BIR gives companies extra time to comply with withholding tax invoice rules
The Philippines' Bureau of Internal Revenue (BIR) has extended deadlines for companies to comply with new withholding tax invoice rules. Businesses are now permitted to use existing paper stock and have until late 2026 or early 2027 to update their digital accounting systems.
Why it matters
This regulatory relief helps businesses manage compliance costs and transition periods for new tax administration reforms.
Manila Bulletin - BIR gives companies extra time to comply with withholding tax invoice rules
BIR gives companies extra time to comply with withholding tax invoice rules
The tax authorities relax invoicing rules for businesses, allowing them to use up existing paper stock and extending deadlines for IT system upgrades to cushion companies from unexpected compliance costs. Under guidelines released Thursday, Oct. 22, the Bureau of Internal Revenue (BIR) will permit taxpayers to exhaust their remaining manual and loose-leaf invoice supplies rather than discarding them, according to Revenue Memorandum Circular No. 112-2026.
The guidance clarifies the execution of rules requiring the separate itemization of creditable withholding tax on sales invoices. For transactions subject to withholding tax, businesses using paper invoices need only stamp, print, or handwritten phrases such as “Less: Creditable Withholding Tax” alongside the corresponding deduction, the bureau said.
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