Revenue Memorandum Circular No. 054-2026

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This Circular supplements Revenue Memorandum Circular (RMC) No. 86-2023 by recognizing the updated composition of securities from the PSE bi-annual index rebalancing, as transmitted by the SEC.

The SEC, through its letter dated 29 January 2026 (Annex “B”) , informed the Bureau of Internal Revenue (BIR) of the official results of the PSE bi-annual rebalancing of the PSE Index (PSEi) and Dividend Yield Index which took effect on 02 February 2026, pursuant to Section 3 of SEC Memorandum Circular (MC) No. 7, Series of 2022, otherwise known as the Rules on Qualified and/r Eligible PERA Investments.

In view thereof, and for the purposes of administering tax incentives under Republic Act No. 9505, otherwise known as “PERA Act of 2008”, and its Implementing Rules and Regulations, the following clarifications are hereby issued:

1. Securities included in the updated PSEi and PSE Dividend Yield Index, as certified by the PSE (Annex “B”) and transmitted by the SEC, shall be considered qualified and/or eligible PERA Investments, subject to compliance with the requirements and conditions provided under the PERA Act of 2008 and its Implementing Rules and Regulations, SEC MC No. 7, Series of 2022, and existing BIR issuance, including RMC No. 86-202;
2. The PERA eligibility of such securities pursuant to the SEC notice, shall be effective beginning 02 February 2026, unless otherwise provided by law or by subsequent issuances of the SEC or the BIR; and
3. The tax treatment of income from these securities when held as PERA assets remains exempt from income tax consistent with Sec. 9 of R.A. 9505 and Revenue Regulation No. 17-2011.

Nothing in this Circular shall be construed as amending or revoking tax rules, but merely supplementing and clarifying the same in light of the SEC Notice.

Prescribing Simplified and Streamlined Guidelines and Procedures in the Closure and/or Cancellation of Business Registration with the Bureau of Internal Revenue

SECTION 1. Purpose. – Pursuant to Section 5(J) of Revenue Regulations No. 7-2024 and Revenue Memorandum Circular No. 91-2024, implementing Republic Act (RA ) No. 11976 standardize, and streamline the guidelines and procedures in the processing of applications for closure and/or cancellation of taxpayer’s business registration with the Bureau of Internal Revenue (BIR).

SECTION 2. Coverage. – This Circular shall apply to all business taxpayers registered with the BIR, whether domestic or foreign, resident or non-resident, that have permanently ceased business operations or have otherwise become subject to closure or cancellation of business registration, including but not limited to the following persons:

1. Individual taxpayers engaged in trade or business or in the practice of profession, whether self-employed or professionals, including those earning become from digital or online platforms;
2. Non-individual taxpayers, including corporations, partnerships, joint ventures, associations, cooperatives, and other juridical entities duly registered with the BIR;
3. Estates and Trusts, Government Agencies and Instrumentalities (GAIs), Government-Owned and Controlled Corporations (GOCCs), and Government Financial Institutions (GFIs); and
4. Business taxpayers classified as Micro, Small, Medium, or Large Taxpayers, in accordance with existing laws, and revenue issuances.

SECTION 3. Modes and Venue of Filing of Application for Closure and/or Cancellation of Business Registration. – The application for closure and/or cancellation of business registration, together with the required documents, shall be submitted to the concerned Revenue District Office (RDO) where the taxpayer’s Head or Branch Office is registered, either electronically, by sending the documents using the taxpayer’s official email address, or through the BIR’s Portal, Online Registration and Update System (ORUS), or manually, by personally submitting the documents to the concerned RDO. Provided that, documentary requirements, under Items 3 and 4 in Section 4 hereof shall be submitted manually.

SECTION 4. Documentary Requirements. – Only the following documents shall be submitted for the closure and/or cancellation of taxpayer’s business registration with the BIR:

