Marcos: Adjusting gov’t working hours should be ‘practical’ for commuters
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [JANUARY 14-21]
- BIR EXTENDS THE REGISTRATION OF PERMANENTLY BOUND LOOSE-LEAF BOOKS OF ACCOUNTS/INVOICES & COMPUTERIZED BOOKS OF ACCOUNTS
- BIR AMENDS THE EARLIER RMC INCORPORATING THE IMPACT OF EOPT ON TAX RECONCILING ITEMS OF FOREIGN EXCHANGE TRANSACTIONS, RETIREMENT & INTEREST EXPENSE
- BIR PROVIDES POLICIES & GUIDELINES IN THE REPORTING OF CANNOT BE LOCATED (CBL) TAXPAYERS
- BIR PROVIDES POLICIES, GUIDELINES & PROCEDURES IN THE PROCESSING & ISSUANCE OF TAX CLEARANCE FOR FINAL SETTLEMENT OF GOVERNMENT CONTRACTORS
- COURT OF TAX APPEALS CASES
I.TAX & BUSINESS-RELATED NEWS [JANUARY 14-21]
- Banks can’t unreasonably refuse loan payments – SC
- Mayors now know why LGUs getting lower tax share
- Marcos: Adjusting gov’t working hours should be ‘practical’ for commuters
- Marcos urges Tesla to manufacture EVs in PH
- St. Luke’s robot-aided heart surgery a first in Southeast Asia
- Marcos appoints 30 to prosecutors’ posts
- DHSUD gets high complaints resolution rating
- SBC unveils 2 new lending programs for small enterprises
- KKR hires Goldman for selling stake in Philippine fintech Maya, sources say
- Waterfront Manila reopening delayed anew to 2026
- PH ranks above global average in English proficiency
- Accounting technicians can boost Philippine economy – group
- Mimaropa workers get wage increase
- ‘Sale of NFA rice to LGUs illegal’
- Coca-Cola Beverages Philippines changes company name
- Make CTPL optional for motorists with broad insurance policies – Herrera
- Beijing mulls selling TikTok to Elon Musk
- Camp John Hay businesses asked to get permits from Baguio gov’t
- LTFRB to standardize guidelines for special passenger discounts on ride hailing platforms
- Filipino tourists to Japan advised to file visa applications 2 months before arrival
II. BIR EXTENDS THE REGISTRATION OF PERMANENTLY BOUND LOOSE-LEAF BOOKS OF ACCOUNTS/INVOICES & COMPUTERIZED BOOKS OF ACCOUNTS
Revenue Memorandum Circular (RMC) No. 006-2025, issued on January 16, 2025, extends the registration of permanently bound loose-leaf books of accounts/invoices and computerized books of accounts and other accounting records from January 15, 2025, and January 30, 2025, to January 31, 2025, and February 17, 2025, respectively. This extension is due to ongoing technical concerns of the Online Registration and Update System (ORUS) in intermittent log-in connection issues.
III. BIR AMENDS THE EARLIER RMC INCORPORATING THE IMPACT OF EOPT ON TAX RECONCILING ITEMS OF FOREIGN EXCHANGE TRANSACTIONS, RETIREMENT & INTEREST EXPENSE
Revenue Memorandum Circular (RMC) No. 005-2025, issued on January 16, 2025, amends certain provisions of RMC No. 11-2024, 12-2024, 13-2024, and 19-2024, specifically providing clarifications/transitory provisions to align them with the provisions of Republic Act (R.A.) No. 11976, or the Ease of Paying Taxes Act, its Implementing Rules and Regulations, and other issuances.
Some of the highlights include:
- For tax purposes, Initial Direct Costs, which are payments for lease negotiation and execution, are deductible and eligible for Value-Added Tax (VAT) credit in the year they are incurred or accrued and are subject to a 5% withholding tax.
- Effective January 1, 2024, the non-withholding of tax will no longer be a basis for disallowing interest expense claims; however, the payor remains obligated to withhold and remit the tax.
- For tax purposes, offsetting or netting distinct transactions is strictly prohibited; each transaction is a separate taxable event and must be recorded and taxed independently.
- Taxpayers using registered Computerized Accounting System (CAS)/Computerized Books of Accounts (CBA) must align foreign exchange (forex) rates with RMC 12-2024 requirements and update their systems if financial impacts arise, following existing enhancement policies.
- Addressing gaps between the Philippine Financial Reporting Standard (PFRS) and the Tax Code applies only to full PFRS, excluding PFRS for Small-Medium Enterprises (SMEs) and Small Entities, but SMEs and Small Entities may opt to follow RMC No. 13-2024 with required disclosures. Securities and Exchange Commission (SEC) categorizes large, medium, small, and micro entities based on specific criteria such as total assets, liabilities, and regulatory filing requirements.
- Employer contributions to a retirement fund are deductible if they meet Republic Act (R.A.) No. 4917 requirements and obtain a BIR tax qualification certificate, but contributions made before applying for tax qualification are not deductible.
- Employees can avail of tax-exempt retirement benefits under R.A. No. 7641 or the Retirement Pay Law only if their employer has no existing retirement plan covering them.
IV. BIR AMENDS THE EARLIER RMC INCORPORATING THE IMPACT OF EOPT ON TAX RECONCILING ITEMS OF FOREIGN EXCHANGE TRANSACTIONS, RETIREMENT & INTEREST EXPENSE
Revenue Memorandum Order (RMO) No. 004-2025, issued on January 14, 2025, provides the policies and guidelines in the reporting of Cannot Be Located (CBL) taxpayers and procedures in handling the cases pertaining thereto.
Highlights include the determination and understanding of CBL taxpayers, identification of acceptable documents that will support the report that a certain taxpayer is CBL, guidelines and procedures in the issuance of deficiency tax assessment to CBL taxpayers, and procedures in the tagging and un-tagging of CBL status.
V. BIR PROVIDES POLICIES, GUIDELINES & PROCEDURES IN THE PROCESSING & ISSUANCE OF TAX CLEARANCE FOR FINAL SETTLEMENT OF GOVERNMENT CONTRACTORSHANDLING THE CASES PERTAINING THERETO
Revenue Memorandum Order (RMO) No. 002-2025, issued on January 6, 2025, provides the policies, guidelines, and procedures in the processing and issuance of Tax Clearance Certificates for Final Settlement of Government Contracts (TCFG).
Highlights include the following:
1. Covered government contracts and tax types
2. Issuance of TCFG shall be on a per-contract basis
3. Criteria for government contractors to be issued with TCFG
3.1 No open valid “stop-filer” cases.
3.2 A regular user of the BIR eFPS from the time of enrollment up to the time filing of the renewal of TCFG for those with previously issued TCFG.
3.3 Not tagged as “Cannot Be Located (CB)” taxpayer.
3.4 No Accounts Receivable/Delinquent Account (ARDA). However, applicants with delinquent accounts may still be issued TCVC-FG and TCFG, provided the tax liabilities involved were the subject of a pending application for compromise settlement and/or abatement of penalties.
3.5 No pending criminal information filed in any court of competent jurisdiction arising from any tax or tax-related cases.
VI. CTA CASES
[TAX ASSESSMENT ISSUED WITHOUT PROPER AUTHORITY CAN BE DECLARED INVALID] [THE ISSUANCE OF MOA DOES NOT HAVE THE SAME WEIGHT OF AUTHORITY WITH LOA]
Petitioner Orient Overseas Container Line LTD. filed a Petition for Review praying for the cancellation and withdrawal of the Final Decision on Disputed Assessment (FDDA) issued by the Respondent Commissioner of Internal Revenue (CIR). The Petitioner argued that the assessment was void as the Revenue Officer (RO) conducting the audit was not named in a valid Letter of Authority (LOA), rendering the process invalid. Additionally, the assessment for each tax item lacked factual and legal bases, and compromise penalties were unjustified. On the other hand, the Respondent countered that the LOA issued was valid and that the RO who conducted the audit was properly authorized under the authority granted by the Memorandum of Assignment (MOA). Moreover, the assessed tax deficiencies and penalties were valid and supported by law, with the presumption of correctness of the assessments. In ruling, the Court held that the LOA was essential and that the MOA could not substitute it. Citing Section 13 of the Tax Code of 1997, the authority granted under an LOA is two-fold: (1) the authority to examine taxpayers within a district’s jurisdiction to ensure the correct amount of tax is collected; and (2) the authority to examine taxpayers and recommend the assessment of any deficiency taxes due. In this context, only the CIR or his duly authorized representative may issue the LOA. In the case at bar, the RO continued the investigation solely based on a MOA, which was signed only by the Division Chief of the RLTAD-2. Consequently, the RO conducted an audit without a valid LOA. In the absence of a new and valid LOA, any resulting assessment would be deemed VOID. Thus, the Petition was GRANTED, and the assessment was declared VOID. [ORIENT OVERSEAS CONTAINER LINE LTD. REPRESENTED BY OOCL (PHILIPPINES) INC. VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 10296, JANUARY 9, 2025]
