InTAX: July 2021 Issue 1 | Volume 1

InTAX is an official publication of R.G. Manabat & Co.'s Tax Group

InTAX is an official publication of R.G. Manabat & Co.'s Tax Group

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Department of Finance


The Department of Finance (DOF) issued the following on 23 June 2021:

Revenue Regulations (RR) No. 13-2021, to implement the penalty provisions under Sections 76, 77, 78, 79 and 80 of Republic Act No. 10963, also known as the Tax Reform for Acceleration and Inclusion (TRAIN) Law, amending Sections 254 and 264 of, and adding Sections 264-A, 264-B, and 265-A to, the National Internal Revenue Code of 1997, as amended.

Salient points of RR No. 13-2021 are as follows:




Willfully attempts, in any manner, to evade or defeat any tax imposed under the NIRC or the payment thereof.


- A fine of ≥ Php500,000 but ≤ Php10,000,000 and;

- Imprisonment of ≥ 6 years but ≤ 10 years

Violations related to the printing of receipts or invoices as enumerated under Section 3 of the RR.

Failure to transmit sales data to BIR’s electronic sales reporting system

For each day of violation:


- A penalty amounting to 1/10 of 1% of the annual net income as reflected in the taxpayer's audited financial statements for the 2nd year preceding the current taxable year, or Php10,000, whichever is higher.


An additional penalty of permanent closure shall be imposed should the aggregate number of days of violation exceed 180 days within a taxable year.

Purchase, use, possession, sell or offer to sell, installation, transfer, update, upgrade, keeping, or maintaining of sales suppression devices.


- A fine of ≥ Php500,000 but ≤ Php 10,000,000 and;

- Imprisonment of ≥ 2 years but ≤ 4 years


The maximum penalty shall apply in case of cumulative suppression of electronic sales record in excess of the amount Php50,000,000 which shall be considered as economic sabotage.

Offenses Related to Fuel Marking

a) Engaging in the sale, trade, delivery, distribution or transportation of unmarked fuel in commercial quantity held for domestic use or merchandise

1st offense – Php2,500,000

2nd offense – Php5,000,000

3rd offense* – Php10,000,000 with penalty of revocation of license to engage in any trade or business.

(b) Causing the removal of the official fuel marking agent from marked fuel, and the adulteration etc.

(c) Willfully inserting, placing, adding or attaching, directly or indirectly, through any overt or covert act, whatever quantity of any unmarked fuel, counterfeit additive or chemical in the person, house, effects, inventory, or in the immediate vicinity of an innocent individual for the purpose of implicating, incriminating or imputing the commission of any violation of offenses related to fuel marking.



A fine of Php 5 million but ≤ Php 10 million and imprisonment of ≥ 4 years but ≤ 8 years.

(d) Making, importing, selling, using or possessing fuel markers without express authority


A fine of Php 1 million but ≤ Php 5 million and imprisonment of ≥ 4 years but ≤ 8 years

(e) Making, importing, selling, using or possessing counterfeit fuel markers

(f) Causing another person or entity to commit any of the two (2) preceding acts in (d) and (e) hereof

(g) Causing the sale, distribution, supply or transport of legitimately imported, in transit, manufactured or procured controlled precursors and essential chemicals, in diluted, mixtures or in concentrated form, to any person or entity penalized in (a), (b ), ( d), ( e) and (f) hereof, including but not limited to, packaging, repackaging, labeling, relabeling or concealment of such transaction through fraud, destruction of documents, fraudulent use of permits, misdeclaration, use of front companies or mail fraud.

Any person who is authorized, licensed or accredited to conduct fuel tests, who issues false or fraudulent fuel test results knowingly, willfully or through gross negligence.

Additional penalty of imprisonment ranging from one (1) year and one (1) day to two (2) years and six (6) months.


The additional penalties of revocation of the license to practice his profession in case of a practitioner, and the closure of the fuel testing facility, may also be imposed at the instance of the court.


This RR took effect on 1 January 2018, the effectivity of the TRAIN Law.


RR No. 12-2021, to prescribe the policies and guidelines on the Tax Payment Certificate (TPC) issued by the Department of Trade and Industry-Board of Investment (DTI-BOI), evidencing the availment of the fiscal support for eligible and registered participants of the Comprehensive Automotive Resurgence Strategy (CARS) Program under Executive Order (EO) No. 182, Series of 2015.

Salient points of RR No. 12-2021 are as follows:

  • These Regulations shall apply to the Participating Car Makers (PCMs) and Participating Part Makers (PPMs) registered under the CARS Program who applied and were issued TPCs by the DTI-BOI to pay exclusively the following tax obligations, excluding any type of withholding taxes incurred in the course of their operations: (a) excise tax; (b) income tax; and (c) value-added tax.
  • The general policies and guidelines are provided under Section 4 of the RR.
  •  The amount of the Tax Payment Certificate (TPC) shall be indicated in the tax return as deduction from the tax due. In case the tax due is more than the amount of the TPC, the pending tax due shall be paid using the available modes of payment of the BIR. Otherwise, the excess shall not be considered or treated as a refundable amount.
  • Eligible and registered participants under the CARS Program shall not be allowed to register their activity under any other program granting incentives as a condition for TPC availment.
  • The grant of support is conditioned on the compliance of the eligible and registered participants with the terms and conditions of its registration.
  •  Audited Financial Statements and Income Tax Returns (ITRs) shall be submitted on or before May 15 of each year or one (1) month from the last day of filing of ITRs to the BIR.
  •  The BIR shall submit a monthly list of TPCs reported to the Bureau of Treasury and shall record the TPC transaction amount as part of its revenue collection.
  • This RR shall take effect immediately following its publication in the Official Gazette or newspaper of general circulation.


