Bureau of Internal Revenue Issuances
REVENUE MEMORANDUM ORDERS
RMO No. 49-2024
December 9, 2024
Creation of Alphanumeric Tax Code for Final Withholding Tax representing Franchise Tax on payments to Non-Resident Foreign Corporation supplier of PAGCOR
REVENUE MEMORANDUM CIRCULARS
RMC No. 132-2024
December 9, 2024
Further clarifying the tax treatment of the Philippine Amusement and Gaming Corporation, its Licensees and Contractees
REVENUE DELEGATIONS OF AUTHORITY ORDERS
RDAO No. 28-2024
December 6, 2024
Delegates to Assistant Commissioner of Information Systems Project Management Service to sign documents specified in the Order in view of the approved leave of ISG Deputy Commissioner
RDAO No. 29-2024
December 6, 2024
Delegates to Assistant Regional Director of RR No. 6-Manila to sign documents specified in the Order in view of the approved leave of RR No.6’s Regional Director
RDAO No. 30-2024
December 6, 2024
Delegates to Assistant Chief of Legal Division of RR No. 7A-Quezon City the authority to sign specific documents in the Order in view of the approved leave of absence of RR No. 7A’s Assistant Regional Director
RDAO No. 31-2024
December 9, 2024
Delegates to Chief of Assessment Division of RR No. 7B-East NCR the authority to sign specific documents in the Order in view of the approved leave of absence of RR No. 7B’s Assistant Regional Director
RDAO No. 32-2024
December 11, 2024
Designates Chief of Legal Division of RR No. 6 – Manila the authority to sign several documents in view of the approved leave of absence of RR No. 6’s Assistant Regional Director
Tax Law
REPUBLIC ACT No. 12022
Official Gazette / October 2, 2024
An act defining the crimes of agricultural economic sabotage, prescribing penalties therefor, vesting jurisdiction over such offenses with the court of tax appeals, providing mechanism for its implementation and enforcement, repealing for the purpose Republic Act No. 10845 or the “Anti-Agricultural Smuggling Act of 2018”
https://www.officialgazette.gov.ph/2024/09/26/republic-act-no-12022/
REPUBLIC ACT No. 12023- VAT on Digital Services
Official Gazette / October 3, 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.
https://www.officialgazette.gov.ph/2024/10/02/republic-act-no-12023/
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
https://www.officialgazette.gov.ph/2024/11/08/republic-act-no-12066/
Tax And Business Related News
BIR WEEKENDER BRIEFS
Volume No. 15 Issue No 49 Week ending December 6, 2024
Various BIR regional and district offices filed a number of tax cases under the Bureau’s Run After Tax Evaders (RATE) Program between November 28 and December 3.
Click the link below to read the full news from the source:
https://bir-cdn.bir.gov.ph/BIR/pdf/v15n49%20highres.pdf
Lumagui: Sale and Use of Fake PWD IDs is Tax Evasion; BIR will launch a Nationwide Crackdown against this Tax Evasion Scheme
Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui, Jr. has ordered all BIR officials to coordinate with other government agencies in its fight against the sale and use of fake Person with Disability (PWD) identification cards (ID). This tax evasion scheme has caused an estimated revenue loss of Php 88.2 billion in 2023 alone, according to a recent Senate probe. “People who sell and use fake PWD IDs are not only committing tax evasion, they are also disrespecting legitimate and compliant PWDs. The discount given by law to PWDs is for the improvement of their well-being and easing of their financial burden. It is not some common discount card that is accessible to the general public. Expect the BIR to run after fake PWD ID sellers and users,” Commissioner Lumagui stated. The 1987 Constitution of the Philippines recognizes the rights and needs of PWDs. Consistent with this constitutional provision, Republic Act (R.A.) No. 7277, as amended by R.A. No. 10754, was enacted to provide PWDs the opportunity to participate in mainstream society by offering benefits upon the presentation of a PWD ID. These benefits include a 20% discount and an exemption from Value-Added Tax (VAT) on certain goods and services for their exclusive use and enjoyment.
