Revenue Regulations No. 015-2025

---

Revised Private Retirement Benefit Plan Regulations

Section 1 – The National Internal Revenue Code of 1997, as amanded (“Tax Code”) and Republic Act (“RA”) No. 4917, as implemented by Revenue Regulations (“RR”) No. 1-1983 and RR No. 11 – 2001; and clarified by Revenue Memorandum Circular (“RMC”) No. 10-1983, prescribes the terms and conditions under which qualified employee private retirement plan may avail of the tax exemption privileges.

Section 2 – Scope – Pursuant to the provisions of Sections 224 and 245 of the Tax Code, these Regulations are hereby promulgated to revise policies and guidelines on the taxability of retirement benefits received by employees under a reasonable private retirement benefit plan. These Regulations shall be known as the “Revised Private Retirement Benefit Plan Regulations.

For purposes of these Regulations, the term “reasonable private retirement benefit plan” means a plan maintained by an employer for the benefit of some or all of its officials or employees, wherein contributions are made by such employer for the officials or employees, or both, for the purpose of distributing to such officials and employees the earnings and principal of the fund thus accumulated, and wherein it is provided in said plan that at no time shall any part of the corpus or income of the fund be used for, or be diverted to, any purpose other than for the exclusive benefit of the said officials and employees.

Section 3 – Private Retirement Benefit Plan – A private retirement benefit plan (the “Retirement Plan”) refers to an agreement whereby an employer provides benefits to its officials and employees upon the latter’s retirement.

A Retirement Plan may consist of a pension, gratuity, provident fund, stock bonus or profit-sharing plan, or any other similar plan maintained by an employer for the benefit of some or all of its officials and employees, wherein contributions are made by such employer or officials and employees, or both. It may be contributory or non-contributory shall have the respective meaning ascribed to them:

• “Pension Plan” is a retirement plan established and maintained by an employer primarily to provide systematically for the payment of definitely determinable benefits to its employees over a period of years, usually for life, after retirement.
• “Profit-Sharing Plan” is a plan established and maintained by an employer to provide the participation in the profits be employees or their beneficiaries.
• “Provident Fund” is an investment fund that is voluntarily established by employer and employees to serve as a long term savings to support an employee’s retirement.
• “Stock Bonus Plan” is a plan established and maintained by an employer to provide benefits similar to those of a profit-sharing plan, except that contributions by the employer are not necessarily dependent upon the profits and benefits are distributable in stock of the employer company.
• “Gratuity Plan” is a plan established and maintained by an employer to provide for the payment of definitely determined benefits to employees after retirement. This plan is similar to a pension plan, except the benefits are not payable during a certain pension plan that are not payable during a certain period or life of the retiree but totally and immediately after retirement.
• The phrase “at no time shall any part of the corpus or income of the fund be used for, or diverted to, any purpose other than for the exclusive benefit of the said officials and employees” includes all objects or aims not solely designed for the proper satisfaction of all liabilities to employees covered by the trust.

Section 4 – Tax incentives or Privileges – a Retirement Plan which is duly approved by the Bureau of Internal Revenue (“BIR”) through the Commissioner of Internal Revenue (“Commissioner”) or his authorized representatives, and was issued a certificate of tax qualification for tax exemption (“Tax Qualified Plan”) are entitled to the following tax incentives or privileges:

• Exemption form income tax and, consequently, from withholding tax, of the retirement benefits and all amounts received by officials and employees of private firms on account of their retirement (“Retirement Benefits”);
• Exemption from income tax and consequently, from withholding tax, of the trust income from various investments made by the investment limitations under Section 60(b) of the Tax Code, without prejudice to the investment limitations under Section 8 of this Regulations. For the avoidance of doubt, exemption form income tax does not include stock transaction tax which is a percentage under Title V of the Tax Code. Thus, income from investment in shares of stocks listed and traded in the local stock exchange shall be subject to stock transaction tax imposed under Section 127(A) of the Tax Code; and
• Tax deductibility of the following contributions made by employers from its gross income pursuant to Section 34(J) of the Tax Code:
  • contributions to the trust during the taxable year to cover the pension liability accrued during that year (“Normal Cost”); and
  • contributions to the trust during the taxable year in excess of the Normal Cost but only if such amount (1) has not therefore been allowed as a deduction, and (2) is apportioned in equal parts over a period of ten (10) consecutive years beginning with the year in which the transfer or payment is made.

In order to avail of the tax incentives/privileges above, with respect to Retirement Benefits received by qualified employees, the following requirements must be met:

• The Retirement Plan must be reasonable as determined by the Commissioner or his authorized representatives;
• The retiring official or employee must have been in the service of the dame employer for at least ten (10) years and is not less than fifty (50) years of age at the time of retirement; and
• The retiring official or employee shall not have previously availed of the privilege under a retirement benefit plan of the same or another employer.

For the avoidance of doubt, in case of transfer of employees from one participating company to another participating company within a multi-employer plan due to a valid merger, the aggregate years of service to the said companies shall be considered in computing the prescribed ten (10)- year period, provided, however, that said employees did not receive their respective separation pay from their previous employer/company (the absorbed or acquired company). Considering that the said transfer of employees is outside the control of the concerned employees, it is but just and fair to consider the period of services to both companies.

For this purpose, a “multi-employer plan” refers to a Retirement Plan to which two or more related reporting entities (each of which shall be individually referred to as “Participating Company”) contribute for the benefit of its retiring officials and employees. Reporting entities are considered related in this context if they are neither a parent, subsidiary, or fellow-subsidiary, of any Participating Company/ies.

The tax incentives/privileges under a Tax Qualified Plan shall retroact to the date of effectivity of the Retirement Plan.

Section 5 – Requisites of a Reasonable Retirement Benefit Plan – A Retirement Plan shall be considered reasonable if it meets the following conditions:

• Written Program – It must be definite written program setting forth all provisions essential for qualification;
• Permanency – It must be a permanent and continuing program unless sooner terminated by virtue of a valid business reason;
• Coverage
  • Percentage Basis – It must be cover at least seventy percent (70%) of all officials and employees. If the plan provides eligibility requirements and at least seventy percent (70%) of all officials and employees meet the eligibility requirements, at least eighty percent (80%) of those eligible must be covered. Under this basis, the following employees are excluded:
    • Employees who have been employed less than the minimum length of time stated in the plan;
    • Employees who work twenty (20) hours a week or less; and
    • Seasonal employees who work five (5) months a year or less.
  • Classification Basis – If the employer does not wish to cover the greater portion of the employees, it may set up a plan under a classification set-up prescribed by the employer and limit coverage to employees in a certain classification, over a prescribed age, employed for a stated number of years; provided that the coverage of plan must not discriminate in favor of officers, shareholders, supervisors, or highly compensated employees. A classification shall not be considered discriminatory merely because it is limited to salaried or clerical employees. Neither shall a plan be considered discriminatory merely because the contributions or benefits of or on behalf of the employees under the plan bear a uniform relationship to the total compensation, or the basis or regular rate of compensation, and the employees’ length of service.
• Contribution – The employer, or officials and employees, or both, shall contribute to a trust fund for the purpose of distributing to the officials and employees or their beneficiaries, the corpus and income of the fund accumulated by the trust in accordance with the plan.
• Impossibility of Diversion – The corpus or income of the trust fund must at no time be used for, or diverted to, any purpose other than for the exclusive benefit of the said officials and employees.
• Non-discriminatory – There must be no discrimination in contributions or benefits in favor of officials and employees who are officers, shareholders, supervisors, or highly compensated.
• Non-forfeitures – It must provide for non-forfeitable rights, that is upon the termination of the plan or upon the complete discontiuance of contributions under the plan, the rights of each official or employee to benefits accrued to the date of such terminations or discontinuance, to the extent then funded, or the rights of each employee to the amounts credited to his account at such time are non-forfeitable.
• Forfeitures – The plan must expressly provide that forfeitures arising from severance of employment, death or for any other reasons, must not be applied to increase the benefits any employee would otherwise receive under the plan at any time prior to the termination of the plan at the complete discontinuance or employer contributions thereunder. The amounts so forfeited must be used as soon as possible to reduce the employer’s contributions under the plan.