1. Application for Registration Information Update/Correction/Cancellation (BIR Form No. 1905) (2 Original copies);
2. List of ending inventory of goods and supplies, including capital goods, for VAT-registered taxpayers (1 original copy);
3. Unused invoices/supplementary documents and all other unutilized accounting forms such as vouchers, debit/credir memos, delivery receipts purchase orders, etc., as may be applicable together with the Inventory thereof; and
4. Original BIR Notices and BIR Permits issued to taxpayer, as may be applicable:
   • Certificate of Registration (COR)/Electronic COR (BIR Form No. 2303);
   • Authority to Print;
   • Notice to Issue Invoice;
   • Accreditation Certificate and Permit to Use – for Cash Register Machine/Point – of – Sales; and
   • Electronic Invoicing/Receipting System (EIS) Certificate and Permit to Transmit.
5. For application filed by a representative of the taxpayer:
   • For individual taxpayer: Notarized Special Power of Attorney executed by the tapayer-applicant, specifically authorizing the representative to process the application for the closure and/or cancellation of the taxpayer’s registration and photocopy of any government-issued ID of the taxpayer and of the authorized representative, both with original specimen signature.
   • For non-individual taxpayer: Notarized Board Resolution or Written Resolution in case of One Person Coporation (OPC), or Secretary’s Certificate, authorizing the representative to process the application for the closure and/or cancellation of the taxpayer’s registration and photocopy of any government-issued ID of the OPC or Corporate Secretary and of the authorized representative, both with original specimen signature.
   • For closure and/or cancellation due to the death of an individual proprietor: Death Certificate and any competent document/s (e.g., Deed of Self Adjudication or Deed of Extra-Judicial Settlement with Special Power of Attorney) evidencing the authority of the heir/executor/administrator to act for the estate of the decedent.

SECTION 5. Filing and Payment of Final Tax Returns. – The taxpayer shall file all final or short-period tax returns covering the period from the beginning of the taxable year up to the date of closure for all applicable tax types and pay the corresponding taxes due thereon. For periods during which there was no business activity, the taxpayer shall file zero returns.

SECTION 6. Effect of Submission of Documentary Requirements and Completion of the Closure and/or Cancellation of Business Registration Process. – The registration of the taxpayer shall be cancelled upon mere filing and submission of the complete requirements enumerated under Section 4 hereof, either electronically or manually, with the RDO where the taxpayer is registered. Penalties for non-filing of returns shall not accrue after the submission of the required documentary requirements under Section 4 hereof. For this purpose, the taxpayer’s registered form types shall be placed under “deregistered” upon submission of the complete documentary requirements to ensure that no open cases will be generated.

For micro taxpayers or taxapyers, whose gross sales for the immediately preceding year do not exceed Three Million Pesos (P3,000,000.00) or whose gross assets upon retirement do not exceed Eight Million Pesos (P8,000,000.00), the Tax Clearance shall be issued within three (3) working days from the date of submission of the application with complete documentary requirements, if the taxpayer has no open cases or outstanding liabilities, or within (3) working days from the date of submission of the application with complete documentary requirements and payment of any outstanding tax liabilities, including penalties. Thereafter, the business name registration status of the taxpayer shall be updated to “Closed” in the BIR registration database. Micro taxpayers shall not be subject to mandatory audit for closure and/or cancellation of business registration.

The updating of the registration status to “Closed” shall complete the closure or business registration cancellation process for individual taxpayers. For non-individual taxpayers, the TIN shall subsequently be cancelled to comlere the closure or business registration cancellation process.

The taxpayers with pending audit under an existing Letter of Authority, or taxpayers whose gross sales for the immediately preceding year exceed Three Million Pesos (P3,000,000.00) or whose gross assets upon reitrement exceed Eight Million Pesos (P8,000,000.00), the Tax Clearance shall be issued and the closure or business registration cancellation process completed, only after the termination of the conduct of audit.

SECTION 7. Effect of Failure to Apply for Closure and/or Cancellation of Business Registration. – Taxpayers who cease business operations without submitting the documentary requirements for the closure and/or cancellation of their business registration with the BIR, prescribed under Section 4 hereof, shall continue to be liable for all their tax obligations, including the filing of tax returns and payment of taxes, including penalties, until closure and/or cancellation of business registration is completed with the BIR, as provided under Section 6 hereof.

SECTION 8. Repealing Clause. – All existing rules which are inconsistent with the provision of this Circular are hereby amended, modified or repealed accordingly.

SECTION 9. Effectivity.– This Circular shall take effect immediately.

All internal revenue officials, employees, and others concerned are hereby enjoined to give this Circular as wide a publicity as possible.

