Subject: WEEKLY TAX UPDATES [MAY 26] New rules make closing business easier – BIR

WEEKLY TAX UPDATES

MAY 26

  1. TAX & BUSINESS-RELATED NEWS [MAY 19-26]

  2. BIR CLARIFIES WINNINGS FOR FINAL WITHHOLDING TAX (FWT) IMPOSITION TO INCLUDE WINNINGS FROM CASINO & GAMBLING

  3. BIR REMINDS E-MARKET PLACE OPERATORS & DIGITAL FINANCIAL SERVICE PROVIDERS ON THE SUBMISSION OF ALPHALIST

  4. BIR LAUNCHES TAXPAYER PORTAL & ITS PILOT IMPLEMENTATION TO LARGE TAXPAYERS’ SERVICE

  5. BIR PRESCRIBES THE POSTING OF BIR REGISTRATION SEAL BADGE ON ONLINE PLATFORMS & ANNOUNCES THE AVAILABILITY OF QR CODE IN BIR COR

  6. CTA CASE

1. TAX & BUSINESS-RELATED NEWS [MAY 19-26]

1. BIR launches online portal for large taxpayers

2. Metrobank waives maintaining balance on eSavings accounts

3. US official says immunity for Pax Silica Clark hub 'taken out of context'

4. From ghost sellers? Mandaue probes COA-flagged lot purchase

5. Alsons Power transitions diesel plant into solar facility

6. Impeachment raising PH risks – BMI analysts

7. Dy: 1.2M Filipinos to benefit from bill extending PRC license validity

8. Negros workers protest denial of proposed wage hik

9. DTI moves to regulate solar panel systems

10. Marubeni mulls bigger Philippines footprint in health, sustainability

11. De Lima pushes expanded income tax exemption

12. Labor group disputes workplace happiness report

13. PH to benefit from BlackRock, IFC-backed infra credit fund

14. Health care beyond borders: Mount Elizabeth raises stake in PH

15. Bill filed to increase senior citizens’ discount as they age

16. DTI: Advertising permit rules only draft, won’t be enforced

17. House panel OKs lowering gov’t workers’ optional retirement age to 56

18. Pre-need firm Danvil pays out P1.62B in claims amid closure

19. New rules make closing business easier – BIR

20. Honda PH to export motorcycles to Cambodia, Laos

21. SEC imposes 10-year term limit for broker-directors

22. Mica Tan to creditors: No one gets paid if I’m detained

23. 1% cap on power system loss charges proposed in Senate

24. SC says employers must first consult employees affected by work rotation scheme

25. Valenzuela factory workers win SC case vs employers

26. More than 20 tech firms line up for PH’s planned AI city

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.

BIR launches online portal for large taxpayers [GMA News Online, May 26, 2026]

Finance Secretary Frederick Go said the TP Portal would eliminate the need for taxpayers to navigate multiple systems, fragmented records, and repeated follow-ups to complete routine tax obligations.

 

Metrobank waives maintaining balance on eSavings accounts [The Philippine Star, May 26, 2026]

“Removing the maintaining balance requirement gives them more flexibility to manage their money, especially at a time when everyday expenses continue to rise. It allows them to keep their accounts active without pressure, use their funds when needed and still build the habit of saving at their own pace,” Metrobank consumer banking sector head Ramon del Rosario said.

 

US official says immunity for Pax Silica Clark hub 'taken out of context' [The Philippine Star, May 26, 2026]

Helberg's post came a week after Joshua Bingcang, president and chief executive of the Bases Conversion and Development Authority, told reporters during the US official's May 18 site visit, that the Philippines had denied a US request to place the zone under American law and grant diplomatic immunity to US personnel.

 

From ghost sellers? Mandaue probes COA-flagged lot purchase [Cebu Daily News, May 26, 2026]

City Legal Officer Erwin Rommel Heyrosa said the AOM, which the city received two weeks ago, indicated that several individuals listed as sellers in the deed of sale had already died at the time the documents were executed.

