Year-End Tax Updates and Compliance

The content of this webinar includes relevant BIR regulations and memorandum orders; and Court of Tax Appeals and Supreme Court rulings covering the year 2023 (up to October). The topics are easily arranged based on the practical issues as it is encountered by the taxpayers. The outline will be updated as new regulations and rulings are released and made available to the public.

INCOME TAX

1. This regulation amends RR No. 05-2021 on the requirements in availing Income Tax exemption of foreign-sourced dividends received by a Domestic Corporation (Revenue Regulations No. 05-2023, May 05, 2023)
2. Is the petitioner liable for corporate income tax on its revenues from junket gaming operations? (Prime Investment Korea, Inc. vs. CIR, CTA EB No. 9814, January 09, 2023)

VAT-EXEMPT & VATABLE TRANSACTIONS

1. This regulation implements the 10% discount and VAT exemption under RA No. 11861-Expanded Solo Parents Welfare Act (Revenue Regulations No. 01-2023, January 18, 2023)
2. This regulation revises certain provisions of RR No. 16-2005, as amended by RR No. 21-2021 to implement Secs. 294 (E) and 295 (D), Title XIII of NIRC of 1997 in relation to Zero-Rated Sales of goods or properties of a VAT-registered person and CREATE Act (Revenue Regulations No. 03-2023, April 26, 2023)
3. This regulation prescribes the guidelines for the optional VAT-registration of Registered Business Enterprises classified as Domestic Market Enterprise under 5% tax on Gross Income earned (Revenue Regulations No. 13-2023, November 10, 2023)
4. This provides the updated guidelines and prescribe the mandatory documentary requirements and procedures in the processing and grant of VAT credit/refund claims under Sections 112, 204 (C) and 229 of NIRC of 1997, in line with TRAIN Law and CREATE Act (Revenue Memorandum Order No. 23-2023, June 23, 2023)
5. This amends RMO No. 23-2023 relative to issuance of Tax Verification Notices (TVNs) in the processing of claims for VAT Credit/ Refund (Revenue Memorandum Order No. 28-2023, August 10, 2023)
6. Should petitioner’s claim for refund or credit regarding their unutilized Input VAT be granted (Sony Ericsson Mobile Communications International vs. CIR, G.R. No. 223469, January 11, 2023) 

7. Whether respondent is required to prove direct attributability of its purchases or Input VAT to its zero-rated sales (Cargill Philippines, Inc. vs. CIR, G.R. Nos. 255470-71, January 30, 2023)
8. Whether petitioner is entitled to tax refund of excess input taxes (CBK Power Co. Ltd. Vs. CIR, G.R. No. 247918, February 01, 2023)
9. Whether petitioner timely filed its claims for refund of unutilized Input VAT for taxable year 2008 (CE Casecnan Water and Energy Company, G.R. No. 212727, February 01, 2023)
10. Whether the judicial claim for refund was timely filed with the CTA (Vestas Services Phils., Inc. vs. CIR, G.R. No. 255085, March 29, 2023)
11. Whether or not petitioner is entitled to refund for Excess Input VAT (KEPCO Ilijan Corporation vs. CIR, CTA EB No. 2475, January 09, 2023)
12. Whether or not petitioner is entitled to Input VAT refund (Mitsui and Co., Ltd. Manila Branch vs. CIR, CTA EB No. 2495, April 18, 2023)
13. Whether or not Input Tax must be attributable to Zero-rated sales to be refundable or creditable (Oceanagold Philippines vs. CIR, CTA EB No. 2552, May 12, 2023)
14. Whether the Court erred in granting partial refund of excess and unutilized Input VAT attributable to its Zero-rated sales (Axelum Resources Corp. vs. CIR, CTA EB No. 2561, June 13, 2023)
15. Whether or not Petitioner’s Input VAT attributable to its Zero-rated sales must be applied against Output VAT Liability (Maxima Machineries, Inc. vs. CIR, CTA EB No. 2590, July 18, 2023)
16. Whether CIR’s decision to deny the claim for VAT refund in compliance with due process (Carmen Copper Corporation vs. CIR, CTA EB No. 2596, September 25, 2023)
17. Whether or not RMO No. 3-2009 empowers the CIR to collect deficiency VAT without the need of a previous valid formal assessment against taxpayer (Payment wall, Inc. vs. CIR, CTA EB No. 2510, October 17, 2023)

