New rules make closing business easier – BIR
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [MAY 19-26]
- BIR CLARIFIES WINNINGS FOR FINAL WITHHOLDING TAX (FWT) IMPOSITION TO INCLUDE WINNINGS FROM CASINO & GAMBLING
- BIR REMINDS E-MARKET PLACE OPERATORS & DIGITAL FINANCIAL SERVICE PROVIDERS ON THE SUBMISSION OF ALPHALIST
- BIR LAUNCHES TAXPAYER PORTAL & ITS PILOT IMPLEMENTATION TO LARGE TAXPAYERS’ SERVICE
- BIR PRESCRIBES THE POSTING OF BIR REGISTRATION SEAL BADGE ON ONLINE PLATFORMS & ANNOUNCES THE AVAILABILITY OF QR CODE IN BIR COR
- CTA CASE
I. TAX & BUSINESS-RELATED NEWS [DECEMBER 20-26]
1. BIR launches online portal for large taxpayers
2. Metrobank waives maintaining balance on eSavings accounts
3. US official says immunity for Pax Silica Clark hub ‘taken out of context’
4. From ghost sellers? Mandaue probes COA-flagged lot purchase
5. Alsons Power transitions diesel plant into solar facility
BIR launches online portal for large taxpayers [GMA News Online, May 26, 2026]
Finance Secretary Frederick Go said the TP Portal would eliminate the need for taxpayers to navigate multiple systems, fragmented records, and repeated follow-ups to complete routine tax obligations.
Metrobank waives maintaining balance on eSavings accounts [The Philippine Star, May 26, 2026]
“Removing the maintaining balance requirement gives them more flexibility to manage their money, especially at a time when everyday expenses continue to rise. It allows them to keep their accounts active without pressure, use their funds when needed and still build the habit of saving at their own pace,” Metrobank consumer banking sector head Ramon del Rosario said.
US official says immunity for Pax Silica Clark hub ‘taken out of context’ [The Philippine Star, May 26, 2026]
Helberg’s post came a week after Joshua Bingcang, president and chief executive of the Bases Conversion and Development Authority, told reporters during the US official’s May 18 site visit, that the Philippines had denied a US request to place the zone under American law and grant diplomatic immunity to US personnel.
From ghost sellers? Mandaue probes COA-flagged lot purchase [Cebu Daily News, May 26, 2026]
City Legal Officer Erwin Rommel Heyrosa said the AOM, which the city received two weeks ago, indicated that several individuals listed as sellers in the deed of sale had already died at the time the documents were executed.
https://cebudailynews.inquirer.net/731721/from-ghost-sellers-mandaue-probes-coa-flagged-lot-purchase
Alsons Power transitions diesel plant into solar facility [The Philippine Star, May 26, 2026]
Alsons Power, the Alcantara Group’s power business unit, is advancing its renewable energy initiatives with the transformation of its 55-megawatt diesel power plant, Southern Philippines Power Corp. (SPPC), in Alabel, Sarangani into a 98.7-MWac solar power facility.
II. BIR CLARIFIES WINNINGS FOR FWT IMPOSITION TO INCLUDE WINNINGS FROM CASINO & GAMBLING
Revenue Memorandum Circular (RMC) No. 57-2026, issued on May 26, 2026, clarifies that jackpot prizes from casino and other gambling activities fall within the statutory definition of “winnings” under Sections 24(B)(1), 25(A)(1), and 25(B) of the Tax Code, thus, subject to Final Withholding Tax (FWT). The Circular emphasizes that the tax base is the gross amount of the prize, without deductions for service charges or fees. The applicable rates are 20% for resident citizens and aliens, and 25% for non-resident aliens not engaged in trade or business. Coverage extends to winnings from both licensed and unlicensed operators, consistent with the principle that income from any source is taxable.
If you wish to get a copy of complete text of CTA cases, please e-mail us at taxseminars@dmdcpa.com.ph.
III. BIR REMINDS E-MARKET PLACE OPERATORS & DIGITAL FINANCIAL SERVICE PROVIDERS ON THE SUBMISSION OF ALPHALIST
Revenue Memorandum Circular (RMC) No. 055-2026, issued on May 26, 2026, reminds the obligation of electronic marketplace operators and digital financial services providers to submit the prescribed Alphabetical List of employees and payees.
