Reversion of Rate of Percentage Tax from One Percent (1%) to three percent (3%) Effective July 01, 2023

The bureau has issued Revenue Memorandum Circular (RMC) No. 69-2023 to inform the taxpayers, public and all concerned about the reversion of Rates of Percentage Tax, Minimum Corporate Income Tax, and Regular Corporate Income Tax on Proprietary Hospitals, in relation with Republic Act No. 11534, otherwise known as the "Corporate Recovery and Tax Incentives for Enterprises Act" (CREATE).

This article focus on the Reversion of Rate of Percentage Tax from One Percent (1%) to three percent (3%) Effective July 01, 2023 as stated in RMC No. 69-2023 dated June 20, 2023 with details as follows:

1. The rate of percentage tax (PT) shall now revert to three percent (3%) of gross quarterly sales or receipts of the taxpayer. This rate applies to corporations, self-employed individuals and professionals whose gross sales or gross receipts are not exceeding Php3.0 million threshold, except for cooperatives and self-employed individuals and professionals availing of the eight percent (8) income tax rate.

To read the full text of the circular, please refer to RMC No. 69-2023.

Availability of the Offline Electronic Bureau of Internal Revenue (eBIRForms) Package Version7.9.4 (New)

The availability of the Offline Electronic Bureau of Internal Revenue (eBIRForms) Package Version7.9.4 were announced by the bureau with Revenue Memorandum Circular (RMC) No. 40-2023 dated March 29, 2023 that includes the BIR Form No. 1707 Capital Gains Tax Return (For Onerous Transfer of Share of Stock Not Traded Through the Local Stock Exchange) and BIR Form No. 1707-A (Annual Capital Gains Tax Return (For Onerous Transfer of Shares of Stock Not Traded Through the Local Stock Exchange).

Taxpayers & other concerned are advised to download and update the eBIRForms Package from Version7.9.3 to Version7.9.4. 

Please consider the link: https://www.bir.gov.ph/images/bir_files/ebirforms/ebirforms_package-v7.9.4.zip to download the eBIRForms Package Version7.9.4

To read the full text of RMC No. 40-2023, please consider the link: https://www.bir.gov.ph/images/bir_files/internal_communications_2/RMCs/2023%20RMCs/RMC%20No.%2040-2023.pdf

An Act Institutionalizing The Grant of Student Fare Discount Privileges on Public Transportation and for Other Purposes

The Republic Act No. 11314, entitled "An Act Institutionalizing The Grant of Student Fare Discount Privileges on Public Transportation and for Other Purposes" is published by the bureau with Revenue Memorandum Circular (RMC) No. 25-2023  dated February 20, 2023 for the information and guidance of all internal revenue officials, employees and others concerned. 

Please refer RMC No. 25-2023.pdf (bir.gov.ph) of the full text of the RMC No. 25-2023 and  RMC No. 25-2023 Annex A.pdf (bir.gov.ph) to read the full text of Republic Act No. 11314.

BIR New Business Registration (NewBizReg) Portal for Taxpayers

Taxpayers always consider the ease of doing business with regards of registration of new business. In relation with,  the bureau has launched the New Business Registration (NewBizReg) Portal. It is an alternative option in submitting application for registration of business (Head Office and Branch) to the Bureau. Taxpayer-applicants shall prepare all scanned copy of required documents to be attached and to be submitted via email through this portal to the concerned BIR Revenue District Office (RDO).

To register a business through NewBiz Portal, please click the link: BIR NewBizReg. Just complete the requirements of the five (5) Steps on How to register a business through NewBizReg Portal.

Taxpayers who are Mandated to issue Electronic Receipts or Sales/Commercial Invoices

Revenue Regulations No. 8-2022 dated June 22, 222 are regulations to provide policies and guidelines for the implementation of Section 237 and 237-A of the NIRC, as amended by R. A. No. 10963 or the "TRAIN" Law and to prescribe requirements on the issuance of electronic receipts/invoices (hereby known as e-Receipts/e-Invoices) in lieu of the manual receipts or sales/commercial invoices and on the electronic reporting of these sales data to the Bureau.

It is stated in these regulations that the following taxpayers are mandated to issue electronic receipts or sales/commercial invoices under Sec. 237 of the NIRC of 1997, as amended, to wit:

1. Taxpayers engaged in the export of goods and services;

2. Taxpayers engaged in electronic commerce (e-commerce); and

3. Taxpayers under the Large Taxpayers Service (LTS).

In relation with, the taxpayers mentioned above are required under Section 237-A of the NIRC of 1997, except for the taxpayers engaged in e-commerce, to electronically report or transmit their sales to the BIR through the use of their Sales Data Transmission System.

However, taxpayers who are not covered or required by the mandate may issued electronic receipts or sales/commercial invoices in lieu of manual receipts/invoices.

