| Attempt to evade or defeat tax |
|
Receipt/Invoice Printing-Related Violations
|
|
| Failure to transmit sales data |
|
| Purchase, use, possession, sale, or offer to sell, installation, or transfer, update, upgrade, keeping or maintaining of sales suppression devices | Fine: P500,000 to P10,000,000; and Imprisonment: 2 to 4 years upon conviction |
| Offenses related to fuel marketing | List of Penalty |
CLARIFICATION ON SUSPENSION OF THE STATUTE OF LIMITATIONS ON ASSESSMENT AND COLLECTION OF TAXES DUE TO THE DECLARATION OF QUARANTINE IN NCR PLUS (RMC No. 80-2021)
| Period to assess | Number of days the particular area was placed under ECQ and MECQ plus 60 days |
| Jurisdictions Covered | NCR Plus (Metro Manila, Bulacan, Cavite, Laguna and Rizal Province |
| Actions covered by extension | Issuance of Assessment Notices, Warrants of Distraints and/or levy, as well as Warrants of Garnishments |
|
Old Prescriptive period |
New Prescriptive Due Date per RMC 136-2020 |
Due to Declaration of ECQ and MECQ |
Number of Declared ECQ and MECQ Days |
|
| Case 1 |
April 15, 2021 |
August 30, 2021 |
December 15, 2021 |
47 days + 60 |
| Case 2 |
April 15, 2021 |
August 30, 2021 |
November 19, 2021 |
21 days + 60 |
| Case 3 |
August 15, 2021 |
December 30, 2021 |
March 28, 2022 |
21 days + 60 |
LIST OF VAT-EXEMPT PRODUCTS (Revenue Memorandum Circular No. 81-2021, July6, 2021)
| VAT-exempt Products | Effectivity Date |
| Medicines for diabetes, high cholesterol, and hypertension | Beginning January 1, 2020 |
| Medicines for cancer, mental illness, tuberculosis, and kidney diseases | Beginning January 1, 2021 |
| Drugs and vaccines prescribed and directly used for COVID-19 treatment | Beginning January 1, 2021 until December 31, 2023 |
| Medical devices directly used for COVID-19 treatment | Beginning January 1, 2021 until December 31, 2023 |
BIR RULINGS
- Deed of conveyance to be used for socialized housing projects is not subject to creditable withholding tax/capital gains tax, documentary stamp tax and VAT. Certificate Authorizing Registration is required to be issued. (Certificate of Tax Exemption No. NSH-011-21, February 2, 2021)
- When assets are abandoned or discarded because the continued use is no longer beneficial to the business, the related loss may be claimed as a deduction. Thus, where the power plant had become obsolete and which will eventually be dismantled, the remaining book value shall be allowed as deduction for income tax purposes when the facility is demolished. (BIR Ruling No. OT-008-21, January 21, 2021)
- Services performed in the Philippines by a VAT-registered person to non-resident foreign corporation is subject to zero-rated VAT provided that (a) the services must be rendered to persons engaged in business outside the Philippines, or to non-resident foreign clients not engaged in business who are outside the Philippines when services are performed; and (b) fees must be paid to the domestic corporation in acceptable foreign currency and accounted for in accordance with the rules and regulations of the BSP (BIR Ruling No. VAT 014-21, February 3, 2021)
- The importation and distribution/sale of agricultural products in its original state for human consumption are considered exempt from 12% VAT. Agricultural products are considered in its original state even if these have undergone the simple process of preparation or preservation for the market such as freezing, drying, salting, broiling, roasting, or stripping. The type of processing is limited to the aforementioned simple process. Otherwise, the same may no longer be considered agricultural products in its original state. Moreover, the VAT exemption is limited in application- it refers only to food products intended for human consumption. Roasted coffee beans and ground coffee are considered agricultural products in its original state, the importation and distribution/.sale thereof are exempt from VAT (BIR Ruling No. VAT-016-21, February 4, 2021)