RT ThinkTax

RT ThinkTax is our 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 RT ThinkTax July 2023 Issue covers select and significant issuances and advisories issued or published in June 2023.

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BIR Issuances

Late/Out-of-District filing of Tax Returns

Revenue Regulations No. 6-2023
Issued on June 13, 2023

This Regulation amends the provisions of RR No. 13-2010 regarding Late/Out-of-District Filing of Tax Returns.

Below are some of the amendatory provisions of this Regulation:

  1. While inadvertent or erroneous acceptance by an Authorized Agent Banks (AAB) is an exception to the non-acceptance of Out-of-District Return, nevertheless and in such a case, the proper Revenue District Office (RDO)/ Large Taxpayers District Office (LTDO)/ Large Taxpayers (LT) Division shall impose a penalty equivalent to twenty-five percent (25%) of the tax due for wrong venue filing of return, unless otherwise authorized by the Commissioner of the Internal Revenue (CIR) pursuant to Section 248 (A)(2) of the Tax Code, as amended.
  2. An additional exception to the non-acceptance of Out-of-District Returns is when there is a pronouncement through a revenue issuance/bank bulletin that a taxpayer can file a return and pay the corresponding tax due thereon anywhere, notwithstanding the RDO/ LTDO/ LT Division jurisdiction.
  3. An AAB or Revenue Collection Officer (RCO) may accept a Late Return provided that it has been stamped with the qualifier “LATE FILING” or “LATE FILING, INCREMENTS NOT PAID”. Upon retrieval of returns from the AABs, the RDOs, LTDOs, and LT Divisions shall impose the applicable penalties on Late Returns that have been stamped with the qualifier “LATE FILING” or “LATE FILING, INCREMENTS NOT PAID” pursuant to Sections 248 and 249 of the Tax Code, as amended.

Accreditation of Cash Register Machines (CRMs), Point-of-Sale (POS) and Other Similar Sales Machines/Software Generating Invoices/Receipts Including Electronic Invoicing or Electronic Receipting System/Software used under a Subscription-Based Agreement

Revenue Memorandum Order No. 24-2023
Issued on June 26, 2023

This Memorandum Order prescribes the revised policies and procedures relative to the accreditation of Cash Register Machines (CRMs), Point-of-Sale (POS), Sales Receipting Software, and other Sales Machine Generating Invoices/Receipts, including Electronic Invoicing (e-Invoicing) or Electronic Receipting (e-Receipting) System/Software used under a Subscription-Based Agreement.

The types of machine/software and the corresponding approval required for each are summarized on the table below:




1.       CRM
2.       POS
3.       e-Invoicing or e-Receipting System/Software used under a Subscription-Based Agreement
4.       Other Sales Machines Generating Invoices/Receipts
a.       Taximeter
b.       Handheld or mobile devices
c.       Vending Machine
5.       Special Purpose Machines
a.       Automated Teller Machines
b.       ATMs with Cash Depository
c.       Foreign Exchange machines
d.       Ordering machines
e.       Bills Payment machines
f.        Price Checking machines
g.       Inventory checking and maintenance machines
h.       Lottery Terminal/Ticketing machine
i.         Other SPM not generating sales invoices/official receipts
6.       Computerized Accounting System (CAS)/Components of CAS/Computerized Books of Accounts
7.       POS as Component of CAS
8.       E-Invoicing/e-Receipting System as Component of CAS

Legend: – not required, ✓ – required

A Pseudo-supplier of Sales Machines/Software shall likewise apply for accreditation. The term “pseudo-supplier” refers to: the direct importer or local distributor of “Sales Machines/Software” similar sales machines/software generating invoices/receipts; or a taxpayer-user who developed its own “Sales Machines/Software”; or a local buyer of customized “Sales Machines/Software” for its own internal use and/or for distribution to its branches, franchisees and/or related companies.

All suppliers/ vendors/ developers/ providers/ taxpayer-users who intend to distribute/sell/use “Sales Machines/ Software” shall apply for enrollment in the Enhanced eAccReg System by submitting a notarized Sworn Declaration to the LT Office/RDO where such supplier/vendor/ developer/taxpayer-user is registered. The “Sales Machine/Software” subject for evaluation and inspection by the BIR must comply with the specification/features stated in the RMO, which must be explicitly attested and declared through a duly signed and notarized Sworn Statement. The “Sales Machine/Software must generate the following information or have the following capabilities: Accumulated Grand Total Sales utilization; Tamper-free; Activity Log or Transaction Log functionality; Non-volatile Memory; E-journal or Audit Journal generation; Sales Readings generation; Backend Reports generation; Sequential Series of Accountable Forms/Documents generation; Reprint Functionality; “Push” Functionality; Verification or Validation Seal feature; Data Retention; and Sales Data Transmission capability.

