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BIR Updates

Revenue Memorandum Circular No. 22-2024

2024-02-19T14:13:25+08:00

This Circular is issued to announce the availability of BIR Form No. 1702-EX [Annual Income Tax Return Corporation, Partnership and Other Non-Individual Taxpayers EXEMPT Under the Tax Code, as Amended, {Sec. 30 and those exempt in Sec. 27 (C)} and Other Special Laws, With NO Other Taxable Income] January 2018 (ENCS) v2 in the Electronic Filing and Payment System (eFPS). The aforementioned BIR Form shall be filed and the tax due thereon paid on or before the 15th day of the 4th month following the close of the taxpayer's taxable year.  

Revenue Memorandum Circular No. 22-20242024-02-19T14:13:25+08:00

Revenue Memorandum Circular No. 23-2024

2024-02-19T16:06:20+08:00

This circular is issued to announce the availability of BIR Form No. 1701A [Annual Income Tax Return for Individuals Earning PURELY from Business/Profession (Those under the graduated income tax rates with OSD as mode of deduction OR those who opted to avail of the 8% flat income tax rate)] in the Electronic Filing and Payment System (eFPS).  The return shall be filed on or before April 15 each year covering income for the preceding taxable year. Mandated eFPS users/filers who are required to file the said return are advised to check if it is already included in the list of tax [...]

Revenue Memorandum Circular No. 23-20242024-02-19T16:06:20+08:00

REVENUE MEMORANDUM CIRCULAR NO. 19-2024

2024-02-15T15:20:43+08:00

The Table below shows the differences between the accounting treatment and current tax treatment on interest expenses.  Particulars  Accounting Treatment  Current Tax Treatment  Interest Expense on borrowing arrangements  Interest is recognized as an expense using the effective interest method. Interests incurred directly attributable to the acquisition of a qualifying asset are capitalized as part of the cost of the asset.  Interest can be claimed as a deduction, subject to certain limitations, provided all the criteria are met.    Interest incurred to acquire property used in trade, business or exercise of profession may be recognized as an expense in the year incurred [...]

REVENUE MEMORANDUM CIRCULAR NO. 19-20242024-02-15T15:20:43+08:00

Revenue Memorandum Circular No. 18-2024

2024-02-15T13:26:05+08:00

This announces the availability of the following BIR Forms in the Electronic Filing and Payment System (eFPS): BIR Form No.   Description   Deadline of Filing/Payment  1700  Annual Income Tax Return for Individuals Earning Purely Compensation Income (Including Non-Business/Non-Profession Related Income)  On or before April 15 of each year covering income for the preceding taxable year.  2000  Monthly Documentary Stamp Tax Declaration/Return  Within five (5) days after the close of the month when the taxable document was made, signed, issued, accepted or transferred or when reloading a metering machine becomes necessary or upon remittance by revenue collection agents of collection from [...]

Revenue Memorandum Circular No. 18-20242024-02-15T13:26:05+08:00

Revenue Memorandum Circular No. 14-2024

2024-02-15T13:25:17+08:00

This memorandum circular advises all taxpayers that effective January 22, 2024, the BIR will cease to collect the Annual Registration Fee (ARF) from business taxpayers. This is in compliance with the Republic Act No 11976 (Ease of Paying Taxes Act). As a result, business taxpayers are exempt from filing BIR Form No. 0605 and paying the Five Hundred Pesos (P500.00) ARF (for new business and annual renewal). Business taxpayers with existing BIR Certificate of Registration (COR) that includes the Registration Fee will retain its validity. They may choose to update/replace their COR at their convenience by surrendering their old COR at [...]

Revenue Memorandum Circular No. 14-20242024-02-15T13:25:17+08:00

Revenue Memorandum Circular No. 13-2024

2024-02-12T16:00:17+08:00

The table below shows the differences between the recording and treatment of income and expenses relating to employee retirement benefits under the Philippine Financial Reporting Standards (PFRS)/Philippine Accounting Standards (PAS) and the National Internal Revenue Code of 1997, as amended.  Particulars  PFRS  Taxation  RA No. 4917  RA No. 7641  Employee benefit expense  Employee benefit expense comprises of:  Service costs  Net interest costs  Contribution to a tax qualified plan is deductible expense  Actual retirement benefits paid is a deductible expense  Current service cost  Recognized in profit or loss as part of employee benefit expense  Contribution for normal cost is deductible in full [...]

Revenue Memorandum Circular No. 13-20242024-02-12T16:00:17+08:00

Revenue Memorandum Circular No. 15-2024

2024-02-15T13:25:33+08:00

Prescribes the temporary use of BIR Form No. 0605 for the remittance of Creditable Withholding Tax (CWT) by Joint Ventures/Consortiums under Revenue Regulations (RR) No. 14-2023 while waiting for the finalization of the revised BIR Form No. 1601-EQ [Quarterly Remittance Return of Creditable Income Taxes (Expanded)], which shall include the additional Alphanumeric Tax Code (ATCs) for the different new CWT rates.  All concerned joint ventures/consortiums shall comply with the following procedures in remitting the CWT prescribed by RR No. 14-2023:  BIR Form No. 0605 (Payment Form) shall be accomplished using only the electronic Filing and Payment System (eFPs) or the eBIRForms [...]

Revenue Memorandum Circular No. 15-20242024-02-15T13:25:33+08:00

REVENUE MEMORANDUM CIRCULAR NO. 12-2024

2024-02-08T15:25:23+08:00

Clarifies the treatment of foreign currency transactions for financial reporting and internal revenue tax purposes.   The Table below shows the differences between the foreign exchange (forex) gains/losses recognized in the financial statements prepared under the Philippine Financial Reporting Standards (PFRS)/Philippine Accounting Standards (PAS) and the forex gains/losses as income or allowable deduction for Income Tax purposes.  PARTICULARS  PFRS  CURRENT TAX TREATMENT  Initial measurement of foreign currency transactions  All foreign currency transactions are recorded in the entity’s functional currency using the spot rate of exchange at transaction date.  Foreign currency transaction are translated into Philippine Peso using the prevailing interbank reference [...]

REVENUE MEMORANDUM CIRCULAR NO. 12-20242024-02-08T15:25:23+08:00

REVENUE MEMORANDUM CIRCULAR NO. 11-2024

2024-02-08T13:32:51+08:00

For Income Tax purposes, an operating lease is defined as a contract under which the asset is not wholly amortized during the primary period of the lease, and where the lessor does not rely solely on the rentals during the primary period for his profits, but looks for the recovery of the balance of his costs and for the rest of his profits from the sale or re-lease of the returned asset of the primary lease period.   "Finance lease" or full payout lease, on the other hand, is a contract involving payment over an obligatory period (also called primary or [...]

REVENUE MEMORANDUM CIRCULAR NO. 11-20242024-02-08T13:32:51+08:00

Revenue Memorandum Circular No. 16-2024

2024-02-07T14:18:36+08:00

Extension of the Deadline for the Submission of Alphabetical List of Employees/Payees from whom taxes were withheld. The deadline of submission of the alphalist for the taxable year 2023 using the new version of the Alphalist Data Entry and Validation Module is hereby extended up to February 28, 2024. A separate tax advisory shall be posted on the website of the Bureau informing the availability of the updated version of the said module. For those taxpayers- employers who have employees availing 5% tax credit under the PERA Act of 2008 and who have not submitted their alphalist for the year 2022, [...]

Revenue Memorandum Circular No. 16-20242024-02-07T14:18:36+08:00
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