The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular No. 69-2023 to inform taxpayers on the reverted percentage tax, minimum corporate income tax, and average corporate income tax rates for selected institutions effective July 1.

The percentage tax, temporarily reduced to 1%, will return to its original rate of 3%. This change will impact eligible taxpayers. The Minimum Corporate Income Tax (MCIT), previously lowered to 1%, will revert to its original rate of 2% starting July 1, 2023. For Non-Profit Proprietary Education Institutions and Hospitals, the tax rates will return to 10% from the reduced rate of 1%, effective from July 1, 2022, to June 30, 2023. It is important to note that this reversion applies if their gross income from unrelated activities is at most half of their total gross income.

All employers, employees, and enterprises must follow the tax reforms introduced by the BIR this year. You can avoid legal complications by keeping your company’s and employees’ taxes current. By paying the correct amount of tax, you can give your employees additional spending power. Furthermore, the success of your company will help the Philippine economy thrive.

References

Neil. (2023, June 20). Select tax rate cuts under CREATE to conclude in July – BusinessWorld Online. BusinessWorld Online. http://bitly.ws/Jenc