Tax Tweets is Reyes Tacandong & Co.’s official monthly publication which highlights select and significant issuances and advisories of various government agencies including the Bureau of Internal Revenue (BIR), Securities and Exchange Commission (SEC), Bureau of Customs (BOC), Fiscal Incentives Review Board (FIRB), Philippine Economic Zone Authority (PEZA), and other regulatory bodies.

This Tax Tweets Issue covers select and significant issuances and advisories from September 2026.

BIR Issuances

Revenue Memorandum Circulars

Clarification on the qualification of Export-Oriented Enterprises for VAT Refund during the transitory period for securing a VAT Zero-Rating Certificate from the Export Marketing Bureau of the Department of Trade and Industry.

Revenue Memorandum Circular No. 96-2026

Date Posted (BIR Website): 7 September 2026

The BIR provides clarification on Section III (1)(a) of RMC No. 37 -2025 on the qualification of Export-Oriented Enterprises (EOEs) for VAT refund, specifically during the transitory period for securing a VAT zero-rating certificate from the Export Marketing Bureau (EMB) of the DTI.

DTI Department Administrative Order No. 25-03, issued on March 28, 2025, sets out the guidelines for obtaining EOE certification under the CREATE MORE Act. Consistent with these guidelines, the BIR issued RMC No. 37-2025 to streamline procedures and requirements for claims of VAT refund under Section 112 of the Tax Code.

Although the CREATE MORE Act took effect on November 28, 2024, it was observed that the validity start dates of the VAT zero-rating certifications vary (i.e., earliest start date – May 14, 2025; latest start date – December 26, 2025) due to the transitory period offered to EOEs for applying for VAT zero-rating certification with the DTI-EMB.

Key Clarification

To provide due consideration to EOEs that obtained their certifications during the transition, the BIR allows such EOEs to claim a refund of passed-on VAT on local purchases and importations attributable to zero-rated sales covering the period from November 28, 2024 up to the issuance of the VAT zero-rating certification by the DTI-EMB, provided that the certification was issued within the transitory period. The transitory period refers to the period from November 28, 2024 until December 31, 2025.

EOEs with No Certification

EOEs that have attained the 70% export threshold from the preceding taxable year but failed to secure certification from EMB, including during the transitory period, shall not be allowed a VAT refund covering the immediately succeeding year. However, the unutilized input VAT may be carried forward to the subsequent taxable quarters and can be utilized against future VAT liabilities.

Circularizing Energy Regulatory Commission Resolution No. 26, Series of 2026, Declaring the System Loss Charge as a Government-Mandated Pass-Through Cost Not Forming Part of the Gross Sales of Generation Companies, National Grid Corporation of the Philippines, and Distribution Utilities for Value-Added Tax Purposes, and Further Amending Revenue Memorandum Circular No. 116-2024.

Revenue Memorandum Circular No. 97-2026

Date Posted (BIR Website): 14 September 2026

The BIR circularizes Energy Regulatory Commission (ERC) Resolution No. 26, Series of 2026, which declares the allowable System Loss Charge as a government-mandated pass-through cost that does not form part of the gross sales of Generation Companies (GenCos), the National Grid Corporation of the Philippines (NGCP), and Distribution Utilities (DUs) for VAT purposes, and further amends RMC No. 116-2024, as amended by RMC No. 60-2026.

Amendment to RMC No. 116-2024

Q&A No. 3 of RMC No. 116-2024 is further amended to recognize and confirm the allowable System Loss Charge within the cap approved by ERC under Resolution No. 26, Series of 2026, and other applicable ERC rules and regulations as one of the government-mandated charges excluded from Gross Sales for purposes of VAT computation and, consequently, not subject to Output Tax and Creditable Withholding on VAT. This exclusion, however, shall not extend to income tax and the corresponding creditable withholding tax.

For VAT purposes, the allowable System Loss Charge shall be excluded from Gross Sales. However, it should be separately identified in the billing statement, invoice, or similar document in accordance with ERC Resolution No. 26, Series of 2026, and other applicable ERC rules and regulations. Such exclusion shall likewise be subject to the applicable provisions of the Tax Code and its implementing rules and regulations governing the determination of Gross Sales, invoicing requirements, and the proper treatment of government-mandated charges.

