Revenue Memorandum Circular No. 109-2024

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Clarification on the Types of Checks Accepted for Payment for One-Time Transaction-Related Internal Revenue Taxes

This Circular is hereby issued to clarify the types of checks accepted in payment for One-Time Transaction (ONETT) – related internal revenue taxes, pursuant to Revenue Memorandum Order (RMO) No. 49-2018, as amended.

Section II of Revenue Memorandum Circular No. (RMC) No. 4- 2021 provides guidelines for payments of taxes through Authorized Revenue Collection Officers (RCOs), citing RMO No. 8-2009 as follows:

“4. The Issuance of RORs shall be limited to tax payments, in cash not exceeding the amount of twenty thousand pesos (Php 20,000.00) per return. However, there shall be no limit on the amount if payment is made thru checks.
The following checks should be accepted in payment for internal revenue taxes:
1. Manager’s or Cashier’s Checks;
2. Checks drawn against a joint or multiple account for the purpose of tax payment of the personal tax liability of any of the members thereof provided that the name and TIN of the paying member/s shall be indicated on the back/face of the check;
3. Checks drawn against the personal account of the owner of a single proprietorship in payment of the tax liability of his/her business;
4. Checks drawn against the account of a single proprietorship in payment of the tax liability of the owner provided that the name and TIN of the owner are indicated at the face/back of the check;
5. Checks issued by either of the spouses to pay their income tax liabilities.”

In relation thereto, this Office clarifies that for ONETT-related taxes, taxpayers may make payments over the counter using either cash or check at any Authorized Agents Banks (AABs) or RCOs. However, RCOs, can only accept cash payments up to twenty thousand pesos (P20,000.00). For payments by check, both AABs and RCOs are directed to accept only Manager’s or Cashier’s Check regardless of the amount to standardize the requirements and expedite the verification processes.

Prescribing the Presentation of Tax Clearance Prior to Final Settlement of Government Contracts

Background
Section 1 of Executive Order (E.O.) No. 398, s. of 2005 dated July 12, 2005, directs that:

“SECTION 1. All persons, natural or juridical, local or foreign, desiring to enter into or participate in any contract with the government, its departments, bureaus, offices and agencies, including state universities and colleges, government-owned and/or controlled corporations, government financial institutions and local government units, shall as a pre-condition, submit, along with their proposal and/or bid, a copy of their latest income and business tax returns duly stamped and received by the Bureau of Internal Revenue, and duly validated with the tax payment made thereon.

They shall also submit a tax clearance from the Bureau of Internal Revenue to prove full and timely payment of taxes.”

Pursuant thereto, Section 23 of Rule VIII-Receipt and Opening of Bid of the 2016 Revised Implementing Rules and Regulations (IRR) of Republic Act (R.A.) No. 9184, otherwise known as the “The Government Procurement Reform Act”, provides that:

“Section 23. Eligibility Requirements for the Procurement of Goods and Infrastructure Projects

23.1. For purposes of determining the eligibility of bidders using the criteria stated in section 23.4 of this IRR, only the following documents shall be required by the BAC, using the forms prescribed in the Bidding Documents:

• Class “A” Documents
  Legal Documents
  • xxx
  • xxx
  • Tax clearance per E.O. 398, s. 2005, as finally reviewed and approved by the Bureau of Internal Revenue (BIR).”

Moreover, Section 3 of the same E.O. mandates that:

“Sec. 3. To ensure continuing compliance with tax laws, all government contracts shall include a stipulation that the private contracting party shall pay taxes in full and on time and that failure to do so will entitle the government to suspend payment for any goods or service delivered by the private contracting party. (Underlining ours)

All government contracts shall likewise include a stipulation requiring the private contracting party to regularly present, within the duration of the contract, a tax clearance from the Bureau of Internal Revenue as well as a copy of its income and business tax returns duly stamped and received by the Bureau of Internal Revenue and duly validated with the tax payments made thereon.”(Underlining ours)

The above provisions clearly show that the BIR tax clearance is not only required to be submitted by the contractor during the procurement process as an eligibility requirement. In order to ensure payment of taxes in full and on time, the BIR tax clearance is also required to be presented by the contractor on a regular basis as proof of payment of taxes during the duration of the contract it entered into the government. Non-submission of such tax clearance entitles the government to suspend the payment for any goods or service, including infrastructure projects, delivered by the contractor.

Accordingly, in order to fully achieve the requirements and objectives of E.O. 398, s. of 2005, these Regulations are hereby issued.

Section 1. Scope – Pursuant to Sections 244 and 245 of the National Internal Revenue Code (NIRC) of 1997, as amended, and taking into account the thrusts and objectives of E.O. No. 398, s. 2005, these Regulations are hereby promulgated to prescribe the presentation of BIR tax clearance prior to the final settlement of all government contracts.

Section 2. Presentation Of Updated Tax Clearance Prior to Final Settlement of Government Contracts – All persons, natural or juridical, local or foreign, who have existing contracts with the government, its departments, bureaus, offices and agencies, including, state universities and colleges, government-owned and/or controlled corporations, government financial institutions and local government units for the supply of goods and services, including infrastructure projects, shall secure from the BIR an updated tax clearance certifying that they have no outstanding tax liabilities and that they have duly filed the latest income and business tax returns and paid the corresponding taxes due thereon. Such tac clearance shall be presented by the contractor to the concerned departments, bureaus, offices and agencies, including state universities and colleges, government-owned and/or controlled corporations, government financial institutions and local government units prior to the final settlement of the contract it entered into with them.

Failure to secure and present the prescribed BIR tax clearance shall entitle the government, its departments, bureaus, offices and agencies, including state universities and colleges, government-owned and/or controlled corporations, government financial institutions and local government financial institutions and local government units to suspend the final settlement for any goods or services, including infrastructure projects, delivered by the contractor.

Section 3. Suspended Final Settlement and Retention Money as tax Lien – The amount of final settlement of the contract for any goods and services, including infrastructure projects, delivered by the contractor which was suspended by the government, its departments, bureaus, offices and agencies, including state universities and colleges, government-owned and local government units due to the failure to present the BIR tax clearance prescribed by these Regulations, including the retention money required pursuant to the provisions of R.A. No. 9184 and its implementing regulations, shall be subject to tax lien as may be warranted in favor of the government to satisfy the contractor’s outstanding tax liabilities. The existing guidelines and procedures governing distraint and garnishment shall be applied accordingly.

Section 4. Penalties – Any violation of these Regulations shall be subject to the corresponding penalties under the pertinent provisions of the NIRC of 1997, as amended, and applicable regulations issued by the BIR.

Section 5. Repealing Clause – All other issuances and rules and regulations or parts thereof which are contrary to and inconsistent with any 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.

Prescribing the Updated Floor Price for Cigarette, Heated Tobacco, and Vapor Products Pursuant to Sections 114(B) and (C) and 145 (C) of the NIRC of 1997, As Ammended

Section 1. Scope – Sections 144 (B) and (C), and 145 (C) of the National Internal Revenue Code (NIRC) of 1997, as amended by the Republic Act (RA) Nos. 11346 and 11467, in the Products Regulation Act,” mandate the Bureau of Internal Revenue (BIR) to prescribe the floor price of Cigarettes, Heated Tobacco Products, and Vapor Products.

Pursuant to the provisions of the Sections 244 and 245 of the NIRC of 1997, as amended, these Regulations are hereby promulgated in order to update the floor price of Cigarette, Heated Tobacco, and Vapor Products prescribed in Revenue Memorandum Circular (RMC) No. 49-2023, which revised the floor prices set forth in Section 6 of revenue Regulations (RR) No. 14-2022 and RMC No. 79-2022.

