Philippines Tax Agency Issues Circular on Implementing Rules and Regulations Regarding Various Tax Measures

The Philippine Bureau of Internal Revenue April 25 issued Revenue Memorandum Circular No. 42/2025, on the Implementing Rules and Regulations (IRR) regarding various tax measures. The IRR includes measures to: 1) explain the income tax holiday (ITH) incentive, which provides an exemption from regular income tax to registered business enterprises (RBEs) for qualifying projects and activities; 2) explain the 5 percent special corporate income tax (SCIT) rate for registered export enterprises (REEs) based on gross income; 3) specify that REEs under the enhanced deductions regime (EDR) aren’t eligible for the SCIT; 4) specify the application of the VAT exemption for ...