- The BIR amended certain provisions of RR No. 4-2021, which implemented the VAT and Percentage Tax provisions under RA No. 11534 (CREATE Act) (Revenue Regulations No. 8-2021, June 11, 2021)
| Transaction | Amendments |
|
Exempt from VAT for selling price not exceeding P3,199,200.00 |
|
The importation shall not be subject to the issuance of the Authority to Release Imported Goods (ATRIG) under Revenue Memorandum Order No. 35-2002 |
| Overpayment of taxes as result of decrease of tax rate from 3% to 1% | Percentage taxpayers who have overpaid taxes as a result of the decrease of tax rate from 3% to 1% starting July 1, 2020 until the effectivity of RR No. 4-2021 are allowed for a tax refund in the event that:
|
TRANSACTIONS NOW SUBJECT TO VAT: SALE OF RAW MATERIALS TO NONRESIDENT BUYER, RAW MATERIALS OR PACKAGING MATERIALS TO EXPORT ORIENTED ENTERPRISE AND SALES UNDER EXECUTIVE ORDER NO. 226, PROCESSING, MANUFACTURING OR REPACKAGING GOODS FOR PERSONS DOING BUSINESS OUTSIDE THE PHILIPPINES.
The BIR amends certain provisions of RR No. 16-2005, as amended by RR No. 13-2018 and as further amended by RR No. 26-2018, to implement the imposition of 12% VAT on transactions covered under Section 106 (A)(2)(a) subparagraphs (3), (4), and (5), and Section 108(B) subparagraphs (1) and (5) of the NIRC of 1997, as amended by RA No. 10963 (TRAIN Law) (RR No. 9-2021, June 11, 2021)
| Transactions that are now subject to 12% | |
| Transactions considered as export sales:
|
|
| The sale of sale of services and use or lease of properties
|
|
BIR RULINGS
Sale executed by landowners in favor of the municipal government to be used for socialized housing project (449 housing units) under the National Housing Authority Yolanda Permanent Housing Program is not subject to creditable withholding tax/capital gains tax and VAT but subject to documentary stamp tax based on actual consideration of the property. Certificate Authorizing Registration is required to be issued. A lien on the titles of the land shall be annotated to the effect that the same are to be applied or are being applied to a socialized housing project. (Certificate of Tax Exemption No. PSH-006-21 January 18, 2021; see also Certificate of Tax Exemption No. PSH-007-21, January 18, 2021 and Certificate of Tax Exemption No. JV-009-21, January 27, 2021, 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 deduction. The remaining book value of the property which had become obsolete and which will eventually be dismantled shall be allowed as deduction for income tax purposes when the facility is demolished. However, while obsolescence is, by nature, allowed as a deduction, the determination of the factual case leading to the determination of whether or not there is obsolescence is a factual issue beyond the jurisdiction of a ruling to confirm (BIR Ruling No. OT-008-21, January 21, 2021)
The BIR cannot issue a determinative ruling on a matter if the issue is still subject of an on-going audit/administrative protest, which is considered a “Non-Ruling Area” (BIR Ruling No. OT-010-21, February 1, 2021)
