ESTATE TAX AMNESTY EXTENDED TO JUNE 14 2025

EXTENDS COVERED PERIOD OF DEATH UNTIL MAY 31, 2022 Republic Act No. 11956

Coverage: Estate of decedents who died on before May 31,2022
Availment Deadline: June14,2025
Payment by Installment – must be paid within 2 years from statutory date for its payment, without civil penalty and interest

BIR MAY ACCEPT OUT OF DISTRICT RETURN; 25% PENALTY DUE TO WRONG VENUE. RRNo. 6-2023, June 13, 2023

The BIR amends certain provisions of RR No. 13-2010 regarding Late/Out-of-District filing of Tax Returns.
The BIR may accept, as an exception, the out-of-district return:
- In cases where the AAB inadvertently or erroneously accepted an out-of-district return and the corresponding tax payment. The proper RDO shall impose a penalty of 25% due to wrong venue filing, unless otherwise authorized by the CIR.
- In case there is a pronouncement through a revenue issuance/bank bulletin that a taxpayer can file a return and pay the corresponding tax due.
Acceptance of late tax return:
- AAB or RCO may accept a late return provided it has been stamped with a qualifier “Late Filing” or “Late Filing, Increments not paid”
- When the returns are retrieved from AAB, the RDO shall impose the applicable penalties on late returns.

BIR PROVIDES TEMPLATES FOR SWORN STATEMENT AND SWORN DECLARATION IN COMPLIANCE WITH INCOME TAX EXEMPTION ON FOREIGN-SOURCED DIVIDENDS RMC No. 74-2023, July 5, 2023

The BIR prescribes Sworn Statement and Sworn Declaration to be submitted relative to the compliance requirements in availing the income tax exemption on foreign-sourced dividends received by domestic corporations.
To be attached to the AITR pertaining to the taxable year when the dividend is received and to the AIRT for the immediately succeeding taxable year.
Requirement is part of availing exemption from income tax on foreign-sourced dividends.
Applies in case the domestic corporation receives multiple foreign-sourced dividends qualified for the income tax exemption.

DEADLINE TO SECURE NOTICE TO ISSUE RECEIPTS/INVOICE (NIRI) IS SEPTEMBER 30, 2023; FINE NOT EXCEEDING P1,000 FOR FAILURE TO RENEW. RMC No. 75-2023, July5, 2023

The BIR extends the deadline for the replacement of Ask for Receipt Notice with Notice to Issue Receipt/invoice under RMO No. 43-2022.
Taxpayers are required to replace the “Ask for Receipt” Notice with “Notice to Issue Receipt/Invoice” (NIRI).
The deadline for securing the new NIRI is on or before September 30, 2023.
Taxpayers shall bill out BIR Form 1905 or Registration Update Sheet to indicate/update the designated official email address which will be used by the Bureau as an additional manner in serving BIR orders, notices, letters, communications and other processes to the taxpayer.
Penalty for failure to renew – fine not exceeding P1,000.

ANNUAL PERSONAL EQUITY AND RETIREMENT ACCOUNT INCREASED TO P200,000 AND P400,000; TAX CREDIT EXPIRES 5 YEARS FROM DATE OF ISSUANCE. RR No. 7-2023, July 7, 2023

The BIR amends certain provisions of RR Nos. 17-2011 and 2-2022, implementing RA No. 9505 “Personal Equity and Retirement Account (PERA) Act of 2008”
Maximum annual Personal Equity and Retirement Account (PERA)
- P200,000 per calendar year – contributor is a non-overseas Filipino
- P400,000 per calendar year – contributor is an overseas Filipino or in representation of an overseas Filipino
Expiration of PERA Tax Credit Certificate –
- 5 years from date of issuance
- Effect: considered invalid and shall not be allowed as payment for internal revenue tax liabilities of PERA contributors.

SENIOR CITIZEN/PERSON WITH DISABILITY NOT REQUIRED TO SIGN FOR QUALIFIED PURCHASE VIA ONLINE/MOBILE APPLICATIONS. RR 8-2023, July 31, 2023

The BIR clarifies the information that shall appear in the official receipts/sales invoices on purchases of Senior Citizens (SCs) and Persons With Disabilities (PWDs) through online (E-Commerce) or mobile applications, in relation to Revenue Regulations (RR) No. 10-2015.
Signature of the SC/PWD shall not be required for qualified purchases made by SC/PWD online or through mobile applications.
ID number should still be provided when purchasing online or mobile platforms.

