Jasmine Kaye J. Teves, CPA INCOME TAXATION Capital Gains Tax is a tax imposed on the gains presumed to have been realized by the seller from the sale, exchange, or other disposition of capital assets located in the Philippines, including pacto de retro sales and other forms of conditional sale. The essence of a pacto de retro sale is that title and ownership of the property sold is immediately vested in the vendee a retro, subject to the restrictive condition of repurchase by the vendor a retro within the period provided in Article 1606 of the New Civil Code. Documentary Stamp Tax is a tax on documents, instruments, loan agreements and papers evidencing the acceptance, assignment, sale or transfer of an obligation, rights, or property incident thereto. Donor's Tax is a tax on a donation or gift, and is imposed on the gratuitous transfer of property between two or more persons who are living at the time of the transfer. Estate Tax is a tax on the right of the deceased person to transmit his/her estate to his/her lawful heirs and beneficiaries at the time of death and on certain transfers which are made by law as equivalent to testamentary disposition. Income Tax is a tax on all yearly profits arising from property, profession, trades or offices or as a tax on a person’s income, emoluments, profits and the like. Percentage Tax is a business tax imposed on persons or entities who sell or lease goods, properties or services in the course of trade or business whose gross annual sales or receipts do not exceed P550,000 and are not VAT-registered. Value-Added Tax is a business tax imposed and collected from the seller in the course of trade or business on every sale of properties (real or personal) lease of goods or properties (real or personal) or vendors of services. It is an indirect tax, thus, it can be passed on to the buyer. Withholding Tax on Compensation is the tax withheld from individuals receiving purely compensation income. Expanded Withholding Tax is a kind of withholding tax which is prescribed only for certain payors and is creditable against the income tax due of the payee for the taxable quarter year. Final Withholding Tax is a kind of withholding tax which is prescribed only for certain payors and is not creditable against the income tax due of the payee for the taxable year. Income Tax withheld constitutes the full and final payment of the Income Tax due from the payee on the said income. Withholding Tax on Government Money Payments is the withholding tax withheld by government offices and instrumentalities, including government-owned or -controlled Jasmine Kaye J. Teves, CPA INCOME TAXATION corporations and local government units, before making any payments to private individuals, corporations, partnerships and/or associations. Excise Tax is a tax on the production, sale or consumption of a commodity in a country. It applies to goods manufactured or produced in the Philippines for domestic sale or consumption or for any other disposition; and to imported goods. Revenue Regulations (RRs) are issuances signed by the Secretary of Finance, upon recommendation of the Commissioner of Internal Revenue, that specify, prescribe or define rules and regulations for the effective enforcement of the provisions of the National Internal Revenue Code (NIRC) and related statutes. Revenue Memorandum Orders (RMOs) are issuances that provide directives or instructions; prescribe guidelines; and outline processes, operations, activities, workflows, methods and procedures necessary in the implementation of stated policies, goals, objectives, plans and programs of the Bureau in all areas of operations, except auditing. Revenue Memorandum Circulars (RMCs) are issuances that publish pertinent and applicable portions, as well as amplifications, of laws, rules, regulations and precedents issued by the BIR and other agencies/offices. Revenue Administrative Orders (RAOs) are issuances that cover subject matters dealing strictly with the permanent administrative set-up of the Bureau, more specifically, the organizational structure, statements of functions and/or responsibilities of BIR offices, definitions and delegations of authority, staffing and personnel requirements and standards of performance. Revenue Delegation of Authority Orders (RDAOs) refer to functions delegated by the Commissioner to revenue officials in accordance with law. Jasmine Kaye J. Teves, CPA INCOME TAXATION No. of Issuance Subject Matter Date of Issue RR No. 1-2021 Implements the tax incentives and fee privileges for the procurement, importation, donation, storage, transport, deployment and administration of