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As tax filing season draws near, the Bureau of Internal Revenue (BIR) has released Revenue Memorandum Circular (RMC) Nos. 22, 23, and 25-2024 to facilitate taxpayers’ ease of compliance.

Several issues and concerns emerged for taxpayers due to the disparity in computing interest expenses for presentation in tax returns and financial statements. With this, the BIR issued Revenue Memorandum Circular No. 19-2024 on February 5, 2024, which aims to provide clarification on how interest expenses related to the taxpayer’s profession, trade or business, and other related matters should be treated for tax purposes.

The Supreme Court, through its decision in Aces Philippines Cellular Satellite Corp. (Aces Philippines) vs. Commissioner of Internal Revenue (G.R. No. 226680, August 30, 2022), ruled that the airtime fees Aces Philippines paid to its related party, Aces Bermuda, under an airtime purchase agreement are considered sourced from the Philippines and are therefore subject to withholding tax.

With differences in financial reporting under Philippine Financial Reporting Standards (PFRS)/Philippine Accounting Standards (PAS) and tax treatment purposes under the National Internal Revenue Code (NIRC) that arise due to the forex rates applied in foreign currency transactions, BIR recently issued RMC No. 12-2024 which aims to clarify the treatment of foreign currency transactions for financial reporting and internal revenue tax purposes, as well as define and specify the rules for recording and disclosing foreign exchange transactions for tax purposes, including the use of appropriate foreign exchange rates.

In its recently issued Revenue Regulation (RR) No. 1-2024, the Bureau of Internal Revenue (BIR) increased the selling price threshold for VAT exemption purposes of the sale of house and lot, and other residential dwellings, further amending Section 2, Sub-section 4.109-1(B)(p) of Revenue Regulations No. 4-2021.

As the Philippine economy is gradually recovering from the effects of the COVID-19 pandemic, the Revenue Memorandum Circular (RMC) No. 7-2024, issued on January 11, reverses the VAT exemption of the following transactions specified under Section 109 (BB) of the CREATE Law:

The new law aims at enhancing the Philippine tax system and revenue collection by streamlining tax administration. The Ease of Paying Taxes Act amends certain sections of the National Internal Revenue Code (NIRC) of 1997 and introduces specific provisions that will notably affect taxpayers moving forward.

New year, new beginnings. As 2024 unfolds new opportunities, the Securities and Exchange Commission (SEC) issued SEC Memorandum Circular No. 22 Series of 2023 to remind real estate investment trust (REIT) companies to start the year with a clean slate.