As previously introduced under Revenue Regulation (RR) No. 10-2019, the new BIR Notice to Issue Invoice/Receipt (NIRI) requires sellers, including those engaged in online business transactions to issue receipts/invoice for the sale of goods or services rendered.
As some Information Technology-Business Process Management (IT-BPM) entities registered with the Philippine Economic Zone Authority (PEZA) are shifting to the Board of Investments (BOI) to retain the work-from-home arrangement beyond December 31, 2022, the BOI issued Memorandum Circular No. 2022-005, reiterating the exemption from business tax of enterprises certified by the BOI as pioneer or non-pioneer enterprises, for a period of six years or four years, respectively, from the date of registration.
Last September 15, 2022, the Fiscal Incentives Review Board (FIRB) granted the extension of the 70-30 work from home arrangement, wherein 70% of the total workforce are required to report within the premises of the Philippine Economic Zone Authority (PEZA)-registered Information Technology (IT)-Business Process Management (BPM) entities while 30% of the total workforce are allowed to work from home until December 31, 2022.
Pursuant to Revenue Memorandum Circular (RMC) No. 77-2022, all field audit and other field operations of the Bureau of Internal Revenue (BIR) covered by Letters of Authority (LOAs)/Mission Orders (MOs) relative to examinations and verifications of taxpayers' books of account, records, and other transactions ordered were suspended as of May 30, 2022.
Invoices, with an expiration date of on or before July 15, 2022, shall be surrendered for destruction together with an inventory listing to the RDO where the Head Office or Branch is registered on or before the 10th day after the validity period.
Through the issuance of Revenue Memorandum Circular (RMC) No. 120-2022, the Bureau of Internal Revenue (BIR) has reiterated that the non-compliance of the Registered Business Enterprsises (RBEs) in the Information Technology Business Process Management (IT-BPM) sector on the prescribed conditions under Work From-Home (WFH) arrangement from April 1, 2022 to September 12, 2022 for at least one day shall result in the suspension of the RBEs income tax incentives, pertaining to the month when the violation took place.
The Philippine Economic Zone Authority (PEZA) shall no longer issue Certificates of Incentives and 5% GIT and instead issue the Certificate of Entitlement to Incentives (CETI) in accordance with the CREATE Act.
The fiscal incentives rationalization of the CREATE Act has effectively removed the cross-border doctrine for export-oriented registered business enterprises (RBEs). While VAT zero-rating rules on export sales still remain, VAT-zero rating on local purchases are only applicable on purchases that are directly and exclusively used in the RBEs’ registered project or activity.
