BIR Updates

On September 28, 2022, the BIR issues the RMC No 131-2022 to announce the availability of Offline eBIRForms Package Version 7.9.3 which can be downloaded from the following sites: www.bir.gov.ph and www.knowyourtaxes.ph/ebirforms The new Offline eBIRForms Package has the following modifications: Additional Alphanumeric Tax Codes (ATCs) in BITR Form No. 0605 to be used by the International Carriers in paying their taxes in reference to Revenue Memorandum Order No. 37-2022, to wit: Type of Tax Tax Type       ATC Income Tax      IT     IC 080 Percentage Tax     PT    PT 041 Documentary Stamp Tax    [...]

On September 26, 2022, the BIR Issued RMC No. 130-2022 in connection with the Memorandum Circular No. 06 issued by the Office of the President due to the inclement weather brought about by Super Typhoon “Karding”. In this regard, the efiling/filing of returns (BIR Forms 2550M, 2550Q, and 2551Q) and the payment of corresponding taxes due thereon as well as the submission of the reportorial documents that will fall due on September 26, 2022, shall be extended until September 27, 2022, due to suspension of work in government offices in National Capital Region (NCR), including provinces in Regions I, II, III, [...]

On September 13, 2022, the BIR Issued Revenue Regulation No. 12-2022 which prescribes the policies and guidelines for the availment of incentives under Republic Act No. 9999 (Free Legal Assistance Act of 2010). Lawyers or professional partnerships rendering actual free Legal Services shall be entitled to an allowable deduction from the gross income equivalent to the lower of: The amount that could have been collected for the actual free Legal Services rendered; or Ten percent (10%) of the gross income is derived from the actual performance of the legal profession. The actual free Legal Services shall be exclusive of the minimum [...]

On September 7, 2022, the BIR Issued the Revenue Memorandum Circular (RMC) No. 127-2022 lifting the Suspension of the Conduce Enforcement Activities and Operations  Covered by Outstanding Mission Orders (MOs) and Removal of the Prohibition on the Issuance of the New MOs Authorizing such Activities and Operations under Revenue Memorandum Circular (RMC) No. 77-2022 dated 30 May 2022 effective immediately, the following are hereby Lifted and Removed: All field audits and other field operations of the Bureau of Internal Revenue (Bureau) are covered by outstanding  Mission Orders (MOs) authorizing the conduct of enforcement activities and operations of any kind, such as [...]

On August 31, 2022 BIR issued the RMC 123-2022 which clarifies the provisions of Revenue Regulation (RR) No. 6-2022 relative to the removal of the five (5) year validity period on receipts/invoices, which shall tale effect on July 16,202 (15 days from the date of its publication, which was July 1, 2022). All taxpayers who are/will be using Principal and Supplementary Receipts/Invoices shall be covered by the said Regulations or taxpayers with/who will apply for any of the following: Authority to Print (ATP) Registration of Computerized Accounting System (CAS)/ Computerized Books of Accounts (CBA) and/or its Components;and Permit to Use (PTU) [...]

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 [...]