WITHHOLDING TAX

1. This further amends the pertinent provisions of RR No. 2-98, as amended, to impose Creditable Withholding Tax on certain income payments by joint ventures/ consortiums (Revenue Regulations No. 14-2023, November 10, 2023)
2. This reiterates Sec. 3J of RR No. 17-2003 on withholding of taxes for sale of real property on installment plan (Revenue Memorandum Order No. 33-2023, September 29, 2023)
3. Whether the CIR has the right to assess and collect the Final Withholding Tax of the company (Coral Bay Nickel Corporation vs. CIR, G.R. No. 244464, August 09, 2023)
4. Whether the Court err in ruling that petitioner is entitled to refund of excess and unutilized Creditable Withholding Tax (Tullet Prebon vs. CIR, CTA EB No. 2576, February 16, 2023)
5. Whether the request for refund or issuance of Tax Credit Certificate for excess and unutilized Creditable Withholding Tax (Zuellig Pharma Corporation vs. CIR, CTA No. 9030, March 02, 2023) 

6. Whether the interest income from money market placement is subject to Final Withholding Tax (First Philippine Utilities Corporation vs. CIR, CTA EB No. 2500, May 24, 2023)
7. Whether respondent is entitled to a refund for its unutilized creditable withholding taxes (Sony Philippines, Inc. vs. CIR, CTA EB No. 2592, June 22, 2023)

 DOCUMENTARY STAMP TAX

1. This regulation prescribes the use of constructive affixture of Documentary Stamp Tax (DST) as proof of payment of DST for certificates issued by government agencies or instrumentalities (Revenue Regulations No. 02-2023, April 13, 2023)
2. Whether or not petitioner is entitled to refund of Documentary Stamp Tax (San Miguel Corporation vs. CIR, G.R. No. 257697, April 12, 2023)
3. Whether PEZA-registered respondent should be made subject of Documentary Stamp Tax (Cebu Light Industrial Park, Inc. vs. CIR, CTA EB No. 2466, March 08, 2023)
4. Whether Court’s Order for payment of Documentary Stamp Tax valid (Dizon Farms Produce, Inc. vs. CIR, CTA EB No. 2516, August 01, 2023)

EXCISE TAX

1. This regulation provides rules governing imposition of Excise Tax on Perfumes and Toilet Waters as provided under Sec. 150(b) of Tax Code of 1997, as amended (Revenue Regulations No. 09-2023, August 03, 2023)
2. This creates Alphanumeric Tax Codes (ATCs) for Excise Taxes and Tobacco Inspection Fees on Novel Tobacco Products (Revenue Memorandum Order No. 01-2023, January 05, 2023)
3. This provides supplemental guidelines on the implementation of RMO No. 40-2022 to ensure effective conduct of apprehension and detention of unregistered articles (Revenue Memorandum Order No. 16-2023, May 17, 2023)
4. Whether or not the Tax Code amended or repealed exemption from taxes on importation of cigarettes, liquor and wine for its commissary and catering supplies for inflight consumption (Philippine Airlines, Inc. vs. CIR, G.R. No. 236343-45 and 236372-74, January 17, 2023)
5. Whether or not petitioner is entitled to refund of excise taxes paid on finished goods produced from tax-paid raw materials (Tanduay Distillers, Inc. vs. CIR, G.R. No. 256740, February 13, 2023)
6. Whether alkalyte, which is a premium gasoline blending stock, is subject to excise tax (Petron Corporation vs. CIR, G.R. No. 255961, March 20, 2023)
7. Whether or not the petitioner is entitled to refund of Excise Taxes (Philip Morris – Fortune Tobacco Corp. vs. CIR, CTA EB Nos. 2613, May 18, 2023)