 

Alsons Power transitions diesel plant into solar facility [The Philippine Star, May 26, 2026]

Alsons Power, the Alcantara Group’s power business unit, is advancing its renewable energy initiatives with the transformation of its 55-megawatt diesel power plant, Southern Philippines Power Corp. (SPPC), in Alabel, Sarangani into a 98.7-MWac solar power facility.

 

Impeachment raising PH risks – BMI analysts [The Manila Times, May 25, 2026]

POLITICAL instability linked to the impeachment case against Vice President Sara Duterte could weigh on the Philippines’ outlook if tensions escalate into broader social unrest, Fitch Group unit analysts said.

 

Dy: 1.2M Filipinos to benefit from bill extending PRC license validity [Inquirer.Net, May 25, 2026]

Among the sectors expected to benefit most from the measure are holders of valid licenses in the following professions: 562,369 professional teachers; 156,023 nurses; 111,692 criminologists; 49,458 civil engineers; 37,393 medical technologists; 24,700 physicians; 24,066 psychometricians; 22,677 mechanical engineers; 21,110 registered electrical engineers; and 20,529 certified public accountants.

 

Negros workers protest denial of proposed wage hike [Inquirer Visayas, May 25, 2026]

Negros-based labor organization General Alliance of Workers Associations (GAWA) on Sunday, May 24, expressed dismay over the decision of the Regional Tripartite Wages and Productivity Board (RTWPB)-Western Visayas to dismiss a petition seeking a wage increase for all private-sector workers in Western Visayas and Negros Occidental.

 

DTI moves to regulate solar panel systems [Philippine Daily Inquirer, May 25, 2026]

Frank Macula, chief of the Electrical and Electronic Products Certification Division of the DTI-BPS, said the proposal was meant to address growing concerns over the quality and safety of solar products entering the Philippine market.

 

Marubeni mulls bigger Philippines footprint in health, sustainability [The Philippine Star, May 25, 2026]

Japanese trading giant Marubeni Corp. is eyeing to scale up its investments in the Philippines, with plans to tap carbon credits for reforestation projects and expand into pharmaceutical distribution.

 

De Lima pushes expanded income tax exemption [The Manila Times, May 24, 2026]

MAMAYANG Liberal Rep. Leila de Lima has filed House Bill 9172, aiming to increase the income tax exemption ceiling for individual taxpayers from P250,000 to P480,000 yearly income.

 

Labor group disputes workplace happiness report [GMA News Online, May 24, 2026]

A labor group on Sunday questioned the validity of a recently published workplace happiness report by an online job search company, saying widespread labor rights violations, job insecurity, and low wages cast doubt on claims that Filipino workers are generally happy.

 

PH to benefit from BlackRock, IFC-backed infra credit fund [Philippine Daily Inquirer, May 24, 2026]

BlackRock Inc., the world’s largest money manager, will boost investment in Southeast Asia, including the Philippines, through a multimillion-dollar credit fund backed by the International Finance Corp. (IFC), the private sector arm of the World Bank Group.

 

Health care beyond borders: Mount Elizabeth raises stake in PH [Philippine Daily Inquirer, May 24, 2026]

IHH Healthcare Singapore CEO Peter Chow tells the Inquirer during an interview in Singapore that the group has seen a notable increase in Filipino patients coming into MEHs in Singapore for specialized treatments, primarily for gastroenterology, general surgery, and medical oncology.

 

Bill filed to increase senior citizens’ discount as they age [ABS-CBN News, May 23, 2026]

Senior Citizens Party-list Rep. Rodolfo Ordanes introduced House Bill No. 5187, or the proposed Expanded Senior Citizens Act of 2010, proposing a graduated increase in senior citizen discounts as beneficiaries grow older.

 

DTI: Advertising permit rules only draft, won’t be enforced [Inquirer.Net, May 23, 2026]

Under the draft administrative order, advertisers would have been required to submit detailed documents to the DTI describing planned advertising materials, including music, scripts, and storyboards.

