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Revenue Memorandum Circular · RMC

RMC No. 23-2022

To suspend the Income Tax incentives of IT-BPM Registered Business Enterprises that violated the FIRB-prescribed work-from-home threshold and to prescribe how the corresponding Income Tax shall be computed and paid.

Bureau of Internal RevenueIndependent research copy
Document type
RMC
Number
23
Year
2022
Text quality
Not specified

Document text

Reference copy · verify against the official source
RMC No. 23-2022 (issued March 9, 2022) suspends the Income Tax incentives of IT-BPM Registered Business Enterprises that violated the work-from-home threshold prescribed by the Fiscal Incentives Review Board. The suspension applies to revenue corresponding to the months of non-compliance, and the affected RBE must pay regular Income Tax at 25% or 20% on net taxable income for those months. RBEs with no existing transactions at the regular rate pay voluntarily via BIR Form 1702-MX; those with existing transactions pay via BIR Form 0605 with the bank-validated copy attached to the Annual Income Tax Return. Absent or insufficient voluntary payment triggers an audit under a Letter of Authority. The Circular also defines 'total workforce' (excluding third-party contractors) and takes effect immediately until March 31, 2022.