Tax Matters That Matter — Your Source for Timely BIR Updates

As the Bureau of Internal Revenue (BIR) continues its push toward modernization and taxpayer-centric service, a significant administrative update has arrived to reshape the country's tax map. Revenue Administrative Order (RAO) No. 006-2025 provides an updated and definitive list of Revenue Regions (RRs) and Revenue District Offices (RDOs). This order is more than just a list of names; it is a strategic realignment designed to eliminate jurisdictional confusion and improve the accessibility of BIR services for millions of Filipinos by accurately reflecting the current administrative boundaries of the Philippines.

The core objective of this update is to enhance both accuracy and accessibility. For years, taxpayers often found themselves confused by the naming conventions of certain BIR offices. Some regions were named strictly after the city where the regional office was located, such as RR No. 1 - Calasiao, which did not always clearly reflect the entire geographic scope of their jurisdiction. RAO No. 006-2025 addresses this by transitioning from city-based names to broader regional designations. By standardizing these jurisdictions, the BIR aims to prevent common filing errors and "wrong-venue" issues that can lead to unnecessary penalties for well-meaning taxpayers.

One of the most notable features of this 2025 update is the rebranding of several major Revenue Regions to align with the country's standard administrative regions. For instance, RR No. 1 is now officially RR No. 1 - Ilocos Region, covering the provinces of Ilocos Norte, Ilocos Sur, La Union, and Pangasinan. Similarly, RR No. 3 has shifted from Tuguegarao City to Cagayan Valley, while RR No. 4 has been renamed Central Luzon. Other significant changes include the renaming of RR No. 5 to CAMANAVA and Bulacan and the establishment of RR No. 12 as the Negros Island Region to match recent legislative changes in the country's provincial organization.

Beyond simple name changes, the order formalizes structural splits within high-growth provinces to better manage the increasing volume of taxpayers. To handle industrial booms and population shifts, the BIR has further refined the division of Revenue District Offices into North and South sectors. Tarlac is now clearly divided into RDO No. 17A (North Tarlac) and RDO No. 17B (South Tarlac), while Bulacan has seen a clearer distinction for West Bulacan under RDO 25A. Special economic zones have also received closer attention, such as the specific designation of RDO No. 21C to cover the Clark Freeport and Special Economic Zone in Pampanga.

For the average taxpayer, this realignment is a welcome change that simplifies the registration and filing process. While individual Taxpayer Identification Numbers (TINs) remain the same, taxpayers must ensure that all future filings, official correspondences, and applications for Authority to Print (ATP) reflect these updated regional and district names. This structural update also serves as the backbone for the BIR’s Online Registration and Update System (ORUS), ensuring that the digital infrastructure of the bureau matches the physical reality of its regional boundaries. Ultimately, RAO No. 006-2025 represents a cornerstone of the BIR's 2025 modernization program, making tax compliance more intuitive and reducing administrative friction across the nation.

Reference: Revenue Administrative Order (RMO) No. 006-2025, List of Revenue Regions and Revenue District Offices of the Bureau of Internal Revenue

Disclaimer: This article is for general informational purposes only and should not be taken as professional tax, accounting, or legal advice. Readers are encouraged to consult the official text of RAO No. 006-2025and seek guidance from qualified tax professionals for compliance matters specific to their circumstances.

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Revenue Memorandum Circular (RMC) No. 109-2025 was issued to provide crucial clarification on the exact coverage of the audit suspension mandated by RMC No. 

107-2025. This circular distinguishes between the activities that must pause and the critical functions that must continue.

Activities That Remain SUSPENDED (The Audit Pause):

The general suspension applies to fieldwork and activities involving direct contact with taxpayers concerning general tax audits:

• Issuance/Service of New LOAs and MOs: The serving or issuance of new Letters of Authority (LOAs) and Mission Orders (MOs) for general tax audits is halted.
• On-site  Examinations and Fieldwork: Physical verification of taxpayer books, records, and related on-site visits are temporarily stopped.
• Issuance of Subpoena Duces Tecum: The issuance of subpoenas related to any audit or operation covered by the general suspension is also paused.

