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Just as Spotify wrapped up our evolving music taste for the year, let's also take a moment to look back at the ever-changing tax landscape as we review several important regulations and clarifications issued by the BIR this year, primarily focused on the implementation of the Ease of Paying Taxes (EOPT) Act."

For taxpayers and business owners, the year-end celebrations also signal the beginning of the challenging business permit renewal season.

As the holiday season draws near, it provides an ideal moment to examine the tax exemptions and privileges available to businesses in the real estate sector under the Philippine Tax Code.

In October 2024, the Philippines joined the growing list of countries like Indonesia, Malaysia, Thailand, Singapore, and Japan, imposing a consumption tax on digital services with the enactment of Republic Act (RA) No. 12023.

The Philippines has implemented significant various tax reforms in recent years with the goals of modernizing the tax system, attracting investments, supporting small businesses, and boosting economic growth.

The Bureau of Internal Revenue (BIR) wields significant authority not only to levy taxes but also to investigate taxpayers’ books of accounts and accounting records. These investigations typically focus on verifying the accuracy and completeness of revenue and costs and deductions claimed by taxpayers. Avoiding tax investigations is often just hope.

2024 is the year that we have seen numerous clarifications and amendments in the Philippine taxation landscape. Both the Bureau of Internal Revenue (BIR) and Philippine government are active in improving the taxation laws and streamlining existing processes to ease the burden of taxpayers.

There have been various changes in the VAT refund process these past few years with the conscious effort from the Bureau of Internal Revenue (BIR) to continuously simplify the requirements and procedure on VAT refund applications.