Section 2. Definition of Terms – For purposes of these regulations, the words and phrases listed hereunder are defined as follows:

E-marketplace – refers to an online intermediary that allows participating merchants to exchange information about products or services into an electronic commerce transaction.

Floor Price – refers to the minimum price of cigarette, heated tobacco and vapor products per unit, which shall be equivalent to the total reasonable production cost/expenses of the cheapest brand per tobacco product in the sum of the excise tax and VAT.

Heated Tobacco Products (HTPs) – refer to tobacco products that may be consumed through heating tobacco, either electrically or through other means sufficiently to release an aerosol that can be inhaled, without burning or any combustion of the tobacco. Heated tobacco products include liquid solutions and gels that are part of the product and are heated to generate an aerosol.

Seller – a person engaged in the business of selling consumer products directly to consumers. It includes online sellers or merchants or any person or entity selling products or services to customers through an e-marketplace. It shall also include a supplier or distributor; (2) the seller interchanges personnel or maintains common or overlapping officers or directors with the supplier or distributor; or (3) the supplier or distributor provides or excises supervision, direction or control over the selling practices of the seller.

Vapor Products – shall mean Electronic Nicotine and Non- Nicotine Delivery systems (ENDS/ENNDS), which are combinations of (i) a liquid solution or gel, that transforms into an aerosol without combustion through the employment of a mechanical or electronic heating element, battery or circuit that can be used to heat such solution or gel, and includes, but is not limited to (ii) a cartridge, (iii) a tank, and (iv) the device without a cartridge or tank. It is commonly known as a nicotine salt/salt nicotine, and conventional ‘freebase’ or ‘classic’ nicotine, and other similar products. All vapor products shall be covered regardless of its nicotine content.

Section 3. Floor Price – Provided hereunder are the updated floor prices for the subject tobacco products:

A. Cigarettes

B. Heated Tobacco Products

C. Vapor Products
1. Nicotine Salt or Salt Nicotine

2. Conventional ‘ Freebase’ or ‘Classic’ Nicotine

The above floor prices shall only be used as reference for taxation purposes in the absence of other documents/proof as to the actual price of the product that is higher than the identified floor price.

Section 4. Penalties – Selling of tobacco products at a price lower than the combined excise and value-added taxes imposed under the law shall be prohibited.

Under Section 145 (C) of the NIRC of 1997, as amended, the seller of such products shall be punished with a fine of not less than ten (10) times the amount of excise plus value-added taxes due but not less than Two hundred thousand pesos (P200,00.00) nor more than Five hundred thousand pesos (P500,000.00), and imprisonment of not less than four (4) years but not more than six (6) years.

Under Section 263-A of the same code, as amended, any person who sells heated tobacco products and vapor products at a price lower than the combined excise and value-added taxes shall be punished with a fine of not less than ten (10) times the amount of excise tax plus value-added tax due but not less than Two hundred thousand pesos (P200,000.00) nor more than Five hundred thousand pesos (P500,000.00), and imprisonment of not less than four (4) years but not more than six (6) years.

Section 5. Repealing/Amendatory Clause – All existing rules, regulations, issuances or parts thereof contrary to or inconsistent with the provisions of these Regulations are hereby repealed, amended or modified accordingly.

Section 6. Separability Clause – If any of the provisions of these Regulations is subsequently declared unconstitutional or invalid, the validity of the remaining provisions hereof shall remain in full force and effect.

Section 7 Effectivity – These Regulations shall take effect fifteen days following the publication thereof in the Official Gazette or the BIR’s official website, whichever comes first.

Prescribing Policies and Guidelines in the Mandatory Registrations of Persons Engaged in Business and Administrative Sanctions and Criminal Liabilities for Non-Registration

Section 1 Scope – Pursuant to the provisions of Sections 244 and 245 of the National Internal Revenue Code of 1997, as amended (Tax Code), these Regulations are hereby promulgated to prescribe guidelines, procedures, and requirements for the implementation of the mandatory registration of persons engaged in business, including brick-and-mortar stores and online trade or business pursuant to Sections 236(A) of the Tax Code and Republic Act No. 11967, otherwise known as the Internet Transactions Act of 2023.

Section 2 Background – Section 236(A) of the Tax Code, provides that every person subject to any internal revenue tax shall register once, either electronically or manually, with the Bureau of Internal Revenue (BIR):

• Within ten (10) days from date of employment; or
• On or before the commencement of business; or
• Before payment of any tax due; or
• Upon filing of a return, statement or declaration as required under the Tax Code.

Consequently, any person who is engaged in any trade or business in the Philippines and fails to register the same with the BIR shall be administratively and criminally liable for fines and penalties. Also, any person who willfully aid or abets in the commission of a crime penalized under the Tax Code or who causes the commission of any such offense by another shall be liable in the same manner as the principal pursuant to section 253 (b) of the Tax Code.

In case of associations, partnerships or corporations, the penalty shall be imposed on the partner, president, general manager, branch manager, treasurer, officer-in-charge, and employees responsible for the violation.

In addition, it has been observed that there have been proliferation of online businesses and activities in the Philippines. Hence, the Internet Transactions Act of 2023 was issued, which provides that in order to build trust in e-commerce and to protect and uphold the interest of consumers at all times, persons engaged in online trade or business shall observe and comply with the policies, laws and regulations in the countries where their goods and services are marketed, which necessarily includes, the registration of online trade or business with the BIR, filing of proper tax returns and payment or applicable internal revenue taxes.

Section 3 Coverage – These Regulations shall cover persons, whether natural or juridical, who are engaged in the following trade or business in the Philippines:

• Sale and/or lease of goods and services through brick-and-mortar stores;
• E-commerce or online businesses, whether formal or informal, including, but not limited to sale, procurement, or availment of physical or digital goods 9including virtual items in online games), digital content/products, digital financial services, entertainment services, travel services, transport and delivery services, and educational services, social commerce, on-demand labor and repair services, and property and space rentals;
• Operation of digital platforms, including e-marketplace platforms;
• Sale and/or lease of goods and services through digital platforms;
• Digital content creation and streaming that are income generating including, but not limited to, online advertising, blogging/vlogging, subscription or commission;
• E-retailing of goods and services;
• Sale of creative or professional services, on-demand or freelance services or digital services supplied over the internet; and
• Other forms of business other than those mentioned above which are conducted online.