LOCAL BUSINESS TAX 

1. Was the collection by petitioners of Local Business Tax on dividends of San Miguel Corp. preferred shares held by respondent proper? (Te Deum Resources, Inc. vs. City of Davao, G.R. No. 243068, January 17, 2023)
2. Whether the interests and dividends received by Randy Allied Ventures, Inc. subject to Local Business Tax? (Randy Allied Ventures, Inc. vs. City of Davao, G.R. No. 244137, July 03, 2023)
3. Whether the Court of Tax Appeals has jurisdiction over the case (San Miguel Foods, Inc. vs. The City Treasurer – Davao City, CTA EB No. 2474, January 31, 2023)
4. Whether or not the respondent is subject to Local Business Tax and Business Plate/ Sticker under the Taguig Revenue Code (Serendra Condominium Corporation vs. Taguig City Government, CTA EB Nos. 2404, June 11, 2023)

ESTATE TAX

1. This amends certain provisions of RR No. 6-2019 to implement the extension on the availment period of Estate Tax Amnesty pursuant to RA No. 11956, further amending RA No. 11213 (Tax Amnesty Act), as amended by RA No. 11569 (Revenue Regulations No. 10-2023, September 08, 2023)
   
   

TAX ASSESSMENTS

1. This amends the policies and procedures in the issuance of the Authority to Cancel Assessment (ATCA) as provided in RMO No. 33-2018 (Revenue Memorandum Order 18-2023, May 19, 2023)
2. Whether the assessment for deficiency taxes had already prescribed (Lapanday Foods Corporation vs. CIR, G.R. No. 186155, January 17, 2023)
3. Whether or not the Court of Tax Appeals have jurisdiction over the case (Manila Medical Services, Inc. vs. CIR, G.R. No. 255473, February 13, 2023)
4. Whether the Final Decision on Disputed Assessment (FDDA) is already final, executory and demandable (Brewery Properties, Inc. vs. CIR, G.R. No. 239260, March 06, 2023)
5. Whether there was sufficient delivery of Formal Letter of Demand with attached Details of Discrepancies and Assessment Notices (FLD-DDAN) (South Entertainment Gallery vs. CIR, G.R. No. 223767, April 24, 2023)
6. Whether the levy, sale, and forfeiture of the subject real properties valid (Transmix Builders & Construction, Inc. vs. City of Antipolo, G.R. No. 235484, August 09, 2023)
7. Whether or not the Court’s decision to cancel assessment against respondent for various taxes such as deficiency income tax, VAT and Documentary Stamp Tax is already final and executory (Robinson Land Corp. vs. CIR, CTA EB No. 2430, January 17, 2023)
8. What to do if you file the Petition for Review beyond the 120 +30-day period (MTI Advanced Test Development Corp. vs. CIR, CTA EB No. 2591, February 01, 2023) 

