of Manila, voiding the bureau of internal revenue’s (BIR) tax deficiency assessments worth P1.65 billion for alleged unpaid income, withholding, and value-added taxes for taxable year 2008. In a 16-page decision made public on Nov. 12, the CTA second division granted Manila’s petition and declared the contested assessments, including the Final Letter of Demand and Final Decision on Disputed Assessment, as issued beyond the allowable prescriptive period.
Click the link below to read the full news from the source:
https://www.bworldonline.com/the-nation/2025/11/16/712484/cta-voids-p1-65-b-tax-case-vs-manila/
Leadership change at the BIR: What’s next? ‘Let’s Talk Tax’
Business World / Richard R. Ibarra / November 17, 2025
The only constant in life is change. Last week, the Bureau of Internal Revenue (BIR) witnessed a significant leadership transition with the appointment of Commissioner Charlito Martin Mendoza, succeeding Romeo Lumagui, Jr. For many, this move came as a surprise — but beyond the headlines, it signals more than a reshuffling of positions. It reflects a renewed government commitment to modernization, transparency, and stronger tax compliance. Today, the BIR’s role has become even more critical as the government racks up budget deficits. Note that tax administration is not just about collecting revenue; it’s about building trust, ensuring fairness, and enabling sustainable growth.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2025/11/17/712782/leadership-change-at-the-bir-whats-next/
Erwin Tulfo flags alleged BIR money-making scheme via LOAs
Inquirer.Net / Charie Abarca / November 18, 2025 – MANILA, Philippines
Sen. Erwin Tulfo flagged on Monday an alleged money-making scheme perpetrated by officials of the Bureau of Internal Revenue (BIR) using so-called letters of authority (LOA), calling the bureau the second-most corrupt government agency next to the Department of Public Works and Highways (DPWH).
Click the link below to read the full news from the source:
https://newsinfo.inquirer.net/2142091/erwin-tulfo-flags-alleged-bir-money-making-scheme-via-loas
BIR to review audit authorization rules amid ‘weaponization’ claims
Business World / AMCS / November 19, 2025
The Bureau of Internal Revenue (BIR) is reviewing rules on documents that authorize tax audits after reports that some officials have been using them to pressure businesses, according to a lawmaker. These documents — known as letters of authority (LoA) — allow revenue officers to open an investigation into a taxpayer’s liabilities and are required before any audit can proceed.
Click the link below to read the full news from the source:
https://www.bworldonline.com/top-stories/2025/11/19/713256/bir-to-review-audit-authorization-rules-amid-weaponization-claims/
Missing Letters of Authority in tax audits ‘Taxwise Or Otherwise’
Business World / Jannelle Roxas / November 19, 2025
The intricate balancing act between the state’s power to tax and the constitutional rights of taxpayers, particularly the right to due process, forms the backbone of fair taxation. Every tax audit tries to keep these competing interests in check: the State’s right to collect what is legally due, and the taxpayer’s right to be treated fairly and lawfully. This delicate equilibrium is evident in what has emerged as the Achilles’ Heel of tax audits: missing Letters of Authority (LoAs). In a Court of Tax Appeals (CTA) decision (CTA Case No. 10951) promulgated this year, we see how the power to tax was once more tempered by the Constitutional right to due process. The CTA invalidated a tax assessment for the failure to issue a replacement LoA — a seemingly simple omission that rendered an entire assessment void from the start.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2025/11/19/713423/missing-letters-of-authority-in-tax-audits/
BIR sees 2025 collections reaching P3.1 trillion
The Philippine Star / Marco Luis Beech / November 19, 2025 – MANILA, Philippines
The newly appointed chief of the Bureau of Internal Revenue (BIR) has made a conservative estimate for the agency’s total collections this year at P3.1 trillion, citing ongoing enforcement efforts and improved compliance to boost the overall fiscal performance.
Click the link below to read the full news from the source:
https://www.philstar.com/business/2025/11/19/2488190/bir-sees-2025-collections-reaching-p31-trillion
CTA orders The Table Group to pay P328.6-M in adjusted tax assessments for 2018
Manila Bulletin / Czarina Nicole Ong Ki / November 20, 2025
The Court of Tax Appeals (CTA) has ordered The Table Group, Inc. to pay the Bureau of Internal Revenue (BIR) P328.6 million in adjusted tax assessments for taxable year 2018 and the deficiency registration fees of P32,500 and deficiency compromise penalty of P280,000. The Table Group, represented by Walden Chu, was engaged in the manufacture and sale of all kinds of coffee, tea, cocoa, and other food and beverages.
