R2D Tax and Accounting Services

BREAKING NEWS!

Annual Income Tax Return Deadline which was supposedly tomorrow, April 15, 2026, has been moved to May 15, 2026 to give more time for taxpayers to properly file their returns.

Credits: Bongbong Marcos

Postura ko after magfile ng ITR bago pa mag April 15:

BIR Alert: Guidelines for 2025 Annual Income Tax Returns (AITR) Filing!

The BIR has released Revenue Memorandum Circular (RMC) No. 020-2026 to guide taxpayers on filing their AITR and paying taxes for the Calendar Year 2025. The deadline is April 15, 2026.

How to File:
-Mandated eFPS Users: File and pay electronically through the eFPS platform using your Authorized Agent Bank (AAB).
-Non-eFPS & "No Payment" Filers: Use the Offline eBIRForms Package v7.9.5. Always take a screenshot of the system-generated email confirmation as your proof of filing.
-Manual Filing: This is only allowed if there is an official BIR advisory about system downtime, a justifiable reason approved by the BIR, or if the form is not yet available electronically.

How to Pay:
-Settle your taxes electronically via eFPS, Landbank Link.Biz Portal, UnionBank Online, DBP PayTax Online, MyEG, or Maya.
-Manual over-the-counter payments at AABs are allowed if you filed via eBIRForms, your eFPS enrollment is still pending, or the electronic systems are completely down.

Support for Micro & Small Taxpayers:
-You can file your AITR using BIR Form Nos. 1701-MS, 1701, or 1701A, regardless of the form type indicated on your Certificate of Registration (COR).
-Since Form 1701-MS is not yet available online, you can download, print, and file it manually at any AAB.
-If you already e-filed using Form 1701 or 1701A, you do not need to file 1701-MS manually. Rest assured, there are no penalties for doing this or for filing in the wrong venue.

Attachments & eLounge Assistance:
-Having your AITR stamped "Received" is no longer required. Submit your attachments online via the eAFS facility within 15 days of the filing deadline.
-Need technical help? The BIR eLounge is open! Priority is given to Senior Citizens, PWDs, certain compensation earners, and those without internet access at home.

BIR Updates: Tax Perks for the Natural Gas Industry!

The Bureau of Internal Revenue (BIR) just released Revenue Regulations (RR) No. 002-2026. This issuance lays out the guidelines for availing fiscal incentives under the "Philippine Natural Gas Industry Development Act" (RA No. 12120).

What are the key tax benefits?
-VAT Exemption: The purchase and sale of indigenous natural gas, aggregated gas, and the power generated by facilities using them are now exempt from Value-Added Tax (VAT).
-Aggregated Gas Rule: For aggregated gas, the VAT exemption is only applied to the portion that comes from indigenous natural gas.
-More Tax Incentives: DOE-certified Philippine Downstream Natural Gas Industry (PDNGI) facilities can also avail of tax incentives under Title XIII of the Tax Code. To get this, your facility must be registered with the Board of Investments (BOI) and included in the Strategic Investment Priority Plan (SIPP).

How to avail of the VAT Exemption?
-For Participants (Suppliers, Resellers, etc.): Secure an endorsement and certification from the DOE's Oil Industry Management Bureau (OIMB) detailing the volume and percentage of indigenous natural gas you sold.
-For Generation Facilities: Secure an endorsement and certification from the DOE's Electric Power Industry Management Bureau (EPIMB) proving your use of indigenous natural gas and the power you produced from it.
-For Everyone: Always attach a Certified True Copy of your DOE Permit to your DOE endorsement. Also, do not forget to indicate "Section 38 of R.A. No. 12120" on Field Item Number 14A of your VAT form.

Reiterating SEC Memorandum Circular No. 9, Series of 2026.