9. Whether or not the subject tax assessments such as Deficiency Income Tax, VAT and Withholding Tax are valid (Medical Center Trading Corp. vs. CIR, CTA EB No. 2473, February 22, 2023)
10. Whether petitioner is bound by service through registered mail of Preliminary Assessment Notice (PAN) and Final Assessment Notice (FAN) /Formal Letter of Demand (FLD) (Citiaire Industrial Services Corp. vs. CIR, CTA EB No. 2511, March 07, 2023)
11. Whether the respondent file the Final Assessment Notice (FAN) protest within the prescribed period (Four Seas Trading Corporation vs. CIR, CTA EB No. 2507, April 05, 2023)
12. Whether or not Petitioner’s judicial claim for refund was filed out of time (Mitsuba Philippines Technical Center Corp. vs. CIR, CTA EB No. 2631, May 26, 2023)
13. Whether penalty without taxpayer consent is valid (Fluor Daniel, Inc. vs. CIR, CTA EB No. 2567, June 01, 2023)
14. Whether the Court erred in ruling the assessment void for due process violation (Ecotechnovations, Inc. vs. CIR, CTA EB No. 2564, July 03, 2023)
15. Whether or not the lack of electronic Letter of Authority (eLA) and unauthorized officers legally infirm the respondents (Robinsons Toys, Inc. vs. CIR, CTA EB No. 2560, July 13, 2023)
16. Whether or not CIR erred in its findings of basic deficiency taxes by the petitioner (Donato Cruz Trading Corp. vs. CIR, CTA EB No. 2573, July 25, 2023)
17. Whether the Court is correct in dismissing JG Summit’s appeal for lack of jurisdiction due to its failure to file the appeal within the proper period (JG Summit Holdings, Inc. vs. CIR, CTA EB No. 2397, August 04, 2023)
18. Whether “OPLAN KANDADO” is conducted with due process (iScale Solutions, Inc. vs. CIR, CTA EB No. 2624, August 23, 2023)
19. What is the effect of the undated Final Assessment Notice and Formal Letter of Demand? (Philusa Corporation vs. CIR, CTA EB. No. 2566, September 13, 2023)
20. Whether CIR can still collect deficiency taxes (Citiparking Management Corp. vs. CIR, CTA EB No. 2626, September 29, 2023)
21. Whether or not the Court has jurisdiction over the Petition for Review (Drugmakers Biotech Research Laboratories, Inc. vs. CIR, CTA EB No. 2570, October 17, 2023)
22. Whether or not the CIR’s Motion for Reconsideration is allowed despite the delay in filing (Gomeco Metal Corp. vs. CIR, CTA EB 2646, October 23, 2023)

ADMINISTRATIVE

1. This regulation amends Sec. 2 of RR No. 09-2016 to further expand the coverage of taxpayers mandated to file tax returns through eBIR forms (Revenue Regulations No. 04-2023, May 04, 2023)
2. This regulation amends certain provisions of RR Nos. 17-2011 and 2-2022, implementing RA No. 9505 “Personal Equity and Retirement Account (PERA) Act of 2008 (Revenue Regulations No. 07-2023, July 07, 2023)
3. This clarifies the data that appear in Sales Invoices on purchases of Senior Citizens and Persons with Disabilities through online or mobile applications (Revenue Regulations No. 08-2023, July 31, 2023)
4. This prescribes the use of e-mail and electronic signature as additional mode of service of the Warrant of Garnishment pursuant to Sec. 208 & 244 of NIRC (Revenue Regulations No. 11-2023, September 14, 2023)

