M S OSTAN, CPA

☑️Revenue Memorandum Circular No. 036-2026 (BIR, Philippines)

❗Subject: Release of Offline eBIRForms Package Version 7.9.6.0

🗂️Key Points:

📚New Version Available:

The Bureau of Internal Revenue (BIR) released eBIRForms v7.9.6.0, downloadable from their website.

✒️New Form Included:

BIR Form 1701-MS (Aug 2024) for individuals classified as micro or small taxpayers.

Filing deadline for 2025 returns is extended to May 15, 2026.

📑New Alphanumeric Tax Codes (ATCs):

Added to BIR Form 1601-EQ for income payments made by top withholding agents to:
Motor vehicle manufacturers/importers
Pharmaceutical companies
Fuel manufacturers/importers
(All with ½% withholding tax rate)

📍TIN Update:

Branch code length increased from 3 digits to 5 digits in all tax returns.

📌Tax Rate Adjustment:

Foreign Currency Deposit tax rate increased from 15% to 20% (Form 1602Qv2018).

📝Bug Fixes:

Fixes applied to multiple forms (e.g., 0619E, 1601FQ, 1702Q, etc.).

📌 SEC Notice Summary (April 14, 2026)
The Securities and Exchange Commission (SEC Philippines) has extended the filing deadlines for the 2025 Annual Financial Statements (AFS) and related reports.

🔍 Reason for Extension
Due to the Bureau of Internal Revenue (BIR) extending the deadline for 2025 Annual Income Tax Returns (AITR) to May 15, 2026.

📅 New Filing Deadlines
1. Audited Financial Statements (AFS)
Original: May 29, 2026
Extended: June 15, 2026

2. SEC Form 52-AR (with AFS attachment)
Original: April 30, 2026
Extended: May 15, 2026

3. Annual Reports (SEC Form 17-A, with AFS attachment)
Original: April 15, 2026
Extended: May 15, 2026

🏢 Who Are Covered
All domestic and foreign corporations
Brokers and dealers
Public and listed companies (PSE)
Other entities under the Securities Regulation Code

⚠️ Important Reminder
Companies must ensure their AFS are also properly submitted to the BIR, following existing rules.

✅ Bottom Line
All key financial reporting deadlines for 2025 have been moved later (up to June 15, 2026) to align with the BIR’s extended tax filing deadline.

🗓 New Deadline: May 15, 2026
(From the original April 15, 2026)

✅ This extension allows taxpayers more time to:

File their income tax returns

Pay taxes due

Submit required attachments without penalties

💻 Filing and payment can be done:

Through BIR electronic platforms

Via authorized agent banks

📌 Issued due to current economic conditions and to give taxpayers relief.

For One Person Corporations (OPCs), SEC Memorandum Circular No. 10, Series of 2026 from the Securities and Exchange Commission Philippines has specific implications, especially on compliance and reporting.

Here’s a focused breakdown for OPCs:
🏢 What is an OPC?

A One Person Corporation (OPC) is a corporation with a single stockholder (can be a Filipino or foreign individual, trust, or estate).

📌 Key Impacts of MC No. 10 (2026) on OPCs

1. 📄 Simplified but Mandatory Reporting
Even though OPCs are simpler than regular corporations:
You must still submit:
General Information Sheet (GIS)
Audited Financial Statements (AFS) (if applicable)
Deadlines are strictly enforced

👉 No exemption just because it’s a one-person setup.

2. 👤 Beneficial Ownership = You
Since an OPC has only one owner:
The single stockholder is automatically the beneficial owner
You must:
Declare your identity clearly in SEC filings
Keep records updated

3. 💻 Full Shift to Online Filing
OPCs are expected to use SEC digital systems like:
eFAST (for reports)
eSPARC (for registration/amendments)
👉 Paper filing is becoming obsolete.

