Legarda files tax reform bill for bigger take-home pay, fairer taxes
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [JULY 20-27]
- BIR CIRCULARIZES EO NO. 117 STREAMLINING THE ACCREDITATION OF DONEE INSTITUTIONS & DESIGNATING THE DSWD AS THE SOLE ACCREDITING ENTITY
- BIR PRESCRIBES WORKAROUND PROCEDURES FOR CLAIMING 5-YEAR NOLCO IN TAXABLE YEAR 2020 & 2021 IN OFFLINE & EFPS
- SEC LEGAL OPINION ON CORPORATE LIQUIDATION
- COURT OF TAX APPEALS CASES
I. TAX & BUSINESS-RELATED NEWS [JULY 20-27]
1. House panel eyes tax relief for middle class
2. BIR clarifies rules for one-time tax abatement program for micro taxpayers
3. Corporate regulator updates financial reporting standards
4. Group pushes bid to include PH in visa-free Guam-CNMI travel
5. DOE chief eyes keeping Semirara coal for domestic use
House panel eyes tax relief for middle class [Philippine Daily Inquirer, July 27, 2026]
“The current personal income tax brackets took effect in 2018. Since then, inflation has significantly eroded purchasing power,” the lawmaker said, noting that middle‑income Filipinos have borne the brunt of the current tax structure under the Tax Reform for Acceleration and Inclusion Act (Republic Act No. 10963).
https://newsinfo.inquirer.net/2270947/house-panel-eyes-tax-relief-for-middle-class
BIR clarifies rules for one-time tax abatement program for micro taxpayers [Manila Standard, July 27, 2026]
The circular uses a question-and-answer format to address taxpayer qualification, documentary requirements, filing procedures, payment of the one-time abatement fee, covered tax liabilities and penalties, application timelines and other implementation issues. It also provides illustrative examples to help taxpayers determine their eligibility under the program.
Corporate regulator updates financial reporting standards [The Manila Times, July 27, 2026]
Under SEC Memorandum Circular 22, Series of 2026, issued on July 23, the regulator adopted new and amended the Philippine Financial Reporting Standards (PFRS) and Philippine Interpretations Committee Questions and Answers (PIC Q&As).
Group pushes bid to include PH in visa-free Guam-CNMI travel [The Manila Times, July 27, 2026]
A Northern Mariana Islands lawmaker with Filipino roots joined other Marianas officials in renewing calls to include the Philippines in the Guam-CNMI Visa Waiver Program, saying the proposal would not only boost tourism and businesses but also reconnect families separated by immigration barriers.
DOE chief eyes keeping Semirara coal for domestic use [Philippine Daily Inquirer, July 27, 2026]
Energy Secretary Sharon Garin is eyeing the allocation of all or most of the coal produced from Semirara Island to local power plants, as new export rules of top supplier Indonesia pose risks to the domestic electricity situation.
https://business.inquirer.net/602432/doe-chief-eyes-keeping-semirara-coal-for-domestic-use
II. BIR CIRCULARIZES EO NO. 117 STREAMLINING THE ACCREDITATION OF DONEE INSTITUTIONS & DESIGNATING THE DSWD AS THE SOLE ACCREDITING ENTITY
Revenue Memorandum Circular (RMC) No. 83-2026, issued on July 22, 2026, circularizes Executive Order (E.O.) No. 117 (S. 2026), which streamlines the accreditation system for donee institutions by designating the Department of Social Welfare and Development (DSWD) as the sole accrediting entity for social welfare and development agencies. Signed on May 7, 2026, the Executive Order amends E.O. No. 720 (S. 2008) to simplify the accreditation process.
If you wish to get a copy of complete text of CTA cases, please e-mail us at taxseminars@dmdcpa.com.ph.
III. BIR PRESCRIBES WORKAROUND PROCEDURES FOR CLAIMING 5-YEAR NOLCO IN TAXABLE YEAR 2020 & 2021 IN OFFLINE & EFPS
Revenue Memorandum Circular (RMC) No. 81-2026, issued on July 22, 2026, prescribes workaround procedures for taxpayers claiming the five-year Net Operating Loss Carry-Over (NOLCO) incurred in taxable years 2020 and 2021 under Revenue Regulation (RR) No. 25-2020. It may be recalled that under RR No. 25-2020, businesses incurring net operating losses in 2020 and 2021 (excluding those with fiscal year ending July 31, 2020 or after June 30, 2022), may carry over such losses as deductions for the next five (5) consecutive taxable years. However, current Offline eBIRForms Package and eFPS only allow NOLCO input for three (3) years, preventing proper reflection of 2020/2021 losses in later filings (e.g., TY 2025). Thus, this circular prescribes interim workaround procedures to ensure accurate declaration.
