DOF, BIR propose higher tax-exempt benefits for workers
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [OCTOBER 22-29]
- FIRB ROLLS OUT THE ENHANCED VERSION OF FIRMS WEB APPLICATION
- BIR ITAD RULING
- CTA CASES
I. TAX & BUSINESS-RELATED NEWS [OCTOBER 22-29]
- Businesses saved P80M due to lower fees — SEC
- PCC clears Raslag joint venture with Singapore partner
- House urged to probe GSIS P8.8 billion loss
- Was GCash data sold on dark web? NPC wants to know
- Alsons Power launches cadetship program to train future energy leaders
- Megaworld caps Montrose Parkview in Pampanga, adds to European-inspired living
- Jeju exit in sight as Bloomberry inks sale agreement for casino unit
- PSALM counts on CBK sale, Agus-Pulangi concession to wipe out obligations
- New Ateneo campus rising at Federal Land estate in Cavite by 2030
- Clark airport, FTI sign deal to build P3.6-B food hub
- Home Credit, Puregold team up on credit card product for mass market
- SteelAsia mulls over legal action vs PNRI
- Hotel occupancy in Cebu falls to pandemic-era levels
- Ayala Land opens Evo City offices in Cavite for lease
- Maharlika wraps up first full year of operations with earnings of nearly P2.7B
- DOF, BIR propose higher tax-exempt benefits for workers
- Dennis Trillo’s tax joke hits at corruption: ‘Done paying taxes, you can steal again’
- Villar’s AllDay Marts, Filsyn for disclosure breaches
- Goodbye Metrowalk! Chavit Singson hands over Ortigas property to DOTr for subway construction
- PEZA, Pag-Ibig partner up for housing program
- Isabela gets swine techno-demo farm; Seen boosting swine industry in province
- As Philippines lags peers, government bets on China eVisa restart
- Philippine embassy seeks answers from US after blocking Filipino seafarers’ entry
- Maharlika Fund denies working with executive tagged in 1MDB scandal
- Pryce allots P6 billion for new air separation plants
- Fintech firms drive surge in bite-sized loans — CIBI
- Overseas Filipinos’ access to retirement funds expanded
- EEI transfers P164-M Tanza training facility to subsidiary
II. FIRB ROLLS OUT THE ENHANCED VERSION OF FIRMS WEB APPLICATION
Fiscal Incentives Review Board (FIRB) Advisory No. 008-2025, issued on October 15, 2025, circularizes the rollout of the new and enhanced Fiscal Incentives Registration and Monitoring System (FIRMS) web application on September 27, 2025. The upgraded platform introduces a modern interface, improved workflows, and enhanced monitoring and reporting features to streamline the registration and administration of tax incentives. While already in production, the system is not yet accessible to Investment Promotion Agencies (IPAs) and Registered Business Enterprises (RBEs) pending configuration and data migration from the legacy FIRMS. Until its official activation, all filings must continue in the old system, and applications under the “Activity/Project,” “Apply for CETI,” and “ATIR and ABR1” modules must be finalized and approved by December 31, 2025, to be included in the migration.
III. BIR ITAD RULING
VAT PRIVILEGES ARE GRANTED ONLY FOR GOODS & SERVICES NECESSARY TO THE PROGRAM IMPLEMENTATION OF INTERNATIONAL GRANTS
DT Global Asia Pacific Pty Ltd (DT Global AP) and its local subsidiary, DT Global International Development Philippines, Inc. (DT Global PH), is requesting Value-Added Tax (VAT) exemption privileges for purchases of goods and services used in implementing the ASEAN-Australia Counter-Trafficking (AACT) Program, under the General Agreement on Development Cooperation (GADC) between the Philippines and Australia. As represented, Cardno Emerging Markets (Australia) Pty Ltd was acquired by DT Global Holdings and now operates as DT Global AP. The company continues to implement the AACT Program (2018-2028) under the same contract with the Embassy, with no changes in project scope, funding source, or management role. In reply, Article 7(1)(a) of the GADC, in relation to Sections 106(A)(2)(b), 108(B)(3) and 109(1)(K) of the Tax Code, as amended, provides that all program supplies, professional and technical material and services procured within the Philippines by DT Global AP and DT Global PH are subject to 0% VAT, while direct importations are VAT-exempt. However, these VAT privileges are limited strictly to transactions necessary for the program’s implementation and cannot be applied to DT Global’s other activities. [BIR ITAD RULING NO. 035-25, SEPTEMBER 30, 2025]
IV. CTA CASES
BIR’S FAILURE TO ESTABLISH FRAUD OR INTENT TO EVADE TAXES ON THE PART OF THE TAXPAYER DOES NOT JUSTIFY EXTENDING THE ASSESSMENT PERIOD FROM THREE (3) YEARS TO TEN (10) YEARS