Section 6 Application for a Certificate of Qualification for Tax Exemption. – The employer shall apply with the BIR, through the Legal and Legislative Division at the National Office, for the issuance of a certificate of qualification for tax exemption of the employee retirement benefit plan (“Certificate of Qualification”) within thirty (30) days from the date of effectivity of the retirement benefit plan. Otherwise, penalty shall be valid until revoked by the BIR.

The BIR Forms to be accomplished and documentary requirements to be submitted to the BIR relating to the application for issuance of a Certificate of Qualification are as follows:

• In the case of a trusted Retirement Plan:
  • Certified true copy of the actuarial valuation report which must not be more than three (3) years prior to the date of application;
  • Certified true copy of the trust agreement and current fund amount;
  • Original BIR Form No. 17. 60 Retirement Benefit Plan Information Sheet signed by authorized officer, which is attached herewith as Annex “A;”
  • Certified true copy of the Retirement Plan Rules and Regulations which must contain the following provisions:
    • Provision on non-forfeitable rights, that is, upon the termination of the plan or upon the complete discontinuance of contributions under the plan, the right of the members accrued to the date of such termination of discontinuance to the extent then funded, or the rights to the amounts credited to the account at such time are non-forfeitable;
    • Provisions that forfeitures must not be applied to increase the benefits any employee would receive, but must be used to reduce the employer’s contribution under the plan; and
    • Provision on impossibility of diversion, that is, that no part of the corpus or income of the Trust Fund shall be used for or diverted to purposes other than for the exclusive benefit of the members-employees and their beneficiaries.
  • TIN or Retirement Benefit Plan, Certificate of Registration of the Retirement Benefit Plan, and BIR Form No. 1901;
  • Original Secretary Certificate as to adoption/approval of amendments of Retirement Benefit Plan/appointment of Trustee;
  • Payment in accordance with RR No. 11-2001 or as may be prescribed by the Commissioner or his authorized representatives; and
  • Such other documents which the Commissioner or his authorized representatives may consider necessary in the final determination of the qualification of the Retirement Plan for tax-exemption under RA No. 4917.
• In the case of a non-trusteed/insured Retirement Plan:
  • Duly accomplished BIR Form No. 17.60;
  • A copy of the written program constituting the Plan;
  • A copy of the Deposit Administration Contract Deferred Annuity Contract executed by and between the employer or the insured or policyholder and the Insurance Company as the insurer; and
  • Such other documents which the Commissioner or his authorized representatives may consider necessary in the final determination of the publication of the Plan for tax-exemption.
• In the case of Multi-employer Plans.
  
  The same documentation requirements as in paragraph(a) or paragraph (b) of this Section, as the case may be, should be submitted for each of the participating employers together with the Participating Agreement.
  
  Upon receipt of the application, the same, together with the supporting documents shall be evaluated for compliance with the requirements provided for by Section 32(B)(6)(a) of the Tax Code and these Regulations, after which the Commissioner or his authorized representatives shall decide whether or not the Retirement Plan is so qualified. If the Commissioner or his authorized representatives decides that the Retirement Plan is qualified, he shall issue a certificate of qualification for tax exemption, upon payment of the corresponding fee prescribed in Section 9 of these Regulations. However, if he decides that the Retirement Plan is not qualified, he shall inform in writing the employer/applicant of his decision and the reason supporting the same.
  

For this purpose, a “Trusteed Retirement Plan” refers to a retirement plan which assets/funds are being held, managed and administered by a separate entity or group of individuals that is designated or appointed by an employer for the benefit of its employees. Retirement Plans that do not fall under the foregoing definition are classified as “Non-Trusteed Plans.”

Pending the employer’s application with the BIR, the retirement benefits received by any qualified retiring employees or investment income received by the Retirement Fund shall be exempt from income tax and, consequently, from withholding tax pursuant to RA No. 4917, and Section 60(B) of the Tax Code, respectively.

However, should the application of the employer be denied by the BIR, the employer/trust shall be directly and solely liable for any deficiency income taxes due on the same.

Section 7 Amendments to the Tax Qualified Retirement Plan – During the period that the Retirement Plan is in operation, amendments thereto may be introduced. Such amendments should also be submitted for certification that the amendment/s do not affect the qualification of the Retirement Plan. If found to be beneficial to the employee-members of the Retirement Plan, an amendatory certification of qualification shall be issued by the Commissioner or his authorized representatives upon payment of the corresponding fee prescribed in Section 9 of this Regulations.

Section 8 Investments – No specific limitations are provided in the law with respect to investments which may be made by the trustees of an employee’s trust. Generally, the fund may be used by the trustees to purchase any investments permitted by the trust agreement. However, the exemption of the trust income under Section 60 (b) of the Tax Code, may be denied if the trust

• lends any part of its income or corpus without adequate security and a reasonable rate of interest;
• pays any compensation in excess of a reasonable allowance for salaries or other compensation for personal services actually rendered;
• makes any part of its services available on a preferential basis;
• makes any substantial purchase of securities or any other property for more than adequate consideration in money or money’s worth;
• sells any substantial part of its securities or other property, for less than adequate consideration in money or money’s worth; or
• engages in any other transaction which results in a substantial diversion of its income or corpus;

to or from the employer, if the employer is an individual, to or from a member of the family of the employer, or to or from a corporation controlled by the employer through the ownership, directly or indirectly, of 51% or more of the total combined voting power of all.

For the avoidance of doubt, the Retirement Fund shall not be used to invest/deposit in any of the employer’s business ventures to maintain the separation of the employee’s trust fund from that of the employer’s trust.

Section 9 Fees to be Paid by the Employers – An employer shall pay the following fees:

• Upon issuance of the certificate of qualification for tax exemption
  • employers not having more than fifty (50) employees P2,000.00
  • employers having more than fifty (50) but not over one hundred (100) employees P3,000.00
  • employers having more than one hundred (100) employees P5,000.00
• Upon issuance of an amendatory certificate of qualification of tax exemption
  • employers not having more than fifty (50) employees P2,000.00
  • employers having more than fifty (50) but not over one hundred (100) employees P3,500.00
  • employers having more than one hundred (100) employees P5,000.00

Provided, however, that employers not having more than five (5) employees shall be exempt from the fees prescribed by these Regulations. The above fees shall accrue to the General Fund and shall be deposited with the National Treasury.

Section 10 Filing of Returns – Trustees of all trusteed Retirement Plans are required to file an annual information return on or before April 15 of each with the Revenue District Office (“RDO”) having jurisdiction over the employer together with the copy of the issued Certificate Qualification. The submissions shall be subject to post audit by the BIR.

On the other hand, insurance companies as insurers/custodian of funds of non-trusteed or insured plans (i.e., Retirement Plan established and maintained by an employer under a Deposit Administration Contract or Deferred Annuity Contract, as the case may be and approved by the BIR under RA. No. 4917), should continue to file the regular income tax returns (not the aforementioned annual information return) for income or earnings derived from investments of the covered employees’ retirement fund which are subject to income tax.