4. ⚠️ Stricter Penalties
Late or missed submissions = fines
Repeated non-compliance may lead to:
Revocation of OPC status
Or being marked delinquent

5. 🧾 Nominee & Alternate Nominee Compliance
Unique to OPCs:

You must maintain:
A Nominee
An Alternate Nominee

MC No. 10 reinforces:
Keeping their details updated and properly reported
Ensuring they can step in if the single stockholder becomes incapacitated

6. 📊 Record-Keeping & Transparency

Even as a solo owner, you must:
Maintain corporate records separately from personal records
Ensure transparency in transactions

👉 This protects your limited liability status.

🎯 Bottom Line for OPC Owners
Even if you’re running the business alone:
You are treated like a full corporation in compliance
The SEC expects:
Timely reporting
Accurate disclosures
Proper governance

🧠 Practical Tip
If you own an OPC:
Set calendar reminders for SEC deadlines
Use eFAST regularly
Keep your nominee info updated
Don’t mix personal and corporate funds

Here’s a clear, simplified summary of the document you shared (BIR Revenue Memorandum Circular No. 024-2026):

📄 What this BIR Circular is about
This circular clarifies how cross-border services (services between a Philippine entity and a foreign provider) are taxed in the Philippines.
It builds on earlier rulings and the Supreme Court case Aces Philippines, which affects how income source is determined.

🧠 Key Takeaways
1. ❗ Not all cross-border services are taxable
Just because a service is “cross-border” does NOT automatically mean it’s taxable in the Philippines.

👉 The key rule:
Income is taxed where the service is performed, BUT…

The Supreme Court expanded this to also consider:
Where the benefit is received
Where the service is completed

2. 📍 What determines if income is PH-taxable
A service is taxable in the Philippines ONLY IF ALL are present:

🇵🇭 The income-producing activity happens in the Philippines
💰 There is actual payment or economic benefit to the foreign provider
📊 The activity creates economic gain (not just passive or indirect)
❌ No tax treaty or exemption applies

3. 🔍 How BIR evaluates cross-border services
The BIR must:

Look at the entire transaction, not just one part
Identify the real income-producing activity
Determine where that activity actually occurred
👉 They cannot just assume taxability based on labels like “consulting” or “IT services.”

4. 📑 If claiming income is NOT taxable (very important)

The burden of proof is on the taxpayer.
You must provide documents like:
Sworn statement explaining the transaction
Contracts, invoices, emails
Tax residency certificate of foreign provider
Proof the foreign company is not registered in PH
Proof of where services were performed
Proof of payment/remittance

5. ⚖️ Is a BIR ruling required?

👉 NO — not mandatory
You don’t need a prior BIR ruling to apply tax treatment
But you may request one if you want certainty

6. 📌 Big implication

This circular is important because it:
Prevents automatic taxation of foreign ծառայ providers
Forces fact-based analysis instead of assumptions
Aligns BIR practice with Supreme Court doctrine

🧾 Simple Example
NOT taxable:

A US consultant works entirely abroad
Advice is delivered online
No part of service is performed in PH

👉 Likely not PH-sourced income
Taxable:

Foreign company performs part of service in PH
Or service is completed/used in PH in a way that creates economic benefit

👉 Likely PH-sourced income → subject to tax

✅ Bottom Line
Cross-border services are NOT automatically taxed — what matters is where the income is actually generated.

📄 BIR RMC No. 20-2026 (Summary)

Purpose:
It clarifies the implementation and proper use of BIR Form 1701-MS (Annual Income Tax Return for Individuals under the 8% income tax rate or graduated rates using optional standard deduction).

Key Points
Clarification on who should use Form 1701-MS
Individual taxpayers earning purely from business or profession.

Those choosing either:
8% income tax rate, or
Graduated income tax rates with Optional Standard Deduction (OSD).

Clarification on filing and reporting requirements
Explains how taxpayers should declare gross sales/receipts and deductions.

Provides guidance on attachments and schedules required when filing.

