Subject: WEEKLY TAX UPDATES [DEC 26] Tax-free benefit limits for workers increased

WEEKLY TAX UPDATES

DECEMBER 26

  1. TAX & BUSINESS-RELATED NEWS [DECEMBER 20-26]

  2. BIR INCREASES “DE-MINIMIS” BENEFITS CEILING

  3. BIR IMPLEMENTS THE ENHANCED VERSION OF THE ELECTRONIC DST

  4. BIR STREAMLINES THE REQUIREMENTS FOR THE APPLICATION OF A CERTIFICATE OF TAX EXEMPTION FOR SOCIALIZED HOUSING PROJECTS

  5. BIR RULINGS ON EXCISE TAX, SITUS OF TAXATION, CGT ON TRANSFER OF SHARES

1. TAX & BUSINESS-RELATED NEWS [DECEMBER 20-26]

1. Marcos declares special non-working holidays in several towns, cities in January 2026

2. Tax-free benefit limits for workers increased

3. PH extends land lease terms for foreign investors to 99 years

4. PCP: Don’t blame doctors’ fees for high cost of health care

5. PH to host 2 int’l tourism forums in 2026 – DOT

6. BIR, BOC seen missing 2025 targets

7. House approves amendments to bank secrecy law on third reading

8. SEC revises rules on corporate ownership reporting

9. It’s official: Rockwell takes over Alabang Town Center in P21.6-B deal

10. NTC takes down 50 unregistered online trading platforms

11. Senator Imee Marcos seeks Senate probe into 9G visa fraud allegations

12. Swiss court to hear landmark climate case against cement giant

13. Consumers, biz group hail Aboitiz power firm’s entry in Davao del Norte

14. Senator Ejercito proposes tax relief for MSMEs to boost employment

15. PHINMA opens new Quezon City school

16. Filinvest closes idle Mimosa unit

17. Manila Bay to host P5 billion cruise ship terminal

18. Le Monet developer eyes P500M expansion in Camp John Hay

19. Graft, plunder raps filed vs Recto, Ledesma over P60-B PhilHealth fund transfer

20. Criminal tax probes to continue despite audit suspension – BIR

21. DOF rolls out IRR for new mining tax law

22. SC: Bank account info may be disclosed in cybercrime probes

23. P&G: No more Pampers, Tide, Whisper in Philippines

DISCLAIMER!

We saw these tax and business-related news on various news sites, and we thought you should see them. DMD is not responsible for the content of these news, and anything written thereon does not necessarily reflect DMD views or opinions.

Marcos declares special non-working holidays in several towns, cities in January 2026 [ABS-CBN News, December 26, 2025]

President Ferdinand Marcos Jr. has signed 8 proclamations to declare special non-working holidays in different parts of the Philippines.

 

Tax-free benefit limits for workers increased [The Manila Times, December 25, 2025]

THE Bureau of Internal Revenue (BIR) has issued new regulations increasing and clarifying caps on “de minimis” benefits that employers may grant to workers without being subject to income tax.

 

PH extends land lease terms for foreign investors to 99 years [GMA News Online, December 25, 2025]

According to the DTI, the implementing rules and regulations for Republic Act 12252 or the Investors’ Lease Act — which operationalizes the extension of lease periods for foreign investors to an aggregate of 99 years from 75 years previously — was signed by officials last Friday, December 19.

 

PCP: Don’t blame doctors’ fees for high cost of health care [Philippine Daily Inquirer, December 25, 2025]

A group of doctors has stressed that the high cost of healthcare in the country is mostly due to the limited coverage and delayed reimbursements of the Philippine Health Insurance Corp. (PhilHealth), and not because of professional fees.

 

PH to host 2 int’l tourism forums in 2026 – DOT [GMA News Online, December 25, 2025]

These are the 2026 United Nations (UN) Tourism Global Forum on Gastronomy as well as the ASEAN Tourism Forum in Cebu.

 

BIR, BOC seen missing 2025 targets [Philippine Daily Inquirer, December 23, 2025]

Government revenue collections from the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC) will most likely come in below official targets this year amid “extraordinary” circumstances, including the widening probe into anomalous flood control projects, Finance Secretary Frederick Go said.

 

House approves amendments to bank secrecy law on third reading [BusinessWorld, December 23, 2025]

During a plenary session, 270 lawmakers voted in favor of House Bill No. 6707, which aims to empower the Bangko Sentral ng Pilipinas (BSP) to investigate cases of corruption and illicit financing by amending the Philippines’ decades-old bank secrecy law.