Section 11 Penalty Clause – Any person found violating any of the provisions of these Regulations shall be subject to the imposition of penalties provided for under the existing laws, rules, and regulations, in addition to the imposition of penalties pursuant to Chapter II of the Tax Code.

Section 12 Administrative Provision – A separate revenue memorandum order shall be issued to prescribe the detailed procedure, mechanism, and requirements for the effective implementation of the provisions of these Regulations.

Section 13 Separability Clause – If any provision of these Regulations is declared invalid by a competent court, the remainder of these Regulations or any provision not affected by such declaration of invalidity shall remain in force and effect.

Section 14 Repealing Clause – The provisions of any regulations, rulings or orders, or portions thereof which are inconsistent with the provisions of these Regulations are hereby revoked, repealed and amended accordingly

Amending Section 14 of the Revenue Regulations No. 3-2025 on the Prescribed Policies and Guidelines for the Implementation of Republic Act No. 12023, entitled “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, “Imposing the Value Added Tax on Digital Services”

Section 1. Scope – Pursuant to Sections 244 and 245 of the National Internal Revenue Code of 1997, as amended (Tax Code), these Regulations are hereby promulagated to amend portions of Revenue Regulations (RR) No. 3 – 2025 pertaining to Section 14 particularly of Transitory Provision on the deadline of Registration of Non-Resident Digital Services.

Section 2. Amendment – Section 14 of RR No. 3 – 2025 is hereby amended to read as follows:

• Section 14 Transitory Provision – All Non-Resident Digital Service Providers (NRDSPs) required to register under Section 5 of these Regulations shall register or update with the BIR within one hundred twenty (120) days from the effectivity of these Regulations through the VDS Portal or Online Registration and Update System and shall immediately be subject to VAT after 120 days from the effectivity of these Regulations. Hence, NRDSPs are given until June 1, 2025 within which to register and shall be subject to VAT starting June 2, 2025.
  
  The Commissioner of Internal Revenue may further extend the deadlines on the transition period prescribed in these Regulations as may be deemed necessary.

Section 3. Repealing Clause – Any rules and regulations, issuances or parts thereof inconsistent with the provisions of these Regulations are hereby repealed, amended or modified accordingly.

Circularizing the Implementing Rules and Regulations of Title XIII of Republic Act No. 8424, Otherwise Known as the National Internal Revenue Code of 1997, as Amended by Republic Act No. 12066

For the information and guidance of all internal revenue officials, employees and others concerned, attached as Annex “A” hereof is the Implementing Rules and Regulations of Title XIII of the National Internal Revenue Code of 1997, as amended by Republic Act No. 12066.

Clarification on the Submission of Proof of Settlement of Estate Pursuant to Revenue Regulations (RR) No. 10-2023

This Circular is hereby issued to clarify the provisions of Section 2 of RR No. 10-2023 regarding the submission of proof of settlement of the estate, whether judicial or extra-judicial, for purposes of availability of estate amnesty.

The documents required for the availment of the estate tax amnesty are the Estate Tax Amnesty Return (ETAR) – BIR Form No. 2118-EA, the Acceptance Payment Form – BIR Form No. 0621-EA, and the complete documentary requirement as prescribed under RR No. 10-2023.

The proof of settlement of the estate (e.g. Extra Judicial Settlement, Court Order), whether judicial or extra judicial, is not required to accompany the ETAR at the time of filing and payment of taxes if it is not yet available. Accordingly, the non-submission of such proof on or before June 14, 2025 shall not invalidate the application for estate tax amnesty.

However, this proof of settlement shall be required during the processing and issuance of Electronic Certificate Authorizing Registration.

Clarification on the Requirement of Submission of Taxpayer Identification Number of Cooperative Members for the Issuance of Certificate of Tax Exemption in Relation to Revenue Memorandum Circular No. 158-2022

The Taxpayer Identification Number (TIN) is a unique identifier issued by the Bureau of Internal Revenue (BIR) for all taxpayers in the Philippines, serving as a crucial component in the administration of tax laws and regulations. In line with the government’s efforts to improve tax administration, ensure compliance, promote transparency and accountability in its transactions, the BIR has recognized the need to standardized the compliance on the submission of TIN for members of cooperatives.

The BIR, however, is cognizant that cooperatives have been facing challenges and difficulties in securing and submitting their member’s TIN due to various factors such as capacity of the members to understand the BIR regulations pertaining to application of TIN delays in securing documentary requirements for registration or other administration issues. As such, taken into account these factors, and in order to aid in the smooth implementation of the requirement of TIN in the application of Certificate of Tax Exemption (CTE) of the cooperatives and to allow ample time to comply with the requirement, this Circular is being issued.

I. Timeline in the compliance of cooperatives in the submission of TIN

All cooperatives must ensure that their members possess valid TIN in compliance with Section 236 of the National Internal Revenue Code of 1997, as amended (Tax Code) and Revenue Regulations No. 7-2012. As a general rule, the cooperative must submit a list of all its members with their corresponding requirements pursuant to Revenue Memorandum Order No. 76-2010.

However, in case the cooperative fail to secure the TIN of all its members due to justifiable reasons, the cooperatives are given a period of nine (9) months to comply with the TIN requirement, but in no case shall it delay the processing and issuance by the concerned office of the BIR of the CTE of the cooperative.

II. Justifiable Reasons

The cooperatives which fails to secure the TIN of all its members are required to submit a Sworn Affidavit stating therein all the justifiable reasons for failure to comply with the TIN requirement for its members prior to the application of CTE, and with an undertaking that the cooperative will comply with the TIN requirement within 9 months from the issuance of CTE subject to administrative penalties as prescribed under Revenue Memorandum Circular No. 158-2022.

The justifiable reasons advanced shall be taken into account in formulating policies, rules and procedures to further improve taxpayers’ service and enhance the system of issuing TIN especially to individual taxpayers.

III. Application of the CTE where the only lacking requirement is TIN of the members

The application for CTE of the cooperative, where the only lacking requirement is the TIN of its members, will still be processed and corresponding CTE issued by the concerned office of the BIR, provided that a Sworn Affidavit as required in Item II is submitted.

IV. Denial and Suspension/Revocation of CTE

No CTE of the cooperatives shall be suspended/revoked and no application for CTE shall be denied solely on the basis of the non-submission of the TIN of its members until the availability of the enhanced Online Registration and Update System (ORUS) of the BIR is in the place, provided that the Sworn Affidavit as required in Item II is submitted. A separate revenue issuance shall be promulgated as soon as the enhanced ORUS is available and already in place.

This Circular is issued to provide uniform guidelines and prescribe the revised mandatory documentary requirements in the processing and grant of VAT refund claims under Section 112 of the Tax Code, in line with the latest developments on VAT introduced by Republic Act (R.A.) No. 12066.

COVERAGE

This Circular shall cover claims for VAT refund under Section 112(A) and (B) of the Tax Code, except those pursuant to a writ of execution by the Courts, that are filed on April 1, 2025 and thereafter.