Activities That Are NOT Suspended (The Critical Exceptions):

RMC No. 109-2025 explicitly outlines the critical exceptions where examinations and processes must continue:

• Audit  of Prescribing Cases: Audits for tax cases that are set to prescribe (expire) within six (6) months from the date of the RMC must proceed to prevent revenue loss due to the running of the Statute of Limitations.
• One-Time Transactions (ONETT): The processing, verification, and assessment of returns related to key One-Time Transactions continue, specifically:
  • Estate Tax
  • Donor's Tax
  • Capital Gains Tax (CGT)
  • Documentary Stamp Tax (DST) on transfers of properties.
• Retiring Businesses: Examination and processing related to taxpayers who are in the process of retiring or closing their business operations must continue.
• Active Criminal Probes: Audits, LOAs, or MOs related to criminal tax fraud investigations that are based on verified intelligence can proceed.
• Assessment and Collection Deadlines: The statutory periods for the BIR to issue Preliminary Assessment Notices (PAN), Final Assessment Notices (FAN), Warrants of Distraint and/or Levy, and other collection actions for non-suspended cases remain in effect. Taxpayers must also continue to meet their deadlines for filing protests and replies.
• Voluntary Payments: Taxpayers are still permitted to voluntarily pay known deficiency taxes, even without receiving an official assessment.

RMC No. 109-2025 ensures that the BIR's necessary "Audit Reset" for reform does not compromise time-sensitive government functions. It provides a strategic balance, protecting taxpayer rights while securing the collection of critical and expiring tax revenues.

Reference: RMC No. 109-2025, Clarification on the Coverage of Audit Suspension Under RMC No. 107-2025  RMC No. 109-2025.pdf 

Disclaimer: This article is for general informational purposes only and should not be taken as professional tax, accounting, or legal advice. Readers are encouraged to consult the official text of RMC No. 109-2025 and seek guidance from qualified tax professionals for compliance matters specific to their circumstances. 

As part of the Philippines’ continuing commitment to financial integrity and international compliance, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular No. 86-2025 to formally support the implementation of the National Anti-Money Laundering, Counter-Terrorism Financing, and Counter-Proliferation Financing Strategy (2023–2027). This circular affirms the BIR’s institutional role in the country’s whole-of-government approach to combating financial crimes and reinforces its alignment with the standards set by the Financial Action Task Force (FATF). It also mandates active participation in the Money Laundering/Terrorism Financing National Risk Assessment (NRA), ensuring that tax enforcement contributes meaningfully to national security and regulatory cohere

RMC No. 86-2025 enjoins all BIR offices and personnel to support the implementation of the national AML/CFT/CPF strategy and participate in the NRA. The directive emphasizes the importance of inter-agency coordination, data sharing, and risk-based profiling to strengthen the country’s defenses against illicit financial flows.

The circular reflects the Philippines’ commitment to the FATF framework and positions the BIR as a key contributor to AML/CFT/CPF efforts. It calls for the integration of financial intelligence into tax administration and promotes proactive supervision across sectors vulnerable to money laundering, terrorism financing, and proliferation financing.

BIR offices are directed to:

• Participate in the National Risk Assessment (NRA) through data sharing, profiling, and analysis
• Embed AML/CFT/CPF objectives into audit procedures, internal controls, and enforcement protocols
• Coordinate with the Anti-Money Laundering Council (AMLC) to support national implementation and regulatory harmonization

These responsibilities signal a shift toward integrated compliance and cross-sector vigilance.

Although the circular is addressed to internal BIR personnel, it carries indirect implications for regulated entities and taxpayers. These may include:

• Enhanced scrutiny of financial records and tax filings
• Greater emphasis on beneficial ownership transparency
• Potential updates to registration and reporting protocols aligned with AML/CFT/CPF standards

Entities engaged in cross-border trade, digital commerce, or high-risk sectors should ensure documentation is complete, traceable, and defensible.

For professionals in governance, audit, and risk management, RMC No. 86-2025 signals a broader regulatory posture:

• Expanded audit scope and taxpayer profiling based on AML/CFT/CPF risk indicators
• Increased inter-agency data sharing and enforcement coordination
• Heightened emphasis on transparency, traceability, and defensible documentation

This issuance reinforces the need for integrated risk management frameworks across both public and private institutions.

RMC No. 86-2025 positions the BIR as a strategic partner in the Philippines’ national effort to combat financial crimes. It strengthens inter-agency collaboration, enhances 

risk-based enforcement, and aligns tax administration with global AML/CFT/CPF standards. The circular underscores the importance of proactive compliance and institutional readiness for evolving regulatory expectations.