 

SEC revises rules on corporate ownership reporting [GMA News Online, December 23, 2025]

In a statement, the SEC said it issued SEC Memorandum Circular (MC) No. 15, or the Beneficial Ownership Disclosure Rules of 2026, which consolidates existing regulations governing the submission of BO information.

 

It’s official: Rockwell takes over Alabang Town Center in P21.6-B deal [Philippine Daily Inquirer, December 23, 2025]

In a disclosure on Monday, the listed property developer said it executed share purchase agreements to acquire 74.8 percent of Alabang Commercial Corp. (ACC), the company that owns and operates the 17.5-hectare Alabang Town Center complex in Muntinlupa City.

 

NTC takes down 50 unregistered online trading platforms [GMA News Online, December 23, 2025]

The order was pursuant to the formal request of the BSP to disable applications, platforms, and websites of unregistered or unlicensed VASPs in accordance with the Section 902-N of the central bank's Manual of Regulation for Non-bank Financial Institutions, as amended by BSP Circular 1206 series of 2024, which sets guidelines for VASPs.

 

Senator Imee Marcos seeks Senate probe into 9G visa fraud allegations [The Manila Times, December 23, 2025]

Senate Resolution 193 directs the appropriate Senate committee to conduct an inquiry in aid of legislation into reports that pre-arranged employment visas were issued to foreigners supposedly hired by local companies that were either fictitious or used without consent.

 

Swiss court to hear landmark climate case against cement giant [The Manila Times, December 23, 2025]

Oil companies have typically been the main target, but activists are hoping the Swiss case will highlight the role of the cement industry, which is responsible for around eight percent of annual carbon dioxide (CO2) emissions caused by human activity.

 

Consumers, biz group hail Aboitiz power firm’s entry in Davao del Norte [Inquirer Mindanao, December 23, 2025]

The ERC issued the provisional authority on Dec. 12, allowing DLPC to operate in areas currently being served by the Northern Davao Electric Cooperative (Nordeco). These areas include at least seven localities—Tagum City, the Island Garden City of Samal (IGaCOS), and the towns of Asuncion, Kapalong, New Corella, San Isidro, and Talaingod.

 

Senator Ejercito proposes tax relief for MSMEs to boost employment [The Manila Times, December 22, 2025]

Senate Bill (SB) 1622, filed on Dec. 16, proposes a three-year income tax exemption for MSMEs, along with an additional 25 percent cut on labor expenses for every employee hired by qualified enterprises.

 

PHINMA opens new Quezon City school [The Philippine Star, December 22, 2025]

With the support from the Quezon City government, the PHINMA Saint Jude College in Quezon City (SJC-QC) has inaugurated its new Aurora building in Cubao, expanding its learning facilities to widen access to affordable education.

 

Filinvest closes idle Mimosa unit [Daily Tribune, December 22, 2025]

In a disclosure on Monday, FLI said it is closing Filinvest Lifemalls Mimosa Inc. (FLMI), a wholly owned unit that holds no assets, has no business operations, and employs no personnel.

 

Manila Bay to host P5 billion cruise ship terminal [The Philippine Star, December 22, 2025]

Santiago said the PPA has drawn up a P5-billion blueprint to deliver a permanent terminal where foreign cruises could dock. The agency is ready to begin construction next year, provided it gets the site where it can establish the landside facility.

 

Le Monet developer eyes P500M expansion in Camp John Hay [GMA News Online, December 22, 2025]

Stern Real Estate and Development Corp., the developer of Le Monet Hotel in Camp John Hay, is set to invest P500 million to expand its operations in Baguio City after inking a new lease agreement with the Bases Conversion and Development Authority (BCDA).

 

Graft, plunder raps filed vs Recto, Ledesma over P60-B PhilHealth fund transfer [ABS-CBN News, December 22, 2025]

Members of the Save the Philippines Coalition filed graft, plunder, technical malversation, and grave misconduct complaints against Executive Secretary Ralph Recto and former PhilHealth president and CEO Emmanuel Ledesma on Monday over the transfer of P60 billion from the state health insurer to the national treasury.

 

Criminal tax probes to continue despite audit suspension – BIR [The Philippine Star, December 21, 2025]

The Bureau of Internal Revenue (BIR) clarified that its suspension of memoranda orders and issuance of letters of authority does not cover investigations involving criminal tax fraud, which will continue if supported by intelligence or risk indicators.

 

DOF rolls out IRR for new mining tax law [The Philippine Star, December 21, 2025]

The Department of Finance (DOF) has issued the implementing rules and regulations (IRR) for Republic Act 12253, also known as the Enhanced Fiscal Regime for Large-Scale Metallic Mining Act, which outlines the updated tax, royalty and revenue-sharing provisions of the law.