In view of the availability of BIR Form No. 1701-MS (Annual Income Tax Return for Individuals Classified as Micro and Small Taxpayers) in the Offline eBIRForms Package 7.9.6, pertinent provisions of Revenue Memorandum Circular No. 20-2026 dated March 16, 2026 is hereby amended to read as follows:

IV. GUIDELINES IN THE FILING OF BIR FORM NOS. 1701-MS, 1701 AND 1701A

In response to the inquiries raised by micro and small taxpayers regarding the filing of their AITRs, following guidelines are hereby issued to clarify the applicable procedures and provide guidelines are hereby issued to clarify the applicable procedures and provide guidance in the filing of BIR Form Nos. 1701-MS, 1701, and 1701A.

All internal revenue officials, employees, and others concerned are hereby enjoined to give this Circular as wide a publicity as possible.

In accordance with Memorandum Circular No. 114 dated March 6, 2026 of the Office of the President, directing all government agencies and instrumentalities to strictly adopt energy conservation protocols, Revenue Memorandum Order (RMO) No. 007-2026 was issued, providing the guidelines for the implementation thereof. Relative thereto, this Circular is being issued in order to clarify the deadline of filing of Request for Reconsideration of the Partial or Full Denial Claims for VAT/Excise Tax Refund within the National Office, pursuant to Revenue Regulations (RR) No. 8-2025 and Request for reconsideration of the Final Decision on Disputed Assessment (FDDA) pursuant to RR No. 12-99, as amended.

For Request for Reconsideration of the Partial or Full Denial of Claim for VAT/Excise Tax Refund within the National Office or Request for Reconsideration of the FDDA, with due date falling on a friday, the deadline of filing thereof shall be moved to the next business day, when personnel from the National Office are working on-site.

This Circular shall not affect the requirements and procedure of filing of a Request for Reconsideration of Partial or Full Denial of Claim for VAT/Excise Tax Refund or Request for Reconsideration of the FDDA provided under RR No. 8-2025 and RR No. 12-99, as amended, respectively.

This Circular shall take effect immediately and shall remain in force during the effectivity of RMO No. 007-2026.

Implementing Executive Order No. 114, Series of 2026 “Temporarily Suspending the Excise Taxes on Specific Petroleum Products Pursuant to Section 148 of the Republic Act No. 8424 or the National Internal Revenue Code of 1997, As amended”

SECTION 1. BACKGROUND. – Section 148 of the National Internal Revenue Code of 1997, as amended (NIRC), provides that the President may, upon recommendation of the Development Budget Coordination Committee (DBCC), in coordination with the Secretary of Energy, susm=pended the imposition of, or reduce the excise taxes on fuel when the average Dubai crude oil price based on Mean of Platts Singapore (MOPS) reaches or exceeds Eighty US Dollars (USD 80.00) per barrel for one (1) month immediately preceding the issuance of the suspension or reduction order.

On April 16, 2026, President Ferdinand R. Marcos, Jr. issued Executive Order (EO) No. 114, Series of 2026 entitled “Temporarily Suspending the Excise Taxes on Specific Petroleum Products Pursuant To Section 148 of the Republic Act No. 8424 or the National Internal Revenue Code of 1997, As Ameded”.

Pursuant to the provisions of Section 244 in relation to Section 245 of the NIRC, and Section 6 of EO No. 14, series of 2026, this Revenue Regulations is hereby promulgated to implement the provisions of the EO temporarily suspending the imposition of excise taxes on Liquefied Petroleum Products (LPG), except when used as raw material for the production of petrochemical products or used for motive power, and Kerosene, except when used as aviation fuel, in accordance with Section 148 of the NIRC.

SEC. 2. SUSPENSION OF EXCISE TAXES. – Beginning April 17, 2026, the imposition of excise taxes on the following covered petroleum products is hereby suspended:

• a. LPG, except when used as raw material for the production of petrochemical products or used for motive power; and
• b. Kerosene, except when used as aviation fuel.

The suspension of excise taxes shall apply only to these petroleum products removed form the place of production or customs custody after the effectivity of the EO.

SEC. 3 DURATION OF THE TEMPORARY SUSPENSION AND AUTOMATIC REVERSION OF RATES. – The temporary suspension of excise taxes on the covered petroleum products shall be for a period of three (3) months from the effectivity of the EO. The suspension shall be subject to monthly review by the DBCC, which shall recommend to the President the continuation, modification, extension, or termination thereof.