the COVID-19 vaccines under RA No. 11525 (COVID-19 Vaccination Program Act of 2021) April 8, 2021 RR No. 2-2021 April 8, 2021 Amends certain provisions of RR No. 2-98, as amended, to implement the amendments introduced by RA No. 11534 (Corporate Recovery and Tax Incentives for Enterprises Act or CREATE Act) to the NIRC of 1997, as amended, relative to the Final Tax on certain passive income RR No. 3-2021 RR No. 4-2021 Prescribes the Rules and Regulations to implement Section 3 of RA No. 11534 (Corporate Recovery and Tax Incentives for Enterprises Act or CREATE Act), amending Section 20 of the NIRC of 1997, as amended Implements the provisions on Value-Added Tax (VAT) and Percentage Tax under RA No. 11534 (Corporate Recovery and Tax Incentives for Enterprises Act or CREATE Act), which further amended the NIRC of 1997, as amended, as implemented by RR No. 16-2005, as amended RR No. 5-2021 April 8, 2021 April 8, 2021 April 8, 2021 Implements the new Income Tax rates on the regular income of corporations, on certain passive incomes, including additional allowable deductions from Gross Income of persons engaged in business or practice of profession pursuant to RA No. 11534 (Corporate Recovery and Tax Incentives for Enterprises Act or CREATE Act), which further amended the NIRC of 1997 RR No. 6-2021 Prescribes additional guidelines for implementing the tax provisions of the PERA Act of 2008 effectively amending pertinent provisions of RR No. 17-2011 April 14, 2021 Jasmine Kaye J. Teves, CPA RR No. 7-2021 RR No. 8-2021 RR No. 9-2021 RR No. 10-2021 RR No. 11-2021 INCOME TAXATION Prescribes the rules and regulations to implement the provisions of RA Nos. 11346 and 11467 relative to Excise Tax on alcohol products, tobacco products, heated tobacco products, vapor products and disposition of Excise Tax collection Amends certain provisions of RR No. 4-2021, which implemented the VAT and Percentage Tax provisions under RA No. 11534 (CREATE Act) Amends certain provisions of RR No. 16-2005, as amended by RR No. 13-2018 and as further amended by RR No. 26-2018, to implement the imposition of 12% VAT on transactions covered under Section 106 (A)(2)(a) subparagraphs (3), (4), and (5), and Section 108(B) subparagraphs (1) and (5) of the NIRC of 1997, as amended by RA No. 10963 (TRAIN Law) Amends pertinent provisions of Section 10 under RR No. 20-2018 relative to the outright exemption granted to the exportation of Sweetened Beverages products Implements the tax exemptions and privileges granted under RA No. 11523 (Financial Institutions Strategic Transfer [FIST] Act) RR No. 12-2021 May 18, 2021 June 11, 2021 June 11, 2021 June 17, 2021 June 23, 2021 June 23, 2021 Prescribes the policies and guidelines on the utilization of the Tax Payment Certificate issued by the DTI-BOI evidencing the availment of the fiscal support for the eligible and registered participants of the Comprehensive Automotive Resurgence Strategy (CARS) Program under EO No. 182, Series of 2015 RR No. 13-2021 RR No. 14-2021 Implements the penalty provisions under Sections 76, 77, 78, 79 and 80 of RA No. 10963 (TRAIN Law), amending Sections 254 and 264 of, and adding Sections 264-A, 264-B and 265-A to, the NIRC of 1997, as amended Suspends the implementation of certain provisions of RR No. 5-2021 relative to taxation of proprietary educational institutions RR No. 15-2021 June 23, 2021 July 28, 2021 July 28, 2021 Defers the implementation of RR No. 9-2021 relative to the imposition of 12% VAT on transactions covered by Section 106(A)(2)(a), Jasmine Kaye J. Teves, CPA INCOME TAXATION Subparagraphs (3),(4) and (5), and Section 108(B), Subparagraphs (1) and (5), both of the National Internal Revenue Code of 1997, as amended RR No. 16-2021 August 3, 2021 Further amends pertinent provisions of RR No. 2-2006 and No. RR 112013, as amended by RR No. 22015, more particularly on the manner of submission of copies of BIR Form Nos. 2307 and 2316 RR No. 17-2021 RR No. 18-2021 Amends certain provisions of RR No. 6-2019 to implement the extension of the Estate Tax Amnesty pursuant to RA No. 11569, which amended RA No. 11213 (Tax Amnesty Act) Prescribes the Consolidated Revenue Regulations on the affixture of Internal Revenue Stamps on imported and locally manufactured cigarettes, heated tobacco products and vapor products for domestic sale or for export and the use of the Enhanced Internal Revenue Stamp Integrated System (Enhanced IRSIS) for the ordering, distribution, monitoring, report generation and incorporating the strict supervision of production, release, affixture, inventory and sale of cigarettes August 3, 2021 September 10, 2021