Click the link below to read the full news from the source:
https://bir-cdn.bir.gov.ph/BIR/pdf/PR96DEC1224.pdf
Digitalizing tax: The next frontier
mns.com / Daniel Alexander Laoh , Julie Ann Arreza, Sylvia Naomi Cabading / December 9, 2024
IN the modern world, data is king. Every step taken creates a data footprint, and the ability to capitalize on this is crucial —with tax authorities and businesses being no exception. As businesses generate voluminous data, there is growing recognition that tax and finance departments require robust digital infrastructure to run effectively. Globally, regulatory authorities globally recognize that the ability to collect and analyze taxpayer data is key to bridging the tax gap. Taxpayers, meanwhile, are expected to provide tax and financial data through more rigorous regulatory and compliance requirements. There is also a pivot to ensuring that they implement effective financial and tax governance frameworks, guaranteeing data accuracy and the rigorous enforcement of company tax policies.
Click the link below to read the full news from the source:
https://www.msn.com/en-ph/news/money/digitalizing-tax-the-next-frontier/
CTA orders P109-M refund for OceanaGold
Business World / Chloe Mari A. Hufana / December 9, 2024
THE COURT of Tax Appeals (CTA) has partially granted a refund to OceanaGold Philippines, Inc., amounting to over P109 million, covering the four taxable quarters of 2019 and representing the portion of the company’s valid input value-added tax (VAT) linked to its substantiated zero-rated sales. The tax court’s first division, through a ruling published on Nov. 29, ordered the Bureau of Internal Revenue (BIR) to refund P109,643,347.55 to the mining company, which originally sought P133,671,461.36. OceanaGold argued that the P133 million was the total amount of excess and unutilized input VAT it had accumulated from its purchases of goods and services attributable to zero-rated sales for the first to fourth quarters of 2019.
Click the link below to read the full news from the source:
https://www.bworldonline.com/corporate/2024/12/09/640036/cta-orders-p109-m-refund-for-oceanagold/
Retailers see PHL attracting more visitors with VAT refund scheme
Business World / Justine Irish D. Tabile / December 9, 2024
THE Philippine Retailers Association (PRA) said the signing into law of the value-added tax (VAT) refund scheme for non-resident tourists will raise the Philippines’ competitiveness as a visitor market. “We would like to thank the President for recognizing this incentive to make the Philippines competitive in the tourism market, to make the retail industry more robust, and to make the Philippines a shopping destination,” he added. President Ferdinand R. Marcos, Jr. on Monday signed into law Republic Act No. 12079, which allows tourists to claim VAT refunds on purchases worth at least P3,000 from government-accredited stores.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2024/12/09/640315/retailers-see-phl-attracting-more-visitors-with-vat-refund-scheme/
VAT refunds for tourists to spur economic growth—DOF
Manila Bulletin / Derco Rosal / December 9, 2024
Department of Finance (DOF) Secretary Ralph G. Recto is confident about the country’s economic outlook for 2025, driven by the recent passage of two major laws to boost tourism, local spending, and food security. Both Republic Act (RA) No. 12079, or the Value-Added Tax (VAT) Refund Mechanism for Non-Resident Tourists Act, and RA No. 12078, or the Amendments to the Agricultural Tariffication Act, were signed into law on Monday, Dec. 9. According to the VAT refund law, which is also a priority reform, “tourists shall be eligible for VAT refunds on locally purchased goods.” According to DOF, this positions the Philippines alongside other countries with a standard VAT system, which is intended to encourage foreign tourists to spend more.
Click the link below to read the full news from the source:
https://mb.com.ph/2024/12/9/vat-refunds-for-tourists-to-spur-economic-growth-dof
Business permit renewal: A yearly reminder ‘Let’s Talk Tax’
Business World / John Alexis S.B. Sumulong / December 9, 2024
Businesses are well aware that the Local Government Code (LGC) requires them to renew their registration annually with their respective local government units (LGUs), with the exception only to selected entities. In fact, many organizations may already be planning and preparing early to avoid the last-minute rush. The renewal process typically involves paying the local business tax (LBT) along with other fees, such as the sanitary inspection fee, building permit, and fire safety inspection fee, among others. Although the process may seem straightforward, taxpayers often express that, despite ongoing improvements, the experience remains demanding and challenging. This article serves as a simple guide to help taxpayers navigate the renewal process and successfully secure their permits.