5. This implements Sec. 237 of NIRC on the issuance of receipts by Agricultural Producers (Revenue Regulations No. 12-2023, October 02, 2023)
6. This prescribes the 2023 Operational Key Performance Indicators (KPIs) for Revenue Regions, Large Taxpayers Service and Revenue District Offices (Revenue Memorandum Order No. 02-2023, January 10, 2023)
7. This prescribes the policies and responsibilities of concerned BIR offices to implement regular updating of information posted in BIR Citizen’s Charter (Revenue Memorandum Order No. 03-2023, January 16, 2023)
8. This amends RMO No. 14-2015 relative to new composition of Committee to supervise printing of specialized accountable forms in the National Office (Revenue Memorandum Order No. 14-2015, January 27, 2023)
9. This prescribes the guidelines on the implementation of revised satisfaction survey for frontline services under Client Support Service as one of BIR’s Feedback Mechanism (Revenue Memorandum Order No. 05-2023, January 30, 2023)
10. This prescribes updated and consolidated policies, guidelines and procedures for BIR Audit Program Digest (Revenue Memorandum Order No. 06-2023, February 09, 2023)
11. This provides the policies, guidelines and procedures in processing and monitoring of One-Time Transactions (ONETT) and issuance of Electronic Certificate Authorizing Registration through the eONETT System (Revenue Memorandum Order No. 07-2023, February 23, 2023)
12. This amends certain provisions of RMO No. 06-2023 prescribing the updated and consolidated policies, guidelines and procedures for BIR Audit Program (Revenue Memorandum Order No. 06-2023, March 20, 2023)
13. This prescribes the policies, guidelines and procedures on Enterprise Risk Management (ERM) in the BIR (Revenue Memorandum Order No. 09-2023, March 20, 2023)
14. This prescribes the supplemental guidelines on the application for Electronic Authority to Release Imported Goods (eATRIG) by importers of sweetened beverages through the Philippine National Single Window (NSW) (Revenue Memorandum Order No. 10-2023, March 21, 2023)
15. This prescribes the Enhanced BIR Strategic Performance Management System (Enhanced BIR SPMS) (Revenue Memorandum Order No. 12-2023, March 30, 2023)
16. This amends RMO No. 05-2022 relative to establishment and implementation of Online Citizen/ Client Satisfaction Survey (CCSS) for other BIR Critical Services under Online Survey Feedback System (Revenue Memorandum Order No. 14-2023, April 13, 2023)
17. This prescribes 2023 BIR Collection Goal Allocation by implementing office based on the Medium-Term Revenue Program (Revenue Memorandum Order No. 15-2023, April 25, 2023)
18. This amends RMO No. 48-2010 defining the new composition of the Committee on Disposal of Accountable Forms in the National Office (Revenue Memorandum Order No. 19-2023, May 30, 2023)
19. This amends further RMO No. 21-84 delegating authority to approve requests for Disposal of Specialized Accountable Forms in the Regional Office (Revenue Memorandum Order No. 20-2023, May 30, 2023)
20. This prescribes the guidelines in the disposal of valueless records in the BIR (Revenue Memorandum Order No. 21-2023, June 01, 2023) 

21. This prescribes the revised Non-Disclosure Agreement Form to be used by BIR Revenue Personnel and/or 3^rd parties engaged in BIR projects (Revenue Memorandum Order No. 22-2023, June 02, 2023)
22. This prescribes the revised policies relative to the accreditation of Cash Register Machines (CRMs), Point of Sale (POS) and other similar sales machines/ software generating invoices/ receipts (Revenue Memorandum Order No. 24-2023, June 26, 2023)
23. This policies and procedures in the processing of request for corporate information, including beneficial ownership information, with the Securities and Exchange Commission (Revenue Memorandum Order No. 26-2023, July 19, 2023)
24. This amends RMO No. 15-2023 and prescribes the revised 2023 BIR Collection Goal by implementing office (Revenue Memorandum Order No. 27-2023, July 27, 2023)
25. This prescribes the guidelines and procedures in the attainment of Quality Management System Certification under ISO 9001:2015 Standards on the processing of One-Time Transaction (ONETT), Tax Returns, issuance of Tax Clearance Certificate and verification of BCS Reports and returns filed with Authorized Agent Banks (Revenue Memorandum Order No. 29-2023, August 15, 2023)
26. This prescribes the revised guidelines for Information Asset Classification (Revenue Memorandum Order No. 30-2023, September 22, 2023)
27. This aligns the provisions of the current On-the-Job Training (OJT) Program of BIR with the provisions of the Commission on Higher Education (CHED) and Department of Education (DepEd) Orders, and amends RMO No. 11-2017 relative to acceptance of students for OJT in the National and Regional Offices (Revenue Memorandum Order No. 36-2023, November 19, 2023)
28. Whether a new Letter of Authority is required for newly assigned BIR Officers to continue their audit and investigation (Metro Rail Transit Corporation vs. CIR, CTA No. 9651, March 23, 2023)
29. Whether or not the new set of Revenue Officers and Group Supervisors are authorized to conduct audit without a new Letter of Authority (The Merry Cooks, Inc. vs. CIR, CTA No. 2681, October 23, 2023)