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Equity-based compensation is an employee benefit given in the form of stock options, restricted share awards, stock appreciation rights, and restricted stock units, which may or may not pertain to the shares of stocks of the employer-grantor itself. This is commonly used as part of employee-retention programs.

As more companies choose to adopt work-from-home (WFH) arrangements, existing registered business enterprises (RBEs) in the information and technology-business process management (IT-BPM) sector may now transfer their existing registration with the Board of Investments (BOI) until December 31, 2022. Under the guidelines released by the Department of Trade and Industry in Memorandum Circular No. 22-19 on October 18, 2022, IT-BPM RBEs, such as those registered with the Philippine Economic Zone Authority (PEZA) and other investment promotion agencies (IPAs), have until year-end to transfer their registration to the BOI. The transfer applies to IT-BPM RBEs with existing tax incentives under Section 311 of the Tax Code or those with approved tax incentives until September 14, 2022.

Revenue Memorandum Circular (RMC) No. 141-2022 provides the revised contents of the eBIRForms email notification, also known as the Tax Return Receipt Confirmation.

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.