Prescribing Policies and Guidelines on the Issuance of Electronic Invoice under Revenue Regulations (RR) No. 8-2022 and RR No. 11-2025, as Amended by RR No. 26-2025.

Revenue Memorandum Circular No. 98-2026

Date Posted (BIR Website): 22 September 2026

The BIR prescribes the policies and guidelines on electronic invoicing (issuance of electronic invoice) pursuant to Section 237 of the Tax Code, as implemented by RR No. 8-2022 and RR No. 11-2025, as amended by RR No. 26-2025.

The circular applies to the following taxpayers:

1. Taxpayers engaged in e-commerce or internet transactions classified as Small, Medium, and Large Taxpayers (Micro Taxpayers are exempt);
2. Taxpayers under the jurisdiction of the Large Taxpayers Service (LTS);
3. Taxpayers classified as Large Taxpayers under the Ease of Paying Taxes (EOPT) Act and RR No. 8-2024;
4. Taxpayers using Computerized Accounting Systems (CAS), Computerized Books of Accounts (CBA) with Accounting Records (with electronic invoicing), and other invoicing software; and
5. Other taxpayers as may be required by the Commissioner.

Policies and Guidelines

• The obligation to issue electronic invoices is separate and distinct from the obligation to comply with electronic sales reporting under Section 237-A of the Tax Code. Compliance with electronic sales reporting will be required only upon issuance of separate BIR implementing guidelines.
• An invoice qualifies as an Electronic Invoice only if it satisfies all of the following requirements:
  • It is generated by a duly registered, approved, or accredited accounting/invoicing software or system in a structured electronic format;
  • It is electronically generated and transmitted to the buyer, purchaser, or client in a digital format through any of the following means: email, online viewing, QR Code, mobile applications, web-based platforms, or other electronic means; and
  • The invoice data contained therein is capable of being electronically extracted, processed, and transmitted to the BIR for electronic sales reporting purposes.
• While the electronic invoicing system/software of the taxpayer may be capable of electronically transmitting the copy of the invoice through email, apps, a printed copy of the electronic invoice shall be provided by the taxpayer-seller upon request by the buyer. Invoices created manually using office productivity applications, including but not limited to Microsoft Word, Microsoft Excel, Google Docs, Google Sheets, or similar applications, shall not be considered valid electronic invoices for tax compliance purposes.
• Electronic invoices shall be in a structured electronic format. This means that digital information shall be organized in a set, predictable way so computers can easily read, sort, and use it. The BIR’s existing EIS prescribes the use of the JavaScript Object Notation (JSON) file format for the transmission of sales data. Taxpayers whose electronic accounting or invoicing software or systems utilize other structured file formats may continue to use such formats for their internal operations, provided that the required sales data can be converted to and transmitted in the format prescribed by the BIR.
• The electronic invoice may be printed and furnished to the buyer, purchaser or customer for reference or record-keeping purposes, including business-to-consumer (B2C) transactions where the electronic transmittal is not practicable, inconvenient or not possible, provided that the original invoice was generated and can be issued electronically and all electronic invoicing requirements have been complied with.
• An issued electronic invoice shall not be deleted, altered, or modified. Any correction or adjustment to an issued electronic invoice shall be made through a separate document that references the original electronic invoice. A decrease in the invoiced amount shall be effected through a duly authorized Credit Note/Memo, while an increase in the invoiced amount shall be effected through the issuance of a new electronic invoice.

Permit to Issue (PTI) Electronic Invoice

Taxpayers required to issue electronic invoices shall secure a PTI Electronic Invoice from the BIR prior to the generation or issuance of electronic invoices. The PTI Electronic Invoice shall serve as the authority to issue electronic invoices through a duly registered and compliant electronic invoicing software or system.

The application for a PTI Electronic Invoice shall be filed with the Revenue District Office (RDO)/Large Taxpayer (LT) Office where the taxpayer is registered and shall be supported by the prescribed documentary requirements. The BIR evaluates the application and determines compliance within twenty (20) working days from receipt of complete documents.

The PTI Electronic Invoice shall specify the approved software/system and its corresponding coverage. Any change in the identity, name, platform, or core software/system details, including migration to, replacement with, or adoption of another electronic invoicing software/system, shall require the issuance of a new or amended PTI Electronic Invoice.

