InTAX: January 2026 Issue 1 | Volume 1

Department of Finance

The Department of Finance (DOF) issued the following:

Revenue Regulations (RR) No. 28-2025, dated 21 April 2025, implementing the enhanced version of the Electronic Documentary Stamp Tax System (eDST).

Relevant provisions of RR No. 28-2025:

•  List of covered industries of taxpayers, individual or non-individual, that are mandated to use the enhanced version of the eDST system for the affixture of the prescribed documentary stamp on their taxable documents.
• Requirements for online enrollment in the use of the eDST system, consisting of 2 modules, the Deposit Module and the Non-Deposit Module.
• Use of loose documentary stamps and constructive affixture shall be allowed, subject to the determination by the Commissioner of Internal Revenue (CIR) through a separate revenue issuance. Loose documentary stamps shall only be affixed to taxable documents prescribed under Section 188 of the Tax Code. Likewise, purchase of two or more pieces of loose documentary stamps for future affixture to taxable documents is prohibited, except in instances as may be determined by the CIR through a separate revenue.
• Treatment of the excess deposit in case of closure of business
• Implementation of the eDST System may be in phases, as may be determined by the CIR through a separate issuance
• Prohibition on the sale of stamps more than its face value and prohibition of the use of previously affixed loose documentary stamps.

The RR shall take effect on 06 January 2026, following its publication in the Official Gazette or in the BIR Official Website, whichever comes first.

(R.G. Manabat & Co. Note: The RR was posted on the BIR website on 22 December 2025.)

RR No. 29-2025, dated 27 October 2025, to further amend the De Minimis benefits provision of RR No. 2-98, as amended by RR No. 04-2025.

Specifically, Section 2.78.1(A)(3) of RR No. 2-98 was amended, which increases the de minimis benefits threshold not subject to withholding tax, summarized as follows:

The RR shall take effect on 06 January 2026, following its publication in the Official Gazette or in the BIR Official Website, whichever comes first.

(R.G. Manabat & Co. Note: The RR was posted on the BIR website on 22 December 2025.)

Bureau of Internal Revenue

The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 109-2025, dated 12 December 2025, to clarify the specific provisions of RMC No. 107-2025 (dated 24 November 2025), which suspends all audit and other field operations of the BIR.

The following are the salient points of the RMC:

• The purpose of RMC 107-2025 is to order the suspension of all field audits and related operations of the BIR, such as the issuance of Letters of Authority (LOAs), Mission Orders (MOs), tax verifications, on-site visits, and examinations, to address systemic issues, protect taxpayer rights, strengthen audit integrity, and develop a transparent, standardized, and modernized audit framework.
• The suspension took effect on 24 November 2025. From that date, all covered field audits, operations, and related activities will be stopped unless the case falls under the exceptions listed in Section IV of RMC No. 107-2025.
• The suspension applies to all taxpayers (i.e., individuals, corporations, estates, and business owners) with ongoing audits or investigations pursuant to duly issued LOAs or MOs.
• The specific audit actions currently suspended include fieldwork such as examining books, verifying records, conducting audit-related onsite visits by revenue officers to taxpayers, and any other steps taken under an LOA or MO. It aims to suspend field activities involving contact or face-to-face meetings with taxpayers, as well as on-site visits to taxpayers' premises.
• The activities specifically suspended are as follows:

1. All ongoing and upcoming field audits and related field operations;
2. Issuance of LOAs;
3. Issuance of MOs;
4. Issuance of Tax Verification Notices (TVNs); and
5. Issuance of other notices related to the examination and verification of taxpayers' books of accounts, records, and other related transactions.

• The suspension also includes issuing a Subpoena Duces Tecum, which is part of or necessary to carry out an audit or investigation, excluding cases falling under the exceptions of RMC No. 107-2025.
• Pursuant to Section IV of RMC No. 107-2025, audit of cases, including the issuance of assessment notices, warrants, and seizure notices, shall not be suspended under the following circumstances:

1. Cases prescribing within six (6) months from 24 November 2025;
2. Processing and verification of estate tax returns, donor's tax returns, capital gains tax (CGT) returns, and withholding tax returns on the sale of real and personal properties, shares of stocks, together with the documentary stamp tax (DST) returns related thereto (One-Time Transactions [ONETT] cases);
3. Examination or verification of internal revenue tax liabilities of taxpayers retiring from business;
4. LOAs/MOs needed for active criminal probes conducted by duly authorized enforcement units through verified intelligence reports, inter-agency referrals, third-party data validation, or risk-scoring anomalies that require immediate audit action where delay would prejudice the government's case (Tax evasion cases);
5. Claims for refund where the issuance of an LOA is statutorily required; and,
6. Other matters/concerns where deadlines have been imposed or are under the orders of the Commissioner of Internal Revenue (CIR).

• The suspension will remain in place until the CIR officially issues an order lifting it. No audit activities may resume prior to that.

Here are the links to the full text of the issuances: RR. No. 28-2025, RR No. 29-2025 and RMC No. 109-2025.