GENERAL POLICIES

1. Pursuant to Section 6 of Revenue Regulations (RR) No. 10-2025, which further amended Section 4.112 of RR No. 16-2005, the time frame to process and grant claims for VAT refund is ninety (90) days from the date of submission of the certified true copies of the invoices or official receipts and other documents in support of the application filed in accordance with Section 112(A) and (B) of the Tax Code, up to the release of the payment for the approved amount of the refund.
2. The “Application for VAT Credit/Refund Claims” (BIR Form No. 1914) shall be received by the processing offices, to wit:
   a. The VAT Credit Audit Division (VCAD) in the National Office for taxpayers whose claims of unutilized input taxes are attributable to VAT zero-rated sales under Section 112(A) of the Tax Code, wit:

Type of VAT Zero-Rated Sales	Section in RR No. 16-2005, as amended by RR No. 10-2025
Direct export sales of goods, regardless of the percentage of export sales to total sales	4.106-5(a)(1)
Direct export sales of services, regardless of the percentage of export sales to total sales	4.108-5(b)(2)
Sale of goods to persons engaged in international shipping or international air transport operations	4.106-(a)(4)
Services rendered to persons engaged in international shipping or international air transport operations	4.108-5(b)(4)
Transport of passengers and cargo by domestic air or sea vessels from the Philippines to a foreign country	4.108-5(b)(6)

Claims of taxpayers engaged in direct exports exclude those with zero-rated sales coming from a combination of direct exports (e.g., bio-fuels) and sales of power or fuel from renewable energy sources pursuant to Section 4.108-5(b)(7) of RR No. 16-2005, as amended by RR No. 10-2025, in which case, Item 2(b) hereof shall apply.

b. Claims of taxpayers-claimants other than those mentioned in Section (II)(2)(a) of this Circular, to wit:

Type of Zero-Rated Sales/Nature of Claim	Section in RR No. 16-2005, as amended by RR No. 10-2025
Sale of raw materials or packaging materials to a non-resident buyer for delivery to a resident local export-oriented enterprise to be used in manufacturing, processing, packaging or repacking in the Philippines of the said buyer’s goods	4.106-5(a)(2)
Processing, manufacturing or repacking goods for other persons doing business outside the Philippines which goods are subsequently exported	4.105-5(b)(1)
Sale of power or fuel from renewable energy sources	4.108-5(b)(7)
Those with effectivity zero-rates sales i. Sale of goods and services to an export-oriented enterprise (EOE) ii. Sale of goods bonded manufacturing warehouses of EOEs iii. Sales of goods and services to persons or entities covered under special laws or international agreements iv. Sale of goods and services to registered business enterprises covered under Title XIII of the Tax Code	4.106-5(a)(3) and 4.108(b)(5) 4.106-5(a)(5) 4.106-5(b) and 4.108-5(b)(3) 4.106-5(c) and 4.108-5(b)(8)
Taxpayers whose VAT registration has been cancelled or has changed in the VAT registration status to non-VAT but with accumulated unutilized input taxes pursuant to Section 112(B) of the Tax Code, which shall be filed within two (2) years from the date of issuance of the tax clearance by the BIR	4.112(b)

shall be filed at the following offices which have jurisdiction over the taxpayer-claimant:

b.1 The VAT Audit System (VATAS) of the Assessment Division of Regional Offices; or

b.2 The respective Revenue District Office (RDO) if without VATAS; or

b.3 The Large Taxpayers VAT Audit Unit (LTVAU) of the Large Taxpayers Service (LTS)

3. VAT refund claims shall be subject to validation by the processing office as to the completeness of the documentary requirements submitted during the filing of application, hence, claims for VAT refund shall be physically or manually filed at the designated processing office authorized to receive applications.

4. The taxpayer-claimant shall ensure the completeness and authenticity of the documentary requirements submitted upon filing of the application for VAT refund. Hence, only applications with complete documentary requirements, as enumerated in the Checklist of Requirements (Annexes “A1.1”, “A1.2”, or “A.2”, whichever is applicable), shall be received and processed by the authorized processing office.

5. In case where the taxpayer-claimant filed the VAT refund claim beyond the 2-year prescriptive period as required under Section 112 of the Tax Code, the claim shall be accepted, however, the processing office shall recommend outright denial thereof.

6. If upon filing or during the processing of the VAT refund claim, the taxpayer-claimant has outstanding tax liabilities (final and executory) as defined under Section II (1) of Revenue Memorandum Order No. 11-2014, and evidenced by Delinquency Verification Certificate prescribed in Annex “A” of Revenue Memorandum Circular No. 64-2019, the ensuing approved VAT refund shall be referred for garnishment to the following:

• For Taxpayer-Claimants Under the Large Taxpayers Service – Large Taxpayers Collection Enforcement Division.
• For Taxpayer-Claimants Under the Revenue District Offices – Collection Section of the Revenue District Office and Collection Division of the Revenue Region having jurisdiction over the taxpayer-claimant.
• For Taxpayer-Claimants with Delinquent Accounts Originating from the National Investigation Division and Special Task Force. – Collection Enforcement Monitoring Section of the Accounts Receivable Monitoring Division.

The said approved VAT refund may be used to settle or collect either fully or partially the outstanding delinquent tax liability subject to existing tax laws and revenue issuances on the enforcement and settlement of delinquent accounts.

7. The documents listed hereunder shall be signed by the following:

• Application of VAT refund, affidavit/s and/or such other document/s supporting the claim, other than the copies of sales invoices or receipts in support of the taxpayer-claimant.
  
  The “Secretary’s Certificate”, “Partnership Resolution”, or “Special Power of Attorney” designating/authorizing said representative of the corporate claimant, partnership or sole proprietorship, as the case may be, should be notarized and must be presented to the processing office, together with one (1) valid government-issued Identification Card (ID) of the said authorized representative.
  
• Certified copies of invoices/receipts in support of sales and purchases shall be signed by the president or proprietor or head of the finance or accounting of the taxpayer-claimant. The said authorized official assign other signatory/ies who are knowledgeable in the accounting and/or custodianship of the said documents.
  
  The “Secretary’s Certificate”, “Partnership Resolution”, or “Special Power of Attorney” designating/authorizing said signatory of the corporate claimant, partnership or sole proprietorship, as the case may be, should be notarized and must be presented to the processing office, together with the company ID of the said official or employee of the taxpayer-claimant.

8. For VAT refund claims where the period covered starts from April 1, 2025, the following rules shall apply:

• No refund of input VAT shall be allowed on the part of the export-oriented enterprise (EOE) that attained the seventy percent (70%) threshold from the preceding taxable year in case the local suppliers passed-on VAT on the local purchases of goods directly attributable to the former’s export activity for the immediately succeeding year despite securing VAT zero-rating certificate from the Export Marketing Bureau (EMB) of the Department of Trade and Industry (DTI). In such cased, the qualified exporter may contest the same and/or resolve with the transaction from twelve percent (12%) VAT to VAT at zero percent (0%).
• Upon the effectivity of R.A. No. 12066 and its implementing rules and regulations, the EMB shall accept applications of EOEs for VAT zero-rating on their local purchases and VAT exemption on their importations. To avoid duplication of government agencies having to validate the export activities of taxpayer-claimants, the EMB shall certify the direct export sales of qualified taxpayer-claimants. Hence, documents evidencing actual export of goods or services shall be submitted to the EMB for their scrutiny and issuance of a certification as to its veracity through a template/schedule prescribed for this purpose. The processing office of the BIR shall verify the export sales of the taxpayer-claimant on the basis of the certification issued by the EMB.
• EOEs that have attained the 70% export threshold form the preceding taxable year but failed to secure certification form the EMB shall not be allowed for VAT refund covering the immediately succeeding year. However, the unutilized input VAT may be carried forward to the subsequent taxable quarters and can be utilized against future VAT liabilities.
• For EOEs that failed to meet the threshold from the preceding year and would claim for refund the input taxes from their local purchases attributable to zero-rated sales on the immediately succeeding year, the copy of the notification from the EMB with a clear statement that sales from the preceding year is below the 70% threshold must be submitted. This proved that the immediately succeeding year (that is the taxable year covered by the VAT refund claim) is not qualified for VAT zero-rating on local purchases and is therefore subject to 12% VAT. Also, a certified copy of the schedule or evaluation sheet from the EMB, containing the result of validation of export sales and inward remittances for the current year or taxable year covered by the VAT refund claim shall be submitted in lieu of the export documents such as airwaybills/bills of lading to prove actual export and bank certifications to prove inward remittances.
• For taxpayer-claimants that have purchases from registered business enterprises (RBEs) covered under RR No. 9-2025, no input VAT shall be claimed until the corresponding VAT has been paid on the purchase from RBE-sellers. The following documents are required for the local buyers of RBEs:
  • Sales Invoice issued by the RBE showing the amount of VAT on local sales; and,
  • Copy of the corresponding duly-filed BIR Form No. 1600VT or BIR Form No. 0605, whichever is applicable.