 

House panel OKs lowering gov’t workers’ optional retirement age to 56 [Philippine News Agency, May 22, 2026]

The House Committee on Government Enterprises approved on Thursday House Bill No. 207, a measure co-authored by Rep. Tinio and Kabataan Party-list Rep. Renee Louise Co, proposing an amendment to Section 13-A of Republic Act No. 8291 or the GSIS (Government Service Insurance System) Act of 1997, which mandates the optional retirement age among government workers at 60 years old.

 

Pre-need firm Danvil pays out P1.62B in claims amid closure [Philippine Daily Inquirer, May 22, 2026]

Pre-need firm Danvil Plans Inc. has paid out more than P1.62 billion in claims to over 17,000 planholders following the formal closure of its liquidation proceedings last March.

 

New rules make closing business easier – BIR [Philippine Daily Inquirer, May 21, 2026]

Under Revenue Memorandum Circular No. 047-2026, the BIR said the new guidelines form part of its “Ease of Closing Business” reform aimed at making tax administration more investor and business-friendly.

 

Honda PH to export motorcycles to Cambodia, Laos [ABS-CBN News, May 21, 2026]

The motorcycle manufacturer said it has commenced exporting its popular Click125 model to N.C.X. Co., Ltd., the exclusive assembler, manufacturer, and distributor of Honda motorcycles in both destination countries. 


SEC imposes 10-year term limit for broker-directors [GMA News Online, May 21, 2026]

The corporate regulator said under its Memorandum Circular No. 17, Series of 2026, issued on May 21, a broker-director —individuals representing trading participants on an exchange board— may serve for a maximum cumulative period of 10 years, whether consecutive or intermittent, in the same exchange.

 

Mica Tan to creditors: No one gets paid if I’m detained [The Philippine Star, May 20, 2026]

The Department of Justice (DOJ) has indicted Maria Francesca Tan (MFT) Group of Companies Inc., Foundry Ventures I Inc. and their respective officers for their unauthorized solicitation of investments from the public, as resolved in May last year, following a case buildup by the Securities and Exchange Commission (SEC).

 

1% cap on power system loss charges proposed in Senate [Philippine News Agency, May 20, 2026]

Sen. Rodante Marcoleta, who filed Senate Bill No. 2131, or the proposed “System Loss Limitation Act,” said on Wednesday the measure seeks to amend Section 10 of Republic Act 7832, otherwise known as the Anti-Electricity and Electric Transmission Lines/Materials Pilferage Act of 1994.

 

SC says employers must first consult employees affected by work rotation scheme [ABS-CBN News, May 19, 2026]

The Supreme Court ruled that unilateral imposition of reduced workdays and worker rotation scheme amounted to constructive dismissal, as workers should have been consulted first and asked for their consent.

 

Valenzuela factory workers win SC case vs employers [Inquirer.Net, May 19, 2026]

An employer that reduces the workload and adopts a flexible work scheme without employee consent is tantamount to dismissing them.


More than 20 tech firms line up for PH’s planned AI city [Cebu Daily News, May 19, 2026]

More than 20 firms from the United States and the Middle East have signified interest in setting up operations within the proposed artificial intelligence (AI) hub in New Clark City, as Philippine and American officials work out the industries that will eventually occupy the 1,619-hectare development.

2. BIR CLARIFIES WINNINGS FOR FWT IMPOSITION TO INCLUDE WINNINGS FROM CASINO & GAMBLING

Revenue Memorandum Circular (RMC) No. 57-2026, issued on May 26, 2026, clarifies that jackpot prizes from casino and other gambling activities fall within the statutory definition of “winnings” under Sections 24(B)(1), 25(A)(1), and 25(B) of the Tax Code, thus, subject to Final Withholding Tax (FWT). The Circular emphasizes that the tax base is the gross amount of the prize, without deductions for service charges or fees. The applicable rates are 20% for resident citizens and aliens, and 25% for non-resident aliens not engaged in trade or business. Coverage extends to winnings from both licensed and unlicensed operators, consistent with the principle that income from any source is taxable.

