Pursuant to Section 4 of Revenue Regulations (RR) No. 25-2020, a business or enterprise that incurred a Net Operating Loss for taxable years 2020 and 2021 shall be allowed to carry over the same a deduction from its gross income for the next (5) consecutive taxable years immediately following the year of such loss, unless otherwise disqualified from claiming the deduction. However, the current version of the Offline eBIRForms Package and Electronic Filing and Payment System (eFPS) limits the input of Net Operating Loss Carry-Over (NOLCO) to three (3) immediately preceding taxable years, which prevents the proper reflection of NOLCO incurred in 2020 and 2021 in later taxable-year filings (e.g., taxable year 2025) Relative thereto, this Circular is hereby issued to prescribe interim workaround procedures to allow the accurate deduction of such NOLCO in BIR Form Nos. 1701, 1702-RT and 1702-MX, without affecting the validity of the electronically filed return.
This Circular is hereby issued to clarify the provisions of Revenue Regulations (RR) No. 24-2025 and to address certain issues relative to its implementation. Q1: When is the effectivity of RR No. 24-2025? A1: RR No. 24-2025 took effect on October 10, 2025, that is fifteen (15) days following its publication in the BIR official website on September 25, 2025. Q2: Does the phrase “gross payments to manufacturers and direct importers” under the said RR mean that one-half percent (1/2%) creditable withholding tax (CWT) applies only if the supplier is both a manufacturer and a direct importer, or if the supplier is either a manufacturer or an importer? A2: The 1/2% CWT rate shall apply if the supplier is either a manufacturer or a direct importer of the covered goods. It is not required that the supplier be both. Accordingly, a local manufacturer that produces and sells the specified goods,
The Bureau of Internal Revenue issued Revenue Regulations No. 004-2026 for the One-Time Abatement of Taxes and/or Penalties for Micro-Taxpayers until December 31, 2026. Micro taxpayer refers to a taxpayer whose gross sales for the year is less than Three Million Pesos (<P3,000,000.00) and shall only cover business income, excluding compensation earned under employer-employee relationships. The abatement covering total basic tax liabilities and/or penalties from violation of the NIRC of 1997, as amended, of not exceeding Eighty Thousand Pesos (P80,000.00) (excluding criminal violations that are already filed in Court unless allowed to avail by the Commissioner or his duly authorized representative on meritorious grounds) shall apply to: Here is the process to avail the same: The Regulation will be effective within 15 days from publication in the BIR website last June 22, 2026 or on July 7, 2026.
In view of the issuance of Cooperative Development Authority (CDA) Memorandum Circular No. 2026-07, Series of 2026, entitled “Extension of the Deadline for the Submission of FY 2025 Required Reports by the Cooperatives and Extension Period of Validity of Certificate of Compliance (COC) Issued for CY 2025” (Annex “A”), this Circular is hereby issued to inform and provide clarificatory guidance for the unifom application by all internal revenue officials, employees, and others concerned. Under the said Memorandum Circular, the CDA, pursuant to Executive Order No. 110, Series of 2026 declaring a State of National Emergency, extended the period of validity of all COCs issued for Calendar Year 2025, originally expiring on April 30, 2026 until May 31, 2026, and correspondingly granted cooperatives additional time to comply with reportorial requirements without the imposition of penalties. Pursuant to existing revenue issuances, the submission of a valid COC issued by the CDA remains
Prescribing Guidelines and Procedures for the Availment of a One-Time Abatement of Taxes and/or Penalties for Micro Taxpayers SECTION 1. Purpose – Pursuant to Sections 244 and 245, in relation to Section 204(B), of the National Internal Revenue Code (NIRC) of 1997, as amended, these Regulations are hereby promulgated to prescribe the guidelines and procedures for the availment by micro taxpayers of the opportunity to settle their delinquent accounts or assessments, whether prelimenary or final, disputed or not, and open stop-filer cases, including those of micro taxpayers who have ceased business operations, by way of application for abatement of taxes and/or penalties, including surcharge and interest. SECTION 2. Definition of Terms – In applying the provisions of these Regulations, the following terms shall be defined as follows: SECTION 3. Scope – The abatement under these Regulations shall apply: SECTION 4. Coverage. – The following cases of micro taxpayers with delinquent