LOCALLY MANUFACTURED AND IMPORTED PERFUMES AND TOILET WATERS ARE SUBJECT TO EXCISE TAX, TO BE PAID BEFORE REMOVAL FROM PLACE OF PRODUCTION OR RELEASE FROM CUSTOMS CUSTODY. RR No. 9-2023, August 3, 2023

The BIR provides rules and regulations governing the imposition of Excise Tax on perfumes and toilet waters as provided under Section 150(b) of the Tax Code of 1997, as amended
Excise tax on perfumes and toilet waters
- Locally manufactured perfumes and toilet waters
  - To be paid by manufacturer or producer
  - Effect of nonpayment of excise tax when the products are removed from place of production: wholesaler/distributor/retailer/owner or any person having possession shall be liable for the excise tax
- Imported perfumes and toilet waters
  - To be paid by owner or importer to the BOC before the release of such articles from customs custody and Person who is found in possession
  - Effect when tax-free articles are brought or imported by tax-exempt persons/entities or agencies in the Philippines and subsequently sold – the purchaser or recipient is considered importer and liable for excise tax
Time, place and manner of filing of return and payment of excise tax
- Locally Manufactured Perfumes and Toilet Waters
  - Filing of Returns
    - Before removal of domestic products from place of production
    - E-BIR Form or Form 2200-AN (Tax type: XG)
  - Payment of tax
    - Before removal from place of manufacture/production and warehouse
    - Based on selling price or other specified value of
- Imported Perfumes and Toilet Waters
  - Prior to release of goods from customs custody.
Person in possession of untaxed perfumes or toilet waters – tax to be paid upon demand; covers persons directly engaged in the reselling, retailing, marketing, online selling and distribution of perfumes and toilet waters.
ATRIG is required for the importation of perfumes.
Exportation of perfumes and toilet waters require application for Permit to Export with ELTFOD before the products are removed from the place of production.
BIR examiners must be provided with office space that must have a clear and unobstructed view of the taxpayer’s manufacture and removal activities
Subcontractors must register with ELTRD.

BIR RULINGS

The Income of a public corporation, regardless of its source, is exempt from payment of any and all taxes, except for VAT, provided that the same shall only be used for public purpose. (BIR Ruling No: OT-372-2022)
The purchases of goods/articles under the construction/development of NHA’s Socialized Housing Program is exempt from project-related income tax, creditable withholding tax and value-added tax on its income received directly in connection with the mentioned project. However, the purchases of goods/articles of the said company shall be subject to VAT, even if the said purchases are to be used for social housing projects and must issue VAT exempt official receipts on its gross receipts from the said socialized housing project. (BIR Ruling Nos: Certificate of Tax Exemption No:NSH-373-2022)
Sale of house and lot duly registered with the Department of Human Settlements and Urban Development (DHSUD) is exempt from income tax and creditable withholding tax on its income received directly in connection with the mentioned project. Moreover, sale of house and lot and other residential dwellings with selling price of not more than Php 3,199,200 is VAT exempted. (BIR Ruling Nos: Certificate of Tax Exemption No: PSH-374-2022, PSH-375-2022, PSH-383-2022)
Sale of house and lot under economic and low-cost housing project of a company duly registered with the Board of Investments under Executive Order (EO) No. 226 is exempt from income tax and creditable withholding tax on its income received directly in connection with the mentioned project.
- The exemption is limited in duration and number of units sold.
- Sale of units used for commercial purposes such as leasing, retail stores, offices etc. shall be subject to payment of appropriate taxes.
- Sale of house and lot and other residential dwellings with selling price of not more than P1,919,500 (for residential lot) and not more than Php 3,199,200 (for house and lot and other residential dwellings) is VAT exempted. (BIR Ruling No: Certificate of Tax Exemption No: BOI-LEH-376-2022, BOI-LEH-377-2022, BOI-LEH-378-2022, BOI-LEH-381-2022, BOI-LEH-382-2022)
Services rendered by regional or area headquarters established in the Philippines by multinational corporations which act as supervisory, communications and coordinating centers for their affiliates, subsidiaries or branches in the Asia-Pacific Region and do not earn or derive income from the Philippines shall be exempt from VAT. (BIR Ruling No: VAT-379-2022)
The denial of company’s claim for Tax Credit Certificate covering its unutilized CWT was due to its failure to comply with all requisites to be entitled to a claim for refund or issuance of a Tax Credit Certificate, as follows:
- The claim must be filed with the Commissioner of Internal Revenue within the two-year period from the date of payment of the tax;
- The fact of withholding must be established by a copy of a statement duly issued by the payor to the payee showing the amount paid and the amount of the tax withheld; and
- It must be shown on the return that the income received was declared as part of the gross income. (BIR Ruling No: OT-380-2022)
The retirement benefits of the employee are subject to income tax and withholding since the retiring employee failed to meet the age of 60. (BIR Ruling No: OT-384-2022)

ESTATE TAX AMNESTY EXTENDED TO JUNE 14 2025

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