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As part of digitalization of its operations, the Bureau of Internal Revenue (BIR) has introduced the Online Registration and Update System (ORUS).

Last October 14, 2022, the BIR issued RMC No. 137-2022, clarifying the cost items under “other expenditures” which are subject to 0% VAT, being indispensable to the project or activity.

As provided under Revenue Regulation No. 13-2022, any kind of equity-based compensation, such as stock options, restricted share awards, stock appreciation rights (SARs), and restricted stock units, which may or may not pertain to the shares of stocks of the grantor, is considered taxable compensation subject to the withholding tax on compensation once exercised or availed of by the grantee-employees.

The Fiscal Incentives Review Board (FIRB), through FIRB Resolution No. 026-2022, agreed to allow the transfer of registered business enterprises (RBEs) in the Information Technology and Business Process Management (IT-BPM) sector from the Investment Promotion Agency (IPA) administering the economic zone or freeport zone where their project is located (e.g., PEZA) to the Board of Investments (BOI) until December 31, 2022.

As previously introduced under Revenue Regulation (RR) No. 10-2019, the new BIR Notice to Issue Invoice/Receipt (NIRI) requires sellers, including those engaged in online business transactions to issue receipts/invoice for the sale of goods or services rendered.

As some Information Technology-Business Process Management (IT-BPM) entities registered with the Philippine Economic Zone Authority (PEZA) are shifting to the Board of Investments (BOI) to retain the work-from-home arrangement beyond December 31, 2022, the BOI issued Memorandum Circular No. 2022-005, reiterating the exemption from business tax of enterprises certified by the BOI as pioneer or non-pioneer enterprises, for a period of six years or four years, respectively, from the date of registration.

Last September 15, 2022, the Fiscal Incentives Review Board (FIRB) granted the extension of the 70-30 work from home arrangement, wherein 70% of the total workforce are required to report within the premises of the Philippine Economic Zone Authority (PEZA)-registered Information Technology (IT)-Business Process Management (BPM) entities while 30% of the total workforce are allowed to work from home until December 31, 2022.

Pursuant to Revenue Memorandum Circular (RMC) No. 77-2022, all field audit and other field operations of the Bureau of Internal Revenue (BIR) covered by Letters of Authority (LOAs)/Mission Orders (MOs) relative to examinations and verifications of taxpayers' books of account, records, and other transactions ordered were suspended as of May 30, 2022.