DOCUMENTS TO BE SUBMITTED BY THE TAXPAYER-CLAIMANT UPON FILING OF THE APPLICATION FOR VAT REFUND

1. The application/s must be accompanied with complete supporting documents enumerated in the Checklist of Requirements under Annexes “A.1.1”, “A.1.2”, “A.2”, whichever is applicable, to wit:
   • a. For claims of input VAT attributable to zero-rated sales under Section 112(A) of the Tax Code. – VAT refund claims filed starting April 1, 2025 onwards may include claims covering taxable periods prior to the effectivity of RA No. 12066 and its implementing rules and regulations, which still does not require EMB to certify direct export of export-oriented enterprises. Thus, export-oriented enterprises that were passed on VAT on their local purchases and importation upon refund until the effectivity of the Department Administrative Order that will be issued by the DTI-EMB to effect the processing of VAT zero-rating on local purchases and VAT-exemption on importation of export-oriented enterprises. Hence, documentary requirements significantly vary for claims covering taxable period/s prior to and after April 1, 2025. In this regard, and to provide clarity in the documentary requirements, the appropriate checklist of requirements are hereto prescribed:

Taxable Period Covered	Annex No.
Prior to April 1, 2025	A.1.1
April 1, 2025 Onwards	A.1.2

b. For claims of accumulated input VAT as of the date of cessation/closure of business or change of registration status form VAT to non-VAT – Annex “A.2”

2. As could be gleaned from the said list of mandatory requirements, most documents or data can be culled from the records of the BIR are no longer required to be submitted in compliance with the Ease of Doing Business Law (R.A No. 11032). However, taxpayer-claimants are not precluded from submitting copies of the same to aid the processing offices in the timely processing of the Input VAT refund claim, subject to verification of the said documents from the records of the BIR.

3. The duly-certified copies of invoices/receipts for sales and purchases submitted for verification by the assigned Revenue Officers (ROs) shall be forwarded to the Commission on Audit (COA) if the claim is approved for refund. The original copies of the invoices or receipts in support of the input taxes claimed from local purchases shall be stamped with “VAT refund claimed” by the assigned ROs which may be conducted at the processing office of those with minimal volume of documents or at the taxpayer-claimant’s registered office address for voluminous documents.

4. Claims for refund od unutilized input VAT on importation shall be supported with a “VAT Payment Certification” issued by the Revenue Accounting Division (RAD) of the Bureau of Customs (BOC) National Office. Only the importations appearing on the Certification of BOC-RAD shall be considered in the computation of refundable amount.

5. For the amortized portion of the input VAT on aggregate purchases of capital goods exceeding one million pesos (P1,000,000.00) in a month pursuant to Section 110(A)(2)(b) of the Tax Code, the following rules shall apply:

• a. For current claims, the corresponding sales invoices and/or official receipts, including proofs of payment, if qualified as “big ticket” purchase, shall be required to be submitted and verified.
• b. For the amortized deferred input VAT which originated from purchases prior to the period of claim, acceptability of supporting documents is clarified as follows:
  • b.1 If the source documents of the capital goods were submitted and verified during the time were claimed, there is no need to re-submit the same source documents. Instead, the schedule of amortization of deferred input VAT in the approved report will be the basis in determining the amortized portion in the subsequent claims.
  • b.2 For claims coming from the amortized portion of the deferred input VAT on importation of capital goods, photocopies of previous certifications from BOC-RAD, in addition to the certified schedules mentioned under b.1 above.
  • b.3 In case the input VAT of capital goods was previously disallowed due to noncompliance with the invoicing requirements for local purchases and importation or for some other reasons which may warrant absolute disallowance of the corresponding input VAT, the taxpayer-claimant is already barred from claiming the input VAT from the said purchases for the current claim and thereafter.
  • b.4 For purchase/importation of capital goods made starting January 1, 2022, no amortization shall be made and the input VAT shall be claimed on the month of purchase in accordance with Section 110(B) of Tax Code.
  • b.5 The unexpired portion of deferred input VAT on capital goods may be claimed for VAT refund under Section 112 of the Tax Code until fully amortized even after the effectivity of R.A. No. 12066 and its implementing rules and regulations.

6. Only the tax returns filed by the taxpayer-claimant, particularly the quarterly and/or Annual Income Tax Returns, the Quarterly VAT Returns (QVR) and the QVR showing the deduction of the amount of input VAT sought to be refunded, on or before the date of application of the VAT refund or the issuance of a Letter of Authority, whichever comes first, shall be considered in the processing of the claim.

The QVR showing the deduction of the amount of input VAT sought to be refunded that are filed after the date of application of the VAT refund or the issuance of a Letter of Authority covering the taxable period of the filed QVR shall result in the denial of the claim for non-compliance of Section 110(C) of the Tax Code, which requires that the sum of the excess input tax carried over from the preceding quarter and the input tax creditable to a VAT -registered person during the taxable quarter shall be reduced by the amount of claim for VAT refund.

7. The taxpayer-claimant shall attach a notarized sworn certification (Annexes “A.1.3.1” and “A.1.3.2”) attesting to the completeness of the documents submitted. Accordingly, the claim/s shall be processed based on the documents submitted. The books of accounts and accounting records shall be presented by the taxpayers-claimant upon written request of the assigned ROs. Failure to present the books of accounts and accounting records relevant to the claim/s may be a ground for denial of the claim.

8. For claims filed under Section 112(B) of the Tax Code, despite the closure or cessation of business, the taxpayer-claimant must ensure cooperation with the assigned ROs, Failure to cooperate with the assigned ROs may result in the full or partial denial of the claim.

REPALING CLAUSE

All revenue issuances and BIR Rulings inconsistent herewith are hereby considered amended, modified or revoked accordingly.

This Circular is being issued to prescribe the guidelines in the filing of the Annual Income Tax Return (AITR) for the Calendar Year ending December 31,2024, and payment of corresponding taxes due thereon on or before April 15, 2025.

The filing of the AITR for Calendar Year 2024 shall be done electronically, including AITRs without payment, in any of the available electronic platforms [Electronic Filing and Payment System (eFPS), eBIRForms, and Tax Software Providers (TSPs)].

