BIR Updates

On August 22. 2022 the BIR issued the Revenue Memorandum Circular No. 121-2022, which prescribes the guidelines on lifting the suspension of field audit and operations on all outstanding Letters of Authority/Audit Notices and Letter Notices pursuant to Revenue Memorandum Circular (RMC) No. 77-2022. The lifting of the suspension of field audit and operations shall be on per Investigating Office upon approval by the Commissioner of Internal Revenue (CIR) of the Memorandum Request from the following: Investigating Office Requesting Office Recommending Approval Revenue District Offices (RDOs)/ Regional Investigation Divisions (RIDs)/VAT Audit Sections/ Office Audit Sections Regional Director Assistant Commissioner, Assessment Service, [...]

This circular is issued on June 30, 2022, that clarifies the service of the electronic Letter of Authority (eLA) to the taxpayer within the 30-day period from the date of issuance thereof pursuant to Revenue Audit Memorandum Order (RAMO) No. 1-2000. RAMO No. 1-2000 was already amended by RAMO No. 1-2020, thereby deleting the provision in Item No. VII 2.3 of RAMO No. 1-2000 to read as follows:     “ 1.   Serving of eLA  On the first opportunity of RO to have a personal contact with the taxpayer, he should present the eLA together with the checklist of requirements. The eLA [...]

Revenue Regulation No. 8-2022 issued on June 30, 2022, prescribes the policies and guidelines for the implementation of the issuance of e-receipts instead of manual receipts and electronic reporting of the sales data to the Bureau.   These regulations shall take effect immediately after publication in a newspaper of general circulation. The following taxpayers are mandated to issue electronic receipts or sales/ commercial invoices under Section 237 of NIRC, as amended: Engaged in the export of goods and services; Engaged in electronic commerce (e-commerce); and Under the Large Taxpayers Service (LTS). As amended, required the abovementioned taxpayers, except for the taxpayers engaged [...]

Revenue Regulation No 6- 2022 issued on June 30, 2022, implements the removal of 5 year Validity Period on Receipts/Invoices. This Regulation shall cover taxpayers who will apply the following: ATP Official Receipts, Sales Invoices (SIs), and other Commercial Invoices (CIS); Registration of Computerized Accounting System (CAS)/Component of CAS; and PTU CRMs and POS machines. This shall take effect fifteen (15) days after publication in the Official Gazette or in a newspaper of general circulation, whichever comes earlier. Policies and Guidelines: 1.  All PTUs to be issued shall be valid unless revoked by the BIR on the following grounds: a.  Tampering [...]

On June 9, 2022, BIR issued RMC No. 78-2022 which clarifies the Income Tax Treatment for the different classifications of educational institutions and their tax obligations. Income Tax Treatment: I. Proprietary Educational Institution Domestic Corporation The Income of a proprietary educational institution, as well as Non-stock, Non-Profit educational institution is subject to the ten percent (10%) preferential Income Tax rate under Section 27(B) of the Tax Code. Provided that beginning July 1, 2020, until June 30, 2023, the tax rate imposed shall be one percent (1%). If Unrelated trade, business, or other activity exceeds fifty percent (50%) of the total gross [...]

On May 30, 2022, BIR Issued the Revenue Memorandum Circular (RMC) No. 77-2022, which suspends all field audits of the BIR covered by Letters of Authority (LOAs)/Mission Orders (MOs) relative to examinations of taxpayers’ books of account and accounting records. As such, no field audit, field operations, or any form of business visitation in the execution of LOAs/MOs should be conducted, nor any new LOAs/MOAs ve further issued, except in the following cases: Investigation of cases prescribing on or before October 31, 2022 Processing and verification of estate tax returns, donor’s tax returns, capital gains tax returns, and withholding tax returns [...]

On May 30, 2022 BIR Issued the Revenue Memorandum Circular (RMC) NO. 76-2022, to suspends until further notice all field audit of the BIR pursuant to, and under authority of, all Task Forces, created thru Revenue Special Orders (RSOs), Operation Memoranda (OM), and other similar orders or directives, relative to examinations of taxpayers’ books of account and accounting records effective May 30, 2022. As such, no field audit, field operations or any form of business visitation in the execution of Letters of Authority/Audit Notices (LOAs) or Mission Orders (MOs) should be conducted by the said Task Forces. All reports must be [...]

On May 18, 2022 the BIR Issued the Revenue Memorandum Circular No. 71-2022, which circularizes the Joint Memorandum Circular No. 1-2022 entitled “Guidelines on the Provision of the Mandatory Statutory Benefits and Privileges of the Senior Citizens and Persons with Disabilities on their Purchases through Online (E-Commerce) and Phone Call/SMS”. The following were the highlights included in the Joint Memorandum Circular No. 1-2022: Senior Citizens (SC) or a Person with Disabilities (PWD) shall be entitled to the 20% discount and 12% Value-Added Tax (VAT) exemption of their purchase of goods and services; and 5% special discount for basic necessities and prime [...]

RMC No. 46-2022: Clarifications on the Deadline of Submission of Attachments to the 2021 Annual Income Tax Return and Other Matters On April 18, 2022, the BIR issued the Revenue Memorandum Circular (RMC) No. 46-2022 in relation to Revenue Memorandum Circular (RMC) No. 42-2022 and 44-2022, particularly on the deadline for the submission of attachments to the 2021 Annual Income Tax Return (AITR). In view thereof, it is hereby clarified that the deadline for submission of attachments to the said AITR is on or before May 31, 2022, whether the electronically filled AITR is an original or an amended return. The [...]

RMC No. 42-2022: Clarifying the Deadline for Filing of Annual Income Tax Return (AITR) for Taxable Year Ending December 31, 2021; Providing Guidelines in the Manner of Filing and Payment thereof; and Non-imposition of Surcharge on Amended Returns On April 12, 2022 BIR has issued the Revenue Memorandum Circular No. 42-2022 in relation to the BIR Advisory dated March 22, 2022 this Circular is hereby issued to reiterate the deadline for the filing of Annual Income Tax Return (AITR) for Calendar Year 2021 as well as the payment of the corresponding taxes due thereon is on April 18, 2022 (Monday), since [...]