Category Archives: Tax Law

Online Sellers / Businesses Required to Register with the Bureau of Internal Revenue (BIR)

The Bureau of Internal Revenue (BIR) gave notice, through Revenue Memorandum Circular No. 60-2020, to all persons engaged in online selling, or conducting business transactions through any forms of electronic media, to register their respective businesses and pay the appropriate taxes — not later than 31 July 2020. Online sellers are also given notice to declare past sales and pay the appropriate taxes, without penalties, if done not later than 31 July 2020. The registration guidelines and requirements, for both individual and juridical online sellers, are discussed below.

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Estate Tax Amnesty: Processes, Coverage and Summary of the Tax Amnesty Act

The Tax Amnesty Act (Republic Act No. 11213), signed into law on 14 February 2019, provides for a one-time opportunity to settle estate tax obligations through an estate tax amnesty program that will give reasonable tax relief to estates with deficiency estate taxes. In other words, it provides a clean slate for taxpayers with existing estate tax delinquencies. Here is an introduction to the Tax Amnesty Act, in conjunction with Revenue Regulation No. 6-2019 issued by the Bureau of Internal Revenue (BIR).

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Guidelines on Interruption of Periods for Filing of Documents, Payment of Taxes, Cancellation of Proceedings due to Community Quarantine (Administrative Order No. 30)

The President has issued a directive for the issuance of guidelines on the interruption of periods for the filing of documents, payment of taxes and other fees, and cancellation of proceedings by reason of the community quarantine. Note that a “community quarantine” may refer to a general community quarantine or an enhanced community quarantine.

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Tax-Free, Tax-Deductible Donations for COVID-19 Relief: BIR Revenue Regulations No. 9-2020

[There are a number of ways the government can release financial assistance or social amelioration programs during the Enhanced Community Quarantine (ECQ) brought about by the Coronavirus Disease 2019 (COVID-19). The government may directly release cash to recipients. The government can also encourage the private sector to donate, and consider the donation as deductions for purposes of computing the taxes payable by the donor. For this purpose, the Bureau of Internal Revenue (BIR) issued Revenue Regulations No. 9-2020 dated 6 April 2020. Text reproduced below.]

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Rules on Withholding of Income by Top Withholding Agents under Revenue Regulations No. 11-2018

The Bureau of Internal Revenue (BIR) issued, on 31 January 2018, Revenue Regulations No. 11-2018, concerning withholding income tax, to implement the changes under Republic Act No. 10963, also known as the “Tax Reform for Acceleration and Inclusion (TRAIN)” Law. RR 11-2018 amends certain provisions of Revenue Regulations No. 2-98, as amended. The regulations cover, among others, taxpayers categorized as top withholding agents. Continue reading

New Law Increasing the Exemption for 13th Month Pay and Other Benefits (Republic Act No. 10653)

Republic of the Philippines
Congress of the Philippines
Metro Manila

REPUBLIC ACT NO. 10653

AN ACT ADJUSTING THE 13TH MONTH PAY AND OTHER BENEFITS CEILING EXCLUDED FROM THE COMPUTATION OF GROSS INCOME FOR PURPOSES OF INCOME TAXATION, AMENDING FOR THE PURPOSE SECTION 32(B), CHAPTER VI OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

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