A PTI Electronic Invoice shall be issued to the Head Office and each separate branch, all bearing the same PTI Electronic Invoice number and indicating the branch to which the PTI Electronic Invoice pertains. A separate PTI Electronic Invoice shall be secured for each distinct invoicing software/system.

EIS Certification

All taxpayers required to issue electronic invoices shall obtain an EIS Certification to validate the capability of their electronic invoicing systems to electronically extract, process, and transmit sales data in accordance with this Circular and the BIR’s prescribed technical standards.

Taxpayers shall secure an EIS Certification within six (6) months from the issuance of a PTI Electronic Invoice. Failure to do so shall constitute a ground for the revocation of the PTI Electronic Invoice.

Permit to Transmit

The requirement to secure a Permit to Transmit (PTT) shall apply only upon notification or directive from the Commissioner for compliance with the electronic sales reporting requirements under Section 237-A of the Tax Code.

Taxpayers reclassified to a higher category (e.g., from Medium to Large, including enlisting in the Large Taxpayers Service) shall immediately comply with the requirements applicable to their new classification, including electronic invoicing and electronic sales reporting obligations, within such period as may be prescribed by the BIR, which shall not be less than six (6) months from the date of reclassification.

Reiteration of the Requirement to Post Proof of BIR Registration Under Revenue Regulations Nos. 7-2024 and 15-2024 and Extension of the Period for Compliance with the Display of the BIR Registration Seal Badge

Revenue Memorandum Circular No. 99-2026

Date Posted (BIR Website): 24 September 2026

The BIR reiterates the compliance requirements prescribed under Section 5(H) of RR No. 7-2024 and Section 7 of RR No. 15-2024, which require online sellers, online merchants, and persons engaged in the sale of goods or services through digital or electronic platforms, as well as those with online business presence, to post proof of BIR registration on their online websites, e-commerce or e-marketplace seller/merchant social media pages, and other digital platforms.

The BIR extended the period for compliance with the requirement on the display of the BIR Registration Seal Badge until October 31, 2026. Taxpayers who have not yet displayed the BIR

Registration Seal Badge shall be given until October 31, 2026, to fully comply with the said requirement, without the imposition of penalties arising solely from the non-display thereof.

Circularizing Executive Order No. 125, Series of 2026, Entitled “Temporarily Suspending the Excise Taxes on Specific Petroleum Products Pursuant to Section 148 of Republic Act No. 8424, or the National Internal Revenue Code of 1997, as Amended”

Revenue Memorandum Circular No. 100-2026

Date Posted (BIR Website): 28 September 2026

The BIR circularizes Executive Order (EO) No. 125, Series of 2026, which implements the temporary suspension of the excise taxes imposed under Section 148 of the Tax Code on specific petroleum products, subject to the conditions and limitations provided. The EO was issued pursuant to RA No. 12316, which amended Section 148 of the Tax Code.

1. Temporary Suspension of Excise Taxes on Specific Petroleum Products

The excise taxes are fully suspended on the following specific petroleum products:

• LPG, except when used as a raw material for the production of petrochemical products or used for motive power; and
• Kerosene, except when used as aviation fuel.

2. Automatic Reversion of Excise Tax Rates

The excise tax rates shall automatically revert to the rates prescribed under Section 148 of the Tax Code without the need for any further issuance, upon the occurrence of any of the following, whichever comes first:

1. One (1) week after the one (1)-month average Dubai crude oil price based on MOPS falls below USD 80 per barrel, as certified by the DOE; or
2. After three (3) months from the effectivity of the EO.

Publishing Fiscal Incentives Review Board (FIRB) Resolution No. 011-26 Prescribing Temporary Measures of Registered Business Enterprises (RBEs) in Light of the State of National Energy Emergency.

Revenue Memorandum Circular No. 101-2026

Date Posted (BIR Website): 29 September 2026

The BIR circularizes FIRB Resolution No. 011-26, which was issued pursuant to Rule 24 of the Implementing Rules and Regulations of Title XIII of the Tax Code, and prescribes temporary measures that may be adopted by Investment Promotion Agencies (IPAs) in support of RBEs affected by the national energy emergency declared under Executive Order (EO) No. 110, s. 2026.