 

SC: Bank account info may be disclosed in cybercrime probes [The Manila Times, December 20, 2025]

Under the Cybercrime Prevention Act, law enforcement agencies may, upon securing a court-issued warrant, require the disclosure of computer data that is necessary and relevant to the investigation of cybercrime offenses.

 

P&G: No more Pampers, Tide, Whisper in Philippines [The Philippine Star, December 20, 2025]

P&G Philippines said the discontinuation of three product categories – baby care, feminine care and laundry bars – will allow the consumer goods giant to “refine” its product portfolio in the country that is “consistent” with its “strategy of investing in innovation and brand superiority to drive sustainable growth.”

2. BIR INCREASES “DE-MINIMIS” BENEFITS CEILING

Revenue Regulations (RR) No. 29-2025, issued on December 22, 2025, further amends the "De Minimis" Benefits provisions of RR No. 2-98, as amended, increasing the ceiling of non-taxable benefits effective January 6, 2026, as follows:

 

1. Monetized unused vacation leave credits of private employees-not exceeding 10 days to 12 days during the year

2. Medical cash allowance to dependents of employees from ₱1,500 to ₱2,000 per semester

3. Rice subsidy from ₱2,000 to ₱2,500 per month

4. Uniform and clothing allowance from ₱7,000 to ₱8,000 per year

5. Actual medical assistance from ₱10,000 to ₱12,000 per year

6. Laundry allowance from ₱300 to ₱400 per month

7. Employee’s achievement awards from ₱10,000 to ₱12,000 per year

8. Gifts given during Christmas and major anniversary celebrations from ₱5,000 to ₱6,000 per year

9. Daily meal allowance for overtime work and night/graveyard shift-not exceeding 25% to 30% of the basic minimum wage

10. Benefits received by an employee by virtue of a Collective Bargaining Agreement and productivity incentive scheme from ₱10,000 to ₱12,000.00 per year

3. BIR IMPLEMENTS THE ENHANCED VERSION OF THE ELECTRONIC DST

Revenue Regulations (RR) No. 28-2025, issued on December 22, 2025, implements the enhanced version of the Electronic Documentary Stamp Tax (eDST) System. Highlights include covered taxpayers and taxable documents, limitations on the use of loose documentary stamps and constructive affixture by way of exception to the mandatory coverage of adaption of eDST system, and administrative requirements for the enrolment and use of eDST.

4. BIR STREAMLINES THE REQUIREMENTS FOR THE APPLICATION OF A CERTIFICATE OF TAX EXEMPTION FOR SOCIALIZED HOUSING PROJECTS

Revenue Memorandum Order (RMO) No. 048-2025, issued on December 19, 2025, streamlines the requirements for the application of a Certificate of Tax Exemption for Socialized and Economic Housing Projects pursuant to Republic Act (R.A.) No. 7279, or the “Urban Development and Housing Act of 1992” and Executive Order (E.O.) No. 226, or the “Omnibus Investments Code of 1987.” As streamlined, a Socialized Housing Certification issued by the Department of Human Settlements and Urban Development (DHSUD) is already sufficient for a developer to qualify for tax exemption, thereby removing additional layers of approval and simplifying compliance for housing developers. Applicants need only to submit the required Socialized Housing Certification, which shall be attached to the letter request in compliance with the earlier RMO No. 9-2014.

5. BIR RULINGS

SITUS OF TAXATION FOR TECHNICAL SERVICES IS NOT THE PLACE WHERE THE SERVICES ARE PERFORMED, BUT RATHER THE PLACE OF THE USER OR CONSUMER OF SUCH SERVICES

T PH, a PEZA-registered IT enterprise, is seeking confirmation on whether the service fees paid to T JP, a Japanese non-resident foreign corporation, are subject to Philippine Income Tax, withholding tax, and Value-Added Tax (VAT). As represented, T PH entered into a Service Agreement with T JP to subcontract a portion of work to be performed for the benefit of D Co., a domestic corporation. Subcontracted services for the benefit of D Co. will be performed in Japan. The obligation includes data preparation, systems evaluation, project management, and final systems checking. In reply, although T JP performed all services in Japan, the BIR ruled that the fees are taxable in the Philippines because technical services fall under Sections 42(A)(4)(f) and 108(A)(6) of the Tax Code, which consider the place of use or consumption of the service, not the place of performance, as the determining factor for tax situs. Since D Co., a domestic corporation, is the ultimate user and beneficiary of the services, the income is deemed sourced within the Philippines and is therefore subject to Philippine income tax, withholding tax, and 12% VAT. [BIR RULING NO. OT-061-2025, APRIL 15, 2025]


