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The imposition of 12% Value-Added Tax (VAT) on local purchases of PEZA-registered enterprises continues to attract debate and draw concerns. The Bureau of Internal Revenue (BIR) issued Revenue Regulations (RR) No. 9-2021 stating that certain sales which were previously considered zero-rated for VAT are now subject to 12% VAT. This RR implements the provisions of Republic Act (RA) No. 10963 or the Tax Reform and Acceleration and Inclusion (TRAIN) Act.

Two weeks ago, our Let’s Talk Tax article covered the new Value-Added Tax (VAT) rules on sale of goods to ecozone entities and exporters. This was pursuant to Revenue Regulations (RR) No. 9-2021 which imposed 12% VAT on certain transactions that were previously taxed at 0%. The RR met with strong opposition from various stakeholders because of the impact on the export industry, and taxpayers clamored for a clarificatory Bureau of Internal Revenue (BIR) issuance. While discussions are still up in the air, it is apparent that affected taxpayers should also consider the possibility of going through the VAT refund process route for the 12% input VAT passed on to them.

Considering the recent developments in the taxation landscape and the Philippines’ wide network of bilateral tax treaties for transactions with foreign entities, it has become apparent that one of the government’s objectives is to improve efficiency and services to taxpayers. In fact, on June 25, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 77-2021, which clarifies the revised guidelines and procedures for availing of tax treaty benefits provided under Revenue Memorandum Order (RMO) No. 14-2021.

The Bureau of Internal Revenue (BIR) recently issued Revenue Regulations (RR) No. 9-2021 which imposed 12% Value-Added Tax (VAT) on certain transactions that were previously taxed at 0%. The RR took effect on June 27, 2021, 15 days from its publication.

More than a year after the onset of the Coronavirus Disease 2019 (COVID-19) pandemic, the government continues to ramp up its efforts to reduce financial distress brought by the public health crisis. As part of its response, the Bureau of Internal Revenue (BIR) issued Revenue Regulations (RR) No. 8-2021 on June 12. RR 8-2021 seeks to amend RR 4-2021 which was initially issued to implement Value-Added Tax (VAT) and Percentage Taxes under Republic Act (RA) 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.

The Philippines is celebrating its 123rd year of independence. We have been enjoying our freedom for over a century and much has changed since then. For the business sector, changes have been directed towards intensifying the use of technology. Can we now say that we are moving towards freedom from the old way of doing business?

The transfer pricing compliance requirements introduced by the Bureau of Internal Revenue (BIR) in July 2020 are believed to be game-changers for taxpayers to ensure that their transactions with their related parties are planned, executed, and carried out in the same manner as dealing with independent third parties — what is called the “arm’s-length principle” or ALP.

On April 8, the Bureau of Internal Revenue (BIR) released Revenue Regulations (RR) No. 5-2021 which implements certain provisions of the Corporate Recovery and Tax Incentives for Enterprise (CREATE) Act. It particularly implements the new Corporate Income Tax (CIT) rates, new income tax rates on certain passive incomes, and additional deductions from gross income of corporations and sole proprietors.