Philippines: Recent direct and indirect tax developments

A report of recent direct and indirect tax developments

A report of recent direct and indirect tax developments

Article Posted date 12 July 2023

The Bureau of Internal Revenue (BIR) issued the following Revenue Memorandum Order (RMO) and Revenue Memorandum Circulars (RMCs):

  • RMO No. 23-2023 (dated 23 June 2023) provides the mandatory requirements and guidelines, policies and procedures in the processing of claims for value added tax (VAT) credit / refund except those under the authority and jurisdiction of the Legal Group.
  • RMC No. 63-2023 (dated 31 May 2023) provides the revocation of BIR Ruling Nos. 038-2001 and 046-1995.
  • RMC No. 69-2023 (dated 20 June 2023) provides the reversion of rates of percentage tax, minimum corporate income tax and regular corporate income tax on proprietary educational institutions and not for profit hospitals, pursuant to Republic Act No. 11534, otherwise known as the CREATE Act.
  • RMC No. 70-2023 (dated 22 June 2023) circulates the list of withholding agents required to deduct and remit the 1% or 2% creditable withholding tax (CWT) for purchase of goods and services under RR No. 31-2020.
  • RMC No. 71-2023 (dated 23 June 2023) provides the streamlined guidelines and mandatory requirements for claims of VAT credit / refund except for those under the authority and jurisdiction of the Legal Group.
  • RMC No. 74-2023 (dated 5 July 2023) prescribes the sworn statement and sworn declaration to be submitted relative to the compliance requirements in availing the income tax exemption of foreign-sourced dividends received by domestic corporation.
  • RMC No. 75-2023 (dated 5 July 2023) extends the deadline for the replacement of ask for receipt notice (ARN) with notice to issue receipt/invoice (NIRI) under RMO No. 43-2022.

Read a July 2023 report prepared by the KPMG member firm in the Philippines

 

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