Annexes and additional guidance

Includes Annex explanations and examples to help taxpayers correctly fill out the form.

Addresses common questions raised after the release of the new form.

✅ In simple terms:
RMC 20-2026 was issued to explain and clarify how to properly use the new BIR Form 1701-MS for individual business/professional taxpayers.

✔️ Example taxpayers affected
Freelancers
Self-employed professionals (doctors, lawyers, consultants)
Sole proprietors using the 8% tax option

📢 Notice Summary

Subject: Temporary Use of 2020 GIS Form for urgent filing on eFAST

Corporations that do not yet have access to the SEC's online systems may temporarily file their General Information Sheet (GIS) using the 2020 version of the form.

🧾 Who This Applies To
Companies that are:
Still setting up or restoring their eSECURE account
Not yet able to access HARBoR system
HARBoR = system for reporting beneficial ownership information.

📂 What They Can Do
These companies may:
Submit the GIS through eFAST
Use the 2020 version of the GIS form
The form can be downloaded from the link shown in the notice.

⏳ Deadline of the Temporary Rule
This temporary arrangement is valid until April 15, 2026.
After that:
Companies must use the 2026 version of the GIS form
Beneficial ownership information must be filed through HARBoR.

🏢 If You Need Help
You may visit:
SEC Headquarters in Makati City
Or the nearest SEC Extension Office
The ICT Department and Enforcement and Investor Protection Department can assist.

📅 Issued: March 10, 2026

✅ ☺️

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📢 SEC Memorandum Circular No. 10, Series of 2026 – Key Guidelines for One Person Corporations (OPCs)

Here’s a quick summary of the new compliance guidelines issued by the Securities and Exchange Commission (SEC) for OPCs:

🔹 1. Appointment of Officers
OPCs must appoint Treasurer, Corporate Secretary, and other officers.
Submit the Form for Appointment of Officers (FAO) within 20 days from incorporation.
Late/non-submission: ₱10,000 one-time penalty.

🔹 2. Subsequent Officer Appointments
Any new appointment must be reported via FAO within 5 days.
Penalties apply per offense (₱5,000–₱9,000).

🔹 3. Financial Statement Submission
Audited Financial Statements (AFS) must be filed within 120 days after fiscal year-end.
Required attachments:
▪ Explanations on audit qualifications/adverse remarks
▪ Disclosure of self-dealing & related party transactions
Irregularities/misstatements are subject to fines under existing SEC rules.

🔹 4. Late or Non-Filing Penalties
Fines vary based on retained earnings and number of offenses.
Higher penalties apply for non-filing vs late filing.

🔹 5. Posting of Treasurer’s Bond
Required if the single shareholder is also the Treasurer.
Bond amount depends on Authorized Capital Stock.
Must be posted within 30 days from incorporation (or FAO filing).
Biennial renewal required.
Penalties apply for late posting.

🔹 Bond Release
Bond may be released upon appointment of a new Treasurer (not the single shareholder) and SEC approval.

✅ Takeaway:
OPCs must strictly comply with officer reporting, AFS filing, and bond posting requirements to avoid penalties.

✅Salaried Employee (Purely Compensation)

✅The latest official version of the Philippine Bureau of Internal Revenue's (BIR) Alphalist Data Entry and Validation Module is Version 7.4, released in February 2025 with updates for new tax codes and rates, requiring resubmissions for prior versions and updates to custom extract programs; you can download it from the official BIR website.

✅Key Details:

Version: Alphalist Data Entry and Validation Module Version 7.4.

Announcement: Revenue Memorandum Circular (RMC) No. 015-2025 issued February 25, 2025.

What's New: Includes new alphanumeric tax codes (ATCs) and updated withholding tax rates for various forms (1604C, 1604F, 1601EQ, 1601FQ).

Action Required: Taxpayers who submitted using Version 7.3 and received errors must resubmit using Version 7.4.