The following shall be a ground for revocation of the Certificate of Accreditation:

  1. Tampering of Certificate of Accreditation;
  2. Any misrepresentation on the Sworn Statement submitted by the supplier;
  3. Tampering of the sales data to avoid the recording of sales transactions;
  4. Use of sales suppression software or mechanism; and
  5. Any violation by the supplier of the policies and procedures for accreditation under RR No. 11-2004, this RMO, and other relevant existing revenue issuances.

Guidelines and mandatory requirements for claims of VAT Credit/Refund except those under the authority and jurisdiction of the Legal Group

Revenue Memorandum Circular No. 71-2023
Issued on June 23, 2023

This RMC provides the general policies on the time frame to process and grant claims for VAT refund, the processing offices that will receive the Application for VAT Credit/Refund Claims, the filing of a claim by a VAT-registered person whose registration has been cancelled due to retirement from or cessation of business or due to changes in or cessation of status, and filing or processing of the VAT refund claim where the taxpayer-claimant has outstanding tax liabilities (final and executory) as evidenced by Delinquency Verification Certificate (DVC).

This RMC also provides for the documents to be submitted, as enumerated in the Checklist of Requirements under Annexes A.1, A.2 or A.3, whichever is applicable.

Processing of claims for VAT Credit/Refund except those under the authority and jurisdiction of the Legal Group

Revenue Memorandum Order No. 23-2023
Issued on June 23, 2023

The BIR has further reduced the requirements needed for filing and processing Value Added Tax (VAT) refund claims in a bid to promote ease of doing business in the country.

This Memorandum Order provides for the complete updated guidelines and prescribes the mandatory documentary requirements and procedures in the processing and grant of VAT credit/refund claims under Sections 112, 204 (C) and 229 of the Tax Code, in line with the latest developments on VAT introduced by RA No. 10963 (the “TRAIN Law”) and RA No. 11534 (“CREATE Act”).

The circular provides that:

  1. The VAT Credit Audit Division (“VCAD”) in the National Office shall receive claims of direct exporters, regardless of percentage of export sales to total sales pursuant to Section 106(A)(2)(a)(1) and 106(A)(2)(a)(6) for sale of goods and Sections 108(B)(2), 108(B)(4), and 108(B)(6) for sale of services, and whose claims are anchored under Section 112(2) of the Tax Code, except for claims with a mix of VAT zero-rated sales emanating from sales of power or fuel from renewable energy sources under Section 108(B)(7) of the Tax Code, in which case, item “below” shall apply;
  2. Claims of taxpayers (1) engaged in other VAT zero-rated activities other than direct exports mentioned above such as but not limited to renewable energy developers under Section 108(B)(7) of the Tax Code, and those with indirect exporters classified as effectively VAT zero-rated sales under Section 112(A); (2) whose VAT registration has been cancelled or whose VAT registration status has been changed to non-VAT but with accumulated unutilized input taxes under Section 112(B); and (3) those with claims for recovery of erroneously or illegally assessed or collected VAT under Sections 204(C) and 229 of the Tax Code, shall be filed with the following, which have jurisdiction over the claimant:
    1. VAT Audit Section (“VATAS”) in the Regional Assessment Division; or
    2. The respective RDO if without VATAS; or
    • The Large Taxpayer VAT Audit Unit (“LTVAU”) of the Large Taxpayers Service (“LTS”)
  3. Only applications with complete requirements shall be received and processed;
  4. In cases where the VAT refund claim is filed beyond the 2-year period, the processing office shall recommend outright denial of the claims;
  5. The start of the 90-day period (to grant claims for VAT refund) is from the actual filing of the application with complete supporting documents duly received by the processing office.
    1. A credit/refund for creditable input taxes shall be granted within 90 days from the date of complete submission of the application, official receipts or invoices and other documents in support of the application, provided that should the Commissioner find that the grant of refund is not proper, the Commissioner must state in writing the legal and factual basis for the denial
    2. In case of full or partial denial of the claim, the taxpayer may, within 30 days from receipt of the decision denying the claim, appeal the decision with the CTA provided that the failure on the part of any official, agent or employee of the BIR to act on the application within the 90-day period shall be punishable under the Tax Code.
  6. The claims shall be processed and evaluated based on submitted documents and verification procedures under the RMO. This process shall not be construed as an audit investigation; hence, the claimant may be issued subsequently an electronic Letter of Authority for that purpose;
  7. Verification of the claim shall focus on the validity and existence of zero-rated sales and related purchases. However, the books of accounts and accounting records shall be verified to establish that sales and purchases are indeed reported in the books of the taxpayer. Failure to submit and/or present the requested documents within the prescribed time/period therein stated may result in the full or partial denial of the claim;
  8. The processing offices shall utilize the sales and purchases data available in the Electronic Invoicing/Receipting and Sales Transmission System (“EIS”) through the EIS for ROs Portal;
  9. Any findings that may result in a deficiency on internal revenue taxes, other than VAT, or may indicate a possible VAT assessment that need further documentation and clarification shall be referred to the RDO or LT Audit Division for further
  10. An electronic Letter of Authority (“eLA”) may also be issued, or if there is already an existing eLA covering the same period, a Notice of Discrepancy/Preliminary Assessment Notice/Final Assessment Notice may be issued;
  11. The result of the verification of the claim, whether approval or denial, shall be communicated to the claimant;
  12. In as much as the original copies of supporting sales invoices or receipts for sales and purchases have been submitted as part of the requirements, the entire tax docket of the claim shall be forwarded to the Commission on Audit if the claim is approved for refund with notice to claimant of such transmittal;
  13. For claims that have been denied in full, the processing office shall return the original copies of supporting sales invoices or receipts for sales and purchases to the claimants after stamping “VAT Credit/Refund Processed” on the supporting sales invoices or receipts for purchases.

