A compilation of recent legislation and issuances of the Bureau of Internal Revenue and other government agencies relevant to the field of taxation and corporate practice.
Revenue Regulations (RR) No. 1-2017 - Regulations governing applications for Value-Added Tax (VAT) credit/refund filed under Section 112 of the Tax Code, as amended, prior to RMC No. 54-2014.
Revenue Regulations (RR) No. 2-2002 - Tax Administration Treatment of Petroleum and Petroleum Products Imported into the Philippines Including those Coming in Through Freeport Zones and Economic Zones and Registration of All Storage Tanks, Facilities, Depots, and Terminals.
Revenue Memorandum Circular (RMC) No. 111-2016 - Issuance of Subpoena Duces Tecum and submission of reports of investigation/verification on tax cases/dockets
Revenue Memorandum Circular (RMC) No. 85-2016 - Further Clarification on Issues Concerning Suspension Audit Pursuant to Revenue Memorandum Circular (RMC) No. 70-2016, As supplemented by RMC No. 75-2016.
Revenue Memorandum Circular (RMC) No. 84-2016 - Exempting all taxpayers applying for issuance of tax credit/refund based on writ of Execution issued by the Court of Tax Appeals and Supreme Court from the requirement of Certifications on Outstanding Tax Liabilities/Delinquency Verification Slips prescribed under all existing revenue regulations, rules and procedures.
Revenue Memorandum Order (RMO) No. 26-2016 - Handling Disputed Assessments
Revenue Memorandum Order No. 14-2016 – New Guidelines for Waivers
Revenue Regulations (RR) No. 1-2016: Amending certain provisions of RR No. 3-2005
Revenue Memorandum Order (RMO) 4-2016 - A recommendation by a revenue officer for the denial of an application for compromise settlement, abatement, or cancellation is considered FINAL and the outstanding tax liabilities and/or penalties shall be imm
Revenue Memorandum Circular (RMC) No. 57-2015 – Submission of Inventory Lists and Other Reporting Requirement
Revenue Memorandum Circular (RMC) 41-2015 - Documentary Requirements Necessary for the Registration of Labor Organizations, Associations, or Group of Unions or Workers under Section III (C) of Annex A of Revenue Regulations (RR) No. 7-2012.
Revenue Memorandum Circular (RMC) No 10-2015 – Filing of Income Tax Returns (BIR Form No. 1700) of Employees who belong to Employer identified as Large Taxpayer
Revenue Memorandum Circular (RMC) No 9-2015 – Enhanced BIR Registration Forms for the Implementation of Taxpayer Registration System (TRS) under Electronic Tax Information System (eTIS-1)
Revised Consolidated Schedule of Compromise Penalties for Violation of the National Internal Revenue Code
The P82,000 tax exemption on 13th month pay and other benefits applies beginning January 1, 2015.
Reduction and condonation of real property taxes on the power generation facilities of IPPs under BOT contracts with GOCCs
The BIR recently issued Revenue Memorandum Circular (RMC) No. 6-2015 which circularizes Executive Order (EO) No. 173 dated October 31, 2014.
Under Section 1 of EO No. 273, as circularized in RMC No. 6-2015, all liabilities for real property tax on property, machinery and equipment (including special levies accruing to the Special Education Fund) actually and directly used by IPPs for the production of electricity under Build-Operate-Transfer (BOT) contracts (whether denominated Power Purchase Agreements (PPA), Energy Conversion Agreements (ECA) or other contractual agreements) with GOCCs, for all years up to 2014 are reduced to an amount equivalent to the tax due computed based on an assessment level of 15% of the fair market value of said property, machinery and equipment depreciated at the rate of 2% per annum, less amounts already paid by the IPPs.
Further, all fines, penalties and interest on such deficiency real property tax liabilities are condoned and the concerned IPPs are relieved from payment.
Revenue Memorandum Order (RMO) 1-2015 - Amendments to the list of requirements for accreditation of Importers and Customs Brokers
RMO 1-2015 was issued by the BIR last December 19, 2014 removing the following from the list of requirements:
1. Certified copy of the BIR Certificate of Registration (COR); and2. SEC Registration and Articles of Incorporation
Revenue Regulations (RR) 1-2015, was published in Manila Bulletin on January 6, 2015 and shall take effect immediately
RR 1-2015 includes as non-taxable “de minimis benefits” the following:
1. Benefits received by an employee by virtue of a collective bargaining agreement (CBA); and 2. Productivity incentive schemes
Provided, that the total annual monetary value received from the 2 items above combined, do not exceed P10,000.00 per employee per taxable year
Emerging Rule for Income Tax Refunds
Revenue Memorandum Order (RMO) No. 34-2014 was issued by the Bureau of Internal Revenue (BIR) on September 18, 2014 clarifying that absence of a valid, current and subsisting tax exemption ruling will not divest such qualified entities of their tax exemption privilege. However, those who fail to secure such tax exemption rulings will just have to prove that they have complied with the conditions set forth in the law for tax exemption during tax investigation.