Section 4. Definition of Terms – In applying the provisions of these Regulations, the following terms shall be defined as follows:

• Business Operations – refers to any act of engaging in commerce in any form, whether online or not, including, but not limited to, acquiring developing, maintaining, owning, selling, possessing, leasing, or operating equipment, facilities, personnel, products, services, personal property, real property, or any other apparatus of business or commerce.
• Brick-and-Mortar Stores – refers to physical retail establishments, operating from a fixed location, where consumers/costumers can visit in person to purchase and/or lease goods and/or services.
• Closure/Take Down Order – refers to the order issued by the Commissioner of Internal Revenue (CIR) or his/her duly authorized representative to: (i) physically close the doors or other means of ingress/egress of the establishment, and the sealing thereof, with the appropriate security devices (padlocks, etc.) and the BIR’s official seal; or (ii) take down or restrict the usage of the website, webpage, account, page, platform, or application used in the conduct of trade or business in order to prohibit covered persons from selling, posting, listing or offering goods and/or services for sale and/or lease.
• Content Creation – refers to the business of publishing or producing entertaining (e.g live streamers, online game streamers, vloggers, etc.) or educational content or material for digital channels such as websites, social media and video platforms or through any medium or channel for subscription, for a fee or for free but receiving payment or generates revenue from their content or monetizing their personal brand.
• Digital content/product – refers to data which is produced and supplied in electronic platform, such as data that is digitally broadcasted, streamed or contained in computer files.
• Digital financial services – refer to services of a financial nature that are made available to the public through the internet, including banking services, insurance and insurance-related services, payment and money transmission services, remittance services, lending services, investment services, and other similar or related services.
• Digital Platforms – refer to information and communication technology-enabled mechanisms that connect and integrate producers and users in online environments where goods and services are requested, developed, and sold and data is generated and exchanged such as, but not limited to, e-commerce, digital services, food delivery, transport, travel, education, healthcare, and logistics.
• Digital Services – refer to services that are delivered and accessed using digital infrastructure or based on communications and information technology, which encompasses the services of e-market, web search and/or cloud computing.
• Educational service – refers to services designed to promote, impart, share, source, or review knowledge, and to those intended to assist, facilitate, or improve learning through an online platform, application, website, webpage, social media account, or other similar platform operated by the provider for profit, regardless of whether the provider is authorized to engaged in e-Commerce in the Philippines. It covers four categories: Primary education services, Secondary education services, Tertiary education services and Adult education.
• E-Marketplace – refers to digital platforms whose business is to connect online consumers with online merchants, facilitate and conclude the sales, process the payment of the products, goods, or services through the platform, or facilitate the shipment of goods or provide logistics services and post-purchase support within such platforms, and otherwise retains oversight over the consummation of the transaction. These shall include social media marketplaces or other platforms insofar as they retain oversight over the consummation of the transaction.
• E-retailing – refers to selling goods or services directly to online consumers primarily through internet via application, webpage, or its own website.
• Facility – may include but not limited to place of production, showroom, warehouse, storage place, garage, bus terminal, or real property for lease with no sales activity.
• Lessor – refers to any person, whether natural or juridical, who owns or controls the commercial space and leases it out to another party, which is the lessee.
• Lessee – refers to any person who rents or leases commercial space from the property owner or lessor.
• On-demand Services – refer to services that are available whenever a customer requests them, rather than being provided on a fixed schedule such as, but not limited to, ride-sharing, food delivery, grocery delivery, home services (like cleaning or repairs), and streaming entertainment.
• Online Advertising Services – refers to online or web-advertising services (e.g. banner ad, side bar ad and pop-up ad) or sale of advertising or time.
• Online business – refers to any commercial activity over the internet, whether buying or selling goods and/or services directly to consumers or through a digital platform, or any business that facilitates commercial transaction over the internet between businesses and consumers. Online businesses shall include e-commerce platforms, e-marketplace, online sellers/merchants and e-retailers.
• Online Freelance Services – refer to work or services provided by individuals who are self-employed (freelancer) and offer their skills, expertise, or services to clients through digital platforms or online channels.
• Online travel services – refer to services that facilitate the reservation, purchase or discounting of flights, hotel accommodations, and vacation rental spaces, through an online platform, application, website, webpage, social media account, or other similar platform operated by the provider, regardless of whether the provider is authorized to engage in e-commerce in the Philippines.
• Online sellers or Merchants – refer to a person selling non-financial goods or services to online consumers through an e-marketplace or third-party digital platform. An e-retailer shall also be considered an online merchant if it offers the same goods or services outside its own website through a third-party digital platform and the online consumer purchases, leases, subscribes to, or obtains the service of the e-retailer through the said third-party platform.
• Social Commerce – refers to a segment of e-commerce in which merchants or individuals sell goods, products, services, or receive monetization in cash, directly through social media platforms or social networks.
• Store Name – refers to primary identifier for the seller’s brand or business within the website, webpage, account, page, platform or application.
• Trade or business – refers to any activity carried on for the production of income or profit from selling and/or leasing of goods or properties, and/or performing services.
• Transport and Delivery Services – refer to the delivery services of food, goods or other merchandise, or of personal transport services and other courier services, contracted through an online platform, application, website, webpage, social media account, or other similar platform operated by the provider, regardless of whether the provider is authorized to engaged in e-commerce in the Philippines.
• Virtual Items in Online Games – refers to goods or items played/used over an internet online application or computer network that allows single and/or multiple players to interact simultaneously in real time and form social communities within a game environment.

Section 5. Registration – All persons covered by these Regulations shall register with the BIR following the guidelines set forth under the Tax Code and relevant revenue issuances. Failure to register shall be subject to administrative penalties and criminal liabilities provided hereunder. The following guidelines shall be adhered to:

• A person engaged in the sale and/or lease of goods and services through Brick-and-Mortar Stores shall register its head office at the BIR district office having jurisdiction over the place of business address. Meanwhile, any branch and/or facility shall be registered with the BIR district office having jurisdiction over the place of business address or location of the branch and/or facility shall be registered with the BIR district office having jurisdiction over the place of business address or location of the branch and/or facility.
• A person operating, maintaining or setting up an online presence (within the context of these Regulations) or an online store for its Brick-and-Mortar Store shall register its Store Name with the BIR as an additional “business name” attached to the head office or branch managing or operating the said online store or business, and shall not be registered as branch.
• A person engaged in the sale and/or lease of goods and services through website, webpage, page, platform or application who do not have a Brick-and-Mortar Store shall register at the BIR district office having jurisdiction over the place of residence of individuals or principal place of business registered with the Securities and Exchange Commission (SEC) for juridical entities.

Section 6. Posting of Certificate of Registration – All registered persons covered by these Regulations shall post or exhibit their original Certificate of Registration (COR)/Electronic Certificate of Registration (eCOR) at the place where the business is conducted and at each branch and/or facility in a way that is clearly and easily visible to the public. In case of a peddler or other persons not having a fixed place of business, the COR/eCOR shall be kept in the possession of the holder thereof at the place of the residence or at the head office’s address, if applicable, subject to production upon demand of any internal revenue officer.

Section 7. Posting of Proof Registration on Online Websites, E-Commerce or E-Marketplace Seller/Merchant’s Page and other Platforms. – All covered persons operating a business through a website, social media or any digital or electronic means, shall display conspicuously the electronic copy of the BIR COR/eCOR on their website, webpage, account, page, platform or application. The displayed proof of registration shall be (at all times) easily accessible and visible to buyers or customers visiting the seller or lessor’s webpage, account, page, platform or application.

Section 8. Suspension of Business Operations – The CIR or his/her duly authorized representative shall, upon verification that any covered person doing business in the Philippines but fails to register as required under these Regulations, has the authority to issue a Closure/Take Down Order to close the business operations of such covered persons engaged in business.

The closure of business operations under a duly approved Closure/Take Down Order shall not preclude the BIR from filing the appropriate charges, if evidence so warrants, against the person concerned, or in the case of corporate taxpayers, against the responsible officers of the corporation, under the Run After Tax Evaders (RATE) Program of the BIR.

Section 9. Duration of Closure/Take Down Order. – The Closure/Take Down Order shall not be less than five (5) days and shall be lifted only upon compliance with the requirements stated in Section 5 of these Regulations and as may be further prescribed by the CIR or his/her authorized representative/s in the Closure/Take Down Order.