The type of alphalist to be submitted depends on the specific withholding tax return and its corresponding deadline, as follows:
IV. BIR LAUNCHES TAXPAYER PORTAL & ITS PILOT IMPLEMENTATION TO LARGE TAXPAYERS’ SERVICE
Revenue Memorandum Circular (RMC) No. 053-2026, issued on May 26, 2026, announces the availability of the Taxpayer Portal and its pilot implementation for taxpayers registered under BIR’s Large Taxpayers Service (LTS). The Taxpayer Portal streamlines tax compliance and minimizes the need for manual follow-ups and visits to BIR offices.
As part of the pilot rollout, large taxpayers may enroll in the Taxpayer Portal to access registration information, monitor filed tax returns and payments, view account ledgers, and receive system notifications and tax reminders. This pilot aims to ensure the system’s readiness and support its gradual expansion to other taxpayer groups.
V. BIR PRESCRIBES THE POSTING OF BIR REGISTRATION SEAL BADGE ON ONLINE PLATFORMS & ANNOUNCES THE AVAILABILITY OF QR CODE IN BIR COR
Revenue Memorandum Circular (RMC) No. 38-2026, issued on April 29, 2026, prescribes the issuance and posting of the BIR Registration Seal Badge on online websites, e-commerce platforms, seller/merchant pages, and other digital platforms, in lieu of posting the Certificate of Registration (COR/eCOR). This measure addresses taxpayers’ concerns over the online disclosure of sensitive information contained in their COR/Electronic Certificate of Registration (eCOR).
Highlights include policies and guidelines, how to post the registration seal badge, and taxpayers guide.
DOWNLOAD BIR REGISTRATION SEAL BADGE
DOWNLOAD HOW TO POST THE BIR REGISTRATION SEAL BADGE
DOWNLOAD TAXPAYER GUIDE ON HOW TO GENERATE BIR REGISTRATION SEAL BADGE IN ORUS
WHEN THE BIR’S RIGHT TO ASSESS & COLLECT DEFICIENCY TAXES HAVE PRESCRIBED, THE CASE SHOULD BE DISMISSED
Petitioner Hizon Laboratories, Inc filed a Petition for Review assailing the assessment issued by the Respondent Commissioner of Internal Revenue (CIR), which found the Petitioner liable for deficiency Income Tax, Withholding Tax on Compensation (WTC), Expanded Withholding Tax (EWT), and Compromise Penalties for taxable year (TY) 2012. The Petitioner argues that it is not liable for the alleged deficiency taxes due to violations of due process rights, including the conduct of the audit beyond the 120-day period without LOA revalidation, the failure of the Formal Letter of Demand and Final Assessment Notice (FLD/FAN) to address its reply to Preliminary Assessment Notice (PAN) and provide a detailed assessment breakdown, and the prescription of the Respondent’s right to assess and collect the taxes. On the other hand, the Respondent contends that the non-revalidation of the LOA does not invalidate the assessments, that the Petitioner was properly informed of the bases of the assessments through the PAN, FLD/FAN, and FDDA, that the Petitioner failed to submit supporting documents within the prescribed period, and that EWT assessments are imprescriptible because they involve failure to withhold and remit taxes. In ruling, the Court found that the Respondent’s right to assess deficiency WTC and EWT for January to August 2012, as well as its right to collect all deficiency taxes, had prescribed under the ordinary three-year prescriptive period. The Court rejected the application of the extraordinary prescriptive period for false or fraudulent returns because the Respondent failed to inform the Petitioner of such invocation, failed to establish prima facie evidence of fraud, and acted inconsistently by imposing only a 25% surcharge instead of the 50% surcharge applicable to fraudulent returns. The Court likewise ruled that the Petitioner’s reply to FAN was merely a request for reconsideration, not reinvestigation, and even assuming otherwise, there was no proof that the request was granted to suspend the running of the prescriptive periods. Since the Respondent’s right to assess and collect has already prescribed, the assessments are CANCELLED and SET ASIDE. [HIZON LABORATORIES, INC. VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 10318, MAY 14, 2026]
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