Are you a small corporation (Micro Entity)? You might be EXEMPT from expensive CPA audits this year!
Thanks to SEC Memorandum Circular No. 9, Series of 2026 and the Ease of Paying Taxes (EOPT) Act, the rules for Financial Statements (FS) have changed. Here is everything you need to know in 1 minute:

WHO IS EXEMPT FROM AUDIT?
You no longer need an Independent CPA Audit if you meet BOTH of these:
1. SEC Rule: Total Assets OR Total Liabilities are ₱3,000,000 or less.
2. BIR Rule: Gross Annual Sales/Receipts are less than ₱3,000,000.

WHAT DO I SUBMIT INSTEAD?
If you qualify for the exemption, you don’t just "skip" filing. You submit Unaudited (Certified) Financial Statements with these extras:
-For the SEC: You must attach a Statement of Management’s Responsibility (SMR). This is a sworn statement signed by your Chairman, President, and Treasurer.
-For the BIR: You still use the eAFS system! Just upload your unaudited FS as your attachment to your Annual ITR.

Notes:
-Public Interest Entities: If you are a bank, insurance company, or listed company, you MUST still be audited regardless of your size.
-One Person Corporations (OPC): You are also covered by these new thresholds! Your SMR is signed by your President and Treasurer.
-The 15-Day Rule: Even without an audit, your eAFS upload is still due within 15 days from the tax filing deadline.

For more information, please read the whole memorandum from SEC.

📢 CLARIFICATION: Is Manual Filing Mandatory for Micro & Small Taxpayers? 📢

There has been some confusion regarding the new BIR Form No. 1701-MS under RMC No. 34-2025. If you are a business taxpayer classified as Micro or Small, here is the deal on how you should file your 2024 Annual Income Tax Return:

The "Manual" Option
Because BIR Form No. 1701-MS is a brand-new form, it is not yet available in the eFPS or eBIRForms electronic systems.
-You are ALLOWED to file manually: To use this specific form, you must download it from the BIR website, fill it out, and submit three (3) copies to any Authorized Agent Bank (AAB) or your Revenue District Office (RDO).
-Paper Requirement: The return must be printed on Legal/Folio size bond paper.

Can you still file electronically?
YES. Manual filing is not strictly mandatory if you prefer to go digital.
-The Catch: If you choose to file electronically, you cannot use the 1701-MS form yet.
-The Alternative: You must use the existing electronic forms: BIR Form No. 1701 or BIR Form No. 1701A via eBIRForms or eFPS.

What if I pay online?
If you opt to pay your taxes through BIR ePay Gateways (like GCash, Maya, or Landbank), you must still file your return and proof of payment with any RDO.

For more information, read RMC-34-2025.

📑 Ready to Submit Your 2316? Here’s What You Need to Know for 2025!
As we hit mid-February 2026, it is officially BIR Form 2316 season. Whether you are an HR professional or an employee, making sure this document is handled correctly for the 2025 tax year is crucial for staying compliant with the Bureau of Internal Revenue (BIR).

🗓️ Mark Your Calendars: The Deadlines
For the 2025 Calendar Year, here are the dates that matter right now:

-January 31, 2026 (Passed): Employers should have already issued the 2025 BIR Form 2316 to all employees.
-February 28, 2026 (Upcoming): This is the deadline for employers to submit the scanned copies of signed Form 2316s to the BIR via the eAFS system or specialized storage media.

🖋️ The "No Signature, No Filing" Rule
Under current BIR regulations (RMC No. 29-2024), the BIR is very strict about signatures.

Employees: You must sign your Form 2316. Unsigned forms cannot be included in the employer's consolidated submission.

Employers: Ensure all three copies are signed by both the authorized representative and the employee to avoid penalties during audits.

New BIR Update: Revenue Regulations No. 001-2026
The Bureau of Internal Revenue (BIR) has released RR No. 001-2026, which amends previous rules (RR No. 9-2025) to simplify VAT procedures for Registered Business Enterprises (RBEs).