Petitioner Meridien East Realty and Development Corporation filed a Petition for review seeking the cancellation of the assessment issued by the Respondent Commissioner of Internal Revenue (CIR) covering the Taxable Year 2009. Petitioner argues that Revenue Memorandum Circular (RMC) No. 20-2010 is void for violating its right to due process, as it was not generally made in public and thus did not serve as a valid notice of the revocation of the earlier BIR Ruling No. DA-245-05 issued. It also contends that the revocation should not be applied retroactively since it would prejudice the Petitioner as a taxpayer, and none of the exceptions under Section 246 of the Tax Code of 1997, as amended. Lastly, the Petitioner claims that the assessment lacks a factual and legal basis and was issued beyond the prescriptive period. On the other hand, the Respondent argues that the assessment was validly issued based on the best evidence available. It maintains that the revocation of BIR Ruling No. DA-245-05 was made in accordance with Section 246 of the Tax Code, and the assessment itself was supported by specific factual findings. Furthermore, the Respondent contends that the right to assess had not yet prescribed, as the extended 10-year period to assess under Section 222(a) of the Tax Code applies in this case. In ruling, the Court held that the Respondent’s right to assess had prescribed, as the assessment was issued beyond the three-year period under Section 203 of the Tax Code. The Court rejected the application of the ten-year period under Section 222(a) of the Tax Code, noting that it applies only when there is proven intent to evade taxes, which was not established in this case. The Court concluded that the assessment was issued beyond the allowable period and was invalid. Hence, the Petition is GRANTED, and the assessment is VOID. [MERIDIEN EAST REALTY & DEVELOPMENT CORPORATION VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 9837, OCTOBER 21, 2025]
[PD 269 IS NOT AMENDED NOR REPEALED BY THE ENACTMENT OF THE COOPERATIVE CODE; THUS, THE EXEMPTION FROM PAYING TAXES OF ELECTRIC COOPERATIVES UNDER SECTION 39 OF PD 269 STILL APPLIES] [NEA-ELECTRIC COOPERATIVES ARE ENTITLED TO THE INCOME TAX EXEMPTION PROVIDED UNDER SECTION 39 OF PD NO. 269, THUS, THERE IS NO NEED FOR THEM TO BE REGISTERED UNDER THE COOPERATIVE CODE TO AVAIL OF INCOME TAX EXEMPTION]
Petitioner Bukidnon II Electric Cooperative, Inc. (BUSECO) filed a Petition for Review seeking to reverse and set aside the Final Decision on Disputed Assessment (FDDA) issued by the Respondent Commissioner of Internal Revenue (CIR), which assessed the Petitioner for deficiency income tax and compromise penalty for the taxable year 2017. Petitioner argues that it is permanently exempt from income tax under Section 39(a)(1) of Presidential Decree (PD) No. 269, or the National Electrification Administration Decree, which it claims remains in effect and has not been repealed by subsequent laws. It cites Revenue Memorandum Circular (RMC) No. 72-2003, where the CIR recognized the permanent income tax exemption of electric cooperatives. Petitioner contends that it does not repeal RMC No. 72-2003, cannot override PD No. 269, and is based on a misinterpretation of relevant Maceda v. Macaraig, Jr. and Davao Oriental Electric Cooperative v. The Province of Davao Oriental. On the other hand, Respondent argues that Petitioner is not exempt from income tax, citing RMC No. 74-2013, PD No. 1955, and Executive Order (EO) No. 93 series of 1986 as bases. In ruling, the Court ruled that the BIR’s assessment against the Petitioner is void for violating its right to due process, as the Final Assessment Notice (FAN), Final Letter of Demand (FLD), and FDDA failed to state the factual and legal bases for the assessment and disregarded Petitioner’s protest letters, contrary to Section 228 of the Tax Code and RR No. 12-99. Citing CIR v. Avon Products Manufacturing, Inc., the Court emphasized that tax assessments issued without due process are null and void. Moreover, the Court held that Petitioner, being a non-stock, non-profit electric cooperative registered with the NEA, is permanently exempt from income tax under Section 39 of PD No. 269, which remains effective and unrepealed by subsequent laws. Jurisprudence, including CIR v. Samar-I Electric Cooperative, Inc. and Misamis Oriental Rural Electric Service Cooperative I, Inc. v. CIR, affirms that electric cooperatives registered with the NEA continue to enjoy this exemption despite EO No. 93 and RMC No. 74-2013. Thus, the Petition for Review is GRANTED, and the FLD and FAN are DECLARED NULL. [BUKIDNON II ELECTRIC COOPERATIVE, INC. VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 11142, OCTOBER 9, 2025]
Businesses saved P80M due to lower fees — SEC [GMA News Online, October 29, 2025]
SEC Memorandum Circular No. 6, series of 2025 (MC 6), which took effect on July 1, provided a 50% discount on the physical and authenticated copies of company filings, including the articles of incorporation and by-laws, general information sheet, and annual financial statements, among others.