These measures include the following:

1. Deferment of the entitlement to Income Tax Holiday (ITH), Special Corporate Income Tax (SCIT), or Enhanced Deductions Regime (EDR) for a period corresponding to the extent that 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.

Amending Certain Provisions of Revenue Memorandum Circular (RMC) No. 75-2024, as Amended by RMC No. 14-2025, which Prescribed the Mandatory Requirements for Claims for Tax Credit or Refund of Excess or Unutilized Creditable Withholding Taxes on Income Pursuant to Section 76(C), in Relation to Sections 204(C) and 229 of the National Internal Revenue Code of 1997, as Amended, Except Those Under the Authority and Jurisdiction of the Legal Group.

Revenue Memorandum Circular No. 102-2026

Date Posted (BIR Website): 29 September 2026

The BIR provides clarification and updates on the processing of claims for a tax credit certificate or cash refund (tax credit/refund) of excess or unutilized creditable withholding taxes (CWT) on income under Section 76(C), in relation to Sections 204(C) and 229 of the Tax Code and RR No. 5-2024. It also prescribes the updated Checklist of Mandatory Requirements for the processing of said tax credit/refund claims. This does not cover requests for tax credits/refunds under the authority and jurisdiction of the Legal Group.

General Policies

1. Venue for Filing the Application

For claims for tax credit/refund of CWT on income, the Application for Tax Credits/Refunds (BIR Form No. 1914) shall be filed with the office having jurisdiction over the taxpayer-claimant:

1. the Revenue District Office (RDO); or
2. the respective Large Taxpayers Audit Division (LTAD) or Large Taxpayers Division (LTD) under the Large Taxpayers Service (LTS).

2. Irrevocability Rule

Where an individual or corporation is entitled to a tax credit/refund of excess income taxes paid during the year, the excess amount shown in the Annual Income Tax Return (AITR) may be carried over and credited against the estimated quarterly income tax liabilities for the succeeding taxable years.

Once the option to carry over such excess income taxes has been made, the option is considered irrevocable for that taxable period, and no application for tax credit/refund shall be allowed.

Exception: Taxpayers that chose the “carry over” option may claim a tax refund if they have permanently ceased operations, as introduced under Section 76(C) of the Tax Code.

3. Regular Applications and Applications filed by Taxpayers with “Going-Concern” Status

For regular applications or applications filed by taxpayers with “going-concern” status that elected to apply for a tax credit/refund of excess income tax in their AITRs:

• The filing of the application shall be made within two (2) years from the date of filing of the AITR.
• An AITR showing an overpayment is considered a written claim for tax credit/refund. However, for purposes of the 180-day processing period under Section 204(C), the period shall be counted upon submission of BIR Form No. 1914 along with the complete documents prescribed by the BIR in support of the application. The application and complete documents must be submitted within the two-year prescriptive period.

4. Application filed by Taxpayers Undergoing Dissolution or Cessation of Business

For taxpayers undergoing dissolution or cessation of business, Section 76(C) requires the processing office to decide on the application and issue the tax credit/refund of excess/unutilized CWT within two (2) years from the date of dissolution or cessation of business. This is an exception to the 180-day processing period under Section 204(C).

For purposes of the Circular, the 2-year period for deciding on the application and issuing the refund shall commence upon submission of the Application for Registration Information Update/Correction/Cancellation (BIR Form No. 1905) together with the complete documentary requirements prescribed by the BIR for the closure of business and refund of excess income taxes.

Amending Certain Provisions of Revenue Memorandum Circular No. 74-2024, which Prescribed the Mandatory Requirements for Claims for Credit or Refund of Taxes Erroneously or Illegally Received or Collected or Penalties Imposed Without Authority Pursuant to Section 204(C), in Relation to Section 229 of the National Internal Revenue Code of 1997, as Amended, Except Those Under the Authority and Jurisdiction of the Legal Group.

Revenue Memorandum Circular No. 103-2026

Date Posted (BIR Website): 29 September 2026

The BIR clarifies and amends the rules on which BIR offices have jurisdiction to receive and process tax credit and refund claims covered by Sections 204(C) and 229 of the Tax Code. The Circular aims to streamline filing procedures and reduce uncertainty among taxpayers.

