‘Walang Forever’ sa Tax-Free Streaming: PH Now Requires VAT on Foreign Digital Services
Foreign streaming platforms, e-learning providers, and digital app developers serving Philippine customers must now prepare to enter the country’s tax net. Beginning June 1, 2025, the Bureau of Internal Revenue (BIR) will require non-resident digital service providers (NRDSPs) to register and comply with the Philippines’ 12% Value-Added Tax (VAT) regime, in line with Republic Act […]
How to Decide: Electing Leaders and Choosing Tax Strategies
As May arrives, Filipinos face a dual decision: selecting their local leaders and choosing a tax strategy that impacts their financial future. With the midterm elections approaching, voters are not only electing mayors, congressmen, and senators but also deciding between the 8% Income Tax Rate (EITR) and the 40% Optional Standard Deduction (OSD) for individual […]
Paying Taxes with Credit, Debit, or Prepaid Cards in the Philippines: What You Need to Know Under RR No. 3-2016
The Bureau of Internal Revenue (BIR) of the Philippines has taken a significant step toward digital convenience with the issuance of Revenue Regulations (RR) No. 3-2016, allowing the voluntary payment of taxes using credit, debit, and prepaid cards. This regulation offers flexibility and modernizes the tax payment process, but also outlines strict guidelines to ensure […]
Is Service Charge Due to Employees Taxable in the Philippines?
In the Philippines, service charges collected by establishments such as hotels and restaurants are considered part of the cost of the food, goods, or services ordered by customers. Under Republic Act No. 11360, which amended Article 96 of the Labor Code, these charges must be fully and equally distributed among covered rank-and-file employees — excluding […]
Are Properties Sold by Real Estate Businesses Always Classified as Ordinary Assets?
Selling Property? The BIR Has Drawn a Clearer Line in the Sand. Under Revenue Memorandum Circular (RMC) No. 31-2025, the Bureau of Internal Revenue (BIR) is tightening its stance on how real properties sold by those habitually engaged in the real estate business are classified and taxed. The distinction between capital and ordinary assets is […]
RR No. 03-2025: A Game-Changer for VAT on Digital Services in the Philippines
Think back to the last time you streamed a show, downloaded an e-book, or subscribed to a cloud service. Taxes probably weren’t top of mind—but now, these digital activities carry new tax implications. In response, the Philippine government introduced Revenue Regulations No. 03-2025. This regulation aims to establish a fairer tax environment for digital services, […]
RR 9-2025: The New VAT Rules Every Business Should Know
Picture this: you’re a business owner working with suppliers inside economic zones or freeports, and you find yourself caught in a maze of unclear VAT rules. Who’s responsible for paying VAT? When should it be remitted? To resolve this confusion, the Bureau of Internal Revenue (BIR) recently released Revenue Regulations No. 9-2025. This regulation significantly […]
PEZA M.C. No. 2025-020: Streamlining VAT Zero-Rating for Export Enterprises
Why Was This Circular Issued? In the past, VAT zero-rating rules for Registered Export Enterprises (REEs) under PEZA lacked clarity. Companies often found it difficult to determine which local transactions qualified for VAT zero-rating, resulting in confusion, compliance challenges, and inefficiencies. For instance, necessary services like janitorial or marketing were frequently disputed as to whether […]
The CREATE MORE IRR Opens More WFH Opportunities for BPO Employees
The recent implementation of the CREATE MORE IRR marks an important moment for the BPO sector in the Philippines. This legislation introduces significant benefits, particularly in taxation and work-from-home (WFH) arrangements, designed to enhance operational flexibility and competitiveness. WFH Opportunities for BPO Employees Under the signed CREATE MORE IRR, BPO companies can now allow up […]
How the CREATE MORE Act Helped a Hospitality Company Maximize its Tax Benefits
Overview A leading hotel and convention center operator, recognized as a Domestic Market Entity (DME) under Tier 1 of the Strategic Investment Priority Plan (SIPP), is leveraging tax incentives within a designated economic zone. With the implementation of the CREATE MORE Act of 2024, significant amendments have been introduced that impact business operations, particularly in restructuring […]