RR No. 11-2021, to prescribe the guidelines and procedures for availing of the tax exemptions and privileges granted under Republic Act No. 11523, otherwise known as the "Financial Institutions Strategic Transfer (FIST) Act".

Salient points of RR No. 11-2021 are as follows:

  • Section 3 of the RR provides that newly registered Financial Institutions Strategic Transfer Corporation (FISTC) shall comply with the provisions of the NIRC of 1997, as amended, and other applicable tax revenues issuances, particularly on the following:

1.  Issuances of registered Sales Invoices or Official Receipts for every sale of goods or services;

2.  Keeping of registered Books of Accounts and other accounting records of business transactions;

3.  Withholding of taxes, if applicable;

4.  Filing of required tax returns; and,

5.  Payment of correct taxes due on time.

Entities created under The Special Purpose Vehicle Act of 2002 are qualified to avail of the privileges and incentives under the Act.

  • Tax-exempt transactions as provided under Section 4 of the RR.


Only the following transactions shall be covered by the tax exemptions:

  1. Transfer of Non-Performing Loans (NPL) by a Financial Institution (FI) to a FISTC;
  2. Transfer of Real and Other Properties Acquired (ROPA) by a FI to a FISTC;
  3. Dation in payment of an NPL by a borrower to an FI;
  4. Dation in payment of an NPL by a third-party, on behalf of a borrower, to an FI;
  5. Transfer of an NPL by an FI to an individual;
  6. Transfer of a ROPA by an FI to an individual;
  7. Transfer of an NPL by a FISTC to a third-party;
  8. Transfer of a ROPA by a FISTC to a third-party:
  9. Dation in payment of an NPL by a borrower to a FISTC or an individual;
  10. Dation in payment of an NPL by a third-party, on behalf of a borrower, to a FISTC or an individual;
  11. Transfer of an NPL by an individual to a third-party: and,
  12. Transfer of a ROPA by an individual to a third-party.

The above transactions shall be exempt from the following taxes:

1.     Documentary stamp tax (DST) on any document evidencing the transfer or dation in payment;

2.     Capital gains tax imposed on the transfer of lands and/or other assets treated as capital assets;

3.     Creditable withholding income taxes imposed on the transfer of land and/or buildings treated as ordinary assets;

4.     Value-added tax on the transfer of NPAs or gross receipts tax whichever is applicable pursuant to existing revenue regulations.

The tax exemptions shall apply to the listed transactions only if the NPL/ROPA has been issued with a Certificate of Eligibility (COE) by the Appropriate Regulatory Authority.

The tax exemptions shall apply to the listed transactions only if the applicable requirements provided in Section 4(d) of the RR are complied with.


  • Additional tax exemptions and privileges shall be enjoyed by the FISTC in rehabilitating the financial consumer's business as provided in Section 5 of the RR
  •  Any loss that is incurred by an FI as a result of transferring its NPA to a FISTC/Individual within a period of not more than 2 years from the effectivity date of the Act on 18 February 2021 shall be treated as an ordinary loss, and may be carried over as a deduction from its taxable gross income for a period of 5 consecutive taxable years immediately following the year of the transfer that resulted to such loss; subject to conditions stated in Section 6.
  • All sales or transfers of NPAs from the FIs to a FISTC/Individual which is not in the nature of a “true sale shall not qualify for any of the tax exemptions granted under the Act.
  • The procedural guidelines were laid down for COE (Section 9), transfer of real property located in the Philippines (Section 10), and transfer of shares of stocks in a domestic corporation (Section 11).
  • FISTC shall submit to the BIR the following as attachments to its Annual Income Tax Return (ITR):

a.         List of taxable transactions;

b.         List of tax-exempt transactions; and,

c.         List of partly tax-exempt and partly taxable transactions.

  •   Any person, natural or juridical, who benefits from the tax exemptions and privileges but is not entitled thereto shall refund to the government double the amount of the tax exemptions and privileges availed plus interest of 12% per year from the date prescribed for its payment until the full payment thereof.
  •   This RR shall take effect after 15 days following publication in a newspaper of general circulation.


Bureau of Internal Revenue


The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 75-2021, 02 March 2021, prescribing the standard policy and guidelines for the use of BIR Form No. 0605 for excise tax purpose, thereby amending RMC No. 97-2020.

RMC No. 75-2021 provides that the proper filling up of BIR Form No. 0605 shall be as follows:


Payments to be made

Guidelines per RMC No. 75-2021

 1.   Excise taxpayers making advance payment for export products availing the Product Replenishment Scheme pursuant to Revenue Regulations No. 3-2008
  • Tick the “Tax Deposit/Advance Payment) box under “Voluntary Payment” of the Manner Payment (Field No. 17) of BIR Form No. 0605
2.   Excise taxpayers under the Non-Essential Services for Cosmetic Procedures
  • Use BIR Form No. 2200-C
3.  Excise taxpayers paying deficiency tax using BIR Form No. 0605
  • Tick the “Preliminary/Final Assessment/Deficiency Tax” box under “Per Audit/Delinquent Account” of Field No. 17 of BIR Form No. 0605
4.     Payments for administrative penalties
  • Tick the “Others (Specify)” box under “Voluntary Payment” of Field No. 17 of BIR Form No. 0605
  • Indicate “Administrative Penalties” in the box provided


All other excise tax payments on domestic removals of excisable articles shall use their corresponding excise tax returns (BIR Form 2200 series)


Attached is the full text of the issuances.

Revenue Regulations No. 11-2021

Revenue Regulations No. 12-2021

Revenue Regulations No. 13-2021

Revenue Memorandum Circular No. 75-2021

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