3. BIR REMINDS E-MARKET PLACE OPERATORS & DIGITAL FINANCIAL SERVICE PROVIDERS ON THE SUBMISSION OF ALPHALIST

Revenue Memorandum Circular (RMC) No. 055-2026, issued on May 26, 2026, reminds the obligation of electronic marketplace operators and digital financial services providers to submit the prescribed Alphabetical List of employees and payees.

 

The type of alphalist to be submitted depends on the specific withholding tax return and its corresponding deadline, as follows:

4. BIR LAUNCHES TAXPAYER PORTAL & ITS PILOT IMPLEMENTATION TO LARGE TAXPAYERS’ SERVICE

Revenue Memorandum Circular (RMC) No. 053-2026, issued on May 26, 2026, announces the availability of the Taxpayer Portal and its pilot implementation for taxpayers registered under BIR’s Large Taxpayers Service (LTS). The Taxpayer Portal streamlines tax compliance and minimizes the need for manual follow-ups and visits to BIR offices.

 

As part of the pilot rollout, large taxpayers may enroll in the Taxpayer Portal to access registration information, monitor filed tax returns and payments, view account ledgers, and receive system notifications and tax reminders. This pilot aims to ensure the system’s readiness and support its gradual expansion to other taxpayer groups.

5. BIR PRESCRIBES THE POSTING OF BIR REGISTRATION SEAL BADGE ON ONLINE PLATFORMS & ANNOUNCES THE AVAILABILITY OF QR CODE IN BIR COR

Revenue Memorandum Circular (RMC) No. 38-2026, issued on April 29, 2026, prescribes the issuance and posting of the BIR Registration Seal Badge on online websites, e-commerce platforms, seller/merchant pages, and other digital platforms, in lieu of posting the Certificate of Registration (COR/eCOR). This measure addresses taxpayers’ concerns over the online disclosure of sensitive information contained in their COR/Electronic Certificate of Registration (eCOR).

 

Highlights include policies and guidelines, how to post the registration seal badge, and taxpayers guide.

6. CTA CASE

WHEN THE BIR'S RIGHT TO ASSESS & COLLECT DEFICIENCY TAXES HAVE PRESCRIBED, THE CASE SHOULD BE DISMISSED

Petitioner Hizon Laboratories, Inc filed a Petition for Review assailing the assessment issued by the Respondent Commissioner of Internal Revenue (CIR), which found the Petitioner liable for deficiency Income Tax, Withholding Tax on Compensation (WTC), Expanded Withholding Tax (EWT), and Compromise Penalties for taxable year (TY) 2012. The Petitioner argues that it is not liable for the alleged deficiency taxes due to violations of due process rights, including the conduct of the audit beyond the 120-day period without LOA revalidation, the failure of the Formal Letter of Demand and Final Assessment Notice (FLD/FAN) to address its reply to Preliminary Assessment Notice (PAN) and provide a detailed assessment breakdown, and the prescription of the Respondent’s right to assess and collect the taxes. On the other hand, the Respondent contends that the non-revalidation of the LOA does not invalidate the assessments, that the Petitioner was properly informed of the bases of the assessments through the PAN, FLD/FAN, and FDDA, that the Petitioner failed to submit supporting documents within the prescribed period, and that EWT assessments are imprescriptible because they involve failure to withhold and remit taxes. In ruling, the Court found that the Respondent’s right to assess deficiency WTC and EWT for January to August 2012, as well as its right to collect all deficiency taxes, had prescribed under the ordinary three-year prescriptive period. The Court rejected the application of the extraordinary prescriptive period for false or fraudulent returns because the Respondent failed to inform the Petitioner of such invocation, failed to establish prima facie evidence of fraud, and acted inconsistently by imposing only a 25% surcharge instead of the 50% surcharge applicable to fraudulent returns. The Court likewise ruled that the Petitioner’s reply to FAN was merely a request for reconsideration, not reinvestigation, and even assuming otherwise, there was no proof that the request was granted to suspend the running of the prescriptive periods. Since the Respondent’s right to assess and collect has already prescribed, the assessments are CANCELLED and SET ASIDE. [HIZON LABORATORIES, INC. VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 10318, MAY 14, 2026]


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