Access the full issuance via the BIR official website or consult your compliance advisor for implementation guidance or read the full disclosure here:  RMC No. 86.pdf 

The Bureau of Internal Revenue (BIR) has issued Revenue Memorandum Circular (RMC) No. 097-2025, announcing the availability of revised BIR registration forms under the October 2025 (ENCS). 

The revised registration forms are as follows:

• BIR Form 1900: Application for Permit to Use Loose-Leaf Books of Accounts/ Invoices and Other Accounting Records
• BIR Form 1901: Application for Registration for Self-Employed (Single Proprietor/Professional), Mixed Income Individuals, Non-Resident Alien Engaged in Trade/Business, Estate and Trust
• BIR Form 1902: Application for Registration for Individuals Earning Purely Compensation Income (Local and Alien Employee)
• BIR Form 1903: Application for Registration for Corporations, Partnerships (Taxable/Non-Taxable), Including Government Agencies and Instrumentalities (GAIs), Local Government Units (LGUs), Cooperatives and Associations
• BIR Form 1904: Application for Registration for One-time Taxpayer and Person Registering under E.O. 98 (Securing a TIN to be able to transact with any government office)
• BIR Form 1905: Application for Registration Information Update/Correction/Cancellation
• BIR Form 1906: Application for Authority to Print Invoices

The BIR clarified that these revisions are part of its ongoing efforts to enhance experience by improving existing registration forms. The revision also aligns with Republic Act No. 11032, otherwise known as the Ease of Doing Business and Efficient Government Service Delivery Act of 2018, which emphasizes streamlined registration process.

Source:  RMC No. 97-2025.pdf 

The Bureau of Internal Revenue (BIR) has released Revenue Memorandum Order (RMO) No. 42-2025, prescribing amended procedures for the sale of loose documentary stamps (DST) by Revenue Collection Officers (RCOs) and Special Collecting Officers (SCOs). This issuance aligns with the provisions of RMC No. 92-2024 and Sections 188, 193, and 201 of the 1997 Tax Code, as amended.

According to the order, the revisions aim to streamline documentation, enhance monitoring, and ensure accountability in DST transactions across all Revenue District and Regional Offices.

Under the new guidelines:

• Loose documentary stamps worth ₱200 and below shall be issued upon presentation of the required request form, with the serial number recorded by the RCO/SCO.

• For bulk purchases exceeding ₱200, a written request and valid identification from the taxpayer are required, along with details such as the purpose and taxable document to which the stamps will be affixed.
  
• The RCO/SCO must prepare reports on sales, accountability forms, and liquidation summaries daily for submission to their respective supervisors.
  
• Monthly DST declarations must be filed via the Electronic Filing and Payment System (eFPS) not later than the 5th day of the following month.

The RMO also outlines stricter supervision responsibilities for Revenue District Officers (RDOs) to monitor, verify, and ensure compliance in the issuance and sale of loose DST. Random audits and administrative sanctions are to be enforced for violations of prescribed policies.

The BIR emphasized that these new measures will strengthen transparency and control in the handling of documentary stamps and improve overall efficiency in revenue collection.

The order takes effect immediately upon issuance.

Disclaimer: This article is for general informational purposes only and does not constitute legal or tax advice. For complete details and official guidance, please refer to the full text of Revenue Memorandum Order No. 42-2025 issued by the Bureau of Internal Revenue.

 RMO NO. 42-2025.pdf 

Good news for corporations and compliance officers! The Bureau of Internal Revenue (BIR) has issued RMC No. 091-2025, officially confirming that an Assistant Corporate Secretary may sign the documentary requirements for business registration — provided the authority is properly documented.

Key Feature:

This circular removes ambiguity and streamlines registration by recognizing the Assistant Corporate Secretary’s signing authority, especially in cases where the Corporate Secretary is unavailable or the role is delegated.

What this means for you:

• Faster onboarding for new corporations
• Fewer bottlenecks in document execution
• Greater flexibility in corporate governance

For full text and implementation details, see RMC NO. 91-2025.pdf.

Disclaimer: This article is for general informational purposes only and should not be taken as professional tax, accounting, or legal advice. Readers are encouraged to consult the official text of RMC No. 091-2025 and seek guidance from qualified tax professionals for compliance matters specific to their circumstances.

On 16 September 2025, the Department of Finance (DOF), through the Bureau of Internal Revenue (BIR), issued Revenue Regulations (RR) No. 24-2025. This latest amendment revises Section 2.57.2(I) of RR No. 2-98, as previously amended by RR Nos. 11-2018, 7-2019, and 31-2020. The update focuses on clarifying the imposition of Creditable Withholding Tax (CWT) on payments made by Top Withholding Agents (TWAs).