Click the link below to read the full news from the source:
https://mb.com.ph/2025/11/20/cta-orders-the-table-group-to-pay-p3286-m-in-adjusted-tax-assessments-for-2018
Tax bills approval deferred as House awaits new DOF stand
Inquirer.Net / Gabriel Pabico Lalu / November 20, 2025 – MANILA, Philippines
The approval of two tax-related proposals in the House of Representatives, including bills seeking to extend the deadline for unpaid excise taxes, has been deferred pending the position of the new Department of Finance (DOF) administration. The House Committee on Ways and Means discussed several measures on Thursday. House Bills (HB) No. 609, 764, 1739, 5598, 2885, and 3970 seek to extend the estate tax amnesty period, while HBs No. 1556, 1996, 2218, 5072, and 5415 propose excise taxes on single-use plastic bags.
Click the link below to read the full news from the source:
https://newsinfo.inquirer.net/2143849/tax-related-bills-approval-deferred-as-house-awaits-new-dof-stand
Blue Ribbon urged to probe LOA scheme in BIR next
Philippines News Agency / Wilnard Bacelonia / November 20, 2025 – MANILA
Senator Erwin Tulfo has urged the Senate Blue Ribbon Committee to launch a full investigation into alleged corruption in the Bureau of Internal Revenue (BIR), particularly the reported misuse of the agency’s Letter of Authority (LOA) system that has allegedly become a long-running “money-making scheme.”
Click the link below to read the full news from the source:
https://www.pna.gov.ph/articles/1263644
V Ejercito exposes alleged BIR ‘extortion,’ warns on LOA use
Inquirer.net / Jan Escosio / November 20, 2025 – MANILA, Philippines
Senate Deputy Majority Leader JV Ejercito sounded the alarm over the alleged “weaponization” of Letters of Authority (LOA) by the Bureau of Internal Revenue (BIR), saying the abusive issuance of LOAs is now being used as a tool for corruption, scaring off investors and undermining confidence in the country’s tax system.
Click the link below to read the full news from the source:
https://newsinfo.inquirer.net/2143462/jv-ejercito-exposes-alleged-bir-extortion-warns-on-loa-use
DoF warns VAT rate cut could slash P1 trillion in revenue and risk credit rating downgrade
Business World / Kenneth Christiane L. Basilio / November 21, 2025
THE Department of Finance (DoF) expressed “strong reservations” regarding a proposal to lower the value-added tax (VAT) rate, warning it could cost the government more than P1 trillion in foregone revenues through 2030 and undermine its fiscal consolidation efforts. In a position paper submitted to the House of Representatives dated Oct. 22, the DoF said House Bill (HB) No. 4302, which proposes to cut the VAT rate to 10% from the current 12%, would lead to substantial revenue losses over the next five years.
Click the link below to read the full news from the source:
https://www.bworldonline.com/top-stories/2025/11/21/713713/dof-warns-vat-rate-cut-could-slash-p1-trillion-in-revenue-and-risk-credit-rating-downgrade/
Digital VAT collection nears P7 billion — BIR
Business World / Kenneth Christiane L. Basilio / November 21, 2025
THE PHILIPPINE government has collected almost P7 billion from a 12% value-added tax (VAT) on digital services, the Department of Finance said, providing a lift to revenue intake at a time when slower growth and a corruption probe are weighing on collections.
Click the link below to read the full news from the source:
https://www.bworldonline.com/top-stories/2025/11/21/713711/digital-vat-collection-nears-p7-billion-bir/
DoF warns VAT rate cut could slash P1 trillion in revenue and risk credit rating downgrade
Business World / Kenneth Christiane L. Basilio / November 21, 2025
THE Department of Finance (DoF) expressed “strong reservations” regarding a proposal to lower the value-added tax (VAT) rate, warning it could cost the government more than P1 trillion in foregone revenues through 2030 and undermine its fiscal consolidation efforts. In a position paper submitted to the House of Representatives dated Oct. 22, the DoF said House Bill (HB) No. 4302, which proposes to cut the VAT rate to 10% from the current 12%, would lead to substantial revenue losses over the next five years.
Click the link below to read the full news from the source:
https://www.bworldonline.com/editors-picks/2025/11/21/713713/dof-warns-vat-rate-cut-could-slash-p1-trillion-in-revenue-and-risk-credit-rating-downgrade/
Download File:
