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With 2022 in our rearview mirrors, let us now face 2023 with full optimism and determination to succeed. To help us realize our aspirations for this new year, let us examine what 2023 has in store for us – taxpayers and tax practitioners alike.

Since the effectivity of Republic Act 11534, otherwise known as the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, the Bureau of Internal Revenue (BIR) has consistently released several issuances and clarifications to implement the amendments introduced therein. Last December 10, 2021, Revenue Regulation (RR) No. 21-2022 took effect, implementing the amended Value Added Tax (VAT) incentives of Registered Export Enterprises (REE) on their importations and local purchases, as provided under the Tax Code, as amended, and the Implementing Rules and Regulations of the CREATE Act.

Being the subject of an audit by the Bureau of Internal Revenue (BIR) is a daunting challenge for any taxpayer. A single mistake could cost the taxpayer millions and put him in deep financial straits. As such, it is important for the taxpayer to keep abreast of recent developments in tax rules and regulations so that they may better protect themselves against any possible mistake.

It is nineteen days before Christmas, twenty-five days before New Year. The holiday season is a time of countdowns. We always look forward to the moment when the clock strikes 12 at midnight. However, for businesses, the countdown never stops on New Year. From there, the 20-day countdown for the deadline of renewal of Local Government Unit (LGU) business registration starts to run. LGU permit renewal is important to kick-start your business year right since without it, your operations may be suspended.

Clearly, working from home (WFH) is here to stay. No other sector is more affected than the Information Technology and Business Process Management (IT-BPM) sector. Hence, when the government announced that their employees must go back to their registered offices, the whole industry was in tumult.

Under the rules, Philippine Economic Zone Authority (PEZA) registered companies are required to operate within the economic zones to be entitled to tax incentives. However, due to the pandemic, the Fiscal Incentives Review Board (FIRB) temporarily allowed PEZA companies to adopt a work-from-home (WFH) arrangement for up to a certain percentage of the workforce, while still enjoying tax incentives.

With Republic Act No. 8792 (the E-Commerce Act) and Republic Act No. 11032 (Ease of Doing Business and Efficient Government Service Delivery Act of 2018) in mind, the Bureau of Internal Revenue (BIR) has released certain issuances to help taxpayers transition into the digital age.

Previously, in our article “2022 Tax Trends and Ends”, I presented sets of updates in taxation to help ensure that taxpayers have the necessary tools to begin the year right. Exactly two months from now, taxpayers are once more expected to embrace new sets of tax rules that are bound to be implemented as we welcome the year 2023.