Manual Filing shall only be allowed to the following:

• Individual business taxpayers classified as Micro and Small using the downloadable Annual Income Tax Return for Individuals classified as Micro and Small Taxpayers (BIR Form No. 1701-MS attached herewith as Annex “A”) in the BIR website; or
• When there is a BIR-issued Advisory on the unavailability of the said systems; or
• When there is justifiable reason as may be determined by the Commissioner of the Internal Revenue (CIR) or his authorized representative.

The Guidelines in the filing of the AITR for the Calendar Year 2024 and the payment of taxes due thereon are as follows:

• Filing of Tax Returns
  • Electronic Filing and Payment System (eFPS) Filers/Users
    
    Taxpayers mandated to use the eFPS shall file the AITR electronically and pay the taxes due thereon through the eFPS-Authorized Agent Banks (AABs) where they are enrolled. The AITRs available in the eFPS are BIR Form Nos. 1700, 1701A, 1701, 1702RT, 1702-EX, and 1702-MX.
    
    Likewise, the said taxpayers shall use the eBIRForms facility in the filing of their AITR in the case filing cannot be made through the eFPS due to the following reasons:
    • Enrollment in BIR-eFPS and eFPS-AAB is still in process;
    • Unavailability of BIR-eFPS covered by an Advisory published in the BIR Website; or
    • Unavailability of eFPS-AAB system covered by an Advisory released/published by the AAB.
      
  • eBIRForms Filers/Users
    
    Non-eFPS taxpayers shall use the eBIRForms in their AITR electronically through the Offline eBIRForms Package v7.9.4.2. All AITRs are available, to wit:

BIR Form No.	Latest Version to be Used in eBIRForms
1700	BIR Form No. 1700v2018
1701	BIR Form No. 1701v2018
1701A	BIR Form No. 1701A
1702-RT	BIR Form No. 1702RTv2018C
1702-EX	BIR Form No. 1702EXv2018C
1702-MX	BIR Form No. 1702MXv2018C

• Tax Software Filers/Users
  Taxpayers may file the tax return form electronically thru TSP, For the list of TSPs, please refer to Annex “B”.
• BIR eLounge Facility
  The eLounge facility of the Revenue District Office (RDO) may be used by the following:
  • Senior Citizen or Persons with Disabilities filing their own tax returns;
  • Employees deriving purely compensation income from two or more employers, concurrently or successively at any time during the taxable year, or from a single employer, although the income of which has been correctly subjected to withholding tax, but whose spouse is not entitled to substituted filing; and
  • Employees qualified for substituted filing under Sec 2.83.4 of Revenue Regions No. 2-98, as amended, but opted to file an ITR and are filing for purposes of promotion, loans, scholarships, foreign travel requirements, etc.; and
  • Taxpayers without internet facility who needs assistance in the electronic filing of their tax returns.
    
    Priority should be given to taxpayers filing their own tax returns vs. tax practitioners who are filing several returns for their clients.
    
    To ensure full utilization of the BIR eLounge Facility in the RDOs, assigned revenue personnel shall accommodate and assist all eFiling taxpayers who are already within the premises of the district office until 5:00PM, regardless of jurisdiction, in filing-out their 2024 AITR using the eBIRForms or eFPS and submitting the required attachments using the Electronic Audited Financial Statements (eAFS) system.

• Payment of Taxes
  • Manual Payment
    • Through any Authorized Agent Bank (AAB); or
    • In places where there are no AABs, the tax due shall be paid with the Revenue Collection Officer (RCO) in any RDO.
      
      Only RCOs assigned in the RDO premises shall accept cash payment up to P20,000.00 or in check regardless of the amount. payable to “Bureau of Internal Revenue”. RCOs assigned in the municipalities shall not accept payments rather direct them to pay in the RDO.
      
  • Online Payment through Electronic Payment (ePay) Gateways
    • Landbank of the Philippines (LBP) Link.BizPortal – for taxpayers who have ATM account with LBP and/or holders of BancNet ATM/Debit/Prepaid card or taxpayer utilizing PESONet facility for depositors of Rizal Commercial Banking Corporation (RCBC), Robinsons Bank, Union Bank, Bank of the Philippines Islands (BPI), Philippine Savings Bank (PSBank) and Asia United Bank (AUB); or
    • Development Bank of the Philippine (DBP) PayTax Online – for taxpayers-holders of VISA/MasterCard Credit Card and/or BancNet ATM/ Debit Card; or
    • Union Bank of the Philippines (UBP) Online/The Portal Payment Facilities – For taxpayers who have an account with UBP or InstaPay using UPAY Facility (for individual Non-account holder of Union Bank); or
    • Tax Software Provider (TSP) -Maya (Mobile Application) or MyEG [using credit cards or electronic wallets (e-wallets) such as GCash, Maya, GrabPay or ShoppeePay].
      
      Taxpayers who shall pay their tax due online using the ePayment Gateways must file the corresponding AITR online through the Offline eBIRForms Package v7.9.4.2.
      
• Filling of BIR Form No. 1701-MS
  
  Individual business taxpayers classified as Micro and Small may be allowed to manually file the BIR Form No. 1701-MS since it is not yet available in the eFPS and eBIRForms. Said taxpayers shall download the BIR Form No. 1701-MS from BIR website, accomplish the return in its original format and in Legal/Folio size bond paper.
  
  However, taxpayers classified as Micro and Small may opt to electronically file their 2024 AITR but shall be required to use the available forms in the eFPS and eBIRForms (BIR Form No. 1701 and BIR Form No. 1701A).
  
  In the event the taxpayer opted to pay through BIR ePay gateways, the return together with the proof of payment shall be filed to any RDO.
  
• Required Attachments
  The required attachments to the AITR are as follows:
  • Filing Reference Number(FRN) as proof of eFiling in eFPS;
  • Tax Return Receipt Confirmation as proof of eFiling in eBIRForms;
  • Proof of Payment/Acknowledgement Receipt of Payment;
  • Certificate of Independent CPA duly accredited by the BIR;
  • Unaudited or Audited Financial Statements (AFS);
  • Notes to AFS;
  • Statement of Management Responsibilities (SMR);
  • BIR Form No. 2307 – Certificate of Creditable Tax Withheld at Source;
  • BIR Form No. 1606 – Withholding Tax Remittance Return for Onerous Transfer of Real Property Other Than Capital Asset;
  • BIR Form No. 2304 – Certificate of Income Payments not Subjected to Withholding Tax;
  • BIR Form No. 2316 – Certificate of Compensation Payment/Tax Withheld
  • System generated Acknowledgement Receipt or Validation Report of electronically submitted Summary Alphalist of Withholding Taxes (SAWT) thru es*********@*****ov.ph;
  • Duly approved Tax Debit Memo;
  • Proof of Foreign Tax Credits;
  • Proof of Prior Year’s Excess Credits;
  • Proof of Other Tax Credits/Payments; and
  • BIR Form No. 1709 – Information Return on Transactions with Related Party.

Only those applicable attachments mentioned above shall be submitted by the concerned taxpayers, to wit:

Taxpayer/Filer	When to Submit	Mode of Submission
eBIRForms, eFPS, and TSP Filers	– Within fifteen (15) days from the deadline of filing of return. – In case of late filing, within 15 days from filing.	– Online submission through eAFS system
Manual Filers of 1701-MS	– Within fifteen (15) days form the deadline of filing of return. – In case of late filing, within 151 days from filing.	– Online submission through eAFS system

Since the AITR will be filed electronically, there is no need to have it stamped “Received”. Instead, the Filing Reference Number (FRN) or the Tax Return Receipt Confirmation (TRRC) shall serve as proof of filing such AITR. The attachments to the AITRs, if there is any, shall be submitted electronically using the eAFS system. The eAFS generated Transaction Reference Number (TRN)/Confirmation Receipt shall serve as proof of submission by the taxpayer of the attachments to the BIR.