Section 10. Lifting of the Closure/Take Down Order – The Closure/Take Down Order shall only be lifted if the BIR has validated that the violation/s stated in the Closure/Take Down Order have been rectified and the person has complied with all the requirements stated in Section 5 of these Regulations and as may be further prescribed by the CIR or his/her duly authorized representative/s following the procedure under the existing laws, rules and regulations.

Section 11. Responsibility of Lessors, Digital Platforms, including E-marketplaces. – Lessors, sub-lessors of commercial establishments/buildings/space, and operators of digital platform, including e-marketplace platforms, shall ensure that all their respective lessees and online sellers or merchants are duly registered with the BIR, with Taxpayer Identification Number, and duly compliant with the invoicing requirements and in accordance with Sections 236, 237 and 238 of the Tax Code.

Failure to enact, strictly enforce internal mechanisms or rules to prohibit lessees and online sellers or merchants without the required BIR COR/eCOR from further selling, posting, listing or offering goods, and/or services in their respective Brick-and-Mortar Stores, website, webpage, account, application, and digital platforms, including e-marketplaces, shall be constructed as an act of aiding or abetting in the offense.

The owners or sub-lessors of commercial establishments/building/spaces shall continue to submit its existing reportorial requirements under existing Revenue Regulations. Digital platforms, including e-marketplaces, shall submit any required information upon request from the CIR or his/her duly authorized representative.

Section 12. Reportorial Requirements – Reports on all Closure/Take Down Orders issued and/or executed and the lifting of Closure/Take Down Orders shall be submitted by all implementing offices of the Bureau on a regular basis to the CIR, or his/her duly authorized representative.

Section 13. Penalty – Any person found violating Section 236(A) in relation to the enumerated provisions of the Tax Code shall be liable as follows:

Section 14. Separability Clause – If any provision of these Regulations is declared invalid by a competent court, the remainder of these Regulations or any provisions not affected by such declaration of invalidity shall remain in force and effect.

Section 15. 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 or amended accordingly.

Section 16. Effectivity Clause – These Regulations shall take effect fifteen (15) days after publication in the Official Gazette, Bureau’s official website or in any newspaper of general circulation, whichever comes earlier.

Clarification on Registration Procedures Pursuant to Revenue Regulations No. 7-2024, as amended by Revenue Regulations No. 11-2024

With the passage of Republic Act (RA) No. 11976, otherwise known as the “Ease of Paying Taxes (EOPT) Act”. this Circular is hereby issued to clarify (thru Question and Answer) registration-related procedures provided under Revenue Regulations (RR) No. 7-2024, as amended by RR No. 11-2024, in relation to RA No. 11976 or the EOPT Act.

• Q1. Who are required to register with the BIR and when is the required period to register?
  • A1. Every person subject to any internal revenue tax shall register, either electronically or manually, with the Revenue District Office (RDO) as follows:
    • On or before the commencement of business, for self-employed individuals, estates and trusts, corporations, and their branches, if any;
    • Before payment of any tax due, for Corporations (Taxable or Non-taxable)/ One Time Transaction (ONETT);
    • Before or upon filing of any applicable tax return, statement or declaration as required by the Tax Code, for Corporations, Partnerships, Associations, Cooperatives, Government Agencies and Instrumentalities (GAIs);
    • Within ten (10) days from date of employment, for Employees; and
    • Application under Executive Order (EO) No. 98, Series of 1999.
• Q2. What are the different ways to register with the BIR?
  • A2. Taxpayers can register with the BIR through the following options:
    • Manually at the RDOs
      Taxpayers can walk-in to RDOs to apply for Taxpayer Identification Number (TIN) and/or register their business. For Business taxpayers, their registration will be processed using the Single Window Policy where the application and the corresponding documentary requirements are submitted and processed through the New Business Registration Counter (NBRC).
      
    • New Business Registration (NewBizReg) Portal
      The New Business Registration (NewBizReg) Portal is an alternative option in submitting application for registration of business (Head Office and Branch) to BIR. For the detailed procedures on how to submit registration thru this Portal, taxpayers can access https://www.bir.gov.ph/newbizreg/
    • Taxpayer Registration-Related Application (TRRA) Portal
      The Taxpayer Registration-Related Application (TRRA) Portal is an alternative option in submitting application for registration-related transactions to BIR. The application and corresponding documentary requirements are submitted electronically through this Portal via email. The following are the registration-related applications that can be processed in the TRRA Portal:
      • Application for TIN under E.O. No. 98 and ONETT
      • Registration of Overseas Filipino Worker (OFW) and Non-Resident Citizens
      • Application for Authority to Print
      • Updating of Email Address using Application Sheet Form S1905
      • Transfer of Registration of Employees and Other Non-Business Taxpayers
      • Updating of Maiden Name (for married female)
        
        For the detail procedures on how to submit application thru the TRRA Portal, taxpayers can access https://www.bir.gov.ph/trraportal/
    • Philippine Business Hub (PBH)
      The Philippine Business Hub (PBH) is an online platform developed by the Department of Information and Communication Technology (DICT) that aims to streamline and to integrate the business registration process of Securities and Exchange Commission (SEC), Department of Trade and Industry (DTI), BIR, Social Security System, PhilHealth, Home Development Mutual Fund (also known as Pag-IBIG Fund), and selected Local Government Units (LGUs) in Metro Manila.
      
      For detailed procedures on how to submit registration application thru the PBH, taxpayers can access https://business.gov.ph/
    • Online Registration and Update System (ORUS)
      The Online Registration and Update System (ORUS) is a web-based system that gives taxpayers a convenient and alternative facility for an end-to-end process for registration, including the updating of their registration information.
      
      For the detailed procedures on how to submit registration application thru the ORUS, taxpayers can access https://orus.bir.gov.ph/home
• Q3. What is the reckoning period for commencement of business?
  • A3. Commencement of business shall be reckoned form the day when the first sale transaction occurred or upon the lapse of thirty (30) calendar days from the issuance of the Mayor’s Permit/Professional Tax Receipt (PTR)/Occupational Tax Receipt (OTR) by LGU, or the Certificate of Business Name Registration (CBNR) issued by DTI, or the Certificate of Registration (COR) issued by SEC, whichever comes first.
    A person shall be considered to have violated this provision when such person failed to register with the BIR within thirty (30) calendar days form the issuance of Mayor’s Permit/PTR/OTR by the concerned LGU, or COR/CBNR issued by the SEC/DTI or the date of its first sales transaction.
• Q4. Where should the taxpayer register and in what manner?
  • A4. Taxpayers shall be registered at the appropriate RDO based on his/her/its taxpayer type pursuant to Section 5(B) of RR No. 7-2024.
• Q5. I am an employer and I have foreign national employees who are still securing their work and employment permits. How will they be registered with the BIR?
  • A5. Foreign nationals who are securing work and employment permits shall be registered with the BIR following the policies and guidelines prescribed in Revenue Memorandum Order No. 28-2019 (Policies and Guidelines on the Registration Requirements of Foreign Nationals).
• Q6. I am registering/processing my registration-related transactions through ORUS. However, I experienced an error or technical issue and cannot proceed with the application. Can I transact manually at the RDO?
  • A6. Yes, a taxpayer who encounters error or technical issue while using ORUS may transact manually at the RDO, provided that the taxpayer can present proof of error or technical issue (e.g. screenshot) encountered.
    However, in cases where the BIR issued an Advisory that the ORUS is unavailable, the taxpayer does not need to present any proof of error/technical issue to be allowed to transact manually at the RDO.
    Aside from manually transacting with the RDO, the taxpayer can submit registration application through the BIR’s NewBizReg Portal or TRRA Portal, if the transaction is available therein.
• Q7. I am an online seller. Do I need to post my Certificate of Registration (COR)? If yes, where will I post it?
  • A7. Yes, business taxpayers, whether with physical store or selling thru online platforms, need to post or display their COR. For taxpayers with physical store, it shall be posted in a conspicuous place in the business establishment that can be easily seen by the public.
    For online seller, an electronic copy of COR (eCOR) shall be posted on the sellers’ website(s) or profile pages at the e-commerce platform. Online sellers whose COR bears a Quick Response (QR) code generated thru ORUS or PBH may post such QR Code at the sellers’ website(s) or profile pages at the e-commerce platform in lieu of the electronic copy of COR.
    In case of a peddler or other persons not having a fixed place of business, the COR/eCOR shall be kept in the possession of the holder thereof or at the place of residence or at the Head Office’s address, if applicable, subject to production upon demand of any internal Revenue Officer.
• Q8. As an online seller, do i need to register to the BIR my store name as reflected in the online page, account, website or e-commerce platform where I sell my products/services?
  • A8. Yes, taxpayers engaged in business shall register in the BIR all of their business/trade names as registered in SEC or DTI, and declare their “store names” used in all their online page, account, website or e-commerce platforms, which shall be reflected as business names in the COR. Store Name refers to the seller’s brand or business within the online page, account, website or e-commerce platforms.
    