Here is a quick summary of what changed:

1. Easier VAT Payments for Ecozone/Freeport Purchases 🚛
Per-Transaction Basis: VAT on local B2B sales from ecozones is generally paid per transaction using BIR Form 0605.
Bulk Shipments: If you receive a bulk shipment (like a single container truck) covered by multiple invoices, you can now opt to make one single VAT payment for the whole load.

2. Optional VAT Registration 🏢
RBEs under the 5% SCIT or Gross Income Earned (GIE) regime can now choose to register as VAT taxpayers specifically for their local sales.
Benefit: This does not affect existing incentives like VAT zero-rating on local purchases or import exemptions.
Condition: Once you opt-in, you cannot cancel this VAT registration for three (3) years.

3. Exclusions from the "Buyer Pays VAT" Rule 🚫
The BIR clarified that certain entities and sales are excluded from the rule where the buyer remits the VAT (Section 295(D)). These sellers will instead pay VAT like regular taxpayers:
Domestic Market Enterprises (DMEs) that don't qualify for zero-rating.
VAT-exempt or Zero-rated goods and services.
Unregistered Activities: Sales from business activities not registered with an IPA (including sales of scraps/machinery).

4. Deadline Extension for Systems 🗓️
The deadline for RBEs to reconfigure their invoicing systems (changing "VAT" to "VAT on Local Sales") has been extended to December 31, 2026.

Tax Refund Season is Here! 💸

Have you checked your latest payslip or received a notification from your HR department lately? It’s that time of year again—Tax Refund Season! For many employees in the Philippines, the early months of the year often come with a little extra "bonus" in the form of a tax refund. But why exactly are you getting this money back?

Why do I have a tax refund?
A tax refund occurs through the Year-End Adjustment process. Since your employer withholds taxes based on an estimate of your monthly income, discrepancies can happen. You might be due for a refund if:

-You were employed for only part of the year.
-Your salary fluctuated due to unpaid leaves or absences.
-The total tax withheld from January to December exceeded your actual tax due based on the graduated tax rates under the TRAIN Law.

Quick Reminders:
Check your BIR Form 2316: This form (Certificate of Compensation Payment/Tax Withheld) is your best friend. It summarizes your total earnings and the taxes withheld for the previous year.

Substituted Filing: If you only had one employer for the entire year, they will handle the filing for you. If you switched jobs, make sure you've consolidated your forms!

Timing: Most companies release these refunds alongside the February or March payroll.

Note for Freelancers/Business Owners: Remember, this applies specifically to compensation income earners (employees). If you are mixed-income or self-employed, your process involves filing your Annual ITR (Form 1701) by April 15!

Have you received your tax refunds yet? Let us know in the comments, or feel free to reach out if you have questions about how your taxes were computed! 📊✨

BIR UPDATE: Clarifying Tax Rules for Purely Cash Donations

The Bureau of Internal Revenue (BIR) has issued Revenue Memorandum Circular (RMC) No. 010-2026 to simplify the process for donations made purely in cash.

Here is what you need to know:

📑 No eCAR Required
Since cash is not a registrable property (unlike land or vehicles), an Electronic Certificate Authorizing Registration (eCAR) is NOT required for donations consisting exclusively of cash.

💻 Electronic Filing
How to File: Use electronic platforms such as eBIRForms or eFPS to file your Donor's Tax Return.

How to Pay: Payments can be made manually through Authorized Agent Banks (AABs) or via the BIR’s online ePayment channels.

📂 Documentation Checklist
Donors must submit the following to their respective Revenue District Office (RDO) within 30 days of the donation:

-Notarized Deed of Donation.
-Proof of cash transfer (e.g., deposit slips, fund transfer confirmation, or official receipts).
-Proof of filing (BIR Form No. 1800) and payment (if applicable).
-TIN and valid IDs of both the Donor and Donee.
-Certificate of Donation (if the recipient is tax-exempt).
-Stay compliant and keep your records in order! ⚖️📖