Companies which filed their AFS through the BIR eAFS system, shall attached the system-generated TRN/Confirmation Receipt issued by the BIR, in lieu of the manual “Received” stamp per Memorandum Circular No. 1 Series of 2025 (MC No. 1 S.2025) of Securities and Exchange Commission (SEC).

Manual submission of the attachments to the Large Taxpayers Office/Division or RDO or to the RCO, shall be allowed in case of system unavailability with a duly released advisory. Attachments shall be stamped only on the page of the Audit Certificate, Balance Sheet/Statement of Financial Position and Income Statement/Statement of Comprehensive Income.

Attached herein as Annex “C” is the Summary Guidelines in the Filing of AITR and Payment of Taxes Due for Calendar Year 2024″, for easy reference of the taxpayers.

Circularizing Joint Administrative Order No. 002-2025, series of 2025, Entitled “Guidelines to Implement Sections 6,6, and 8 of Republic Act No. 12066, on the Certification of Export-Oriented Enterprise with Export Sales of at least Seventy Percent (70%) of the Total Annual Production of the Preceding Taxable Year”

Joint Administrative Order No. 002-2025

Guidelines to Implement Sections 6,6, and 8 of Republic Act No. 12066, on the Certification of Export-Oriented Enterprise with Export Sales of at least Seventy Percent (70%) of the Total Annual Production of the Preceding Taxable Year

WHEARAS, Republic Act (RA) No. 12066, otherwise known as “An Act Amending Sections 24, 28, 32, 34, 57, 106, 108, 109, 112, 135, 237, 237-A, 269, 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 (Tax Code), and for Other Purposes”, was enacted on 08 November 2024;

WHEREAS, Sections 6, 7, and 8 of RA No. 12066 amended Section 106(A)(2)(a)(3), 108(B)(5), and 109(dd) of the Tax Code and provides for the Value-added tax (VAT) zero-rating of sales of goods to and sale of services performed for export-oriented enterprises, and VAT exemption of importation of goods to and sale of services performed for export-oriented enterprises, and VAT exemption of importation of goods by export-oriented enterprises: Provided, that the export sales of such export-oriented enterprises are at least seventy percent (70%) of its total annual production for the preceding taxable year: Provided, further, That such goods and services are directly attributable to the export activity of the export-oriented enterprise;

WHEREAS, the same provisions designated the Department of Trade and Industry (DTI)-Export Marketing Bureau (EMB) to determine compliance with the aforementioned thresholds;

WHEREAS, the Department of Finance (DOF) is responsible for the formulation, institutionalization, and administration of fiscal policies, acting in coordination with other concerned political subdivisions, agencies, and instrumentalities of government;

WHEREAS, the DTI served as the primary coordinative, promotive, facilitative, and regulatory arm of government for the country’s trade, industry, and investment activies;

WHEREAS, the Bureau of Internal Revenue (BIR) assesses and collects all national internal revenue taxes, fees, and charges, enforces all forfeitures, penalties, and fines connected therewith, and interprets the provisions of the Tax Code and other tax laws;

WHEREAS, the Bureau of Customs (BOC) supervises and controls the entrance and clearance of vessels and aircraft engaged in foreign commerce, enforces the Customs Modernization and Tariff Act and all other laws, rules, and regulations related to tariff and customs administration, including the enforcement of forfeitures, penalties, and fines connected therewith.

WHEREAS, the DTI, through the DTI-EMB, is mandated to oversee the development, promotion, and monitoring of Philippine exports and provide exporters with the enabling environment to make them globally competitive;

NOW, THEREFORE, pursuant to the above-mentioned, and subject to the limitations of their mandates conferred by law, the DOF, BIR, BOC, and DTI, do hereby promulgate the following guidelines through this Joint Administrative Order (JAO).

Section 1. General Provisions

• The DTI-EMB shall determine and certify the compliance of export-oriented enterprises with the seventy percent (70%) threshold under Sections 106 (A)(2)(a)(3), 108(B)(5), and 109(dd) of the Tax Code; and
• The Certification to be issued by DTI-EMB (DTI-EMB Certification) shall be a requirement in the availment of the VAT zero-rating on local purchases or VAT exemption on importation. For this purpose, the export-oriented enterprise shall furnish a copy of the DTI-EMB Certification to its local supplier prior to the transaction, and submit the same to the BOC in case of importation.

Section 2. Definition of Terms

As used in the JAO:

• Total annual production refers, to for goods, the volume or sales value of production, manufactured, and sold, including mark-up, by the export-oriented enterprise during a taxable year, and for services, the value of services rendered by the export-oriented expertise during a taxable year;
• Export-oriented enterprise refers to a person, natural or juridical, engaged in the sale and actual shipment of goods and/or sale of services form the Philippines to a foreign country or economy as contemplated under Section 106(A)(2)(a)(1) and 108(B)(2), respectively, of the Tax Code.

Section 3. Certification Procedure

• An export-oriented enterprise availing of the VAT zero-rating under Sections 106(A)(2)(a)(3) and 108(B)(5) of the Tax Code, and VAT exempt importation under Section 109(dd) of the Tax Code, shall apply for a Certification with the DTI-EMB. The DTI-EMB Certification in this provision is to be distinguished from the VAT zero-rating certification to be issued by the Investment Promotion Agencies on the sale to Registered Business Enterprises (RBEs) which is covered under Title XII of the Tax Code;
• The following are the documentary requirements:
  • Application Form prescribed by DTI-EMB;
  • Certified True Copy of the following:
    • BIR Certificate of Registration (BIR Form No. 1556);
    • Proof of 70% export sales by the direct exporter (including but not limited to financial Statements, Export documents, Bank Certification of Inward Remittances, etc.);
  • Affidavit executed by the Owner/President or Finance Officer of the export-oriented enterprises, attesting and certifying that the export sales for the taxable year prior to the taxable year applied for is at least 70% of the total annual production;
  • Original copy of Notarized Secretary’s Certificate (for corporate claimant)/Special Power of Attorney (for Individual and ROHQ exporters) or similar documents authorizing the representative/s to file, sign documents on behalf of the claimant and/or follow-up the DTI-EMB Certification.;
  • Photocopy of at least one (1) government-issued ID with three (3) specimen signatures of authorized representative/s; and
  • Other additional documentary requirements to be prescribed by the DTI-EMB.
• The DTI-EMB shall process the application within twenty (20) working days form the complete submission of the documentary requirements.
• Subsequent applications for the DTI-EMB Certification by export-oriented enterprises shall be filed with the DTI-EMB not earlier than forty-five (45) working days prior to the taxable year of the export-oriented enterprise.

Section 4. Validity of the Certification

The DTI-EMB Certification shall be valid until the end of the applicable taxable year (calendar/fiscal) adopted by the export-oriented enterprise unless earlier revoked.

Section 5. Revocation of Certification

If it is determined that export sales of the export sales of the export-oriented enterprise is less than seventy percent (70%) of the total annual production of the preceding taxable year the Certification shall be revoked by the DTI-EMB.

After revocation of the DTI-EMB Certification, the export-oriented enterprise shall be subject to VAT on their importations for such taxable year covered by the revoked STI-EMB Certification and shall be allowed to refund the excess input tax after verification.