    Example: Business Name in DTI : BIR Merchandising
    Store Name in eCommerce platform: Stairback Coffee
    Business Names in BIR COR : BIR Merchandising
    Stairback Coffee
• Q9. Do I still need to pay Annual Registration Fee of Five-Hundred Pesos (P500.00) for my business?
  • A9. No, under the EOPT Act, the BIR ceased to collect the Annual Registration Fee of Five Hundred Pesos (P500.00) effective January 22, 2024, both for new business registrants and existing business taxpayers.
• Q10. My COR still reflects the Annual Registration Fee as one of the tax types. Do I need to replace it?
  • A10. No, the COR shall retain its validity although the Registration Fee is still reflected therein as one of the tax types. You are not required to replace it, unless there are other updates/changes in your business registration information that need to be reflected in the COR.
• Q11. How will I register my Books of Accounts?
  • A11. Books of Accounts shall be registered thru ORUS in the following manner:

New Sets of manual Books of Accounts are not required to be registered every year. However, taxpayers may have the option to use new sets of manual Books of Accounts yearly, which should be registered prior to its use.

• Q12. In relation to Question No. 11, if I will register my Books of Accounts thru ORUS, what is my proof of registration? Do I still need to go to the RDO to have it manually stamped?
  • A12. Your proof of registration shall be a QR Code Stamp which shall be generated for Books of Accounts registered thru ORUS. It shall contain the following information:
    • TIN
    • Registered Name
    • Registered Address
    • Type of Book (Manual, Loose Leaf or Computerized)
    • Books Registered
    • Permit No./Acknowledgement Certificate Control No. – for Loose Leaf or Computerized Books of Accounts
    • Permit to Use (PTU)/ACCN date issued – Loose Leaf or Computerized Books of Accounts
    • Quantity
    • Volume No.
    • Date Registered
  • The QR Code shall determine the authenticity of the printed QR Code Stamp when scanned by any smartphone, which will be redirected to the BIR ORUS website.
  • Taxpayers shall print the QR Code Stamp and paste it on the first page of the manual Books of Accounts and permanently bound loose leaf Books of Accounts. For computerized Books of Accounts, the QR Code Stamp shall be printed and be kept for record purposes.
  • After registering in ORUS, there is no need to go to the RDO for the submission of transmittal letter and USB flash drive (for computerized Books of Accounts) and manual stamping of the books (for manual or loose leaf Books of Accounts).
  • Manual registration of Books of Accounts at the RDO shall only be allowed under the following circumstances:
    • The taxpayer is experiencing technical issues in ORUS (with proof of error or issue).
    • The taxpayer is already in the office premises of the RDO registering on the day of the deadline.
    • The business taxpayer registering Books of Accounts is a senior citizen.
• Q13. How will I transfer my registration records to another RDO?
  • A13. Transfer of registration may be done by mere filing/submission of application (using BIR Form No. 1905), together with complete documentary requirements as follows:
    • A. Fore Transfer of Registration of Individuals Not Engaged in Business (E.O. 98/ONETT/Employee)
      • 1. BIR Form No. 1905 (2 original copies)
    • For Transfer of Business Registration to Another RDO (Head Office and/or Branch)
      • Submit to Old RDO
        • BIR Form No. 1905 (3 original copies) all copies to be stamped “Received”
          1st copy – to be forwarded to New RDO by Old RDO attached to Transfer Related Docket (TRD)
          2nd copy – Old RDO’s file copy
          3rd copy – Taxpayer’s file copy
        • Inventory List of Unused Invoices and Supplementary Invoices (for destruction if not to be used in the New RDO) or letter request with Inventory List for use of the unused invoices/supplementary invoices in the New RDO, for approval of the Old RDO (3 original copies)
          1st copy – Old RDO’s file copy
          2nd copy – New RDO’s file copy
          3rd copy – Taxpayer’s file copy
        • For Non-Individuals Taxpayers only:
          • Amended Articles of Incorporation/Partnership/Cooperation bearing the taxpayer’s new principal business address (1 photocopy); and
          • Certificate of Filing of Amended Articles of Incorporation/COR of Amendments to Articles of Cooperation and By-Laws (1 photocopy).
        • For Non-individuals, Single Proprietors, except Professionals:
          • Mayor’s Business Permit; or
          • Duly received Application for Mayor’s Business Permit, if the Mayor’s Business Permit is still in process with the LGU (1 photocopy).
        • Unused invoices and supplementary invoices, for re-stamping by Old RDO, with approved letter request and Inventory List (2nd copy) (1 original copy)
        • 3rd copy of Transfer Commitment Form, if applicable, together with the 3rd copy of BIR Form No. 1905 duly received by old RDO (1 photocopy)
      • Change of Registered Business Address Under the Jurisdiction of the Same RDO
        • BIR Form No. 1905 (2 original copies)
        • Mayor’s Permit/DTI Certificate/SEC COR or Form for Appointment of Officers (in case of One Person Corporation) bearing the new business address (1 photocopy)
        • Letter Request for temporary use of old invoices/supplementary invoices (for business taxpayers), if applicable (1 original copy)

Individual taxpayers not engaged in business (non-business) may file their application for transfer online through ORUS or manually at the new RDO having jurisdiction over the place of residence where they will transfer. However, if the said non-business taxpayer will subsequently apply for business registration, such application shall be files directly at the RDO having jurisdiction over the business address where his/her registration records will be transferred by the said RDO as well.

Taxpayers engaged in business who will request for transfer of registration shall file it at the current RDO where the taxpayer is registered. All open-cases/stop-filer cases shall be settled at the new RDO by submitting a Transfer Commitment Form, except for those who are subject to audit investigations. Thus, taxpayers with open-cases/stop-filer cases who are not subject to audit investigations shall be transferred to the new RDO within the prescribed period, together with the open-cases/stop-filer cases.

Transfer of registration of non-business taxpayers and those that are transferring business address within the same RDO shall be transferred immediately upon filing of application with complete documentary requirements.

Transfer of registration of business taxpayers to another RDO shall be done within five (5) days, for branches and facilities, and within ten (10) days, for head office.