GETTING STARTED – While specific requirements may vary among LGUs, the steps for renewal are generally similar across most cities. The first step typically begins at the barangay level, where businesses need to obtain a barangay clearance. The common documents required for the renewal of the business permit are as follows. The actual documents required by the LGUs may vary:
• Barangay clearance;
• A copy of the prior year’s business permit and official receipt as proof of payment of previous year’s LBT.
• Filled-up renewal application form;
• Valid local insurance policy or Comprehensive General Liability (CGL) official receipt;
• SEC registration, articles of incorporation, or latest general information sheet;
• Cedula, sanitary permit, and fire safety insurance certificate (FSIC)
• Proof of ownership of the building, or contract of lease for the building used in the business;
• Audited financial statements
• Payment of the local business tax
When applying for a business permit renewal, ensure that all required documents are ready. The application can be submitted as early as Jan. 1 and must be completed by Jan. 20. The deadline may be extended by the respective LGUs.
PAYMENT OF THE LBT AND COMMON CHALLENGES – The LBT that taxpayers must pay is calculated based on the gross sales or gross receipts from the previous year (e.g., gross sales/receipts for 2024 will be used for the January 2025 renewal). The applicable tax rate varies depending on the LGU, in line with the provisions and limitations set by the Local Government Code.
SOMETHING NEW FOR RBEs – Under the CREATE MORE Act (Republic Act No. 12066), LGUs, through ordinances issued by their respective Sanggunian, may levy an RBE local tax of up to 2% of an RBE’s gross income. This applies to businesses enjoying an Income Tax Holiday (ITH) or operating under the Enhanced Deduction Regime (EDR). The RBE local tax replaces all local taxes, fees, and charges imposed by the LGU under the Local Government Code, simplifying tax payments for registered enterprises. Meanwhile, businesses under the Special Corporate Income Tax (SCIT) rate are exempt from local business taxes since the 5% tax on gross income, of which 2% is allocated to the LGU, already substitutes for national and local taxes.
Renewing a business permit is an annual task that taxpayers plan for. I hope that getting ready for this process won’t clash with the joy and festivities as the year comes to a close. All endings are also beginnings, and as we step into the new year.
Click the link below to read the full news from the source:
https://www.bworldonline.com/economy/2024/12/09/640311/business-permit-renewal-a-yearly-reminder/
Recto sees stronger economy in 2025 with the enactment of new laws that will boost the tourism industry and local spending, and enhance food security
Department of Finance / December 9, 2024
Finance Secretary Ralph G. Recto is optimistic about the Philippines’ economic prospects in 2025, fueled by the recent enactment of two key laws aimed at boosting the tourism industry and local spending as well as strengthening food security in the country. President Ferdinand R. Marcos, Jr. signed into law on December 9, 2024, both Republic Act (RA) No. 12079 or the Value-Added Tax (VAT) Refund Mechanism for Non-Resident Tourists Act and RA No. 12078 or the Amendments to the Agricultural Tariffication Act. A priority reform led by the Department of Finance (DOF), RA 12079 introduces Section 112-A in the National Internal Revenue Code (NIRC) of the Philippines, which states that tourists shall be eligible for VAT refunds on locally purchased goods. The DOF is mandated by law to engage the services of reputable and internationally recognized VAT refund operators to provide end-to-end solutions to the government to establish and operate a VAT refund system that is consistent with best practices. The Finance Secretary, after careful consultation with the Department of Trade and Industry (DTI), the Department of Transportation (DOTr), the Department of Tourism (DOT), the National Economic and Development Authority (NEDA), the BIR, and the Bureau of Customs (BOC), shall promulgate the implementing rules and regulations (IRR) 90 calendar days from the effectivity of the Act. On the other hand, RA 12078 enhances the capabilities of the government to protect Filipino consumers by extending market interventions to stabilize rice prices during periods of volatility and to prevent manipulative pricing and hoarding. “The refinements to the Rice Tariffication Law are essential for the effective management of the Filipino household’s fundamental staple. Dahil dito, makakasiguro ang bawat Pilipino na may sapat at murang bigas sa bansa habang mas lalo pa nating pinapalakas ang sektor ng agrikultura,” Secretary Recto said.