The excise tax rates on the covered petroleum products shall automatically revert to the rates prescribed under Section 148 of the NIRC, without the need for further issuances, upon the occurrence of any of the following:

• a. One (1) week after the one(1)-month average Dubai crude oil price based on MOPS falls below USD 80 per barrel, as certified by the Department of Energy; or
• b. Upon expiration of the three months in the preceding paragraph.

SEC. 4. MONITORING AND INVENTORY REQUIREMENT – During the duration of the suspension, the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) shall submit to Congress a monthly report on the declared value and volume of the covered petroleum products based on:

• a. For the BIR: Authorities to Release Imported Goods for imported petroleum products, and the Official Registry Books of manufacturers for locally-produced petroleum products.
• b. For the BOC: Customs Entries filed in the E2M System.

Such monthly report shall be submitted every fifteenth day of the following month.

The Department of Finance (DOF), through the BIR and the BOC, shall conduct an inventory of existing stocks of LPG and kerosene as of the effectivity of the EO.

Revenue Officer On Premises (ROOPs) shall continue performing their duties of monitoring the activities of taxpayers in their establishments pursuant to Sections 5 and 6 of the NIRC, without prejudice to further legal action as the circumstances may warrant.

SEC 5. REPORTORIAL REQUIREMENTS. – For the effective implementation of the EO, the following guidelines shall be followed:

• a. Submission of Returns and Reports:
  • i. Manufacturers of dometically-produced LPG and kerosene shall:
    • 1. Continue to submit the corresponding tax returns with the BIR indicating the corresponding tax rate as “zero” with remarks “EO NO. 114, SERIES OF 2026”. All other pertinent fields shall be filed out in the regular course of business; and
    • 2. Submit the corresponding Official Register Books (ORBs) per removal of LPG and kerosene products.
  • ii. Importers of LPG and kerosene products shall:
    • 1. Continue to submit corresponding tax returns to the BOC; and
    • 2. Secure the corresponding Authority to Release Imported Goods (ATRIG) with remarks “EO NO. 114, SERIES OF 2026”.
      
• b. Stock Inventories. Concerned manufacturers, importers, and lessees of storage deports shall submit duly notarized inventories of all covered petroleum products as of April 16, 2026 to Excise LT Field Operations Division (ELTFOD) in the case of taxpayers registered within Revenue Region (RR) Nos. 4 (Central Luzon), 5 (CaMaNaVa and Bulacan), 6 (City of Manila and Palawan), 7A (Quezon City), 7B (East NCR), 8A (Makati City), 8B (South NCR), 9A (CaBaMiRo) and 9B (LaQueMar) or to the concerned Excised Tax Area (EXTA) in the case of taxpayers registered outside of RR Nos 4 to 9B, within ten (10) days after the effectivity of the EO, in the prescribed format in Annex “A”. These sworn statements shall likewise be subjected to verification as required under existing regulations and issuances.
  
• c. Issuance of Withdrawal Certificates. All Withdrawal Certificates issued for the removal of covered petroleum products covered by the suspension shall be prominently covered petroleum products by the suspension shall be prominently stamped with the phrase “STOCKS COVERED Y EO No. 114, SERIES OF 2026”.

SEC. 6. PENALTIES. – Violations of the provisions of these Regulations, including non-compliance with the reportorial requirements, shall be subject to the corresponding penalties provided for under Title X of the NIRC, and applicable regulations.

SEC. 7. REPEALING CLAUSE. – All rules and regulations inconsistent with the provisions of these Regulations are hereby repealed or amended accordingly.

SEC. 8. EFFECTIVITY. – These Regulations shall take effect immediately following its complete publication in the Official Gazette or in the BIR Official Website, whichever comes first.

Amending Sections 3,4, and 7 of Revenue Regulations (RR) No. 9-2025 to Clarify Filing and Payment Rules for VAT on Local Sales, Provide Optional Value-Added Tax (VAT) Registration for Certain Registered Business Enterprises (RBEs), Extend the Deadline for System Reconfiguration, and Exclude Certain Enterprises and Activities from the Coverage of VAT on Local Sales of RBEs Under Section 295(D) of the National Internal Revenue Code of 1997 (Tax Code), as Amended by Section 18 of Republic Act (RA) No. 12066

Pursuant to the provisions of Sections 244 and 245 of the Tax Code as amended, in relation to Section 32 of RA No. 12066, these Regulations hereby promulgated to amend Sections 3, 4 and 7 of RR No. 9-2025 to clarify the manner of filing and payment of VAT on local sales, provide optional VAT registration for certain RBEs, exclude certain enterprises and business activities from the coverage of VAT on local sales of RBEs under Section 295(D) of the Tax Code, as amended by Section 18 of RA No. 12066, and extend the deadline for compliance with invoicing system reconfiguration.