This Circular is issued to provide guidelines for existing business taxpayers with COR or Electronic COR (eCOR) without a corresponding Registration Seal Badge and whose registration Information has no updates. Said taxpayers may generate their Registration Seal Badge through the Bureau of Internal Revenue’s ORUS following the procedure below, Step 1: Log in to ORUS.If not yet enrolled, create an ORUS account. Step 2: Synchronize Registration Record. Step 3: Proceed to the “Certificates and Permits” section. Step 4: Download the latest COR with QR Code, together with the Registration Seal Badge. For this purpose, the Thirty Pesos (P30.00) DST on certificate shall be paid online via BIR’s ePayment Channels, and the taxpayer shall keep the proof of payment. The said amount pertains to the DST imposed under Section 188 of the National Internal Revenue Code of 1997, as amended, on certificates and similar documents. Step 5: Post the Registration Seal
In accordance with Section 3 of Revenue Regulations No. 13-2024 for the extension in the filing of tax returns and payment of the corresponding taxes due thereon, including submission of affected attachments, this Circular is being issued in order to provide assistance to taxpayers who were affected by recent earthquake within the jurisdiction of South Central Mindanao Region, which caused substantial damage to business establishments, government offices, and vital infrastructure, thereby disrupting normal business operations and limiting access to accounting records. Relative thereto, the Bureau of Internal Revenue (BIR) is hereby extending the deadline for the filing of tax returns and payment of the corresponding taxes due thereon, including submission of required attachments to provide ample time for taxpayers and BIR Personnel under the following Revenue District Offices (RDOs) to comply with the statutory tax deadlines: Accordingly, this Circular shall extend the statutory deadlines for submission and/or filing of the
In line with Republic Act No. 11976, otherwise known as “Ease of Paying Taxes (EOPT) Act”, as implemented by Revenue Regulations (RR) Nos 3-2024 and 7-2024, this circular is being issued to amend Revenue Memorandum Circular (RMC) No. 116-2024 re: Inclusion of Lifeline Subsidy and Green Energy Auction Allowance as government mandated charges not subject to Output Tax and Creditable Withholding Tax on VAT and Income. Accordingly, Q&A No. 3 of RMC No. 116-2024 is hereby amended to read as follows: “Q3: Are the government mandated charges shall nor be subject to Output Tax and consequently on Creditable Withholding on VAT and Income? A3: The following mandated government charges shall not be subject to Output Tax and Creditable Withholding Tax on VAT and Income. All other revenue memorandum circulars and rulings inconsistent herewith are hereby amended, modified or repealed accordingly.
This Revenue Memorandum Circular (RMC) is issued to further clarify Revenue Regulations (RR) No. 3-2025 and address certain issues pertaining to the implementation of the Value-Added Tax (VAT) on Digital Sevice. Q1: If a nonresident digital service provider (NRDSP) supplies or delivers digital services to Philippine consumers and such digital services qualify to register with the BIR and file VAT-exemption, is the NRDSP still required to register with the Bureau of Internal Revenue (BIR) in accordance with RR No. 3-2025? A1: Yes. If the NRDSP supplies digital services to Philippine consumers and such services are entitled to VAT exemption, it shall be required to register with the BIR and file VAT returns. Of the sales of the NRDSP are VAT-exempt, these shall be indicated as VAT-exempt sales in the VAT Returns. Q2: In a cross-boarder cost-sharing arrangements involving (i) foreign digital service provider, (ii) a foreign affiliate contracts for and/or
In addition to the obligation to deduct and remit the withholding taxes to the Bureau of Internal Revenue (BIR), pursuant to the provisions of Revenue Regulations (RR) No. 2-98, as amended by RR No. 11-2018, all withholding agents are required to submit Alphabetical List of Employees/Payees from Whom Taxes Where Withheld (alphalist) to the BIR, as an attachment to the withholding tax returns. Hence, its deadline of submission is the same with the deadline of submission of the said returns. The type of alphalist to be submitted depends on the specific withholding tax return and irs corresponding deadline, as follows: Since the alphalist is an attachment and therefore a part of the withholding tax return, the submission of the alphalist is likewise an obligation of the withholding agent. Failure to submit the alphalist constitutes a violation of BIR regulations and is subject to the corresponding penalty. The recently issued RR
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Revenue Memorandum Circular No. 81-2026
Revenue Memorandum Circular No. 79-2026
Availment of a One-Time Abatement of Taxes and/or Penalties for Micro Taxpayers
Revenue Memorandum Circular No. 71-2026
Revenue Regulations No. 004-2026
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