Click the link below to read the full news from the source:
https://www.dof.gov.ph/recto-sees-stronger-economy-in-2025-with-the-enactment-of-new-laws-that-will-boost-the-tourism-industry-and-local-spending-and-enhance-food-security/
Law on VAT refunds for foreigners signed
Philstar.com / Jean Mangaluz / December 9, 2024
MANILA, Philippines — President Ferdinand Marcos Jr. on Monday signed a measure enacting a value-added tax (VAT) refund system for non-resident tourists. The measure aims to encourage tourists from outside the country to spend more on local goods to drive up spending. “We are introducing the VAT refund program for non-resident tourists. Designed not only to stimulate more spending, but to promote the Philippines as a premier global shopping destination,” Marcos said at a ceremonial signing at Malacañan Palace. Foreign tourists’ purchases should reach a minimum of P3,000 should they want to avail of the VAT refund, according to the new law. Tourists would be able to claim a VAT refund on goods they personally bought from accredited stories. The goods must also be taken out of the Philippines within 60 days of their stay.
Click the link below to read the full news from the source:
https://www.philstar.com/business/2024/12/09/2406148/law-vat-refunds-foreigners-signed
PSAC lauds new law granting VAT refunds to tourists
Manila Bulletin / December 12, 2024
The Private Sector Advisory Council (PSAC) applauded the signing into law of a measure granting value-added tax (VAT) refunds to non-resident tourists. “The VAT refund program will strengthen the Philippines’ global competitiveness, drive economic growth, and generate jobs by encouraging higher spending on local goods and services,” said. The measure is projected to increase tourist spending by 30 percent and provide additional support to micro, small, and medium enterprises (MSMEs). The law allows non-resident tourists to claim VAT refunds on goods worth at least P3,000 purchased from accredited stores, as long as these items are taken out of the country within 60 days. On Nov. 11, 2024, President Marcos enacted the CREATE MORE Act, which incorporates PSAC’s recommendations to encourage hotel expansions and renovations.
Click the link below to read the full news from the source:
https://mb.com.ph/2024/12/12/psac-lauds-vat-refunds-for-tourists
Philippines and Lao PDR successfully conduct first round of negotiations for a double taxation agreement
Department of Finance / December 10, 2024
The Philippines and the Lao People’s Democratic Republic (PDR) successfully conducted the first round of negotiations for its Double Taxation Agreement (DTA) on December 4-6, 2024 in Luang Prabang, Lao PDR. The Department of Finance (DOF) led the negotiations for the Philippines, which is in line with its commitment to the ASEAN Forum on Taxation to complete the ASEAN DTA network. The DTA aims to eliminate double taxation in terms of income taxes and prevent opportunities for non-taxation or reduced taxation through tax evasion or avoidance in cross-border transactions of Philippine and Lao PDR taxpayers. “This initiative is a testament to the DOF’s strong commitment to safeguarding the integrity of our tax system by closing loopholes and preventing tax evasion. More importantly, it symbolizes our collective resolve to deepen economic cooperation and strengthen diplomatic ties between the Philippines and Lao PDR. By working together to address cross-border taxation issues, we aim to promote greater trade, investment, and development opportunities,” Finance Secretary Ralph G. Recto said.
Click the link below to read the full news from the source:
https://www.dof.gov.ph/philippines-and-lao-pdr-successfully-conduct-first-round-of-negotiations-for-a-double-taxation-agreement/
Abusing PWD IDs? The BIR is coming for you
Bilyonaryo.com / December 12, 2024
The Bureau of Internal Revenue (BIR) is ramping up efforts to crack down on the sale and use of fake Person with Disability (PWD) identification cards, a scheme that drained an estimated ₱88.2 billion from government coffers in 2023, according to a Senate investigation. BIR Commissioner Romeo D. Lumagui Jr. has directed officials to work with other government agencies to stop the proliferation of fraudulent PWD IDs. “People who sell and use fake PWD IDs are not only committing tax evasion, they are also disrespecting legitimate and compliant PWDs,” Lumagui said. “The discount given by law to PWDs is for the improvement of their well-being and easing of their financial burden.It is not some common discount card that is accessible to the general public. Expect the BIR to run after fake PWD ID sellers and users,” he warned. PWD IDs, mandated under the Magna Carta for Disabled Persons, entitle holders to a 20% discount and an exemption from value-added tax (VAT) on certain goods and services. The BIR plans to intensify tax audits on establishments granting PWD discounts, requiring them to submit detailed records of transactions, including PWD names, ID numbers, and the discounts or VAT exemptions applied. Fake IDs discovered during these audits will result in penalties, disallowed deductions, and additional tax assessments.