SECTION 1. Section 3(A)(3)(a) of RR No. 9-2025 is hereby amended to read as follows:

“a. For Purchase of goods from economic zones or freeport. – The filing and payment of the “VAT on B2B local sales by RBEs” shall be on a per transaction basis using the BIR Form to be prescribed by the BIR for this purpose through a separate revenue issuance. In the meantime, BIR Form No. 0605 shall be utilized and shall immediately transmitted to the RBE, as part of the attachments prior to the release of goods from the economic zone or freeport.

However, in cases where the shipment of goods and purchased in the ecozone or freeport is in bulk(e.g., delivered through a single container truck) and is covered by several invoices, the buyer may opt to pay the VAT due thereon in a single payment. The BIR Form No. 0605 covering the payment of all the invoices together with the list of all the invoices covered shall be presented to the BOC prior to its release.”

SECTION 2. Section 4 of RR No. 9-2025 is hereby amended to read as follows:

“SECTION 4. OPTIONAL VAT REGISTRATION AND EXCLUSIONS FROM THE COVERAGE OF VAT ON LOCAL SALES UNDER SECTION 295(D) OF THE TAX CODE, AS AMENDED.-

A. OPTIONAL VAT REGISTRATION. – An RBE availing of the 5% Special Corporate Income Tax (SCIT) or Gross Income Earned (GIE) regime, and whose registered activities are all under the same income tax incetive, may opt to register as a VAT taxpayer solely for purposes of its local sales. Such VAT registration shall not affect the RBE’s entitlement to its existing fiscal and non-fiscal incentives, uncluding VAT zero-rating on local purchases and VAT exemption on importation, provided these are directly attributable to it registered activities.

In accordance with Section 236(G) of the Tax Code, as amended, an RBE that elects VAT registration under this provision shall not be allowed to cancel such registration under Section 236(E)(2) of the same Code for a period of three (3) years from the date of registration.

B. EXCLUSIONS FROM THE COVERAGE OF VAT ON LOCAL SALES UNDER SECTION 295(D) OF THE TAX CODE, AS AMENDED. – VAT- registered Domestic Market Enterprises (DMEs) that do not qualify for VAT zero-rating on local purchases or VAT exemption on importation despite being registered with any of the Investment Promotion Agencies are subject to VAT on both their local purchases and importation.

The application of Section 295(D) of the Tax Code to their local sales mandating the buyer to pay and remit the corresponding VAT to the BIR would result in accumulated unutilized input VAT from local purchases and importations, which are not eligible for refund under Section 112(A) of the Tax Code.

To address such scenario, their local sales shall not be subject to the buyer’s payment and remittance of VAT (B2B transactions) under Section 295(D) of the Tax Code, as amended. The RBE-seller shall file and pay the corresponding VAT to the BIR as a regular VAT taxpayer.

In addition, the following sale transaction/entities are excluded from the coverage of Section 295(D) of the Tax Code, as amended:

1. Sale of the following goods/services:
   • VAT zero-rated goods under Section 106(A)(2);
   • VAT zero-rated services under Section 108(B);
   • VAT-exempt transactions under Section 109; and
   • VAT-exempt or zero-rated transactions under Title XIII of the Tax Code.
2. Entities that have registered with the Board of Investments by virtue of a special law and are not availing of incentives under Title XIII of the Tax Code, as amended.
3. Local sales made by RBEs that pertain to business activities not registered with any of the IPAs, including the sales of scraps (e.g., materials, machineries, and property, plant and equipment), shall be subject to the regular VAT at 12%. The RBE-seller shall file and pay the corresponding VAT to the BIR as a regular “VAT taxpayer.”

SECTION 3. The effectivity of the provision under Section 7 of RR No. 9-2025, which requires RBEs using registered Cash Registered Machines/Point-of-Sales (CRM/POS). Computerized Accounting System (CAS), Computerized Books of Accounts with Accounting Records, or other registered invoicing systems/software to reconfigure or rename their systems by replacing the term ‘VAT/VAT Amount’ in the breakdown of sales with ‘VAT on Local Sales’, or adding the same where ‘VAT/VAT Amount’ is not applicable, is hereby extended until December 31, 2026. The Commissioner may further extend the deadline as may be necessary.