• Q14. How will I close my business registration with the BIR?
  • A14. Closure of business registration may be done by mere filing of application (using BIR Form No. 1905), with complete documentary requirements, as follows:
    • BIR Form No. 1905 (2 original copies)
    • List of Ending Inventory of Goods, Supplies, including Capital Goods (1 original copy)
    • Inventory of Unused Invoices/Supplementary Invoices, together with Unused Invoices/Supplementary Invoices and all other unutilized accounting forms (e.g. debit/credit memos, delivery receipts, purchase orders, etc.);
    • Original copy of business Notices and Permits (e.g. ATP, Notice to Issue Receipt/Invoice (NIRI), Accreditation Certificate and Permit to Use – for CRM/POS, etc.) issued to taxpayer as well as original copy of the COR.

However, this shall not preclude the Commissioner of Internal Revenue or his authorized representative from conducting audit in order to determine the tax liability of taxpayer as of closure of his/her/its business operations. Said tax liability needs to be settled prior to the issuance of tax clearance for business closure.

Providing Extension of the Deadlines of the Filing of Tax Returns and Payment of the Corresponding Taxes Due Thereon, Including Submission of Required Documents for Taxpayers Within the Jurisdiction of Revenue District Offices of the Bureau of Internal Revenue That Were Affected by Southwest Monsoon and Typhoon “Carina”, and Giving Authority to the Commissioner of Internal Revenue to Extend the Deadline for the Filing of the Commissioner of Internal Revenue to Extend the Deadline for the Filing of the Returns and Other Documents on Times of Force Majeure

Section 1 Purpose – Pursuant to Sections 244 and 245 of the National Internal Revenue Code (NIRC) of 1997, as amended, and taking into account the following:

• The announcement of the Office of the Executive Secretary of Malacanang suspending government work on July 25. 2024 in areas under Region III, Region IV A and the National Capital Region due to the continuous rainfall brought about by the Southwest Monsoon and Typhoon “Carina”;
• The directive by the Office of the Executive Secretary for other concerned agencies to aid in the rescue, recovery, relief and rehabilitation efforts of the government and the private sector; and
• The announcement of suspension of work by some Local Government Units.

The Bureau of Internal Revenue (BIR) is hereby extending the deadline for the filing of tax returns and the payment of taxes due thereon, including submission of certain documents.

The extension is intended to provide ample time for taxpayers and BIR personnel within the following affected Revenue District Offices (RDOs) to comply with the statutory tax deadlines:

Section 2. Coverage – These Regulations shall extend the statutory deadlines for submission and/or filing of the following documents and/or returns, as well as the payment of the corresponding taxes, as specified below:

The extension of the due date shall be made applicable throughout the areas (RDOs) affected by the Southwest Monsoon and Typhoon “Carina” as identified in Section 1 hereof. If the extended due dates fall on a holiday or non-working day, the submission and/or filing contemplated herein shall be made on the next working day.

The extension of the statutory deadlines set in these Regulations may be further extended by the Commissioner of Internal Revenue, in the factual circumstances warrant for such an extension or as may be directed by the Secretary of Finance.

Section 3 Extension in the Filing of Returns and Other Requirements – By virtue of the authority of the Secretary of Finance, the Commissioner of Internal Revenue is hereby allowed to extend the deadline for the filing of returns and other documentary requirements as required under existing laws, rules and regulations in times of force majeure. A corresponding Revenue Memorandum Circular shall be issued setting forth the reason for extending the deadline for submission of returns and other documentary requirements, the identified areas covered and the adjusted deadline for the submission thereof.

Section 4 Repealing Clause – All existing rules and regulations, issuances or parts thereof, which are inconsistent with the provisions of these Regulations, are hereby repealed, amended or modified accordingly.

After the expiration of extended due dates prescribed herein, the regular dates for the submission of the filing of tax returns, the payment of taxes due thereon, including submission of certain documents, set forth under existing revenue issuances shall resume unless further extended by the Commissioner, if the circumstance so warrant or as may be directed by the Secretary of Finance.

Section 5 Separability Clause – If any clause, sentence, provision or section of these Regulations shall be held invalid or unconstitutional, the remaining parts thereof shall not be affected thereby.

Prescribing the Mandatory Requirements for Claims for Credit/Refund of Taxes Erroneously or Illegally Received or Collected or Penalties Imposed Without Authority Pursuant to Section 204(C), in Relation to Section 229 of the National Internal Revenue Code of 1997, as Amended (Tax Code), Except Those Under the Authority and Jurisdiction of the Legal Group

This Circular is issued to provide the guidelines and prescribe the mandatory documentary requirements in the processing and grant of claims for issuance of tax credit certificates (TCC) or cash refund (TCC/refund) or erroneously or illegally received or collected taxes under section (204(c), in section 229 of the Tax Code, in line with the recently introduced reforms on tax refunds under Republic Act (R.A.) No. 11976, also known as the Ease of Paying Taxes (EOPT) Act of 2023, This shall not cover actions or request for tax credit/refund based on writ of execution issued by the Court of Tax Appeals (CTA) and the Supreme Court under the authority and jurisdiction of the Legal Group.

• General Policies
  • Pursuant to Section 204(C) of the Tax Code, the Commissioner of Internal Revenue may credit or refund taxes erroneously or illegally received or penalties imposed without authority, refund the value of internal revenue stamps when they are returned in good condition by the purchaser, and in his discretion, redeem or change unused stamps that have been rendered unfit for use and refund their value upon proof of destruction.
  • The taxpayer-claimant shall submit the Application for Tax Credits/Refunds (BIR Form No. 1914) for claims under Section 204(C), in relation to Section 229 of the Tax Code, to the processing office that has jurisdiction over the taxpayer-claimant as follows:
    • The Revenue District Office (RDO); or
    • The Respective Large Taxpayers Audit Division (LTAD) or Large Taxpayers District Office (LTDO) under the Large Taxpayers Service (LTS).
  • Only Applications with complete documentary requirements enumerated in the Checklist of Mandatory Requirements (Annex “A.1”) which are filed within the prescribed two-(2-) year period after the payment of the tax or penalty, shall be received and processed by the authorized processing office.
    
• Documents to be Submitted by the Taxpayer-Claimant Upon Filing of the Application for TCC/Refund
  • The application must be accompanied with complete supporting documents enumerated in the Checklist of Mandatory Requirement as set-forth under Annex “A.1” Documentary requirements for tax credit/refund claims pursuant to Section 204, in relation to Section 229 of the Tax Code, vary depending on the nature of the tax sought to be refunded/credited and the circumstances that led to the taxes alleged to have been erroneously or illegally received or collected or penalties imposed without authority. Hence, taxpayer-claimant may submit documents other than the basic requirements enumerated by the taxpayer-claimant may submit documents other than the basic requirements enumerated in Annex “A.1” to support the claim. Said additional documents shall be enumerated by the taxpayer in the Checklist. The taxpayer-claimant shall then attest that the documents submitted for purposes of processing the tax credit/refund claim on erroneously or illegally received or collected taxes, are complete and these are the only documents that will be presented to support the claim.
  • The taxpayer-claimant shall attach a notarized Taxpayer Attestation (Annex “A.2”) certifying to the completeness of the documents submitted. Accordingly, the claims shall be processed based on the documents submitted. The books of accounts and accounting records shall be presented by the taxpayer-claimant upon written request of the assigned Revenue Officers (ROs). Failure to present the books of accounts and accounting records relevant to the claim may be a ground for denial of the application for TCC/refund.
  • The taxpayer-claimant shall fully cooperate with the assigned ROs and shall ensure availability of all documents that may be requested during the verification in case there are issues or findings that need further clarification so as not to cause undue delay on the 180-day processing of the tax credit/refund. Failure to cooperate or submit the requested documents for clarification as further requested by the assigned ROs may result in the full or partial denial of the claim.
  • The taxpayer-claimant shall secure Delinquency Verification Certificate (valid for 6 months) from the Collection Division under the respective Revenue Region of the Large Taxpayer Collection Enforcement Division under the Large Taxpayers Service, whichever is applicable.

