Bureau of Internal Revenue
The Bureau of Internal Revenue (BIR) issued the following:
Revenue Memorandum Circular (RMC) No. 105-2025 dated 12 November 2025 to clarify the taxability of the allowance granted under Republic Act (RA) No. 11712 or the “Public Health Emergency Benefits and Allowances for Health Care Workers Act”.
The RMC shall apply to the Health Emergency Allowance (HEA) given to all health care and non-health care workers, regardless of employment status, during the COVID-19 or other public health emergencies of national scale that may be declared in the future, from the time of the declaration of the public health emergency until lifted by the President, in accordance with RA No. 11712.
The BIR has clarified that the grant of HEA pursuant to an employer-employee relationship, regardless of employment status, may be excluded from the gross income and is not subject to income tax, but only up to the Php90,000.00 threshold for “other benefits” under Section 32 (B) (7) (e) of the National Internal Revenue Code of 1997, as amended (Tax Code).
For individuals engaged under contracts of service and job orders where there exists no employer-employee relationship (self-employed professionals or independent contractors), the HEA shall be subject to income tax and other applicable taxes in accordance with the provisions of the Tax Code, and to the registration and compliance requirements under RMC No. 51-2018.
Further, the BIR has emphasized that covered persons granted with HEA shall be included in the Alphabetical List of Employees/Payees being submitted annually by employers/payors pursuant to existing regulations.
RMC No. 105-2025 is effective immediately.
RMC No. 106-2025 dated 12 November 2025 to include the following BIR Forms in the list of extensions of statutory tax deadlines for the submission and/or filing of documents and/or returns, as well as the payment of the corresponding taxes, for taxpayers affected by Typhoon “Tino” in specific areas enumerated in RMC Nos. 99-2025 and 100-2025 both dated 7 November 2025:
BIR Forms/Returns | Extended Due Date |
BIR Form No. 1706 – Capital Gains Tax Return for Onerous Transfer of Real Property Classified as Capital Asset (both Taxable and Exempt) | 28 November 2025 |
BIR Form No. 1707 – Capital Gains Tax Return for Onerous Transfer of Shares of Stocks Not Traded Through the Local Stock Exchange | 28 November 2025 |
The BIR also added that the affected taxpayers, BIR personnel and Authorized Agent Banks within the jurisdiction of Revenue District Office No. 64 – Talisay City, Camarines Norte, are also given until 28 November 2025 to comply with the statutory deadlines, as specified in RMC No. 101-2025.
RMC No. 106-2025 is effective immediately.
Here are the links to the full text of the issuances: RMC No. 105-2025 and RMC No. 106-2025.