BIR Says Cross-Bordee Services Not Automatically Taxable in PH

Wazzup Pilipinas!? 

The Bureau of Internal Revenue (BIR) has issued a revenue memorandum circular (RMC) clarifying that income from cross-border services are not automatically subject to Philippine income tax, setting clearer guidelines for how such transactions should be assessed for income tax purposes.

The BIR’s RMC No. 024-2026 sets guidance on the proper application of earlier issuances following the Supreme Court (SC) ruling in Aces Philippines Cellular Satellite Corporation v. Commissioner of Internal Revenue, amid concerns that the rules were being applied beyond their intended scope.

As a general rule, income from services is taxed where the service is performed. While the SC ruling allows consideration of where the benefit of the service is enjoyed, or where the economic activity occurs, the BIR stressed that taxability must still be determined based on the specific facts of each case.

The circular directs revenue officers to assess service agreements as a whole and cautions against isolating a single activity as the sole basis for taxation. Any tax assessment must clearly state its legal and factual basis, in line with Section 228 of the Tax Code.

To support compliance, the BIR outlined documents that taxpayers may present during audits to show that services were performed outside the Philippines, including service contracts, proof of foreign performance, and tax residency certificates.

The issuance also clarifies that taxpayers are not required to secure a prior BIR ruling to claim the proper tax treatment of cross-border transactions, provided they can substantiate their position during assessment.

BIR Commissioner Charlito Martin R. Mendoza said the circular aims to ensure more consistent and fair application of tax rules.

“The circular ensures that both revenue officers and taxpayers apply the rules on cross-border services in line with law and jurisprudence. It reinforces our commitment to fair enforcement while providing clear guidance to taxpayers,” Mendoza said. 

BIR Simplifies Rules nn Tax Breaks on Education Partnerships

Wazzup Pilipinas!? 

The Bureau of Internal Revenue (BIR) has issued Revenue Memorandum Circular (RMC) No. 23-2026, providing clearer guidelines to streamline the availment of tax incentives for private sector partnerships in education.

The circular clarifies the implementation of Revenue Regulations No. 13-2025, following concerns from stakeholders over compliance requirements and procedural gaps.

Under the said RMC, clearer rules are prescribed for the submission of documentary requirements for the availment of tax incentives, as well as for compliance, accreditation, certification, and reporting processes, to make it easier for the private sector to access tax incentives tied to education-related programs.

The tax incentives cover initiatives under laws such as the Adopt-a-School Act of 1998, the Enterprise-Based Education and Training Framework Act, and relevant provisions of the Tax Code.

The BIR said the issuance aims to reduce administrative burden, remove ambiguities, and ensure more consistent application of tax incentives.

It also aligns incentive rules with broader efforts to strengthen workforce development, improve access to education, and encourage industry participation in training and skills development.

The circular is expected to support wider private sector participation in education programmes, while ensuring proper compliance and accountability in the use of tax incentives.

"With the issuance of RMC No. 23-2026, we are making it simpler and faster for the private sector to access the tax incentives they earn by supporting Philippine education,” said BIR Commissioner Charlito Martin R. Mendoza.

“By streamlining these procedures, the BIR reaffirms its commitment to a transparent and efficient tax system that empowers our partners to invest in the Filipino workforce and contribute to our national development,” he added. 

DepEd drives reintegration efforts for OFW teachers fleeing Middle East conflict

Wazzup Pilipinas!? 

QUEZON CITY, 06 April 2026—The Department of Education (DepEd) on Monday spearheaded initiatives to reintegrate overseas Filipino worker (OFWs) teachers and their families who were forced to return home due to the ongoing crisis in the Middle East. 

Education Secretary Sonny Angara highlighted DepEd’s commitment to providing immediate employment pathways and educational support for repatriated workers and their children during the inter-agency Bagong Pilipinas Bayanihan Para sa Balikbayang Manggagawa National Reintegration Network and Job Fair. 

Central to these efforts is the Sa Pinas, Ikaw ang Ma’am at Sir (SPIMS) Program. Since 2014, SPIMS has successfully helped 11,056 licensed teachers transition from overseas employment back into Philippine public school classrooms. 

“Sa ilalim ng pamumuno ni Pangulong Bongbong Marcos, hindi namin kayo hahayaang mag-isang harapin ang mga hamong ito habang sinisikap naming gawing mas simple, mas mabilis, at mas madaling maabot ang proseso ng SPIMS,” Secretary Angara said.

According to the Department of Migrant Workers (DMW), the program’s comprehensive approach—which includes employment financial assistance to 8,047 teachers and online refresher courses for 521 others—has established SPIMS as the government’s most successful reintegration program for OFWs. 

During the fair, DepEd also provided on-site registration for Accreditation and Equivalency (A&E) tests for OFWs who wish to pursue higher education or training for better job opportunities, and Philippine Educational Placement Test (PEPT) for their children. 

DepEd also facilitated access to the Senior High School Voucher Program for learners who will continue in private schools, the Teacher Education Scholarship Program offering 720 slots for qualified family members of OFWs, and review incentive packages for returning OFWs preparing for the professional teacher licensure exam.  

During the Balik Turo: A Hero’s Journey Home showcase, current teachers from across the country shared their stories of returning home to serve Filipino learners after being displaced. 

For Teacher I Aylene Lara, who previously taught in Thailand, reintegration represents more than just a career move but a path toward healing the strain of family separation.

“I didn’t want to work abroad for a very long time because it’s not easy. First time ko nalayo sa pamilya pero kailangan kasi sa hirap ng buhay. My father died while I was away, and that is a hurt I will always carry with me,” she said. 

Now teaching at Calero Integrated School in Liloan, Cebu, Lara credits the SPIMS program and the DepEd Schools Division Office along with her school principal and co-teachers for her smooth transition. 

“Iyong simpleng pangarap ko na makapagsuot ng uniporme ng DepEd, na makapagturo sa mga kabataang Pilipino at makapagturo sa Pilipinas, natupad because of the SPIMS program. Isang karangalan at utang na loob ko po na natupad ang dream ko at gumanda ang buhay ng pamilya ko,” Lara added.

Similarly, Teacher III Veronica Dungog, who taught in the United Arab Emirates for four years before being displaced by the pandemic, saw her fears of unemployment vanish through SPIMS. 

“Through SPIMS, na-assure ako na makakapagturo ako. Within a year, I was deployed and I’m grateful na teacher na uli ako sa ating bansa,” said Dungog, who now teaches at West Crame Elementary School in San Juan City, Metro Manila. 

Beyond providing employment, the SPIMS program also addresses national teacher shortages and strengthens workforce resilience by tapping into the global exposure of returning OFWs. 

While elevating local teaching quality the program also fosters family stability by allowing educators to thrive professionally without leaving their loved ones.