TAXPAYERS MUST FILE PROTEST LETTERS ON TIME & IN THE CORRECT FORMAT; FAILURE TO DO SO RESULTS IN FINAL TAX ASSESSMENTS WITH NO JUDICIAL RECOURSE
Petitioner, Jeanifer P. Ajoc, filed a Petition for Review seeking the nullification of the tax assessments issued by the Commissioner of Internal Revenue (CIR) for the taxable year 2014. The Petitioner argued that the assessments were void due to the alleged violation of her right to due process, as the Final Letter of Demand (FLD) was allegedly not properly served. Likewise, the Respondent’s right to collect had already prescribed, and the waiver extending the assessment period was invalid. Further, she referenced a Certificate of No Outstanding Liability issued by the BIR, asserting that it cleared her of any tax liabilities. On the other hand, the Respondent maintained that the CTA lacked jurisdiction over the case because the assessments had already become final, executory and demandable due to the Petitioner’s failure to file a valid administrative protest. The Respondent also presented evidence of proper service of the FLD, including a Registry Return Receipt, and argued that the Petitioner did not comply with the mandatory requirements for filing an administrative protest. In ruling, the Court found that the Petitioner’s authorized representative had properly received the FLD. It also ruled that the Petitioner had failed to comply with the procedural requirements outlined in Section 228 of the Tax Code of 1997, as amended, and its implementing rules. Specifically, the Petitioner did not file a valid administrative protest within the required period after receiving the FLD, and the protest did not meet the prescribed requirements under Revenue Regulations No. 12-99, as amended by RR No. 18-2013, including the lack of necessary details and supporting evidence. Furthermore, the Petitioner did not submit all relevant supporting documents within the 60-day period mandated by Section 228, which rendered the protest void. Without a valid administrative protest, there will be no decision on an evaluation disputed for the Court to review. Consequently, the Petition was DISMISSED for lack of jurisdiction. [JEANIFER P. AJOC VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 10642, DECEMBER 17, 2024]
Banks can’t unreasonably refuse loan payments – SC [Philippine Daily Inquirer, January 21, 2025]
Banks are not allowed to unreasonably refuse payment from borrowers who risk facing higher interest and additional charges, the Supreme Court said, as it ordered a bank to accept a check tendered by a couple as full payment for their personal loan.
https://newsinfo.inquirer.net/2026643/banks-cant-unreasonably-refuse-loan-payments-sc
Mayors now know why LGUs getting lower tax share [Philippine Daily Inquirer, January 21, 2025]
The reason is that cuts were made in past budget laws to accommodate special allotments for important national obligations, such as the block grant for the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) and the tobacco excise taxes that go to a special purpose fund, Magalong said.
https://newsinfo.inquirer.net/2026647/mayors-now-know-why-lgus-getting-lower-tax-share
Marcos: Adjusting gov’t working hours should be ‘practical’ for commuters [GMA News Online, January 20, 2025]
President Ferdinand “Bongbong” Marcos Jr. said Monday the proposal to adjust the working hours of national government agencies in Metro Manila is being studied, adding that it should be “practical” for commuters.
Marcos urges Tesla to manufacture EVs in PH [Philippine News Agency, January 20, 2025]
Tesla officially entered the Philippines on Nov. 8, 2024, through its subsidiary, Tesla Motors Philippines Inc., making it its fourth market in Southeast Asia, following Singapore, Thailand and Malaysia.
https://www.pna.gov.ph/articles/1242130
St. Luke’s robot-aided heart surgery a first in Southeast Asia [Philippine Daily Inquirer, January 19, 2025]
On Dec. 11, 2024, a team from St. Luke’s Medical Center (SLMC) at Bonifacio Global City, Taguig, with assistance from the West Virginia University’s Heart and Vascular Institute, successfully performed the first-ever robot-assisted cardiac surgery in the Philippines and in Southeast Asia.
Marcos appoints 30 to prosecutors’ posts [Inquirer Plus, January 19, 2025]
President Marcos has appointed 30 prosecutors, including a former assistant executive secretary of the late former President Benigno Aquino III, who will serve in regional, provincial and city prosecutor’s offices across the country.
https://plus.inquirer.net/news/marcos-appoints-30-to-prosecutors-posts/
DHSUD gets high complaints resolution rating [The Manila Times, January 18, 2025]
The DHSUD received a total of 758 complaints from Jan. 1 to December last year and was able to resolve all within the 72-hour period except for 11 cases.