SECTION 4. SEPARABILITY CLAUSE. – If any of the provisions of these Regulations is subsequently declared invalid or unconstitutional, the validity of the remaining provisions hereof shall remain in full force and effect.

SECTION 5. REPEALING CLAUSE – All other issuances and rules and regulations or parts thereof which are contrary to and inconsistent with the provisions of these Regulations are hereby repealed, amended or modified accordingly.

SECTION 6. EFFECTIVITY. – These Regulations shall take effect fifteen (15) days following its publication in the Official Gazette or the BIR Official Website, whichever comes first.

SECTION 1. BACKGROUND

This Circular is hereby issued to clarify the tax treatment of purely cash donations pursuant to Title III, Chapter II of the National Internal Revenue Code of 1997, as amended (Tax Code), and to reiterate the obligation of donors to file the required return and remit the corresponding taxes, if any, in accordance with existing revenue issuances. Further, this clarifies whether or not the issuance of an Electronic Certificate Authorizing Registration (eCAR) of purely cash donations is necessary.

SECTION 2. COVERED TRANSACTIONS

These rules shall apply to donations consisting purely cash made during the same calendar year, to natural or juridical persons, including organizations, foundations, and institutions.

SECTION 3. CLARIFICATIONS

1. Manner of filing the return and payment of tax. – Donor’s tax return for purely cash donations shall be filed electronically in any of the available electronic platforms [e.g., eBIRForms Facility, Electronic Filing and Payment System (eFPS), tax returns filing applications/solutions of Authorized Taxpayer Service Providers (ATSPs)]. The Donor’s tax due thereon shall be paid manually through any Authorized Agent Bank (AAB) or electronically through the available ePayment channels of the Bureau.
   
   The following documentary requirements shall be submitted within thirty (30) days after the date the gift is made or completed to the Revenue District Office (RDO) having jurisdiction over the residence of the Donor (Individual), where the Donor is registered (non-individual); or for large taxpayers, to the Large Taxpayers (LT) Division where the Donor is registered:
   • a. Notarized Deed of Donation;
   • b. Proof of cash transfer (e.g., official receipt, acknowledgement letter, validated deposit slip, fund transfer confirmation);
   • c. Proof of filing of donor’s tax return(BIR Form No. 1800);
   • d. Proof of payment of donor’s tax (if applicable);
   • e. Certificate of Donation (for tax exempt donee);
   • f. Valid government-issued identification (IDs) for individual Donor and Donee or, Secretary’s Certificate/Board Resolution for non-individual taxpayers; and
   • g. Taxpayer Identification Number (TIN) of Donor and Donee.
     
     For cash donations made to accredited Donee Institutions under Section 34(H) of the Tax Code, the aforesaid documents shall serve as evidence of the transaction to support future claims for deductions from gross income, in addition to the Philippine Council for NGO Certification (PCNC) Accreditation issued by the BIR to the Donee.
2. Electronic Certificate Authorizing Registration (eCAR) Requirement. – An eCAR shall not be required for donations consisting exclusively of cash donations, as cash is not a registrable property requiring transfer of the title under any government registry.

SECTION 4. EFFECTIVITY

This Circular shall take effect immediately upon publication in the BIR official website and shall remain in force until further amended.

This Circular is hereby issued to extend the deadline for filing of tax returns and payment of corresponding Value-Added Tax (VAT) by Nonresident Digital Service Providers (NRDSPs) on January 25, 2026 due to technical issues encountered in using VAT on Digital Services (VDS) portal.

Accordingly, the deadline for filing of VAT returns and payment of corresponding VAT due on January 25, 2026 affecting NRDSPs is hereby extended until January 30, 2026.

All internal revenue officers and employees are hereby enjoined to follow, observe and give this Revenue Memorandum Circular as wide publicity as possible.

The Circular shall take effect immediately.

This Circular is issued to reiteriate, ans clarify existing policies on the registration of Permanently Bound Loose-Leaf Books of Accounts and Computerized Books of Accounts, and to announce the extension of registration deadlines due to intermittent technical issues affecting the ORUS.