PCC clears Raslag joint venture with Singapore partner [BusinessWorld, October 29, 2025]
The joint venture was formed to acquire a hybrid renewable energy project.
House urged to probe GSIS P8.8 billion loss [The Philippine Star, October 28, 2025]
Rep. Leila de Lima on Tuesday urged the House of Representatives to investigate the Government Service Insurance System’s (GSIS) reported P8.8 billion in losses from alleged risky investment decisions and transactions.
https://www.philstar.com/headlines/2025/10/28/2483188/house-urged-probe-gsis-p88-billion-loss
Was GCash data sold on dark web? NPC wants to know [The Manila Times, October 28, 2025]
The NPC said the post, made by a user under the alias “Oversleep8351” on a dark web forum, allegedly offered merchant and basic GCash user data, including account numbers, linked bank and virtual card accounts, and Know Your Customer (KYC) records containing names, addresses, employment details, and valid Philippine IDs.
Alsons Power launches cadetship program to train future energy leaders [BusinessWorld, October 28, 2025]
ALCANTARA-LED Alsons Power Supply Corp. has partnered with St. Peter’s College (SPC) in Iligan City to launch the Alsons Power Cadetship Training Program, an 18-month initiative aimed at developing young professionals for leadership roles in the energy sector.
Megaworld caps Montrose Parkview in Pampanga, adds to European-inspired living [The Manila Times, October 28, 2025]
REAL estate giant Megaworld has formally topped off the 15-story Montrose Parkview, its third residential condominium development inside its 35.6-hectare Capital Town township in the City of San Fernando, Pampanga. Inspired by European architecture, Montrose Parkview offers 293 units and is located across a plaza that will soon feature an exciting row of dining and retail stores in the township.
Jeju exit in sight as Bloomberry inks sale agreement for casino unit [BusinessWorld, October 28, 2025]
In a disclosure to the stock exchange on Monday, Bloomberry said its indirect subsidiary, Golden & Luxury Co., Ltd., has signed a share purchase agreement with Gangwon Blue Mountain Co., Ltd. to spin off and sell its casino business.
PSALM counts on CBK sale, Agus-Pulangi concession to wipe out obligations [BusinessWorld, October 28, 2025]
STATE-RUN Power Sector Assets and Liabilities Management Corp. (PSALM) said it is optimistic about bringing down its outstanding obligations to nearly zero before the end of its extended corporate life.
New Ateneo campus rising at Federal Land estate in Cavite by 2030 [Philippine Daily Inquirer, October 27, 2025]
The new campus is expected to open by 2030 at a 15-hectare parcel of land. Riverpark is the largest township development of GT Capital’s property development arm, Federal Land Inc., and joint venture Federal Land NRE Global Inc. (FNG).
Clark airport, FTI sign deal to build P3.6-B food hub [BusinessWorld, October 27, 2025]
The project, known as the Bagsakan ng Bayan Mega Food Hub (BBM Food Hub), will rise on a 46-hectare site in Clark with FTI leasing the Clark property for 25 years, CIAC said in a statement on Monday.
Home Credit, Puregold team up on credit card product for mass market [Philippine Daily Inquirer, October 27, 2025]
HC Consumer Finance Philippines Inc. (Home Credit) and Puregold Price Club Inc. on Monday jointly launched their Visa-powered credit card for Puregold customers.
SteelAsia mulls over legal action vs PNRI [Philippine Daily Inquirer, October 27, 2025]
This, after the PNRI ordered it to take custody of 23 containers allegedly containing hazardous zinc dust, which were exported by Zannwann International Trading Corp. to Indonesia in September but were ordered returned.
https://business.inquirer.net/554641/steelasia-mulls-over-legal-action-vs-pnri
Hotel occupancy in Cebu falls to pandemic-era levels [Cebu Daily News, October 27, 2025]
Estimates show that hotels in Mactan are operating at 25 to 50 percent occupancy, while those in Cebu City are faring slightly better at 40 to 60 percent.
https://cebudailynews.inquirer.net/665303/hotel-occupancy-in-cebu-falls-to-pandemic-era-levels
Ayala Land opens Evo City offices in Cavite for lease [BusinessWorld, October 27, 2025]
AYALA LAND, INC. (ALI) has opened office spaces in its 207-hectare Evo City estate in Kawit, Cavite for lease as part of its plan to develop the area into a business and lifestyle hub.
Maharlika wraps up first full year of operations with earnings of nearly P2.7B [BusinessWorld, October 26, 2025]
According to its annual report, the MIC has made three investments, in Synergy Grid & Development Philippines, Inc., CP Group Partnership and Interim Financing for Makilala Mining Co., Inc.
