Philippines: Submission of inventory list and application of VAT to HMO plans of registered export enterprises
Bureau of Internal Revenue (BIR) guidance
Bureau of Internal Revenue (BIR) guidance
- Revenue Memorandum Circular (RMC) No. 8-2023 (20 January 2023) amends “Section 2: Prescribed Format and Deadline for Submission” of RMC No. 57-2015 by limiting the submission of the inventory list and prescribed schedules to soft copies instead of previously requiring both hard and soft copies. The soft copies must be stored/saved on a digital versatile disk-recordable (DVD-R) or universal storage bus (USB) flash drive properly labeled and submitted, together with a notarized certification duly signed by authorized representative of the taxpayer certifying that the data/information contained in the DVD-R or USB is true and correct. Read a January 2023 report prepared by the KPMG member firm in the Philippines.
- In a recent BIR ruling, the BIR confirmed that HMO plans acquired by registered export enterprises, for employees directly involved in operations of the registered project or activity and forming part of the employee’s compensation package, can be considered necessary expenses directly and exclusively used in the registered project or activity, and hence, subject to 0% VAT (rather than the normally applicable 12% VAT) under the relevant provision of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. Read a January 2023 report prepared by the KPMG member firm in the Philippines.
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