Prescribing the Mandatory Requirements for Claims for Tax Credit or Refund of Excess/Unutilized Creditable Withholding Taxes on Income Pursuant to Section 76(C), in Relation to Section 204(C) and 229 of the National Internal Revenue Code of 1997, as Amended (Tax Code) Except Those Under the Authority and Jurisdiction of the Legal Group

This Circular is issued to provide guidelines and prescribe the mandatory documentary requirements in the processing and grant of claims for issuance of tax credit certificates (TCC) or cash refund (TCC/refund) of excess/unutilized creditable withholding taxes (CWT) on income under Section 76(C), in relation to Sections 204(C) and 229 of the Tax Code, in line with the recently introduced reforms on tax refunds under Republic Act (R.A.) No. 11976, also known as the Ease of Paying Taxes (EOPT) Act of 2023. This does not cover actions on request for tax credit/refund based on writ of execution issued by the Court of Tax Appeals (CTA) and the Supreme Court under the authority and jurisdiction of the Legal Group.

• General Policies
  • The taxpayer-claimant shall submit the Application for Tax Credits/Refunds (BIR Form No. 1914) for claims under Section 76(C), in relation to Section 204(C) and 229 of the Tax Code, to the processing office that have jurisdiction over the taxpayer-claimant as follows:
    • The Revenue District Office (RDO); or
    • The respective Large Taxpayers Audit Division (LTAD) or Large Taxpayers District Office (LTDO) under the Large Taxpayers Service (LTS).
  • Under Section 76(C) of the Tax Code, the processing office/s shall decide on the application and refund the excess taxes within two (2) years from the date of the dissolution or cessation of business, which is an exception to the 180-day processing of TCC/refund under Section 204(C) of the Tax Code. For Purposes of this Circular. The 2-year period to process the tax refund shall commence from the submission of the Application for Registration Information Update/Correction/Cancellation (BIR Form No. 1905) together with the complete documentary requirements set by the BIR for the closure of business and the refund of excess income taxes due to cessation or dissolution of business under Section 76(C) of the Tax Code.
  • Only application with complete documentary requirements enumerated in the attached Checklist of Mandatory Requirements (Annex “A.1” for taxpayers of “going concern” status or Annex “A.2” for taxpayers undergoing dissolution or cessation of business) shall be received and processed by the authorized processing office.
• Documents to be Submitted by the Taxpayer-Claimant upon Filing of the Application for CWT Credit/Refund
  • The application/s must be accompanied with complete supporting documents enumerated in the Checklist of Mandatory Requirements (Annex “A.1” for taxpayers of “going concern” status or Annex “A.2” for taxpayers undergoing dissolution or cessation of business)
  • The taxpayer-claimant shall accomplish and provide comparative matrix of tax withheld in accordance with the format provided in Annex “A.3”.
  • The taxpayer-claimant shall attach a notarized Taxpayer Attestation (Annex “A.4”) certifying to the completeness of the documents submitted. Accordingly, the claims shall be processed based on the documents submitted. The books of accounts and accounting records shall be presented by the taxpayer-claimant upon written request of the assigned Revenue Officers (ROs). Failure to present the books of accounts and accounting records relevant to the claims may be a ground for denial of the application for TCC/refund.
  • The taxpayer-claimant shall fully cooperate with the assigned ROs and shall ensure availability of all documents that may be requested during the verification in case there are issues or findings that need further clarification so as not to cause undue delay on the 180-day processing of the CWT credit/refund. Failure to cooperate or submit the request documents for clarification as further requested by the assigned ROs may result in the full or partial denial of the claims.
  • The tax returns filed by the taxpayer-claimant, particularly the Quarterly and Annual Income Tax Returns to the date of application of the CWT credit/refund or the issuance of the electronic Letter of Authority, whichever comes first, shall be considered in the processing of the claims.

Amending Section 5 and 6 of Revenue Regulations (RR) No. 3-2019, on the Validity of Certificate Authorizing Registration (eCAR) and its Revalidation

Section 1. Background

The Certificate Authorizing Registration (CAR) being issued by the Bureau of Internal Revenue (BIR) allows the Land Registration Authority (LRA) to transfer. The CAR is issued by the BIR as a proof that the transfer of property was reported and that all necessary taxes were paid in full by the taxpayer.

BIR is currently issuing Electronic CAR (eCAR) wtih a validity period of five (5) year validity period. The eCAR has an embedded barcode, which is being used by the Land Registration Authority System (LRA-PHILARIS-RD System) to validate the pertinent data needed to proceed with the processing and issuance of a new property title.

However, not all eCARS issued by the BIR are presented within the five (5) year validity period, thus concerned parties have to request for the reissuance of the eCAR, thereby resulting to additional cost on the part of the taxpayer and work load on the part of the processing office. This is the reason why the current provisions of RR No. 3-2019 issued on March 28, 2019 relative to eCAR’s validity is amended to remove the five (5) year validity of eCAR.

Section 2 Scope. –

Pursuant to the provisions of Section 244 in relation to Sections 58(E), 95 and 97 of the National Internal Revenue Code of 1997, as amended, these Regulations are hereby promulgated in order to amend pertinent provisions of RR No. 3-2019, which prescribed the use of eCAR System.

Section 3. Amendments
Section 5 and 6 of RR No. 3-2019 are hereby amended as follows:

“SEC. 5 – Validity of eCAR – The eCAR shall be valid from the date of its issuance until such time that it is presented to the corncerned Registry of Deeds (RD).”
“SEC. 6 – Revalidation – Only CARs issued outside of the BIR’s eCAR system, if any, shall be allowed for revalidation.

Section 4. Transitory Provisions
All eCARs issued through the BIR’s eCAR System which is linked to the LRA PHILARIS-RD System shall remain to be valid and will no longer require revalidation even if the same is presented to the RD beyond the specified validity period.

Amending the Transitory Provisions of Revenue Regulations No. 7-2024 Relative to the Deadlines for Compliance with the Invoicing Requirements

Section 1. Scope – Pursuant to the provisions of Sections 244 and 245 of the National Internal Revenue Code of 1997, as amended (Tax Code), in relation to Section 47 of Republic Act (RA) No. 11976, otherwise known as the “Ease of Paying Taxes (EOPT) Act”, these Regulations are hereby promulgated to amend the transitory provisions of Revenue Regulations (RR) No. 7-2024 and extend the deadlines for compliance with the new Invoicing Requirements under the EOPT Act.

