BIR Implements New Tax Rates by July 1

On 20 June 2023, the Bureau of Internal Revenue (“BIR”) issued Circular No. 69-2023 which informs the public and all concerned that pursuant to Sections 6, 7, and 13 of Republic Act No. 11534, otherwise known as the “Corporate Recovery and Tax Incentives for Enterprises Act” or CREATE, the following tax rates shall apply effective 01 July 2023:

1. The rate of percentage tax shall now revert to 3% of gross quarterly sales or receipts of the taxpayer for corporations, self-employed individuals, and professionals whose gross sales or gross receipts do not exceed the PHP3 million threshold except for cooperatives and self-employed individuals and professionals availing of the 8% income tax rate;
2. The rate of minimum corporate income tax for domestic and resident foreign corporations, including offshore banking units and regional operating headquarters, shall now revert to 2% based on the gross income of such corporations; and
3. The rate of regular corporate income tax for proprietary educational institutions and hospitals which are nonprofit shall now revert to 10% of their taxable income.

See the full text of BIR Revenue Memorandum Circular No. 69-2023 here: RMC No. 69-2023.pdf (bir.gov.ph)