SBC unveils 2 new lending programs for small enterprises [Inquirer Plus, January 17, 2025]
Small Business Corp. (SBC), the financing arm of the Department of Trade and Industry (DTI), is set to launch today two new financing programs for micro, small and medium enterprises (MSMEs), with one geared towards business expansion and the other allowing purchase orders to be used as credit collateral.
https://plus.inquirer.net/business/sbc-unveils-2-new-lending-programs-for-small-enterprises/
KKR hires Goldman for selling stake in Philippine fintech Maya, sources say [interaksyon, January 17, 2025]
New York-headquartered KKR owns more than 20% of Maya and the potential sale, if it goes through, could value Maya at more than $2 billion, one of the sources said.
Waterfront Manila reopening delayed anew to 2026 [Philippine Daily Inquirer, January 17, 2025]
The partial reopening of Waterfront Manila Hotel and Casino in Ermita has been delayed again, this time for a full year, as its operator faces “unforeseen challenges” in completing the first phase of reconstruction.
https://business.inquirer.net/501718/waterfront-manila-reopening-delayed-anew-to-2026
PH ranks above global average in English proficiency [The Manila Times, January 16, 2025]
THE Pearson Global English Proficiency Report 2024, released on Wednesday, revealed that the Philippines ranked above the global average when it came to English proficiency.
Accounting technicians can boost Philippine economy – group [Inquirer.Net, January 16, 2025]
“However, the UK’s experience shows that Accounting Technicians can help all businesses and organizations adapt to changing times and workload pressures while maintaining high standards.”
https://technology.inquirer.net/139947/accounting-technicians-can-boost-philippine-economy-group
Mimaropa workers get wage increase [The Manila Times, January 16, 2025]
The Regional Tripartite Wages and Productivity Board (RTWPB) of the Department of Labor and Employment (DOLE)-Mimaropa (Mindoro, Marinduque, Romblon and Palawan) Region announced the implementation of a P35 wage increase for minimum wage earners and a P1,000 increase to domestic workers.
https://www.manilatimes.net/2025/01/16/regions/mimaropa-workers-get-wage-increase/2039285
‘Sale of NFA rice to LGUs illegal’ [The Philippine Star, January 16, 2025]
Federation of Free Farmers (FFF) national manager Raul Montemayor said the government needs to declare a food emergency to warrant the sale of NFA rice at negotiated prices.
https://www.philstar.com/nation/2025/01/16/2414512/sale-nfa-rice-lgus-illegal
Coca-Cola Beverages Philippines changes company name [GMA News Online, January 15, 2025]
Coca-Cola Beverages Philippines Inc. (CCBPI), the bottling partner and official distributor of Coca-Cola products in the country, on Wednesday officially changed its legal name to Coca-Cola Europacific Aboitiz Philippines Inc. (CCEAP).
Make CTPL optional for motorists with broad insurance policies – Herrera [Inquirer.Net, January 15, 2025]
If HB No. 11275 is signed into law, it will amend different sections of Republic Act No. 10607 or the Amended Insurance Code to include provisions that will make comprehensive insurance policies an additional option for motorists.
Beijing mulls selling TikTok to Elon Musk [The Manila Times, January 15, 2025]
The US government passed a law last year that requires TikTok’s ByteDance to either sell the wildly popular platform or shut it down. It goes into effect on Sunday ― a day before President-elect Donald Trump takes office.
Camp John Hay businesses asked to get permits from Baguio gov’t [Philippine Daily Inquirer, January 15, 2025]
The Baguio treasury never had access to businesses inside the 247-hectare lease area of its developer, Camp John Hay Development Corp. (CJHDevco), because permits there have been processed annually by BCDA estate manager John Hay Management Corp. (JHMC), she explained.
https://newsinfo.inquirer.net/2024672/camp-john-hay-businesses-asked-to-get-permits-from-baguio-govt
LTFRB to standardize guidelines for special passenger discounts on ride hailing platforms [GMA News Online, January 15, 2025]
Guadiz said the memorandum circular would designate TNCs and operators as the primary entities responsible for covering the costs associated with the special discounts.
Filipino tourists to Japan advised to file visa applications 2 months before arrival [The Manila Times, January 14, 2025]
“Due to the rapid increase in the number of visitors from the Philippines, examination of visa application for tourism purposes may take several weeks longer than the standard processing time,” the embassy said.
Recent Comments