Click the link below to read the full news from the source:
https://bilyonaryo.com/2024/12/12/abusing-pwd-ids-the-bir-is-coming-for-you/business/
BIR backs VAT refund for tourists, eyes tourism growth
Manila Bulletin / Jun Ramirez / December 12, 2024
The Bureau of Internal Revenue (BIR) fully supports the newly enacted Value-Added Tax (VAT) Refund for Non-Resident Tourists law (Republic Act No. 12079) to boost tourism and the economy. In a Facebook post, BIR Commissioner Romeo D. Lumagui Jr. said that the bureau “supports the VAT Refund Mechanism for Non-Resident Tourists law and the National Government’s initiative of attracting more international tourists and travelers into the country.” The government’s new tax refund program allows tourists to get back the 12 percent VAT they paid on goods and services purchased in the Philippines. But to be eligible for the refund, tourists must have a foreign passport, be non-residents of the Philippines, and have no business in the country. Purchases must be made in person at accredited stores, taken out of the country within 60 days of purchase, and have a minimum value of P3,000 per transaction. Tourists can claim their refunds electronically or in cash through authorized VAT Refund Operators. Lumagui noted that “the BIR will do its part in promoting the Philippines as a world-class tourist destination.” The Bureau of Internal Revenue (BIR) fully supports the newly enacted Value-Added Tax (VAT) Refund for Non-Resident Tourists law (Republic Act No. 12079) to boost tourism and the economy.
Click the link below to read the full news from the source:
https://mb.com.ph/2024/12/12/bir-backs-vat-refund-for-tourists-eyes-tourism-growth#google_vignette
What’s in store under CREATE MORE
The Philippine Star / Ria Mariz Nadora / December 10, 2024
The Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy, also known as CREATE MORE (RA 12066), has recently been enacted into law. This legislation amends certain provisions of the CREATE Act (RA 11534) to provide ‘more’ benefits for taxpayers. Among its most interesting features are the improvement of the incentive packages and the relaxation of conditions for VAT exemption on importation and VAT zero-rating on local purchases of goods and services by registered business enterprises (RBEs), to name a few. To recall, under the CREATE Act, RBEs initially enjoy an income tax holiday for four to seven years, depending on location and industry, before availing themselves of either the five percent special corporate income tax (SCIT), which is in lieu of all national and local taxes, or enhanced deductions for 10 years. Under CREATE MORE, registered export enterprises are given the choice to skip the ITH and immediately avail either the SCIT or the enhanced deduction regime (EDR) incentive at the start of commercial operations. This is granted for 14 to 17 years if approved by the Investment Promotion Agency (IPA), or for 24 to 27 years if granted by the Fiscal Incentives Review Board (FIRB). CREATE MORE also introduced improvements to the EDR incentive. First, RBEs that elect the EDR will benefit from a reduced corporate income tax rate of 20 percent, down from the regular rate of 25 percent. Second, the additional deduction for power expenses of RBEs in a taxable year has increased from 50-percent to 100 percent, on the condition that this shall only apply to power utilized for the registered project or activity. And lastly, the introduction of a 50 percent deduction on expenses relating to trade fairs, exhibitions, or trade missions, which shall include expenses incurred in promoting the export of goods or the provision of services to foreign markets, as approved by the concerned Investment Promotion Agency. Finally, CREATE MORE relaxed the criteria for REEs to enjoy VAT exemption on importations and zero VAT rate on local purchases of goods and services. To qualify for these incentives, the said law requires that the export enterprise’s export sales are at least 70 percent of the total annual production of the preceding taxable year, and the imported goods or locally purchased goods and services are “directly attributable” to its registered activity.
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https://www.philstar.com/business/2024/12/10/2406203/whats-store-under-create-more
Law gives non-resident tourists VAT refund
The Philippine Star / Alexis Romero, Bella Cariaso / December 10, 2024
MANILA, Philippines — Non-resident tourists will soon be entitled to a refund of the value-added tax (VAT) on local goods they purchased, as President Marcos yesterday signed into law a refund mechanism to boost the Philippines’ competitiveness as a shopping destination. Under the measure, non-resident tourists may claim a refund on the VAT for goods personally purchased at accredited retail outlets, provided the goods are taken out of the country within 60 days and meet a minimum transaction requirement of P3,000. During the signing of Republic Act 12079, Marcos said the VAT refund would stimulate more spending, promote the Philippines as a premier global shopping destination and put a spotlight on the country’s local products. “The economic impact of this measure is projected to be substantial, estimating an almost 30 percent increase in tourist spending. This surge will benefit both large-scale industries and micro, small and medium enterprises – an important pillar of our local economy,” he said.
Click the link below to read the full news from the source:
https://www.philstar.com/headlines/2024/12/10/2406269/law-gives-non-resident-tourists-vat-refund
The plain view doctrine in tax seizure cases
msn / Rio Krisel Bautista / December 12, 2024
IN the case of People v. GB BEM Cigarette Co. Inc., et al. (Criminal Case O-935, Nov. 20, 2024), the Bureau of Internal Revenue (BIR) conducted a search of the premises of the accused corporation without a warrant, acting on a mission order that was issued based on an unsigned letter or “tip” from another corporation alleging that the accused firm was engaged in the illegal manufacture and sale of cigarette products.The search led to the seizure of cigarette raw materials, tobacco products and other items within the premises. The accused corporation and its officers were criminally charged with possession of locally manufactured articles subject to excise tax without payment of the tax due.The corporation and its officers challenged the conduct of the search and the seizure of items for violating Section 2, Article III of the 1987 Constitution, which mandates that searches and seizures of articles can only be conducted on the strength of a warrant issued upon probable cause, determined personally by a judge.
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The plain view doctrine in tax seizure cases
BIR to launch nationwide crackdown vs fake PWD IDs
Philippine News Agency / Anna Leah Gonzales / December 12, 2024
MANILA – The Bureau of Internal Revenue (BIR) will launch a national crackdown against the sale and use of fake person with disability (PWD) identification cards (IDs) as revenue losses from this type of tax evasion scheme already amounted to over PHP88 billion. In a statement Thursday, BIR Commissioner Romeo Lumagui Jr. said he ordered all officials to coordinate with other government agencies to prevent the use of fake PWD IDs. Citing data from a recent Senate probe, Lumagui said revenue losses from the use of these fake IDs already amounted to PHP88.2 billion in 2023 alone. Under the law, PWDs’ benefits include a 20 percent discount and an exemption from value-added tax (VAT) on certain goods and services. The BIR however said unscrupulous persons exploited this system by selling fake PWD IDs to those fraudulently seeking to claim these benefits. These fake IDs are not only sold on the streets but also through online marketplaces, making them easily accessible, according to BIR. “People who sell and use fake PWD IDs are not only committing tax evasion, they are also disrespecting legitimate and compliant PWDs. The discount given by law to PWDs is for the improvement of their well-being and easing of their financial burden,” Lumagui said.
Click the link below to read the full news from the source:
https://www.pna.gov.ph/articles/1239790
Lumagui: BIR embraces VAT Refund on Non-Resident Tourists Law as part of Excellent Taxpayer Service
Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. expresses the full support of the BIR in the passing of Value-Added Tax (VAT) Refund for Non-Resident Tourists or Republic Act No. 12079. VAT refund for foreign tourists in the Philippine is a program designed to encourage tourism and boost the country’s economy by allowing foreign tourists to claim refunds on VAT paid for certain purchases made during their stay. This system provides a financial incentive for tourists, making shopping and other retail experience more attractive and affordable in the country. “The BIR supports the VAT Refund Mechanism for Non-Resident Tourists law and the National Government’s initiative of attracting more international tourists and travelers into the country. Excellent Taxpayer Service includes the granting of tax refund to taxpayers allowed by law to receive the same. This landmark law brings with it significant growth in tourism spending in the country, creating more economic growth in the sector, which in turn increases tax collections in the long-run,” Commissioner Lumagui stated.
Click the link below to read the full news from the source:
https://bir-cdn.bir.gov.ph/BIR/pdf/PR95DEC0924.pdf
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