DOF, BIR propose higher tax-exempt benefits for workers [Inquirer.Net, October 25, 2025]
The Department of Finance (DOF) and Bureau of Internal Revenue (BIR) have proposed to increase the ceilings for tax-exempt benefits for employees of the public and private sectors in a bid to protect their welfare and promote inclusive growth.
https://newsinfo.inquirer.net/2129912/dof-bir-propose-higher-tax-exempt-benefits-for-workers
Dennis Trillo’s tax joke hits at corruption: ‘Done paying taxes, you can steal again’ [KAMI, October 25, 2025]
This post sparked intense discussion among netizens, many of whom praised Dennis for being outspoken. Thousands shared and commented on the post, saying they could relate to the sentiment, especially amid persistent public complaints about alleged corruption, mismanagement of public funds, and lack of transparency in government programs.
Villar’s AllDay Marts, Filsyn for disclosure breaches [Bilyonaryo, October 25, 2025]
The Philippine Stock Exchange has flagged ultra bilyonaryo Manny Villar’s AllDay Marts Inc. and Filsyn Corporation for violating key disclosure rules.
https://bilyonaryo.com/2025/10/21/villars-allday-marts-filsyn-for-disclosure-breaches/property/
Goodbye Metrowalk! Chavit Singson hands over Ortigas property to DOTr for subway construction [Bilyonaryo, October 23, 2025]
The Singson family owns Blemp Commercial of the Philippines Inc., which manages the eight-hectare Metrowalk complex. About 12,752 square meters of the property will be used for the MMSP’s Ortigas Station, the DOTr said.
PEZA, Pag-Ibig partner up for housing program [Philippine Daily Inquirer, October 23, 2025]
According to PEZA, more than 600 personnel within its workforce and about 1.8 million Filipinos working in PEZA-registered ecozones nationwide are expected to benefit from this tie-up.
https://business.inquirer.net/554115/peza-pag-ibig-partner-up-for-housing-program
Isabela gets swine techno-demo farm; Seen boosting swine industry in province [The Manila Times, October 23, 2025]
The facility was established through the collaborative efforts of the Department of Agriculture Regional Field Office 2 (DA-RFO2) and the Agricultural Training Institute–Regional Training Center 2 (ATI-RTC2), in partnership with the Reina Mercedes Farmers Agriculture Cooperative (RMFAC).
As Philippines lags peers, government bets on China eVisa restart [The Philippine Star, October 22, 2025]
The Philippines is counting on the resumption of a eVisa program for Chinese tourists in November to help close a widening gap in tourist arrivals, as neighbouring Southeast Asian countries pull further ahead.
Philippine embassy seeks answers from US after blocking Filipino seafarers’ entry [The Philippine Star, October 22, 2025]
During a Senate hearing in August, Migrant Works Undersecretary Bernard Olalia bared that at least 93 Filipino seafarers have been deported by the US government as of mid-2025. Most or 87 of the 93 were deported after US President Donald Trump began his second administration in January.
Maharlika Fund denies working with executive tagged in 1MDB scandal [ABS-CBN News, October 22, 2025]
1MDB was Malaysia’s state investment fund launched by former Prime Minister Najib Razak in 2009. In 2015, the Wall Street Journal reported that Najib received at least $681 million in payments to his personal bank accounts.
Pryce allots P6 billion for new air separation plants [The Philippine Star, October 22, 2025]
“This expansion directly supports (Pryce’s) goal of becoming the largest industrial gas company in the Philippines, a milestone the company aims to achieve within the same three-year timeframe,” it said.
Fintech firms drive surge in bite-sized loans — CIBI [The Philippine Star, October 22, 2025]
Short-term loans with smaller borrowing amounts have increasingly become a prevailing trend among Filipino borrowers, reflecting a growing preference for manageable repayment periods and reduced financial commitments, according to CIBI Information Inc.
https://www.philstar.com/business/2025/10/22/2481516/fintech-firms-drive-surge-bite-sized-loans-cibi
Overseas Filipinos’ access to retirement funds expanded [The Manila Times, October 22, 2025]
Personal Equity and Retirement Account-Unit Investment Trust Funds (PERA-UITFs) will no longer be subject to a 10-percent foreign ownership cap. The policy change recognizes that PERA-UITFs may include overseas Filipinos who are considered non-residents under existing regulations.
EEI transfers P164-M Tanza training facility to subsidiary [BusinessWorld, October 22, 2025]
EEI CORP. has approved the transfer of its P164-million training facility in Tanza, Cavite, to its subsidiary EEI Training Academy Corp. through a tax-free property-for-share swap, a move aimed at consolidating the company’s training operations.
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