Import VAT: BOC vs. BIR Standpoint
Businesses engaged in the importation of goods into the Philippines are often familiar with the Value-Added Tax (VAT) paid to the Bureau of Customs (BOC) upon importation. However, many taxpayers are unaware that import VAT is viewed differently by the BOC and the Bureau of Internal Revenue (BIR). While the BOC focuses on the collection […]
Powering Relief – The New Line Item: Staying Invoice-Ready under RR No. 6-2026
A New Line on the Invoice: BIR Expands Mandatory Invoicing Information The Bureau of Internal Revenue (“BIR”) has issued Revenue Regulations (“RR”) No. 6-2026, further strengthening the invoicing requirements introduced under the Ease of Paying Taxes (“EOPT”) Act and implemented through RR No. 7-2024, as amended by RR 11-2024. RR No. 6-2026 specifically amends Section […]
Powering Relief: Examining the Proposed Removal of VAT on Electricity System Loss Charges
To help ease the burden of rising electricity costs, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 97-2026, clarifying the removal of Value-Added Tax (VAT) on electricity system loss charges. It is important to note that the update does not remove the system loss charge itself from electricity bills. Instead, the […]
Navigating Cross-Border Dividend Taxation
The tax sparing rule is a provision commonly found in double taxation agreements (DTAs) that allows a taxpayer to claim a foreign tax credit for taxes that are theoretically “spared” or exempted in a foreign country. It typically applies to taxes that would have been levied on a taxpayer if not for the tax incentives […]
From Benchmarking to Action: Lessons from the UHY Managing Partners Forum 2026 in Split
By Michael Aguirre, CPA, MBA, MST — Managing Partner, UHY M.L. Aguirre & Co., CPAs This year’s UHY Managing Partners Forum was full of lessons in just two days. The first day focused on benchmarking data and sharing experiences among firms, reflecting where we are today. Meanwhile, the second day was intended to push the […]
RMC 33-2026: Clarifications on Estate Tax Amnesty Compliance
The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 033-2026[1] to provide clarificatory guidelines on the filing and payment of estate tax under the Estate Tax Amnesty program. The Circular addresses several practical concerns encountered by taxpayers, heirs, executors, administrators, and practitioners in relation to the availment of estate tax amnesty and […]
Understanding Real Property Tax in the Philippines
Real Property Tax (“RPT”) is a local tax imposed on land, buildings, and other real properties located in the Philippines. For many businesses, RPT is a regular expense that is often overlooked until assessment notices, penalties, or disputes arise. Companies that own offices, warehouses, factories, commercial spaces, or machinery should therefore understand their RPT obligations […]
Taxing the Instrument: How Documentary Stamp Tax Is Computed and Who Pays It
After identifying transactions that may trigger Documentary Stamp Tax (DST), the next critical step is understanding how DST is computed and which party is legally liable to pay it. In practice, many taxpayers recognize that a transaction is subject to DST but still incur deficiencies due to incorrect tax base selection, misapplication of rates, failure […]
CTA Decision Sheds Light on Key Pitfalls in VAT Refund Claims
Recent developments in tax jurisprudence highlight important considerations for taxpayers seeking refunds or tax credits of excess and unutilized input VAT attributable to zero-rated sales. These developments are consistent with established jurisprudence recognizing the evidentiary and procedural requirements governing VAT refund claims, including Atlas Consolidated Mining and Development Corporation v. Commissioner of Internal Revenue (G.R. […]
From Receipts to Returns: The VAT Impact of Reimbursements and Advances
Reimbursements and Advances: What’s the Difference? In a typical business setup, reimbursements and advances occur to ensure smooth operations while balancing convenience and accountability. Reimbursements usually happen after an employee incurs a business-related expense personally, covering costs such as travel, meals, office supplies, or client entertainment which are commonly immaterial in nature. On the other […]