This order shall take effect for VAT refund/credit claims that will be filed starting July 1, 2023.

Additional List of Withholding Agents required to deduct and remit the 1% or 2% Creditable Withholding Tax for the purchase of goods and services

Revenue Memorandum Circular No. 70-2023
Issued on June 22, 2023

This circularizes the additional List of Top Withholding Agents (TWAs) for inclusion to and deletion from the existing list of TWAs required to deduct and remit either the one percent (1%) or two percent (2%) Creditable Withholding Tax (CWT) from the income payments to their suppliers of goods and services, respectively, pursuant to RR No. 31-2020. The said lists are posted on the BIR’s website.

Accordingly, the obligation to deduct and remit to the BIR the 1% and 2% CWT shall commence or cease, as the case may be, effective July 1, 2023. Any taxpayer not found in the published List of TWAs is not required to deduct and remit the 1% or 2% CWT under the abovementioned RR.

Reversion of the rates of Percentage Tax, MCIT, and RCIT on Proprietary Educational Institutions and Not for Profit Hospitals, pursuant to CREATE Act

Revenue Memorandum Circular No. 69-2023
Issued on June 20, 2023

The rates of Percentage Tax, Minimum Corporate Income Tax (MCIT), and Regular Corporate Income Tax (RCIT) on Proprietary Educational Institutions and Not for Profit Hospitals has reverted effective July 1, 2023, pursuant to CREATE Act as implemented by RR Nos. 4-2021, 5-2021 and 8-2021, and as clarified by RMC Nos. 65-2021 and 67-2021:

  1. The rate of Percentage Tax shall now revert to 3% of gross quarterly sales or receipts of the taxpayer. This rate applies to corporations, self-employed individuals and professionals whose gross sales or gross receipts do not exceed the ₱3M threshold, except for cooperatives and self-employed individuals and professionals availing of the 8% Income Tax rate;
  2. The rate of MCIT for domestic and resident foreign corporations, including Offshore Banking Units and Regional Operating Headquarters, shall now revert to 2% based on the gross income of such corporations; and
  3. The rate of RCIT for proprietary educational institutions and hospitals which are non-profit shall now revert to 10% of their taxable income.

Imported goods that will no longer require the issuance of ATRIG by the BIR prior to release by the Bureau of Customs

Revenue Memorandum Circular No. 68-2023
Issued on June 13, 2023

This Circular is issued to inform the public that the “Authority to Release Imported Goods (ATRIG)” for feed, feed ingredients and fertilizers shall no longer be secured from the BIR.

Thus, the certificate secured from Bureau of Animal Industry, Fertilizer and Pesticides Authority or other concerned regulatory government agency, which is sufficient to certify that the goods being imported are feed, feed ingredients and fertilizers shall be directly presented to the Bureau of Customs (BOC) to effect the release of the imported goods. It shall be the responsibility of the certifying government agencies to conduct their own validation of the declared goods to be released from the BOC and to submit to the BIR the list of importers that secured the said certification for tax audit purposes.

Venue for the issuance of CAR relative to tax-free exchanges of properties

Revenue Memorandum Circular No. 65-2023
Issued on June 8, 2023

This circular amends Item VIII of RMC No. 19-2022 on the venue for the issuance of Certificate Authorizing Registration (CAR) relative to tax-free exchanges of properties under Section 40(C)(2) of the Tax Code, as amended. Item VIII of RMC No. 19-2022 is hereby amended to read as follows:




Further Extension of the Deadline for Amnesty Applications Under SEC MC No. 2, Series of 2023, and Streamlining of the Application Process

SEC Memorandum Circular No. 9-2023
Issued on June 30, 2023

The deadline to file amnesty applications under SEC MC No. 2, s. 2023, to signify intent to apply for amnesty, submit the supporting reportorial documents, and settle the corresponding amnesty fees has been extended until September 30, 2023.

