Revenue Memorandum Circular No. 060-2026


In line with Republic Act No. 11976, otherwise known as “Ease of Paying Taxes (EOPT) Act”, as implemented by Revenue Regulations (RR) Nos 3-2024 and 7-2024, this circular is being issued to amend Revenue Memorandum Circular (RMC) No. 116-2024 re: Inclusion of Lifeline Subsidy and Green Energy Auction Allowance as government mandated charges not subject to Output Tax and Creditable Withholding Tax on VAT and Income. Accordingly, Q&A No. 3 of RMC No. 116-2024 is hereby amended to read as follows:

Q3: Are the government mandated charges shall nor be subject to Output Tax and consequently on Creditable Withholding on VAT and Income?

A3: The following mandated government charges shall not be subject to Output Tax and Creditable Withholding Tax on VAT and Income.

  1. Energy Tax under Batas Pambansa Blg. 36;
  2. Universal charges (UC) under Sec. 34 of R.A. No. 9136 (EPIRA);
  3. Benefits to Host Communities under Sec. 66 of R.A. 9136 (EPIRA) and DOE Energy Regulations No. 1-94;
  4. Feed-in Tariff Allowance (FIT-All) under ERC Res. 24, Series of 2013;
  5. National and Local Franchise Taxes under Secition 9 of RA No. 9511 and Art. III of ERC Res. No. 02, Series of 20221, respectively;
  6. Real Property Tax (RPT) under Art. II of ERC Res. No. 02, Series of 2021;
  7. Lifeline Subsidy under Section 1 of ERC Res. No. 02, Series of 2026; and
  8. Green Energy Auction Allowance (GEA-All) under ERC Res. No. 6, Series of 2025.

All other revenue memorandum circulars and rulings inconsistent herewith are hereby amended, modified or repealed accordingly.

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