Revenue Memorandum Circular No. 70-2015 has recently issued by the bureau to reiterate the Tax Treatment of Certain Persons Engaged in the Business of Land Transportation.
This Circular deals with the tax incidence of the business of land transportation, specifically transport network companies (TNCs), such as but not limited to the likes of UBER, GRAB TAXI, their Partners/suppliers and similar arrangements. A TNC is a pool of land transportation vehicles whose accessibility to the riding public is facilitated through the use of a common point of contract which maybe in the form of text, telephone and/or cellular calls, email, mobile applications or by other means.
The TNC may or may not have been granted a Certificate of Public Convenience (CPC). If it is a holder of a valid and current CPC, it is known as a common carrier and its gross receipts are subject to the Three Percent (3%) common carriers tax under Section 117 of the National Internal Revenue Code of 1997 as amended (NIRC). Otherwise, it is classified as a land transportation service contractor and is subject to the Twelve Percent (12%) Value Added Tax (VAT) under the NIRC.
Please refer http://www.bir.gov.ph/images/bir_files/internal_communications_2/RMC%20No%2070-2015.pdf of the full text of RMC No. 70-2015.
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