I. Mandatory Registration Through ORUS

Pursuant to Revenue Memorandum Circular No. 3-2023, and considering that ORUS has been fully implemented nationwide since 2023, the registration of Permanently Bound Loose-Leaf Books of Accounts and Computerized Books of Accounts shall be strictly and mandatorily completed online through ORUS within the prescribed deadlines, unless an extension is granted by the Commissioner of Internal Revenue is duly authorized representative, upon representative, upon request of the taxpayer filed before the lapse of the original period.

After successful registration via ORUS, a QR Code stamp shall be generated, which can be validated online.

1. For Permanently Bound Loose-Leaf Books of Accounts, the QR Code shall be affixed to the first page of the bound books.
2. For Computerized Books of Accounts, the QR Code shall be printed and kept for record purposes.

II. Manual Registration; Exceptional Cases

In cases of system downtime or technical errors that prevent online registration through ORUS, taxpayers may be allowed to submit their application for registration manually (for stamping) at the RDO of the Head Office or Branch Office where the taxpayer’s TIN or Branch in registered.

Manual registration shall be accepted only upon compliance with any of the following conditions:

1. An official advisory of ORUS system unavailability has been issued; or
2. A screenshot of the error message encountered during the online registration process is presented.

III. Records Not Covered by ORUS Registration

The registration of Loose-Leaf Invoices, Receipts, and other accounting records shall continue to be processed manually at the concerned RDO, as these transactions are not yet available online through ORUS.

IV. Extension of Registration Deadlines

Due to intermittent log-in connectivity issued experienced by ORUS arising from ongoing technical concerns, the deadlines for registration are hereby extended as follows:

V. Compliance

Taxpayers are enjoined to comply strictly with the foregoing requirements within the extended deadlines to avoid the imposition of penalties under existing revenue laws, rules, and regulations.

Further amending the “De Minimis” Benefits Provisions of Revenue Regulations (RR) No. 2-98 as Amended, Increasing the Ceiling of Non-Taxable Benefits

Pursuant to Sections 4 and 244 in relation to Section 33 of the Tax Code of 1997, these regulations are hereby promulgated to further amend RR No. 2-98, as amended by RR No. 004-2025, with respect to “De Minimis” benefits which are exempt from income tax on compensation as well as from fringe benefit tax.

Section 1. Section 2.78.1 of RR No. 2-98, as amended by RR No. 004-2025, is hereby further amend to read as follows:

“Section 2.78.1. Withholding of Income Tax on Compensation Income

(A) Compensation Income Defined.

(3) Facilities and privileges of relatively small value

• Monetized unused vacation leave credits of private employees not exceeding twelve (12) days during the year;
• Monetized value of vacation and sick leave credits paid to government officials and employees;
• Medical cash allowance to dependents of employees not exceeding P2,000.00 per employee per semester or P333.00 per month;
• Rice subsidy of P2,500.00 or more (1) sack of 50 kg. rice per month amounting to not more than P2,500.00;
• Uniform and clothing allowance not exceeding P8,000.00 per annum;
• Actual medical assistance, e.g., medical allowance to cover medical and healthcare needs. Annual medical/executive checl-up, maternity assistance, and routine consultations not exceeding P12,000.00 per annum;
• Laundry allowance not exceeding P400.00 per month;
• Employee’s achievement awards, e.g., for length of service or safety achievement, in any form, whether cash, gift certificate, or any tangible personal property, with an annual monetary value or not exceeding P12,000.00 received by the employee under an established written plan which does not discriminate in favor of highly paid employees;
• Gifts given during Christmas and major anniversary celebrations not exceeding P6,000.00 per employee per annum;
• Daily meal allowance for overtime work and night/graveyard shift not exceeding thirty percent (30%) of the basic minimum wage on a per region basis; and
• Benefits received by an employee by virtue of a collective bargaining agreement (CBA) and productivity incentive scheme provided that the total annual monetary combined value received from both CBA and productivity incentive schemes combined do not exceed twelve thousand pesos (12,000.00) per employee per taxable year.

Section 2. REPEALING CLAUSE – All existing rules and regulations and other issuances or parts thereof which are inconsistent with the provisions of these Regulations are hereby amended, modifies or repealed accordingly.

Section 3. EFFECTIVITY – These Regulations shall take effect after fifteen (15) days following its publication in the Official Gazette or in the BIR Official Website, whichever comes first.