Philippines Tax Updates August 2026: BIR, SEC, PEZA and FIRB Issuances

Tax Tweets is Reyes Tacandong & Co.’s official monthly publication which highlights select and significant issuances and advisories of various government agencies including the BIR, SEC, BOC, FIRB, PEZA, and other regulatory bodies.

This Tax Tweets Issue covers select and significant issuances and advisories for August 2026

BIR ISSUANCES

Prescribing the Consolidated and Revised Policies, Guidelines and Procedures for the Bureau of Internal Revenue Audit Program

RMO No. 22-2026

Issued on August 24, 2026

This Circular was issued to establish a consolidated and revised BIR Audit Program that standardizes audit policies, procedures, and controls across all investigating offices. The Order strengthened the reforms introduced under RMO No. 1-2026 and related issuances by institutionalizing a risk-based, system-assisted, and technology-driven audit framework designed to improve transparency, efficiency, accountability, and taxpayer compliance.

Single-Instance Audit Framework

A taxpayer shall be subject to only one (1) electronic Letter of Authority (eLA), for a given taxable year, covering all applicable internal revenue tax types under RMO No. 1-2026, as amended, subject to certain exceptions.

System-Assisted and Risk-Based Anonymous Audit Selection Process

This process shall govern the issuance of eLAs, tax verification notices (TVNs), and Mission Orders (Mos) through defined criteria, verifiable data, and risk indicators derived from filed tax returns, third-party information, and other relevant data available within BIR systems. The assignment of audit cases shall be anonymized, such that the identity of the taxpayer remains concealed during the selection and assignment stages until the audit case is finalized in the system, except as otherwise permitted under this Order. This mechanism is intended to promote impartiality and prevent undue influence in the selection and assignment of audit cases.

Mandatory and Priority Cases

Mandatory cases refer to transactions or situations where audit or verification is required as a condition precedent to the issuance of tax clearance, the processing of claims for refund or tax credit, or in other cases as may be identified by the CIR as primary target for audit or investigation. Such cases are to be issued an eLA or a TVN depending on the selection criteria applicable. Mandatory cases shall not be subject to system-assisted selection, but they shall be properly encoded, created, and processed in the prescribed BIR systems/platforms. Priority cases refer to cases to be covered by eLAs that are electronically selected through the prescribed BIR system based on prescribed risk-based criteria requiring immediate action. These indicators are derived from filed tax returns and other taxpayer information available to the Bureau. A list of the Priority cases can be found in the Circular.

Taxpayer’s Consent on Audit Venue/Authorized Representative

As stated in previous RMOs, examination and inspection of books of accounts and other accounting records shall be conducted either at the taxpayers’ registered place or at the appropriate BIR office. However, if such documents are voluminous in nature or where the transport to the BIR office would be impractical, burdensome, or disruptive to business operations, the taxpayer shall be afforded reasonable options on the manner and venue of examination by accomplishing the Taxpayer’s Consent on Audit Venue / Authorized Representative.

Where a subpoena has been validly issued, the taxpayer’s option to select the venue of examination or submission of records shall no longer apply. All required records shall be submitted to the BIR office specified in the subpoena.

Minutes of the Meeting

The Minutes of Meeting for the Discussion of Discrepancy conducted after the issuance of the Notice of Discrepancy shall be prepared. Such minutes shall be duly signed by the taxpayer or its authorized representative and the assigned RO and GS. Any refusal to sign shall be expressly noted in the minutes.

Report of Investigation/Verification

The report of investigation/verification of cases covered by eLAs/eMOA/TVNs pursuant to this Order shall be submitted by the assigned RO/GS within the following prescribed number of calendar days:

Failure to report the case within the prescribed period shall not affect the validity of the assessment, without prejudice to any administrative accountability under existing laws and regulations.

Service of Termination Letter

A Termination Letter shall be prepared for all paid cases or cases with no findings or discrepancies upon approval of reports. It shall be served upon the taxpayer within a reasonable time.

Revalida

All audit investigation reports and assessment issuances may be subject to a Revalida or “Audit of Auditors.” The BIR shall conduct a technical review and evaluation of audit findings, computations, and assessment issuances, subject to the approval of the Commissioner of Internal Revenue.

Guidelines and Procedures in the Pilot Implementation of the Document System (“DTMS”) Tracking and Management

RMO No. 21-2026

Issued on August 13, 2026

The Order provided uniform guidelines and procedures in the utilization of the system at the Document Tracking and Management System (“DTMS”) Pilot Sites, while also defining the duties and responsibilities of the identified revenue officials and personnel on the use of the DTM, and streamlining document-related processes to reduce time spent on receiving, tracking, managing, and storing documents.

