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With the new year having just arrived, we can look forward to another year of exciting challenges and opportunities. For taxpayers following the calendar year as their tax period, the start of the new year marks the countdown for the April income tax deadline. While this is the most popular deadline for these taxpayers, we should not forget that there is also another BIR requirement that is due in April – the Request for Confirmation (RFC) to avail of tax treaty relief on certain income payments.

The Feast of Epiphany and the celebration of the Baptism of the Lord ended the Christmas season last January 8. This day also marked the end of the Bureau of Internal Revenue’s suspension of audit and field operations.

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.