To read the full text and other topics related of these regulations, please refer RR No. 8-2022 through www.bir.gov.ph

 

Availability of the new Offline Electronic Bureau of Internal Revenue Forms (eBIRForms) Package Version7.9.3

To update the Offline eBIRForms Package v.7.9.2.1 and as part of ease of doing business,  the bureau recently issued the Revenue Memorandum Circular (RMC) No. 131-2022 relative to the availability of the new Offline eBIRForms Package Version 7.9.3 with the following modifications:

A. Additional Alphanumeric Tax Codes (ATCs) in BIR Form No. 0605 to be used by the International Carriers in paying their taxes in reference to Revenue Memorandum Order No. 37-2022, to wit:

B. Revised Terms of Service Agreement (TOSA), hereto attached as Annex A.

C. Required official e-mail address of the taxpayer to be provided in the eBIRForms profile page. The email shall be used as an additional mode of serving BIR orders, notices, letter, communications and other processes.

Click https://www.bir.gov.ph/images/bir_files/ebirforms/ebirforms_package-v7.9.3.0.zip to download the new Offline eBIRForms Package Version 7.9.3.

Reference: RMC No. 131-2022.

Removal of the Five (5) - Year Validity Period on Receipts/ Invoices

As part of the Taxpayers Ease of Doing Business in the community, the CIR of the Bureau has issued Revenue Regulations (RR) No. 6-2022 in relation with the Removal of the Five (5) - Year Validity Period on Receipts/ Invoices. But was clarified through the issuance of Revenue Memorandum Circular (RMC) No. 123-2022 to address and provide uniform answers to the numerous issues and concerns of both internal and external stakeholders of the following:

Please refer: RMC No. 123-2022.pdf (bir.gov.ph) of the full text of Revenue Memorandum Circular (RMC) No. 123-2022.

New Offline eBIRForms Package v7.9.2.1

The Bureau of Internal Revenue (BIR) has issued the new  Offline eBIRForms Package v7.9.2.1 to update the previous Offline eBIRForms Package v7.9.2 for the enhancement and convenient online filing of BIR Returns by the Taxpayers in the business community.

To download Offline eBIRForms Package v7.9.2.1

https://www.bir.gov.ph/images/bir_files/ebirforms/ebirforms_package-v7.9.2.1.zip

Tax on Persons Exempt from VAT

SEC.4-116 of Sections 2. Amendments under Revenue Regulations (RR) No. 4-2021 refers of the Tax on Persons Exempt from VAT. 

Under these regulations, any person whose sales or receipts are exempt under Section 109(I)(CC) of the Tax Code from the payment of VAT and who is not a VAT-registered person shall pay a tax equivalent to three percent (3%) of his gross quarterly sales or receipts. Provided, however, that the following shall be exempt from the payment of three percent (3%) percentage tax:

1. Cooperatives; and

2. Self-employed individuals and professionals availing of the 8% tax on gross sales and/or receipts and other non-operating income, under Sections 24(A)(2)(b) and 24(A)(2)(c)(2)(a) of the Tax Code.

Provided, further, that effective July 1, 2020 until June 30, 2023, the rate shall be one percent (1%).

XXX          XXX          XXX"

Please refer https://www.bir.gov.ph/images/bir_files/internal_communications_1/Full%20Text%20RR%202021/RR%20NO.%204%20-%202021.pdf of the full text of RR No. 4-2021.

Offline Electronic Bureau of Internal Revenue Forms (eBIRForms) Package Version 7.9.2

The new Offline Electronic Bureau of Internal Revenue Forms (eBIRForms) Package Version 7.9.2 is the updated version of eBIRForms 7.9.1, issued by the bureau under Revenue Memorandum Circular (RMC) No. 111-2021, which is downloadable from the sites: www.bir.gov.ph and www.knowyourtaxes.ph.

The new Offline eBIRForms Package includes the January 2018 version of the following forms:

1. BIR Form No. 2552 - Percentage Tax Return for Transactions Involving Shares of Stock Listed and Traded Through the Local Stock Exchange or Through Initial and/or Secondary Public Offering.

2. BIR Form No. 1600-VT - Monthly Remittance Return of Value-Added Tax Withheld

3. BIR Form No. 1600-PT - Monthly Remittance Return of Other Percentage Taxes Withheld

4. BIR Form No. 1707 - Capital Gains Tax Return for Onerous Transfer of Shares of Stocks Not Traded Through the Local Stock Exchange

5. BIR Form No. 2200-C - Excise Tax Return for Cosmetic Procedures

6. BIR Form No. 1702-MXv2018

7. BIR Form No. 1702-MXv2018C

Please refer: RMC No. 111-2021.pdf (bir.gov.ph) to read the full text of the RMC No. 111-2021.