DTMS is an online facility for BIR authorized users to receive, track, manage, and store documents. It allows the monitoring of the real-time status of documents, ensuring timely and accurate responses to requests and communications. It also strengthens data security by restricting access to sensitive information to authorized users. It further promotes better coordination across various BIR offices.

Clarification of the Base Amount for the Imposition of the Twenty Percent (20%) Penalty Relative to the Early Withdrawal of Personal Equity and Retirement Account (“PERA”) Assets, Accounts and Sub-Accounts Classified as Unqualified, and Amending Certain Provisions of Revenue Memorandum Circular (“RMC”) No. 4-2023

RMC No. 91-2026

Issued on August 11, 2026

The Circular clarified the proper determination of the base amount for the imposition of the 20% Early Withdrawal Penalty (“EWP”) under the PERA Law, while providing guidance on the treatment of qualified and unqualified early withdrawals of PERA assets, partial withdrawals, and penalty treatment of income from PERA assets not covered by PERA exemptions.

Imposition of EWP

Pursuant to Section 10(C) of RR No. 17-2011, as amended, an EWP shall be imposed on any unqualified early withdrawal of PERA assets.

The EWP shall consist of the following:

1. 20% of the Gross Income Earned attributable to the PERA assets or portion of PERA assets withdrawn, calculated from the date of opening or creation of the relevant PERA account or sub-account up to the date of withdrawal; and
2. The recovery of any 5% tax credit previously availed of with respect to such withdrawn PERA assets for the entire period.

Only the Gross Income Earned attributable to PERA assets that are actually withdrawn shall be included in the EWP base. Any Gross Income Earned that remains invested, reinvested, or otherwise retained within the PERA — including unrealized gains and proceeds from the sale, redemption, or liquidation of PERA investment products that continue to be held under PERA custody — shall be excluded from the EWP base, as such amounts have not been subject to an early withdrawal.

Accordingly, the EWP shall apply only to the Gross Income Earned attributable to the portion of PERA assets actually withdrawn and shall not affect other PERA accounts, sub-accounts, or investment product categories that remain intact. Any losses incurred in other PERA accounts or sub-accounts shall not be deductible from the Gross Income Earned attributable to the withdrawn PERA assets.

Clarification on Grants of PERA Tax Exemptions

Under Republic Act No. 9505 and its Implementing Rules and Regulations, tax exemptions under the PERA apply strictly to PERA assets and income that remain within the PERA. Such exemptions are limited to the following:

1. The final withholding tax on interest from any currency bank deposit, yield or any other monetary benefit from deposit substitutes and from trust funds and similar arrangements, including a depository bank under the expanded foreign currency deposit system;
2. The capital gains tax on the sale, exchange, retirement or maturity of bonds, debentures or other certificates of indebtedness;
3. The 10% tax on cash and/or property dividends actually or constructively received from a domestic corporation, including a mutual fund company;
4. The capital gains tax on the sale, barter, exchange or other disposition of shares of stock in a domestic corporation; and
5. Regular income tax.

The EWP under Section III of the said Circular does not operate as a final withholding tax or as an income tax on the amount withdrawn, but rather as a statutory penalty imposed on account of the premature withdrawal of PERA assets. The imposition of the EWP is separate and distinct from the foregoing tax exemptions and shall be attributable to the PERA assets actually withdrawn.

Accordingly, taxes that are expressly excluded from the PERA exemptions under existing laws shall continue to apply in accordance with the National Internal Revenue Code of 1997, as amended, (“Tax Code”) and relevant revenue issuances, irrespective of whether the related income is derived from PERA investment products. These include, among others:

1. Percentage taxes on persons exempt from value-added tax, domestic carriers and keepers of garages, international carriers, franchise holders, overseas dispatch, message or conversation originating from the Philippines, banks and non-bank financial intermediaries performing quasi-banking functions, other non-bank finance intermediaries, life insurance premiums, agents of foreign insurance companies, amusement, and winnings;
2. Value-added tax;
3. Stock transaction tax on the sale, barter, or exchange of shares of stock listed and traded through the local stock exchange; and
4. Documentary stamp tax.

