ON VAT AND PERCENTAGE TAX PROVISIONS (RR No. 3-2024) The EOPT adopts the accrual basis of recognizing sales for both sales of goods and services, including transactions to government or any of its political subdivisions, instrumentalities or agencies, and government-owned or -controlled corporations (GOCCs). All references to “gross selling price”, “gross value in
THE BIR CLARIFIES THE TREATMENT OF FOREIGN CURRENCY TRANSACTIONS FOR FINANCIAL REPORTING AND INTERNAL REVENUE TAX PURPOSES. RMC No. 12-2024, January 22, 2024 Particulars PFRS Current Tax Treatment Initial measurement of foreign currency transactions Recorded in functional currency using spot rate of exchange at transaction date Philippine Peso
SALE OR IMPORTATION OF COVID-19 EQUIPMENT AND DRUGS ARE SUBJECT TO VAT STARTING JANUARY 1, 2024. RMC No. 7-2024, January 11, 2024 The BIR reverses the Value-Added Tax exemption of transactions specified under Section 109 (BB) of the National Internal Revenue Code (Tax Code) of 1997, as amended. Sale or importation
NEW PRICE THRESHOLD FOR THE SALE OF HOUSE AND LOT AND OTHER RESIDENTIAL DWELLINGS FOR VAT-EXEMPT PURPOSES IS P3,600,000 RR NO. 1-2024, JANUARY15, 2024 INCOME PAYMENTS MADE BY JV TO SUPPLIERS ARE SUBJECT TO WITHHOLDING TAX (1%/2%); SHARE OF CO-VENTURE FROM JV NOT TAXABLE AS CORPORATION IS SUBJECT TO
DIGEST OF 2023 SUPREME COURT TAX DECISIONS ASSOCIATION DUES, MEMBERSHIP FEES, AND OTHER ASSESSMENTS/CHARGES ARE NOT SUBJECT TO INCOME TAX, VALUE- ADDED TAX AND WITHHOLDING TAX. They only constitute contributions to and/or replenishment of the funds for the maintenance and operations of the facilities offered by recreational clubs to their
GAIN FROM MANDATED FINANCIAL RESTRUCTURING IS NOT SUBJECT TO INCOME TAX. Section 19 of R.A. No. 10142 states that taxes and fees due to the national government imposed upon the issuance of the commencement order and until the approval of the rehabilitation plan or dismissal of the petition, whichever is
TAX ASSESSMENTS A SEPARATE LETTER OF AUTHORITY (LOA) IS NEEDED FOR THE EXAMINATION OF OTHER TAXPAYERS. An LOA defines and limits the scope of audit and examination that revenue officers can undertake with respect to a particular taxpayer’s books of accounts and other accounting records for purposes of determining the tax
TAX ASSESSMENTS THE LAPSE OF THE AUDIT PERIOD DOES NOT RENDER THE SUBJECT LOA INVALID AND WILL NOT HAVE THE EFFECT OF REVOKING THE AUTHORITY GIVEN THEREUNDER TO THE CONCERNED RO. The revalidation of LOAs which should be done “for failure of the revenue officials to complete the audit within
TAX ASSESSMENTS FIVE-YEAR RECOVERY PERIOD TO EXEMPT FTAA CONTRACTOR FROM EXCISE TAX RUNS FROM PARTIAL DECLARATION OF MINING FEASIBILITY. Financial or Technical Assistance Agreement (FTAA) contractor is exempt from excise tax if it has not fully recovered its pre-operating expenses, exploration and development expenditures for the recovery period of
TAX ASSESSMENTS PRIVATE EDUCATIONAL INSTITUTION’S INCOME IS SUBJECT TO LOCAL BUSINESS TAX. Educational institutions are exempt subject to the condition that income is actually, and exclusively used for the educational purpose. Such applies to non-stock non-profit educational institutions. Non-profit means that no part of the income inures directly or indirectly
