Torre, Sobremonte & Associates Company

26/08/2026

BIR issued RMO No. 22-2026 consolidated audit framework.

The RMO divides audit cases into two principal categories: A. Mandatory Cases and B. Priority Cases.

Criteria for issuance of an eLA / audit:

A. For Mandatory Cases

Mandatory audit cases may be initiated when the taxpayer falls under any of these criteria:

1. Under declaration of sales/income or overstatement of expenses/deductions by at least 30%, constituting prima facie evidence of fraud

2. Intelligence information based on specific business knowledge, third-party data, or publicly available information

3. Mission Order findings showing a preliminary indication of understatement of sales by 30% or more
4. One-Time Transactions where review resulted in deficiency tax, or real-property transactions with findings in the eCAR system

5. Taxpayers enjoying tax exemptions or incentives.

6. Non-compliance arising from Spontaneous Exchange of Information

7. Tax clearance applications where prior-year gross sales exceed ₱3 million or gross assets upon retirement exceed ₱8 million, involving death, retirement, merger, consolidation, split-up, spin-off, or similar reorganization

8. Failure to respond within the prescribed period to BIR requests for confirmation of third-party information/data matching

9. Validated discrepancies or material inconsistencies identified through system analytics, compliance verification, or authorized pre-audit validation

10. Claims for income tax refund or tax credit certificate under the specified Tax Code provisions

Note that taxpayers enjoying tax incentives and exemptions are not automatically audited. They will undergo risk-based evaluation and validation and an eLA should be issued only when there are applicable audit criteria, verifiable data or indicators of non-compliance.

Certain refund/credit claims are instead covered by a Tax Verification Notice (TVN), including income tax refunds/credits, VAT refunds/credits, excise tax refunds/credits and erroneous or double-payment refund claims.

B. Priority audit criteria

Priority cases are those electronically selected through the BIR system using the prescribed following risk-based criteria:

1. Drastic decrease in reported sales/VAT payments

2. Significant increase in exempt or zero-rated sales/revenues

3. Taxpayer has a Discrepancy Notice

4. Excess input VAT carried forward differs between successive VAT returns

5. Total input VAT claimed exceeds 75% of output VAT

6. Income tax due is less than 2% of gross sales/revenues

7. Percentage-tax filer whose gross sales/receipts exceed the VAT threshold

8. Substantial sales but taxpayer reports a net loss

9. In operation for more than 5 years but has never been audited

10. Assets increased by more than 50% from prior year while reporting a net loss

11. Claims for losses/damages due to calamity or inventory obsolescence

12. Revenue substantially or exclusively derived from parent, subsidiaries, or affiliates

13. Write-off of input VAT claimed as an income-tax deduction

14. Shared expenses or intercompany charges among related entities

17/08/2026

eBIRForms Offline Package v7.9.6.1 is now available

10/08/2026

10/08/2026

06/08/2026

To ease the burden on businesses, President Ferdinand Marcos Jr. has proposed to congressional leaders a temporary suspension of the implementation of the Real Property Valuation and Assessment Reform Act ( ), or Republic Act No. 12001.

"Nagpanukala si Pangulong Ferdinand Marcos Jr. sa dalawang kapulungan sa LEDAC meeting nitong 6 August 2026 ng pansamantalang pagsuspinde ng pagpapatupad ng RPVARA upang maiwasan ang karagdagang gastos sa ari-arian para sa mga negosyo, suportahan ang mga pamumuhunan, at tiyakin ang isang dahan-dahan at makatwirang transisyon patungo sa bagong valuation system," Palace Press Officer and Presidential Communications Office Undersecretary Claire Castro said in a Viber message.

The RPVARA mandates the establishment of a single, market-based real property valuation system nationwide. The law aligns local and national property valuations with international standards, reorganizes the Bureau of Local Government Finance, and adopts uniform valuation standards for taxation and other government transactions. | Raffy Ayeng

30/07/2026

P85 MINIMUM WAGE HIKE SA NCR, HINDI MUNA MAIPATUTUPAD

Kinumpirma ng Department of Labor and Employment na pinagbigyan ng mababang korte ang petisyon na humihiling ng status quo ante order para sa pagpapatupad ng P85 na wage increase sa Metro Manila.

Sinabi ni Labor Acting Sec. Francis Tolentino na malungkot man, igagalang at susunod sila sa utos ng korte.

Una rito, naglabas ng kautusan ang executive judge ng Pasig RTC na si Achilles Bunauitan na nag-uutos na panatilihin muna ang dating wage rate bago pa man inilabas ng DOLE ang bagong minimum wage hike na P85 kada araw sa NCR noong July 25.