Section 2. Amendments and Extensions of Deadlines for Compliance. –

Section 8 – Transitory Provisions of RR No. 7 – 2024 is hereby amended to read as follows:

“Section 8 Transitory Provisions.–

1. Certificate of Registration (COR) reflecting the Registration Fee – Business taxpayers are not required to replace its existing BIR Certificate of Registration that displays the Registration Fee. The COR shall retain its validity although the Registration Fee is shown therein, and taxpayers are no longer required to pay the Annual Registration Fee. Updating the COR is only necessary if there are changes to the registration information, excluding Registration Fee, reflected on the COR.
2. Unused Official Receipts-
   • Taxpayers may continue the use of remaining Official Receipts as supplementary document. – All unused or unissued Official Receipts may still be used as supplementary document upon the effectivity date of these Regulations until fully consumed, provided that the phrase “THIS DOCUMENT IS NOT VALID FOR CLAIM OF INPUT TAX”, is stamped on the face of the document. The Official Receipt, along with other equivalent documents such as Collection Receipt, Acknowledgement Receipt and Payment Receipt are all the same, serve as proof of payment that cash has been received or that payment has been collected/made for goods and/or services.
   • Taxpayer may convert and use the remaining Official Receipts as Invoice and convert the Billing Statement/Statement of Account/Statement of Charges into Billing Invoice. – For ease of doing business, the taxpayers shall be allowed to strikethrough the word “Official Receipt” [e.g. Official Receipt] or “Billing Statement/Statement of Account/Statement of Charges into Billing Invoice” [e.g. Billing Statement] on the face of the manual and loose leaf printed receipt and stamp “Invoice”, “Cash Invoice”, “Charge Invoice”, “Credit Invoice”, “Billing Invoice”, “Service Invoice”, or any name describing the transaction, and to be issued as primary invoice to its buyer/purchaser until fully consumed. Provided, that the converted “Official Receipt” or “Billing Statement/Statement of Account/Statement of Charges” shall contain the required information provided under Section 6(B) of RR No. 7-2024, including the quantity, unit cost and description or nature of service pursuant to Sec 237 of the Tax Code. Such information and other required information may also be stamped if not originally indicated in the old Official Receipt/Billing Statement/Statement of Account/Statement of Charges to comply with these requirements.
     
     The above documents shall be considered valid for claiming of input tax by the buyer/purchaser and can serve as proof of both sales transaction and payment at the same time for the period issued from April 27, 2024 until they are fully consumed, provided that the converted Invoice/Billing Invoice to be issued bears the stamped “Invoice/Billing Invoice” and there is no missing information as enumerated under Section 3(D)(3) of RR No. 7-2024.
     
     Effective April 27, 2024, any manual/loose leaf “Official Receipts” issued without a stamped “Invoice” will be considered supplementary documents as provided in Section 8(2.1) of these Regulations, and ineligible for input tax claims.
     
     The stamping of Official Receipt as Invoice or Billing Statement/Statement of Account/Statement of Charges as Billing Invoice by taxpayers does not require approval from any Revenue District Offices/LT Offices/LT Divisions but must comply with Section 8(2.3) hereof. Taxpayers should obtain newly printed invoices with an Authority to Print (ATP) before fully using or consuming the converted Official Receipts/Billing Statement/Statement of Account/Statement of Charges.
     
   • Reportorial requirement for unused Official Receipts/Billing Statement/Statement of Account/Statement of Charges to be used as Invoice or Billing Invoice upon effectivity of these Regulations – All unused manual and loose-leaf Official Receipts/Billing Statements/Statement of Account/Statement of Charges to be converted as Invoice or Billing invoice shall be reported by submitting an inventory of unused Official Receipts/Billing Statement/Statement of Account/Statement of Charges indicating the number of booklets and corresponding serial numbers on or before July 31, 2024, to the RDO/LT Office/LT Division where the Head Office or Branch Office is registered, in duplicate copies. The receiving Branch RDO shall transmit the original copy to the Head Office RDO and retain the duplicate copy.
     
3. Cash Register Machines (CRM) and Point-of-Sales (POS) Machines and E-receipting or Electronic invoicing Software – Taxpayers using CRM/POS/E-receipting/E-invoicing may change the word “Official Receipt(OR)” to “Invoice”, “Cash Invoice”, “Charge Invoice”, “Credit Invoice”, “Billing invoice”, “Service Invoice”, or any name describing the transaction, without the need to inform of such change the Revenue District Office(s) having jurisdiction over the place of business of such sales machines. Such reconfiguration shall be considered as minor system enhancement which shall not require the reaccreditation of sales software/system on the part of the software supplier not the reissuance of the Permit to Use on the part of the taxpayer-user.
   
   Taxpayers that are using duly registered Computerized Accounting System (CAS) or Computerized Books of Accounts (CBA) with Accounting Records (AR) need to revisit their system to comply with the provisions of the EOPT Act. Since the system enhancement will have a direct effect on the financial aspect, it shall be considered as major enhancement which will require taxpayer to update their system registration following the existing policies and procedures in registering use of CAS or CBA with AR. The previously issued to the Head Office/Branch(es). The required Annex of the AC shall indicate all the branches (if applicable) that are using the said system/software and the sets of series of accountable forms (Invoice) to be used by each of the branches, if applicable.
   
   In order to provide ample time in reconfiguring machines and enhancement of CAS/CBA with AR, adjustments shall be undertaken on or before December 31, 2024. Any Extension due to the reconfiguration/enhancement of system must be approved by the concerned Regional Director or Assistant Commissioner of the Large Taxpayers Service which shall not be longer than six (6) months from December 31, 2024.
   
   The serial number of the renamed Invoice to be issued by CRM/POS machines, e-receipting or electronic invoicing software, CAS or CBA with AR shall start by continuing the last series of the previously approved Official Receipt and shall submit notice after the completion of reconfiguration/enhancement, indicating the starting serial number of the converted Invoice, to the RDO/LT Office/LT Division where the machines are registered, in duplicate copies, within thirty (30) days from the completion of machine/system reconfiguration/enhancement or on December 31, 2024, whichever comes first. The receiving Branch RDO shall transmit the original copy to the Head Office RDO.
   
   Documents issued by CRM/POS machines, e-receipting or electronic invoicing software, CAS or CBA with AR containing the word “Official Receipt” from April 27, 2024 until the completion of machine/system reconfiguration/enhancement shall be considered as valid for claiming of input tax by the buyer/purchaser until December 31, 2024 or until the completion of machine/system reconfiguration/enhancement, whichever comes first. Provided, that there is no missing information as enumerated under Section 3(D)(3) of RR No. 7-2024 and the machine/system printed/generated “Official Receipt/Billing Statement/Statement of Account/Statement of Charges” is converted by striking through the term “Official Receipt/Billing Statement/Statement of Accounts/Statement of Charges” and stamping the word “Invoice/Billing Invoice” on the document.
   
4. Issuing “Official Receipt (with or without strikethrough) generated by CRM/POS machines, e-receipting, electronic invoicing software, CAS or CBA with AR for the sale of goods or services after December 31, 2024 or until the completion of machine/system reconfiguration/enhancement, whichever comes first, and issuing manual/loose lead “Official Receipt” without converting them to “Invoice” for the sale of goods or service starting April 27, 2024, will not be considered as evidence of sales of goods or services and shall be tantamount to failure to issue or non-issuance of Invoice required under Section 6(A) hereof. Such failure is subject to penalty of not less than One Thousand Pesos (Php 1,000.00) but not more than Fifty Thousand Pesos (Php 50,000.00) and suffer imprisonment of not less than two (2) years but not more than four (4) years pursuant to Section 264(a) of the Tax Code.

Section 3. Subsequent Amendments on the Extension of Deadlines. – The Commissioner of Internal Revenue may further extend the deadlines on the transition period prescribed in these Regulations as may be deemed 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 remail in full force and effect.