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🧾 Tax Implications in the Philippines of the Ongoing Israel-Iran Conflict

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📌 Overview The military conflict between Israel and Iran has caused heightened geopolitical tension, with significant consequences for global trade, oil prices, and investor confidence. While there are no direct changes to Philippine tax laws as a result of this conflict, its economic ripple effects are expected to influence the Philippine tax environment. Key areas of concern include value-added tax (VAT), customs duties, tax incentives, transfer pricing, and overall revenue performance, as governed by the National Internal Revenue Code (NIRC), the CREATE Law, and the Customs Modernization and Tariff Act (CMTA). 🔍 1. Fuel Price Hikes and VAT Implications The Strait of Hormuz, a critical chokepoint in the global oil supply chain, has seen increased volatility due to the ongoing conflict. As a result, global petroleum prices have surged. In the Philippines, this directly impacts VAT collections, as petroleum products are subject to both excise tax under Title VI of the NIRC and 1...
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🧾 VAT Update 2025: Key Changes You Should Know in the Philippines

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📌 Overview Value-Added Tax (VAT) remains a cornerstone of tax administration in the Philippines. In 2025, the Bureau of Internal Revenue (BIR), through various Revenue Regulations (RRs) and Revenue Memorandum Circulars (RMCs), released clarifications and enhancements affecting VAT compliance—particularly for export enterprises, large taxpayers, and digital service providers. 🔍 Latest VAT Updates as of 2025 ✅ Mandatory VAT Zero-Rating Certificate Registered Export Enterprises (REEs) are now strictly required to secure a VAT Zero-Rating Certificate from the BIR before transacting with local suppliers to avail of VAT zero-rating. If no certificate is presented, the local supplier must impose 12% VAT, regardless of the REE's registration status, pursuant to RMC No. 36-2022 and RMC No. 49-2023 implementing Section 295(C) of the CREATE Law. ✅ Updated List of Qualified Zero-Rated Transactions Only goods and services directly and exclusively used in registered export activities m...
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🧾 CREATE Law 2025 Update: Key Tax Reform Changes in the Philippines

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📌 Overview The Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law —Republic Act No. 11534—remains a vital part of the Philippine tax reform agenda. As of 2025, new guidelines from the BIR , DOF , and FIRB have introduced notable changes impacting tax incentives, VAT treatments, and compliance requirements for businesses nationwide. 🔍 Key Updates as of 2025 ✅ 📅 Extended Deadlines for Incentive Applications The FIRB and Investment Promotion Agencies (IPAs) have extended submission deadlines for tax incentive registration. Businesses transitioning from the old incentive system now have more time to comply. ✅ 📄 Revised VAT Zero-Rating Rules Registered Export Enterprises ( REEs ) must now obtain a VAT Zero-Rating Certificate before transacting with local suppliers. Prior approval and complete documentation are required to claim zero-rated purchases. ✅ 💼 Corporate Income Tax Rates 💸 25% – Regular CIT for domestic and resident foreign corporations 💰 2...
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🏛️ Philippine Estate Tax Updates: Estate Tax Amnesty & Key Reforms

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Estate tax has long been a burden for many heirs in the Philippines. But recent policy changes—including extensions and clarifications—have made navigating estate tax easier and more affordable. 🔄 1. What is the Estate Tax Amnesty? The Estate Tax Amnesty was introduced under RA 11213 (2019) , offering a one-time 6% flat tax (minimum ₱5,000) on net estates of decedents who died on or before May 31, 2022 , with unpaid or accrued estate tax as of that date pna.gov.ph +4 bir-cdn.bir.gov.ph +4 respicio.ph +4 respicio.ph +5 lexology.com +5 bir-cdn.bir.gov.ph +5 . Originally set to expire in June 2021, the deadline was extended first to June 14, 2023 via RA 11569, and again to June 14, 2025 by RA 11956 (passed August 5, 2023) lawyer-philippines.com +1 respicio.ph +1 . 📌 2. Who Qualifies for the Amnesty? ✔️ Estates of decedents who died on or before May 31, 2022 , regardless of pending assessments ✔️ Estates that haven’t settled esta...
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📈 TRAIN Law Explained: What Every Filipino Should Know

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When you hear “TRAIN Law,” it stands for the Tax Reform for Acceleration and Inclusion , officially Republic Act No. 10963 . Enacted on December 19, 2017 , and effective January 1, 2018 , it marks the first of several Comprehensive Tax Reform Program (CTRP) packages ( en.wikipedia.org ). 1. ⚖️ What TRAIN Changed: Key Features ✅ Lower Personal Income Tax (PIT) 0% tax on annual income up to ₱250,000 Progressive rates from 15% to 35% on higher income brackets Minimum wage earners remain exempt Married couples can benefit from additional exemptions ( en.wikipedia.org ) 📉 Simplified Estate & Donor’s Tax Rate fixed at 6% ₱5 million standard deduction and ₱10 million exemption for the family home ( en.wikipedia.org ) 🏷️ Expanded VAT & Percentage Tax Options VAT base expanded—many exemptions removed Small businesses (below ₱3M gross sales) may opt for: 8% flat tax, or Income tax with 3% percentage tax ( en.wikipedia.org ) 🛢️ Higher Excise ...
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📊 Latest Philippine Income Tax Guide (2025 Updates)

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  1. 🧾 Individual Income Tax Rates & TRAIN/Revised Table Under the TRAIN law (RA 10963) , current rates for individuals (FY 2023–onward) are: 0 % on ₱0–250,000 15 % on ₱250,001–400,000 20 % + ₱22,500 for ₱400,001–800,000 25 % + ₱102,500 on ₱800,001–2,000,000 30 % + ₱402,500 on ₱2,000,001–8,000,000 35 % + ₱2,202,500 over ₱8 million annually taxathand.com +2 en.wikipedia.org +2 en.wikipedia.org +2 en.wikipedia.org 💡 Example: A P600,000 income results in P22,500 + 20% × (600,000−400,000) = P62,500 tax. 2. 🏢 Corporate Income Tax & CREATE MORE (RA 12066) RR No. 7‑2025 (effective November 28, 2024) implements RA 12066: 20 % CIT for: Domestic corps with ≤ P5 M net income & ≤ P100 M assets Registered Business Enterprises (RBEs) under Enhanced Deductions Regime (EDR) Resident foreign corporations enrolled under EDR 25 % for all others alasoplascpas.com +3 reyestacandong.com +3 www2.deloitte.com +3 Additionally: RBEs enjoy e...
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🧾 The Ease of Paying Taxes (EOPT) Act: A Simpler Way to Handle Taxes in the Philippines

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Tired of the stress that comes with tax deadlines? Good news! The Ease of Paying Taxes (EOPT) Act is here to make your tax life easier. 💬 What is the EOPT Act? The Ease of Paying Taxes Act , or Republic Act No. 11976, is a 2024 law that aims to simplify, digitalize, and modernize how we pay taxes in the Philippines. It’s part of the government’s broader tax reform efforts, focusing on convenience and fairness , especially for micro, small, and medium businesses. 🔑 Key Features of the EOPT Act 1. 🏷️ Taxpayer Classification You are now grouped as either: Micro Small Medium Large This means you’ll only be required to submit documents relevant to the size of your operations. No more one-size-fits-all tax compliance! 2. 🌐 Digital Filing and Payments You can now file taxes online , pay through bank apps or digital wallets , and receive e-receipts . This feature: Cuts long queues at the BIR Makes taxes possible even while working from home 3. 📑 U...
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