This Circular further amended SEC MC Nos. 2 & 3, on the amnesty rates, and the procedure for amnesty application.

Amnesty Rates:

  1. Corporations not compliant with the filing of GIS, AFS, and SEC MC No. 28, Series of 2020 (“MC 28)



    Late & Non-Filing of AFS and GIS ₱5,000.00
    Non-compliance with MC 28 Waived
  2. Suspended/Revoked Corporations with no MC 28 compliance



    Petition Fees ₱3,060.00
    Late & Non-Filing of AFS and GIS 50% of the assessed fines
    Non-compliance with MC 28 Waived
  3. Corporations whose ONLY violation is non-compliance with MC 28



    Non-compliance with MC 28 ₱5,000.00

To further streamline the amnesty application process, the SEC adopts the following:

  1. Unified Amnesty Application Form. In lieu of the notarized Expression of Interest (EOI) Form and the Amnesty Application Form, amnesty applicants will just be required to accomplish a web-based form in the Electronic Filing and Submission Tool (eFAST) platform, which shall include appropriate tick boxes indicating concurrence and/or consent to certain conditions of amnesty process.
    Where the violation is only non-compliance with MC 28, the applicant should submit duly accomplished “Annex D” of said circular, using the provided link to the MC 28 Portal. Thereafter, the applicant has to accomplish the web-based form to signify intent to avail of the amnesty.
  2. Removal of Undertaking for Latest Due AFS submission. Consistent with the deadline prescribed by the SEC and the BIR, it is understood that the AFS should readily be available by the end of the extended period, or until September 30, 2023. Hence for amnesty applications starting July 1, 2023, the undertaking to submit AFS within 90 days from the date of payment of amnesty fee shall no longer be applicable.
  3. Turnaround time for release of Confirmation Payment (COP). The release of COP shall be within 15 working days from the date of complete submission of reportorial requirements by the applicant.
  4. Complete Submission of Reportorial Requirements. Corporations who are able to upload and submit the correct reportorial Requirements (i.e. latest due GIS and AFS), including those reverted for compliance within the submission period or until September 30, 2023, shall be considered to have undergone the complete process and may thus be entitled to a COP; otherwise, payment of their respective amnesty fees will be forfeited.
  5. Refund of Overpayment. Refund of amnesty fees for non-compliant corporations shall not be accommodated, except in highly meritorious cases. For suspended or revoked corporations, the petition fees shall not be refunded but shall be re-applied to the payment of 50% assessed fines, subject to existing accounting and auditing guidelines.

Securing & Expanding Capital for Farms & Agri-business Related Modernization Schemes (SEC FARMS)

SEC Memorandum Circular No. 8-2023
Issued on June 22, 2023

This circular outlines the guidelines for the registration of securities issued by agri-business companies using SEC FARMS. The following are the conditions for an agribusiness corporation seeking to register its securities with the use of SEC FARMS, in lieu of the current SEC Form 12-1:

  1. A corporation has to be established specific for an agri-business project. All subscribed shares must be fully paid.
  2. The amount of securities to be registered shall not exceed the amount of ₱500,000,000.00 per project or such other amount the SEC may prescribe, applied in a single or series of registration.
  3. The amount from the proceeds of the securities to be registered and offered represents at most 50% of the total project cost.
  4. Registrant corporation, must be able to demonstrate that:
    1. It has already secured and allocated as seed money for the project an amount representing the other 50% of the total project cost, which shall be placed in an escrow account or such other arrangement acceptable to the SEC; or
    2. If the registrant corporation has already started the project, the total of the actual percentage of accomplishment of the project and the funds in possession of the registrant corporation specifically allocated for the project shall not be less than 50% of the total project cost.
  5. A registrant corporation may offer its registered securities in a single offer period or in a continuing offer period based on a reasonable and acceptable schedule but not to exceed one year from the date of the issuance of the Order of Registration and Permit to Sell.
  6. A registrant corporation shall submit to the SEC a monthly report on the progress of the project and the offer, indicating the amount raised during the month and a running balance of the total amount raised since the start of the offer.
  7. A registrant corporation shall secure from its stockholder/s controlling person/s or such other person/s as may be allowed by the SEC, a guarantee, in such form and manner approved by the SEC, for the purpose of covering any shortfall in the target amount intended to be raised from the public.
  8. A registrant corporation shall engage an underwriter unless it is able to demonstrate that it has the ability to sell all or substantially all of its securities to the public.

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