Key Amendments

1. Processing Office

Taxpayers must file BIR Form No. 1914 (Application for Tax Credits/Refunds) with the appropriate processing office that has jurisdiction over the claim.

2. Special Rule for Real Property CGT and DST Claims

Claims for the refund or tax credit of:

• Capital Gains Tax (CGT) on the sale of real property classified as a capital asset; and
• Related Documentary Stamp Tax (DST)

must be filed with the RDO having jurisdiction over the location of the property rather than the taxpayer’s registered RDO.

3. Jurisdiction for Other Claims

All other claims covered by Sections 204(C) and 229 must be filed with the appropriate RDO, LTAD, or LTD that has jurisdiction over the taxpayer-claimant.

Availability of Offline Electronic Bureau of Internal Revenue Forms (eBIRForms) Package Version 7.9.6.2

Revenue Memorandum Circular No. 104-2026

Date Posted (BIR Website): 29 September 2026

This Circular announces the availability of the updated Offline eBIRForms Package Version 7.9.6.2, which taxpayers may download from the BIR website.

Key Updates in Version 7.9.6.2

1. New ATC Codes Added to BIR Form 0605
   • MC350 – One-time Abatement of Taxes and/or Penalties for Micro Taxpayers (Individual)
   • MC351- One-time Abatement of Taxes and/or Penalties for Micro Taxpayers (Corporation)
2. New Tax Type Code
   • Inclusion of Tax Type Code “MA” (Micro Taxpayer Abatement) in BIR Form No. 0605
3. System corrections and resolutions to reported issues affecting BIR Forms 1601-FQ, 1603Qv2018, 1702Qv2018C, and 1801v2018.

Earlier versions, Offline eBIRForms Package 7.9.6.0 and 7.9.6.1, remain operational and may still be used for preparing, validating, and electronically submitting tax returns, except for returns affected by the corrections and enhancements introduced in Version 7.9.6.2.

Circularizing Department of Finance (DOF) Order No. 026-2026 re: Terms and Conditions on the Grant of the Enhanced Deduction Regime under Section 294(C) of the National Internal Revenue Code of 1997, as amended by Republic Act (RA) No. 12066.

Revenue Memorandum Circular No. 105-2026

Date Posted (BIR Website): 29 September 2026

The BIR circularizes DOF Order No. 026-2026, entitled “Terms and Conditions on the Grant of the Enhanced Deductions Regime under Section 294(C) of the National Internal Revenue Code of 1997, as amended by Republic Act (RA) No. 12066”.

Revenue Memorandum Orders

Amending Certain Provisions of Revenue Memorandum Order No. 27-2024 Which Prescribed the Guidelines, Policies and Procedures in the Processing of Claims for Credit/Refund of Taxes Erroneously or Illegally Received or Collected or Penalties Imposed without Authority Pursuant to Section 204 (C) in Relation to Section 229 of the National Internal Revenue Code of 1997, as Amended, Except Those under the Authority and Jurisdiction of the Legal Group.

Revenue Memorandum Order No. 25-2026

Date Posted (BIR Website): 29 September 2026

The BIR amends certain provisions of Revenue Memorandum Order (RMO) No. 27-2024 with respect to the processing offices authorized to accept and process the claim for credit/refund of taxes erroneously or illegally received or collected or penalties imposed without authority pursuant to Section 204(C), in relation to Section 229 of the Tax Code, except those under the authority and jurisdiction of the Legal Group.

Processing Office

The processing office authorized to receive “Application for Tax Credits/Refunds” (BIR Form no. 1914) for claims under Section 204 (C), in relation to Section 229 of the Tax Code, are as follows:

1. Claims for tax credit/refund of CGT on the sale of real property classified as capital asset, including and DST related thereto, shall be filed with the RDO that has jurisdiction over the location of the real property subject to CGT
2. For all other claims under Section 204(C), in relation to Section 229 of the Tax Code, the application shall be filed with the following offices having jurisdiction over the taxpayer-claimant:
   1. RDO or;
   2. LTAD or LTD under the Large Taxpayers Service

In all case, the Revenue Officer (Assessment) of the Day shall receive the claims filed with the aforesaid offices and shall be responsible for checking the completeness of the documentary requirements submitted upon filing of the application. The following offices shall be responsible for processing, reviewing, and approval of the claims: