Revenue Regulations No. 001-2025

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Further Amending Section 9 of Revenue Regulations No. 25-2003 Relative to the Documentary Requirements to be Submitted by Motor Vehicle Manufacturer/Assembler/Importer as Basis for the Bureau of Internal Revenue to Determine Whether the Automobiles Subject to Excise Tax Exemption are Hybrid or Purely Electric Vehicles pursuant to the Provisions of Republic Act No. 10963, Otherwise known as the “Tax Reform for Acceleration and Inclusion (TRAIN) Law” Section 1 Scope – Pursuant to the provisions of Sections 244 and 245 of the National Internal Revenue Code of 1997 (NIRC), as amended, in relation to Section 84 of the Republic Act No. 10963, otherwise known as the “TRAIN LAW”, these Regulations are hereby promulgated to further amend Section 9 of Revenue Regulations (RR) No. 25-2003, as Natural Resources – Environment Management Bureau (DENR-EMB) to determine whether the automobiles subject to excise tax exemption are hybrid or purely electric vehicles pursuant to the

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Revenue Regulations No. 18- 2024

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Implementing Section 32 (B)(5) of the National Internal Revenue Code of 1997, as amended by Republic Act. No. 12066, or the CREATE MORE Act Section 1 Purpose – Pursuant to the provisions of Sections 244 and 245 of the National Internal Revenue Code (NIRC) of 1997, as amended, in relation to Section 32 of Republic Act (RA) No. 12066 or the CREATE MORE (Maximize Opportunities for Reinvigorating the Economy) Act, these Regulations are hereby promulgated to implement Section 32(B)(5) of the NIRC, as amended by the said Act which now reads: “SEC. 32. Gross Income.- (B) Exclusions from Gross Income. – The following items shall not be Included in the gross income and shall be exempt from taxation under this Title (5) Income Exempt under Treaty.- Income of any kind, to the extent required by any treaty obligation, including agreements entered into by the President with economies and administrative regions,

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REPUBLIC ACT NO. 12066 – CREATE MORE ACT

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Republic of the Philippines Congress of the Philippines Metro Manila Nineteenth Congress Third Regular Session Begun and held in Metro Manila, on Monday, the twenty-second day of July, two thousand twenty-four. [REPUBLIC ACT NO. 12066] 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 Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: SECTION 1. Section 27 (A) of the National Internal Revenue Code of 1997, as amended, is hereby further amended to read as follows: “SEC. 27. Rates of Income Tax on Domestic Corporations. – (A) In General. – Except as otherwise provided in this Code, an income tax

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Revenue Memorandum Circular No. 116-2024

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Clarifying the Provisions of Republic Act No. 11976, Otherwise Known as the “Ease of Paying Taxes Act”, Applicable to the Power Industry This Revenue Memorandum Circular is issued in order to publish and clarify certain provisions of Revenue Regulations (RR) Nos. 3-2024 and 7-2024, implementing the National Revenue Code of 1997 (Tax Code), as amended by Republic Act (RA) No. 11976 or otherwise known as the “Ease of Paying Taxes (EOPT) Act”, affecting generation, transmission, and distribution companies, as well as electric cooperatives and retail electricity suppliers.

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Revenue Memorandum Circular No. 115-2024

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Clarification of Certain Policies and Procedures Relative to the Implementation of the Risk-based Approach in the Verification and Processing of Value-Added Tax (VAT) Refund Claims, as Introduced in Republic Act No. 11976, Otherwise Known as the “Ease of Paying Taxes Act” This circular is being issued to clarify and address concerns in the risk-based approach verification and processing of VAT refund claims pursuant to Section 112 (A) of the National Internal Revenue Code of 1997 (Tax Code), as amended by Republic Act No. 11976 r the Ease of Paying Taxes (EOPT) Act, and as implemented by the Revenue Regulations (RR) No. 05-2024, and Revenue Memorandum Order (RMO) No. 23-2024, as amended by RMO No. 42-2024. Example 2: The taxpayer-claimant submitted the following documents in support of its claim for VAT refund amounting to P 7,000,000.00:

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Revenue Memorandum Circular No. 113-2024

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Announcing the Availability of Update of Taxpayer Classification, and Resumption of Business Registration and Other Registration-Related Transactions in the Online Registration and Update System (ORUS) Relative to the implementation of Revenue Regulations No. 8-2024 and Section 21(B) of the National Internal Revenue Code (NIRC) on the classification of taxpayers, this Circular is hereby issued to announce the availability of the Application for Update of Taxpayer Classification thru the “Update Information” functionality and the resumption of business registration and other registration-related transactions in the BIR Online Registration and Update System (ORUS) starting October 1, 2024 and October 10, 2024, respectively.

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8 Features of Republic Act No. 12023 – VAT on Digital Services Law Philippines

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By: Garry Pagaspas, CPA With the advent of advanced technology, sales of goods and services has been automated online worldwide through digitalization without much interaction among buyers and sellers. For buyers, this gave much advantage for being able to acquire goods and services from outside the country, while local suppliers are challenged for competition within and outside Philippines. On the other side, it made the government realized the seemingly inequality on taxation between local suppliers paying taxes on sales while giving undue advantage for non-resident suppliers deriving income through digital platform from Philippine buyers without paying taxes on them in Philippines. These inequalities paved way to the legislation of Republic Act No, 12023 – Value Added Tax (VAT) on Digital Services Law in Philippines (RA 12023 -VAT on Digital Services Philippines) that is aimed to level the playing field among digital service providers – local and foreign. By this present,

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Republic Act No. 12023 – VAT on Digital Services Philippines

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H. No. 4122 S. No. 2528 Republic of the Philippines Congress of the Philippines Metro Manila Nineteenth Congress Third Regular Session Begun and held in Metro Manila, on Monday, the twenty-second day of July, two thousand twenty-four. [Republic Act No. 12023] 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 Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled; SEC 1. Section 105 of the National Internal Revenue Code of 1997, as amended, is hereby amended to read as follows: Sec. 105. Persons Liable. – Any person who, in the course of trade or business, sells, barters, exchanges, leases goods or properties, renders services, including digital services, and any person who imports goods shall be subject to the value-added

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7 Features of Staff Leasing in the Philippines

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By: Garry Pagaspas, CPA Taking into account the advantages of Filipino talents (e.g. English speaking, attitude towards work, manpower cost, and work efficiency, among others) Philippines has become a top pick for back-office support operations of foreign accounting and consulting firms abroad and that of business process outsourcing (BPO) operations in Philippines dealing directly with foreign clients, if not with the parent entity for the delivery of quality services. Approaches for Philippine set-up could vary depending on many factors such as a more long-term set-up or a short-term exploratory set-up. For a long-term set-up, setting up a local entity in the Philippines could be good, while for short-term exploratory set-up, some would resort to special arrangements with staffing or manpower agencies, Business Process Outsourcing (BPO) in Philippines, accounting firms or local consulting firms for staff leasing in Philippines, or sometime referred to under professional employer organization (PEO) or employer of

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Revenue Memorandum Circular No. 109-2024

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Clarification on the Types of Checks Accepted for Payment for One-Time Transaction-Related Internal Revenue Taxes This Circular is hereby issued to clarify the types of checks accepted in payment for One-Time Transaction (ONETT) – related internal revenue taxes, pursuant to Revenue Memorandum Order (RMO) No. 49-2018, as amended. Section II of Revenue Memorandum Circular No. (RMC) No. 4- 2021 provides guidelines for payments of taxes through Authorized Revenue Collection Officers (RCOs), citing RMO No. 8-2009 as follows: “4. The Issuance of RORs shall be limited to tax payments, in cash not exceeding the amount of twenty thousand pesos (Php 20,000.00) per return. However, there shall be no limit on the amount if payment is made thru checks.The following checks should be accepted in payment for internal revenue taxes:1. Manager’s or Cashier’s Checks;2. Checks drawn against a joint or multiple account for the purpose of tax payment of the personal tax

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