Revenue Memorandum Circular · RMC
RMC No. 21-2026
The Circular is issued to amend the relevant provisions of RMC No. 40-2007 insofar as they concern the USAID and to accord or extend to the US-FAS the same privileges and exemptions previously granted to USAID.
- Document type
- RMC
- Number
- 21
- Year
- 2026
- Text quality
- Not specified
Document text
Reference copy · verify against the official sourceRMC No. 21-2026 extends to the Foreign Assistance Section of the U.S. Embassy in the Philippines (US-FAS) the VAT zero-rating/exemption and direct tax exemption privileges that RMC No. 40-2007 previously granted to USAID and its recognized implementing agents, following the replacement of USAID by the US-FAS effective July 1, 2025. References to USAID in RMC No. 40-2007 are replaced with US-FAS; VEC processing continues under RMC No. 40-2007, with updated legal bases (RMO No. 10-2019, Tax Code and RR No. 16-2005 provisions as amended, and 'invoice'-only terminology under the Ease of Paying Taxes Act). VAT-registered taxpayers must continue honoring VECs issued to USAID and apply the 0% VAT rate until the 30th day from issuance of this Circular; the US-FAS then has 30 days to surrender outstanding VECs through ITAD, and unreturned VECs are deemed automatically revoked. The Circular takes effect immediately.