IV. SEC LEGAL OPINION ON CORPORATE LIQUIDATION
[A DISSOLVED CORPORATION RETAINS LIMITED LEGAL PERSONALITY FOR THREE YEARS SOLELY FOR LIQUIDATION PURPOSES] [CORPORATE LIQUIDATION MAY CONTINUE BEYOND THE THREE-YEAR PERIOD THROUGH TRUSTEES OR DIRECTORS ACTING AS TRUSTEES BY LEGAL IMPLICATION] [REDEMPTION OF FORECLOSED CORPORATE PROPERTY MAY CONSTITUTE A VALID LIQUIDATION ACT]
N Golf Club, Inc. is requesting an opinion on the effects of the expiration of corporate term on the corporation’s legal personality and the authority of its President to deal with corporate property after such expiration. In reply, Section 139 of the Revised Corporation Code (RCC) provides that a dissolved corporation continues to exist for three (3) years solely to wind up affairs, dispose of property, and distribute assets, but not to conduct new business. After three (3) years, juridical personality is extinguished, but liquidation may still proceed through trustees or assignees until completion. As such, the redemption of foreclosed property is a valid liquidation act when done to preserve assets for creditors and stockholders. However, if no trustee is appointed within the three‑year period, the Board of Directors may act as trustees by legal implication, and surviving directors or interested parties may continue liquidation, subject to court oversight. On the issue of whether a stockholder may independently redeem property under the Local Government Code (LGC), the Commission declined to rule, noting that redemption is a statutory privilege strictly governed by law and outside its jurisdiction. [SEC OFFICE OF THE GENERAL COUNSEL LEGAL OPINION NO. 26-09, JUNE 30, 2026]
V. CTA CASES
[FOR LOCAL TAX CASES UNDER SECTIONS 195 & 196 OF THE LGC, THE DETERMINATION OF THE PROPER TRIAL COURT IS GOVERNED BY THE JURISDICTIONAL AMOUNTS UNDER B.P. BLG. 129, OR THE JUDICIARY REORGANIZATION ACT OF 1980 AS AMENDED] [JURISDICTION DEPENDS ON THE AMOUNT OF THE CLAIM OR ASSESSMENT INVOLVED, NOT ON THE CHARACTERIZATION OF THE ACTION AS ONE QUESTIONING THE VALIDITY OF THE ASSESSMENT]
Petitioner Tricor Management & Development Corporation filed a Petition for Review seeking to reverse the CTA First Division’s Decision and Resolution, which affirmed the Regional Trial Court of Cebu City (RTC-Cebu)’s dismissal of Civil Case for lack of jurisdiction. Petitioner argued that the RTC had jurisdiction because its action was not a suit for the recovery or payment of money but a challenge to the legality of the assessment, making it an action incapable of pecuniary estimation. Further, the ruling in China Banking Corporation v. City Treasurer of Manila was inapplicable since that case involved a tax refund, whereas its case involved a tax assessment. Petitioner also asserted that it was merely a Holding and Management Company, not a Real Estate business, and therefore its sale of property should not be subject to Local Business Tax (LBT). On the other hand, the Respondent Cebu City Government contended that jurisdiction in local tax cases is determined by the amount involved and that the assessment fell within the monetary jurisdiction of the first-level courts. In ruling, the Court agreed with the Respondent and held that the case was a local tax case involving a definite tax assessment. It ruled that under China Banking Corporation, Yamane, and related jurisprudence, jurisdiction over local tax disputes depends on the amount of the assessment or claim rather than the label assigned to the action. Since the basic LBT assessed amounted only to Php 218,400, which was below the RTC jurisdictional threshold, jurisdiction properly belonged to the first-level courts. The Court rejected Petitioner’s claim that the action was incapable of pecuniary estimation, emphasizing that the assessment involved a specific monetary amount. Hence, the Petition is DENIED for lack of merit. [TRICOR MANAGEMENT & DEVELOPMENT CORPORATION VS CEBU CITY GOVERNMENT & OFFICE OF THE CITY TREASURER, CTA EN BANC CASE No. 3100, JULY 3, 2026]
NEA-REGISTERED ELECTRIC COOPERATIVES ARE PERPETUALLY EXEMPT FROM INCOME TAX UNDER PRESIDENTIAL DECREE NO. 269
Petitioner Commissioner of Internal Revenue (CIR) filed a Petition for Review assailing the earlier Decision and Resolution of the Court’s 2nd Division, which nullified its Final Decision on Disputed Assessment (FDDA) issued to Respondent Misamis Oriental Rural Electric Service Cooperative I, Inc due to its tax exemption. In ruling, the Court held that the Respondent, as an electric cooperative duly registered with the National Electrification Administration (NEA), is permanently exempt from income tax under Section 39(a) of Presidential Decree (P.D.) No. 269 or the NEA Decree. Republic Act (R.A.) No. 9520 {Philippine Cooperative Code of 2008) expressly preserved the provisions of P.D. No. 269, thereby maintaining the Respondent’s income tax exemption despite the earlier withdrawal of tax incentives under P.D. No. 1955 withdrawing the duty and tax privileges granted to private business enterprises and individuals engaged in economic activities, as part of the national economic recovery program and Executive Order (E.O.) No. 93. Consequently, the Petition is DENIED, and the earlier Decision and Resolution are AFFIRMED. [COMMISSIONER INTERNAL REVENUE VS. MISAMIS ORIENTAL RURAL ELECTRIC SERVICE COOPERATIVE I, INC., CTA EN BANC CASE NO. 3038, JUNE 22, 2026]
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