The move is part of ongoing efforts to simplify compliance and improve tax administration among entities categorized as top withholding agents.

Revised Withholding Tax Rates

Income payments made by TWAs to local or resident suppliers are now subject to:

• 1% for suppliers of goods
• 2% for suppliers of services

This applies to payments not covered by other specific withholding tax rules.

Reduced Rate for Wholesale Transactions

For gross payments to manufacturers, direct importers, or suppliers of goods intended for wholesale, the withholding tax is reduced to 0.5% (one-half of one percent). This seeks to ease the burden on businesses primarily engaged in wholesale trade.

Excluded Goods and Industries
Certain transactions remain subject to different treatments, including those related to:

• Motor vehicles (Completely Built Units or Semi-Knocked Down units), parts, and accessories
• Medicines and pharmaceutical products
• Solid or liquid fuels and related products

Top Withholding Agents

Corporations and individuals classified as TWAs must update their compliance systems to apply the correct rates (1%, 2%, or 0.5%). Failure to adjust may result in penalties or disallowance of expenses.

Suppliers and Service Providers

Suppliers should review contracts and invoices to reflect the updated withholding rates. Awareness is key to avoiding disputes or miscalculations in receivables.

Regulators and Tax Practitioners

The change underscores the government’s push for clearer tax rules. Regulators, accountants, and auditors will need to ensure that compliance frameworks are properly aligned with the amendment.

RR No. 24-2025 introduces targeted changes to withholding tax obligations for Top Withholding Agents. By refining tax rates and clarifying wholesale exemptions, the BIR aims to strike a balance between revenue collection and reducing compliance burden.

For taxpayers, especially TWAs, early adjustment of systems and processes is essential to ensure smooth compliance once the regulation takes effect.

Reference: Bureau of Internal Revenue (BIR). (2025, September 25). Revenue Regulations No. 24-2025.  RR No. 24-2025.pdf 

Disclaimer: This article is for general informational purposes only and should not be taken as professional tax, accounting, or legal advice. Readers are encouraged to consult the official text of RR No. 24-2025 and seek guidance from qualified tax professionals for compliance matters specific to their circumstances.

With the implementation of Revenue Memorandum Order (RMO) No. 36-2025, which went into force on August 18, 2025, the Bureau of Internal Revenue (BIR) has once again tightened its hold on compliance. Commissioner Romeo D. Lumagui, Jr. signed this new order, amending RMO No. 6-2023, and provides taxpayers with additional parameters, especially with regard to mandated audits and business closures.

RMO No. 36-2025 outlines specific scenarios that will now trigger mandatory audits, facilitated through an electronic Letter of Authority (eLA). This means the BIR can initiate an audit on your business if it falls under any of these categories:

• VAT with Erroneous Input Tax Carry-Over: If your VAT returns show an incorrect carry-over of input tax, you may be selected for a mandatory audit. These cases will be handled by the VAT Audit Section (VATAS) of the Assessment Division or the respective Revenue District Office (RDO).

• Significant Sales Understatement: The BIR can issue an eLA if preliminary findings from a Mission Order (MO) indicate that a taxpayer has understated sales by 30% or more, or if their accounting records are deemed unreliable.

• International Exchange of Information: Non-compliance issues identified through the Spontaneous Exchange of Information (SEOI) will also trigger a mandatory audit.

• Commissioner's Directives: Any policy cases or industry-specific issues that are under the direct order of the Commissioner may also be subject to an audit.

For businesses planning to shut down or undergo corporate changes like mergers and consolidations, the new order introduces a critical checkpoint: the Termination Letter (TL). This document must be issued before a Tax Clearance Certificate (TCL) is granted. The TL confirms that:

• The taxpayer has settled all outstanding liabilities.
• The appropriate BIR authority has approved the audit report.
• The taxpayer's registration can be officially closed.

This is to prevent premature closures and ensure that the business pays all dues before it exits the system.

Compliance is more than simply paperwork, as it reflects accountability, transparency, and good business practices. Therefore, companies should include compliance in day-to-day operations to maintain continuity and long-term growth in addition to protecting their reputation.

Source:  RMO No. 36-2025.pdf 

Disclaimer: The information provided is for general informational purposes only. All rights and authority remain with the Bureau of Internal Revenue.