BIR Annual Registration Fee (ARF) is no longer required Effective January 22, 2024

As part of ease of doing business in the community, the Bureau of Internal Revenue (BIR) has issued an advisory on January 8, 2024 that the Business Taxpayers is no longer required to pay the Annual Registration Fee (ARF) of Five Hundred Pesos (PHP500.00) effective January 22, 2024 in compliance with Republic Act No. 11976, the "Ease of Paying Taxes Act." With this, business taxpayers are exempt from filing BIR Form No. 0605 and paying the Five Hundred Pesos (PHP500.00) ARF on or before January 31 every year or annually.

Besides, Business taxpayers with existing BIR Certificate of Registration (COR) that includes Registration Fee will retain its validity. These taxpayers may choose to update / replace their COR at the BIR Revenue District Office where they are registered on or before December 31, 2024, by surrendering their old COR.

 Please refer   https://www.bir.gov.ph/images/bir_files/internal_communications_1/2024/Advisories/Advisory_ARF.pdf of the full text of the Advisory from BIR.

Updated Features and Functionalities of BIR Online Registration and Update System (ORUS)

For ease of doing business of the taxpayers in the community, the bureau has issued Revenue Memorandum Circular (RMC) No. 121- 2023 dated November 29, 2023 announcing the Updated Features and Functionalities of the Online Registration and Update System (ORUS) starting November 21, 2023.

The additional features and functionalities of ORUS are now available online as follows:

1. Taxpayer Identification Number (TIN) Inquiry;

2. Access to Digital TIN ID; and

3.  Availability of MyEG as one of the online payment facilities in ORUS

The three functionalities added are as follows:

1. Primary Registration

2.  Secondary Registration 

3. Registration Information Update

Taxpayers who have an existing ORUS may access and avail the online registration updates and other functionalities and taxpayers who do no not have an ORUS account and opted to use the said online registration-related facilities are required to enroll or create an account on ORUS following the guidelines prescribed under RMC No. 122-2022.

Please consider the link: https://www.bir.gov.ph/images/bir_files/internal_communications_2/RMCs/2023%20RMCs/RMC%20No.%20121-2023.pdf of the full text of RMC No. 121-2023.

New eBIRForms Package Version7.9.4.1

The bureau has issued Revenue Memorandum Circular (RMC) No. 122-2023 regarding the availability of the Offline Electronic Bureau of Internal Revenue Forms (eBIRForms) Package Version7.9.4.1 to update the Offiline eBIRForms Package v7.9.4 that contains the modifications as follows:

 1.  Additional Alphanumeric Tax Codes (ATCs) in BIR Form No. 1702-RTv2018C;

 2. Updated 2023 Income Tax Rates of BIR Forms No. 1700v2018; 1701v2018 & 1701A;

3. Bug fixes for BIR Forms No. 1702-MXv2018C.

The eBIRForms Package v7.9.4.1 can be downloaded from the webistes: www.bir.gov.ph and www.knowyourtaxes.ph/ebirforms

Please consider the link: https://www.bir.gov.ph/images/bir_files/internal_communications_2/RMCs/2023%20RMCs/RMC%20No.%20122-2023_copy.pdf of the full text of RCM No. 122-2023 dated November 24, 2023.

Imposing Creditable Withholding Tax on Certain Income Payments by Joint Ventures/Consortiums

The bureau has issued Revenue Regulations (RR) No. 14-2023 to further implement Section 57 (B) of the provisions of Sections 244 and 245 of the National Internal Revenue Code of 1997, as amended, and subsequently amend RR No. 2-98 by adding items (V) and (W) imposing creditable withholding tax on certain income payments by joint ventures/consortiums.

The amendments stated in RR No. 14-2023 are as follows:

SECTION 2. AMENDMENTS. - The pertinent provisions of Section 2.57.2 of RR No. 2-98, as amended, is hereby further amended to read as follows:

"Sec. 2.57.2. Income Payments Subject to Creditable Withholding Tax and Rates Prescribed Thereon. Except as herein otherwise provided, there shall be withheld a creditable income tax at the rates herein specified for each class of payee from the following items of income payments to persons residing in the Philippines:

xxx    xxx    xxx

(V) Income payment made by joint ventures/consortiums. - Income payments made by joint ventures, whether incorporated or not, taxable or non-taxable, to their local/resident supplier of goods and services, shall be subjected to the following withholding tax rates:

Supplier of goods - One percent (1%)

Supplier of services - Two percent (2%)

(W) Distributive share of co-ventures/members from the net income of the joint venture/consortium not taxable as corporation. - On the share of each co-venturer/member from the net income of the joint venture/consortium not taxable as corporation prior to actual or constructive distribution thereof - Fifteen percent (15%)

xxx     xxx     xxx"

 Please refer RR No. 14-2023 dated October 2, 2023 of the full text of the said regulations.

Exemption from Issuance of Receipts or Sales or Commercial Invoices by Agricultural Producers

Agricultural Producers have an important role of the growth and success of Agricultural Food Products (Farm Produce, Livestock, Poultry, Marine Product, Ordinary Salt & Agricultural Inputs) in the community. 

Revenue Regulations (RR) No. 12-2023 has issued by the bureau to implement Section 237 of the Tax Code, as amended, relative to the issuance of receipts or sales or commercial invoices by Agricultural Producers.

Under Section 4 of these Regulations has described the Exemption from Issuance of Receipts or Invoices for ease of doing business by the Agricultural Producers of their Agricultural Food Products, provided, that the gross sales/receipts for the year shall not exceed One Million Pesos (P1,000,000.00). Provided, further, however, that Agricultural Producers shall record each sale transaction in a simplified sales book containing the following information:

a. date of transaction;

b. description of goods sold or services rendered;

c. registered name, registered address, and Taxpayer Identification Number (TIN) of the purchaser if engaged in business;

d. amount of sales;

e. amount of tax withheld, if any, and the

f. net amount received

Provided, finally, if the annual gross sales/receipts exceed One Millions Pesos (P1,000,000.00) at any time during the taxable year, the Agricultural Producer shall be required to issue official receipt/sales invoices for every subsequent transaction valued at P100.00 or more. For this purpose, the Agricultural Producer, for the first year of business operation or one year from registration, shall be allowed to purchase and use BIR-printed receipts or BIR-printed invoices from the Revenue District Office (RDO) where they will register pursuant to Section 6 of these Regulations. The Agricultural Producer shall thereafter be require to issue official receipts/sales invoices printed pursuant to an Authority to Print (ATP).

The Agricultural Producer shall still be exempt from the issuance of receipt or invoice even if he or she derives income from the sale of goods or services other than Agricultural Food Products as described in these Regulations, provided that that, the annual aggregate gross sales/receipts shall not exceed One Million Pesos (P1,000,000.00). Provided further, the primary activity of the Agricultural Producer shall not exceed thirty percent (30%) of the aggregate sales or receipt of the Agricultural Producer for a given taxable year.

Please refer RR No. 12-2023 of the full text of these Regulations.

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