Inilabas ng Pasig executive judge ang desisyon sa petsang July 24, 2026, isang araw bago ang implementasyon ng wage order ng July 25, 2026. | via Tuesday Niu/DZBB

Bisitahin ang gmanetwork.com/news para sa iba pang balita.

24/07/2026

The first tranche of the minimum wage hike in the National Capital Region (NCR) is set to take effect on Saturday, July 25.

30/06/2026

22/06/2026

𝗣𝗥𝗘𝗦𝗦 𝗥𝗘𝗟𝗘𝗔𝗦𝗘
𝗕𝗜𝗥 𝗢𝗣𝗘𝗡𝗦 𝗢𝗡𝗘-𝗧𝗜𝗠𝗘 𝗧𝗔𝗫 𝗔𝗕𝗔𝗧𝗘𝗠𝗘𝗡𝗧 𝗣𝗥𝗢𝗚𝗥𝗔𝗠 𝗙𝗢𝗥 𝗠𝗜𝗖𝗥𝗢 𝗧𝗔𝗫𝗣𝗔𝗬𝗘𝗥𝗦, 𝗢𝗙𝗙𝗘𝗥𝗦 𝗙𝗥𝗘𝗦𝗛 𝗦𝗧𝗔𝗥𝗧 𝗙𝗢𝗥 𝗠𝗜𝗖𝗥𝗢 𝗕𝗨𝗦𝗜𝗡𝗘𝗦𝗦𝗘𝗦 𝗔𝗡𝗗 𝗦𝗧𝗢𝗣-𝗙𝗜𝗟𝗘𝗥𝗦

The Bureau of Internal Revenue (BIR) has opened a one-time tax abatement program for micro taxpayers, offering micro businesses and stop-filers an opportunity to resolve outstanding tax liabilities, clean up their records, and start with a clean slate.

Through Revenue Regulations No. 4-2026 issued on June 22, 2026, the BIR prescribes the guidelines and procedures for the availment of a one-time abatement of taxes and/or penalties for qualified micro taxpayers with delinquent accounts, assessments, and open stop-filer cases. Qualified applicants may avail of the program until December 31, 2026.

The program covers micro taxpayers whose gross sales for the year do not exceed Three Million Pesos (P3,000,000) and whose covered total basic tax liabilities and/or penalties do not exceed Eighty Thousand Pesos (P80,000) for a taxable year. Eligible cases include delinquent accounts and assessments, whether preliminary or final and whether disputed or not, as well as open stop-filer cases, including those involving taxpayers who have already ceased business operations. Covered liabilities must pertain to cases existing as of December 31, 2025.

Encouraging qualified taxpayers to take advantage of the opportunity, Commissioner Charlito Martin R. Mendoza said the measure supports President Ferdinand R. Marcos Jr.’s directive to ease compliance and make government services more accessible for the transacting public.

“This is an opportunity to start with a clean slate. If you are a micro taxpayer with old tax obligations, delinquent accounts, assessments, or stop-filer cases, I encourage you to avail of this program. It is meant to help you settle past obligations without a heavy financial burden, update your records, and move forward as a compliant taxpayer,” Commissioner Mendoza said.

Finance Secretary Frederick D. Go welcomed the initiative as part of the administration’s continuing Ease of Doing Business reforms.

“We aim to create a more taxpayer-friendly and business-friendly environment while helping micro businesses resolve lingering tax issues and maintain good compliance practices. By helping micro taxpayers resolve old liabilities and update their records, we are removing barriers to compliance and encouraging greater participation in the formal economy,” Secretary Go said.

The Revenue Regulations complement the earlier-issued Revenue Memorandum Circular No. 47-2026, which prescribed simplified and streamlined guidelines and procedures for the closure and cancellation of business registration with the BIR, under which tax clearances may be issued in as fast as three days for qualified cases.

“Many micro taxpayers have already stopped operating but continue to carry unresolved tax obligations or inactive registrations. We have already simplified the process of properly closing a business, and this one-time abatement program complements it by easing the financial burden of settling old tax liabilities for our micro taxpayers. Together, these reforms make it easier to close lingering cases, put their records in order, and move forward,” Mendoza said.

Under the regulations, qualified taxpayers must file an application for abatement with the Revenue District Office having jurisdiction over them and pay a one-time abatement fee of Five Thousand Pesos (P5,000) for each approved application. Upon compliance with the requirements, the concerned Revenue District Office shall issue a Certificate of Availment evidencing that the taxpayer availed of the program and that the covered case has been closed.

By helping taxpayers regularize their records, resolve dormant cases, and close lingering obligations, the Bureau aims to strengthen voluntary compliance and maintain cleaner, more accurate taxpayer records.

Read the full Revenue Regulation here: https://tinyurl.com/BIRRR4-2026

09/06/2026