Section 6. Roles and Responsibilities

To fully implement the provisions of these Guidelines, the following agencies shall have the following roles and responsibilities:

• DOF
  • The DOF shall provide policy direction, after consultation with the BIR, BOC, and DTI-EMB, on the implementation of the provisions of Sections 6,7 and 8 of RA No. 12066 amending Sections 106(A)(2)(a)(3), 108(B)(5), and 109(dd) of the Tax Code and its implementing rules and regulations; and
  • The DOF shall include in the database created under RA No. 10708 the reports herein submitted by the DTI-EMB to the DOF.
• DTI-EMB
  • The DTI-EMB shall determine and certify the compliance of export-oriented enterprises with the seventy percent (70%) threshold under Sections 106(A)(2)(a)(3), 108(B)(5), and 109(dd);
  • The DTI-EMB shall submit to the DOF, BIR, and BOC, a Master List of all export-oriented enterprises issued a DTI-EMB Certification, including disapproved applications, beginning on the thirtieth (30th) day after the effectivity of these Guidelines;
  • Such Master List shall be updated by the DTI-EMB on or before the fifth (5th) day following the close of each month, which includes the revoked certifications;
  • The DTI-EMB, in consultation with DOF, BIR, and BOC, shall establish a mechanism for the transmission of the Master List of export-oriented enterprises to the BIR, BOC, and DOF; and
  • The DTI-EMB shall facilitate the publication of such Master List for the information of stakeholders, including the suppliers of export-oriented enterprises. For this purpose, the DTI-EMB may make use of any electronic means of publication.
• BIR and BOC
  • The BIR and BOC shall maintain a database of export-oriented enterprises based on the DTI-EMB’s Master List of export-oriented enterprises with an issued certificate in accordance with Section 3 of these Guidelines.

Section 7. Violations and Penalties

Any violation of any of the provisions of RA No. 12066, as implemented by these Guidelines, shall be grounds for the initiation of appropriate action against the export-oriented enterprise without prejudice to the filing of appropriate administrative, civil, or criminal charges.

Section 8. Additional Requirements

The DTI-EMB, BIR, and BOC may issue pertinent administrative orders, memorandum circulars, or other similar documents further providing details for enforcement of these Guidelines.

Section 9. Information Dissemination

This JAO shall be disseminated nationwide by the DTI-EMB, BIR and BOC. Information campaigns, and dissemination programs and activities shall be undertaken by the agencies to educate export-oriented enterprises, local suppliers, and other stakeholders.

Section 10. Separability

If any provision of part of this JAO is found invalid, illegal, and unenforceable, the remainder of the rules shall remain valid, legal and subsisting.

Section 11. Repealing Clause

All other others, issuances, rules and regulations which are inconsistent with RA No. 12066 and these rules are hereby repealed and modified.

Section 12. Effectivity

This JAO shall take effect immediately following its publication in a newspaper in general circulation and filing of three (3) copies hereof with the Office of National Administrative Register (ONAR), University of the Philippines (UP) Law Center, Diliman, Quezon City, pursuant to Presidential Memorandum Circular No. 11 dated 09 October 1992.

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

Section 1 – A new section designated as Section 112-A under Chapter I, Title IV of the National Internal Revenue Code, as amended, is hereby inserted to read as follows:

“Sec 112-A VAT Refund for Tourists –

• (a) A Tourist shall be eligible for a VAT refund on locally purchased goods if the following requisites are present
  • (1) The goods are purchased in person by the tourist in duly accredited stores;
  • (2) Such goods are taken out of the Philippines by the tourist within sixty (60) days from the date of purchase; and
  • (3) The value of goods purchased per transaction is equivalent to at least Three thousand pesos (P3,000.00): Provided, That such threshold shall be subject to review and adjustment every three (3) years by the Secretary of Finance, upon recommendation of the Commissioner of Internal Revenue, taking into consideration the Consumer Price Index (CPI) as published by the Philippine Statistics Authority (PSA).
• (b) The Department of Finance shall engage the services of one (1) or more reputable, globally recognized and experienced VAT refund operators to provide end-to-end solutions to the government for the establishment and operation of a VAT refund system for tourists.
• (c) The refund under this section may be made either electronically or in cash.
• (d) The amount necessary for the VAT refund system for tourist under this Code shall be charged against the special account in the General Fund as provided under Section 106 of this Code.
  
  For the purpose of this section the term ‘Tourist’ means a non-resident foreign passport holder.”

Section 2 – Implementing Rules and Regulations – Within ninety (90) calendar days from the effectivity of this Act, the Secretary of Finance shall, after due consultation with the Department of Trade and Industry, Department of Transportation, Department of Tourism, National Economic and Development Authority, Bureau of Internal Revenue, and Bureau of Customs, promulgate the necessary rules and regulations to faithfully implement the intent and provisions of this Act.

Section 3 – Separability Clause – If any provision of this Act is declared unconstitutional, the remaining parts or provisions not affected thereby shall remain in full force and effect.

Section 4 – Repealing Clause – All laws, decrees, executive orders, implementing rules and regulations, issuances, or any part thereof inconsistent with the provisions of this Act are deemed repealed, amended, or modified accordingly.

Section 5 – Effectivity – This Act shall take effect fifteen (15) days following its publication in the Official Gazette or in a newspaper of general circulation.

Further Amending Section 5 of Revenue Regulations (RR) No. 3-69, Relative to the Due Process Requirement in the Service and Execution of Summary Remedies

Section 1 Scope – Pursuant to the provisions of Sections 244 and 245 in relation to Sections 207 and 208 of the National Internal Revenue Code of 1997 (Tax Code), as amended, this Regulation is hereby promulgated to amend the provisions of Revenue Regulations (RR) No. 3-69.

Section 2 Amendment – Section 5 of RR No. 3-69 is hereby amended pertaining to the pertinent provision of Section 5 (a) and shall include additional provision related to the service of warrants and notices to taxpayers who have resurfaced that were previously identified as Cannot be Located (CBL) under the circumstances prescribed in the existing revenue issuances, to wit:

“Section 5. Due Process Requirements in the Enforcement of Summary Remedies

(a) Service and Execution of Warrants and Notices – The Revenue Officer designated to serve the Warrant of Distraint and/or Levy (WDL) shall serve the same personality upon the delinquent taxpayer himself/herself or his/her authorized representative, or to a member of his/her household of legal age with sufficient discretion, and shall require the same to acknowledge the receipt of the warrant, for individual taxpayer. For corporation, the WDL shall be served to the President, Vice President, Manager, Treasurer or Comptroller or to any responsible person of the corporation who customarily receives correspondence for the corporation. In cases, however, where the taxpayer (individual or corporation) refuses to receive the WDL or is absent from his/her given address, the WDL shall be constructively served by requiring two (2) credible witness who are not BIR employee preferably barangay officials, to sign in the acknowledgement receipt portion of the warrant and require a copy of identification card as a proof of witness and leave the duplicate copy of the warrant at the premises of the taxpayer. A copy of the WDL which was previously served constructively shall be sent thru registered mail and/or electronic mail to the delinquent taxpayer.

(c) Service of warrants and notices in case Taxpayers Previously Reported and Published as CBL has Resurfaced. – For purposes of this Section, the term “resurfaced” shall mean that the taxpayers personally appear before any Office of this Bureau of Internal Revenue (BIR), or their whereabouts are known to the BIR through an informant, and other legal means. In such, reappearance, issued WDL together with the copies of the served Warrants of Garnishment, Notice of Levy, Notice of Tax Lien, Notice of Encumbrance and other correspondences shall be simultaneously served to such delinquent taxpayer or his/her authorized representative.