Additional Guidelines on the Utilization of the Personal Equity and Retirement Account Tax Credit Certificates

RMC No. 94-2026

Issued on August 13, 2026

This Circular provided additional guidelines on the utilization of PERA Tax Credit Certificates (“TCCs”). The said Circular discussed how PERA TCCs are processed, claimed, monitored, and applied against tax liabilities.

A contributor shall be entitled to a 5% tax credit based on the total qualified amount contributed to PERA in a given year. The application for PERA TCCs shall be done by electronically submitting an application within 60 days from the end of each calendar year to the Bangko Sentral ng Pilipinas (“BSP”) PERA System. Once approved, the applied PERA TCC shall be readily available in the System for distribution to PERA contributors.

A PERA TCC has a validity period of five (5) years from the date appearing on the PERA TCC. If the PERA Contributor withdraws or terminates the PERA prior to the allowable period, the corresponding PERA TCCs that have been printed and released to the Contributor are deemed utilized.

If an Overseas Filipino who has contributed the maximum amount of contribution to PERA changes his/her contribution type within the year, the 5% tax credit shall be based on the contributions made as an Overseas Filipino. However, the TCC shall bear the “Self-Employed/Employee” contributor type valid solely for payment of any income tax liability. However, if the actual change in Contributor Type was declared after approval of the TCC, the amendment shall no longer be considered.

Any amount in the PERA TCC in excess of the tax due per tax return released to the Overseas Filipino/self-employed contributor shall be forfeited in favor of the government.

The concerned BIR Revenue District Office shall collate the tax returns and attachments filed by qualified PERA Contributors who utilized their PERA TCC. On the other hand, unutilized PERA TCCs are not transferable, and may not be awarded or transferred to any person, whether individual or juridical.

PERA Tax Credits afforded to an employee or self-employed PERA Contributor may only be credited against his/her income tax liability. However, an overseas Filipino PERA Contributor may use their tax credits against any internal revenue tax liability. Kindly take note that the estate tax is a liability imposed on the estate of the decedent PERA Contributor, and not the decedent PERA Contributor.

Circularizing the Implementing Rules and Regulations of Republic Act No. 12253 Otherwise Known as the “Enhanced Fiscal Regime for Large-Scale Metallic Mining Act”

RMC No. 93-2026

Issued on August 13, 2026

The Circular published a copy of the Implementing Rules and Regulations (“IRR”) of Republic Act No. 12253 or “An Act Enhancing the Fiscal Regime for the Large-Scale Metallic Mining Industry Amending for the Purpose Sections 34(B), 287, and the Subjects of Title VI and Chapter VII Thereof, and Creating New Sections 151-A, 151-B, 151- C, 151-D, and 287-A, all under Republic Act No. 8424, otherwise known as the National Internal Revenue Code of 1997, as amended, appropriating funds therefor, and for other purposes”.

The IRR shall primarily apply to all large-scale metallic mining operations in the Philippines. “Large-scale metallic mining” refers to mining operations covered by mineral agreements or Financial or Technical Assistance Agreements (“FTAAs”) executed under RA 7942 or the Philippine Mining Act of 1995 and its implementing rules and regulations, which involve the exploration, development, and utilization of mineral resources intended for commercial purposes, utilizing substantial capital investment, technology, methods, and equipment, to extract and process metal-bearing ores.

Pursuant to the IRR, the following taxes are imposed and collected under RA 7942, which amended Sections 151-A and 151-B of the Tax Code:

For purposes of determining the royalty tax and windfall profits tax due, the principle of ring-fencing shall apply.

“Ring-fencing” means limiting the ability of the large-scale metallic mining contractor or operator to consolidate income and costs across different mining projects, by isolating or segregating such income and expenses, such that it is restricted from offsetting losses or deductions from one project against income. Thus, the following shall be treated as a separate taxable entity for purposes of computing and paying the royalty tax:

1. A metallic mining contractor, with respect to each mineral agreement or FTAA that it holds and/or operates.
2. Where there is more than 1 valid mining operator under the same mineral agreement or FTAA, each mining operator shall be deemed a separate taxable entity for its respective mining operations under each mineral agreement or FTAA.

The Local Government Units (“LGUs”) shall, in addition to the internal revenue allotment, have a share of 40% of the gross collection derived by the national government from the preceding fiscal year from excise taxes on mineral products, royalties, and such other taxes, fees, or charges, including related surcharges, interests, or fines; and from its share in any co-production, joint venture, or production sharing agreement in the utilization and development of the national wealth within their territorial jurisdiction. The Local Business Tax Rate for Mining Contractors shall not exceed 50% of 1% of the gross output.

The IRR also includes provisions on Transparency and Accountability in the Mining Sector and the creation of a Transparency Office.

SEC ISSUANCE

Mandatory Use of the Online Application for Registration Statements (“OARS”)

SEC MC No. 24, series of 2026

Issued on August 26, 2026

The Memorandum Circular (“MC”) provided that OARS is a web-based platform that enables companies to electronically submit registration statements and other required filings containing key details about the company, its operations, financial statements, management team, and the securities being offered. The system captures relevant data from these submissions and, when applicable, facilitates the generation of International Securities Identification Numbers (“ISINs”), Classification of Financial Instruments (“CFIs”), and Financial Instrument Short Names (“FISNs”), in compliance with the standards of the Association of National Numbering Agencies (“ANNA”).

Coverage

The Commission may expand, amend or include additional types of registration and applicable forms to the coverage of this system, as it may deem necessary.

Use of OARS

A corporation shall commence an application for registration statement through OARS.

Applications submitted through OARS shall be processed by the Commission within 40 days from payment of the initial assessment fee, consistent with SEC MC No. 9, series of 2025.

To access and facilitate the application through OARS, the authorized representative must create a credentialed eSECURE account.

Account Navigation and Authentication

Users may access the OARS through the website at http://oars.sec.gov.ph/ or through the eSECURE dashboard.

Upon successful login, the system redirects the user to the OARS dashboard which displays the user’s name, eSECURE ID, and the sidebar panel options as follows:

1. My Companies: Displays linked company lists and requested management updates.
2. Applications: Tracks online registration statement filings.
3. ISIN Request: Manages requests for the generation of ISIN.

Applicants must link their respective companies and undergo an authorization process via the “My Companies” dashboard. Approval from the authorized representative, as designated under SEC MC No. 28, series of 2020, is required before an application can proceed.

Application for Registration Statements Through OARS

The procedure for applications for registration statements through OARS is attached as Annex A of the MC. The OARS User Guide and/or future amendments thereto shall be available for viewing and downloading at the official SEC website.

The Commission may update, enhance, or further streamline the procedure under the OARS, upon prior notice.

No Fee Due

The use of OARS will not entail any additional charge for applications for registration statements. However, the Commission reserves the right to impose reasonable fees, through an appropriate issuance, to defray costs.

PEZA ISSUANCE

Guidelines on the Processing of Registration and Accreditation as Exporter and Importer through Bureau of Customs – Client Profile Registration System

Memorandum Circular No. 2026-049

Issued on August 04, 2026

The Circular prescribed the policies, guidelines, and procedures governing the registration and accreditation of PEZA-Registered Business Enterprises (“RBEs”) as Exporters and/or Importers through the Bureau of Customs – Client Profile Registration System (“BOC-CPRS”), in line with PEZA’s continuing commitment to streamlining regulatory processes, enhancing trade facilitation, strengthening inter-agency coordination, and promoting ease of doing business.

Scope and Coverage

The Client Profile Registration System (“CPRS”) is a module of the BOC Operations Support Management System (“OSS”) that facilitates an automated process of capturing client information during accreditation and registration of various BOC stakeholders as Importer and/or Exporter.

The Circular shall apply to all PEZA-RBEs that are engaged in, or intend to engage in, import and/or export activities within PEZA economic zones, pursuant to BOC and PEZA issuances in relation to the CPRS implementation.

The registration and accreditation in the BOC-CPRS shall be a mandatory pre-requisite for access to and utilization of the BOC e2m System and PEZA The One Portal System (“PTOPS”). Accordingly, PEZA-RBEs must maintain an active and valid CPRS registration to enable the processing of import and export permits, clearances, and related trade transactions through PTOPS.

The PEZA-RBEs that have not completed their CPRS registration and accreditation, or whose CPRS registration has lapsed, been suspended, or become inactive, shall not be permitted to lodge, process, or obtain approval of import and export transactions in PTOPS until such registration status has been duly activated or reinstated in accordance with applicable BOC and PEZA regulations.

All PEZA-RBEs applying for registration and/or accreditation as exporters and/or importers shall lodge and maintain their application and supporting information in the BOC-CPRS through their duly selected Value-Added Service Provider (“VASP”).

The PEZA-RBEs shall ensure that all information and documentary submissions lodged through the VASP are complete, accurate, and consistent with the requirements prescribed by the BOC and PEZA.

FIRB ISSUANCES

Granting Investment Promotion Agencies (“IPAs”) authority to implement temporary measures for their registered business enterprises in light of the State of National Energy Emergency

FIRB Resolution No. 011-26

Issued on August 26, 2026

The Resolution allowed IPAs to adopt the following temporary measures, on a per RBE application basis, in support of their RBEs affected by the declared national energy emergency under Executive Order (EO) No. 110, s. 2026:

1. Deferment of the entitlement to Income Tax Holiday (“ITH”), Special Corporate Income Tax (“SCIT”) rate, or Enhanced Deductions Regime (“EDR”) for a period corresponding to the extent to which the RBE’s operations have been affected or disrupted by the fuel crisis; Provided, that the RBE shall pay the income tax due for the taxable year covered by the period of deferment; and
2. Movement of the start of commercial operations with full entitlement to incentives under the terms and conditions of the registered project or activity;

The IPAs shall, within 15 days from the close of every quarter, or as may be requested by the FIRB Secretariat, submit to the FIRB Secretariat a list of their RBEs that have availed of the aforementioned temporary measures, a copy furnished to the Bureau of Internal Revenue; while all RBEs shall continue to comply with applicable reportorial requirements.

The temporary measure adopted shall be effective from March 24, 2026 and shall remain in force and effect for 1 year, unless EO No. 110, s. 2026 is otherwise extended or lifted by the President.

Frequently Asked Questions on the Department of the Interior and Local Government (“DILG”)-Department of Finance (“DOF”)-Department of Trade and Industry (“DTI”) Joint Memorandum Circular (JMC) No. 01, series of 2026

FIRB Advisory No. 011-26

Issued on August 20, 2026

The Advisory summarized the responses to frequently asked questions (“FAQs”) raised during the series of town hall meetings conducted and received through email in relation to JMC No. 01, series of 2026. It is intended to provide additional guidance and promote a common understanding among LGUs, IPAs, RBEs, and other stakeholders on the proper interpretation and application of the rules governing local taxes, fees, and charges on RBEs.

The JMC applies only to business enterprises registered with any IPA and availing of tax incentives under Title XIII of the Tax Code, as amended.

It does not apply to enterprises availing of incentives under special laws, such as, but not limited to, cooperatives registered with the Cooperative Development Authority (CDA) and availing of incentives under the Philippine Cooperative Code of 2008.

With respect to local taxes, fees, and charges, the JMC covers only those imposed pursuant to the LGC of 1991, as amended. Accordingly, it does not apply to taxes, fees, and charges imposed or collected by LGUs under special laws. The JMC likewise does not apply to fees and charges collected by IPAs in the exercise of their regulatory functions.

Tax incentives under the Tax Code are granted on a per-project basis. Consequently, an RBE may have multiple projects or activities, and only some of which are eligible for tax incentives. In addition, the applicable tax incentive package may vary for each registered project or activity. For example, one project may be granted an Income Tax Holiday (ITH), while another may be covered by the Enhanced Deductions Regime (EDR) or the Special Corporate Income Tax (SCIT).

RBELT

The imposition of the RBELT is not mandatory. The decision to adopt the RBELT rests with the concerned city or municipality. Where an LGU decides to impose an RBELT, it shall be implemented through an ordinance enacted by the appropriate Sanggunian. In the absence of an ordinance imposing the RBELT, the local taxes, fees, and charges imposed pursuant to the LGC of 1991, as amended, and the applicable local ordinances shall continue to apply. Accordingly, the absence of an RBELT ordinance does not exempt RBEs from the payment of local taxes, fees, and charges that may otherwise be imposed under existing laws and ordinances.

Pursuant to the JMC, a qualified RBE may elect, for each taxable year, to avail of either the RBELT or the exemption from LBT. Such election shall be irrevocable for the relevant taxable year. Local fiscal incentives granted by an LGU pursuant to Section 192 of the LGC of 1991, as amended, may likewise be availed of in addition to RBELT or LBT exemption, where such incentives relate to different taxes, fees, or charges and their concurrent availment is consistent with the applicable ordinance and other relevant laws, rules, and regulations. However, where the local fiscal incentives apply to the same tax, fee, or charge and cannot be availed of concurrently, the RBE shall elect which applicable incentive to avail of in accordance with the provisions of the relevant local ordinance.

Other Local Fiscal Incentives

An LGU may grant local fiscal incentives in addition to, or independent of, those provided under the Tax Code, including incentives that may be granted after the expiration of an RBE’s incentive period under the Tax Code.