LAW-MANDATED TRANSFER OF SHARES TO THE REPUBLIC OF THE PHILIPPINES IS NOT SUBJECT TO CAPITAL GAINS TAX, DONOR’S TAX & DOCUMENTARY STAMP TAX

Presidential Commission on Good Government (PCGG) is seeking confirmation on the tax exemption of transfer of Coco Levy Assets, specifically the shares in Top Frontier Investment Holdings, Inc. (TFIHI) registered under PCGG in Trust for the Comprehensive Agrarian Reform Program (CARP), to the Republic of the Philippines (ROP). In reply, pursuant to Section 6 of Republic Act (RA) No. 11524, or the “Coconut Farmers and Industry Trust Fund Act,” the law mandates the reconveyance and turnover of all Coconut Levy Assets to the ROP. Although the transfer of shares would ordinarily fall under Section 27(D)(2) of the Tax Code on Capital Gains Tax (CGT), the BIR ruled that no CGT applies because the transfer is made in compliance with RA No. 11524. Furthermore, the donor’s tax does not apply since the transfer was not made out of liberality but solely to comply with a statutory directive and lacked donative intent. Lastly, the transfer is not subject to Documentary Stamp Tax under Section 175 of the Tax Code, as there is no sale, delivery, or voluntary conveyance but a mandated reconveyance under the law. [BIR RULING NO. OT-041-2025, MARCH 13, 2025]


ONLY THOSE SWEETENED BEVERAGES USING PURELY COCONUT SAP SUGAR & PURELY STEVIOL GLYCOSIDES SHALL BE EXEMPT FROM EXCISE TAX

F. Co. is requesting a ruling on the excise tax exemption of the importation of various products consisting of beverages. As represented, excise taxes were initially paid on the imported sweetened beverages to allow their immediate release from the Bureau of Customs (BOC), pending a final ruling on whether the products are exempt. The BOC advised securing a Food and Drug Administration (FDA) Certification to confirm exemption under the 2018 Tax Reform Acceleration and Inclusion (TRAIN) Law. However, the FDA later issued a certification stating that the products are not covered by the TRAIN Law. In reply, citing Section 47 of the TRAIN Law and Section 3 of Revenue Regulation (RR) No. 20-2018, only sweetened beverages using purely coconut sap sugar and purely steviol glycosides are exempt from excise tax, while beverages containing caloric and non-caloric sweeteners, or high fructose corn syrup remain taxable. The FDA certification did not confirm that the beverages have no added caloric or non-caloric sweetener and were free from high fructose corn syrup. Thus, the imported beverages listed in the FDA certification are subject to excise tax. [BIR RULING NO. OT-018-2025, JANUARY 7, 2025]


RULING INVOLVING MATTERS THAT ARE SUBJECT TO AN ONGOING AUDIT OR INVESTIGATION ARE CONSIDERED A “NO RULING AREA”

D. Co has requested a ruling for the cancellation of the Letter of Authority (LOA). In reply, pursuant to Section 2(r) of Revenue Bulletin No. 01-03, requests for ruling involving matters that are subject to an ongoing audit or investigation fall within the category of “No-Ruling Area.” Thus, the request for cancellation of the LOA cannot be acted upon through a ruling. [BIR RULING NO. OT-017-2025, JANUARY 7, 2025]


TO BE SUBJECT TO EXCISE TAX, A VESSEL MUST BE INTENDED FOR PLEASURE OR SPORTS

C. Co is requesting a ruling confirming that the purchase of pontoon boats is not subject to the excise tax of 20%. As represented, the imported boats and accessories, without engines, will be used exclusively as decorations in one of the company properties, and will not be used for transportation. For the boat to be released from the Bureau of Customs, C. Co was forced to pay the excise tax of 20% pursuant to Section 150(c) of the Tax Code, as amended. C Co. argues that engineless pontoon boats cannot be considered a vessel for pleasure or sports since the boats are only for display. In reply, considering that the items were neither “boats” nor “vessels for pleasure or sports” because they lacked engines and were meant only for display, the BIR ruled that the units still qualified as “vessels” under Republic Act (RA) No.  9295 since they are artificial contrivances capable of floating on water, regardless of actual use or the presence of an engine. To be excisable, the vessel must be intended for “pleasure,” and applying statutory definitions, items used for recreation or non-profitable purposes fall within the meaning of pleasure. Given that the pontoon boats were used as display pieces, for a non-profitable, recreational purpose, the BIR ruled that they were indeed “vessels intended for pleasure,” thus subject to the 20% excise tax under Section 150(c) of the Tax Code. [BIR RULING NO. OT-007-2025, JANUARY 6, 2025]


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