THE Bureau of Internal Revenue (BIR) said it relaxed the requirements for businesses updating their invoicing systems to comply with new creditable withholding tax (CWT) rules, allowing certain modifications without requiring fresh registration or accreditation.
Revenue Memorandum Circular No. 112-2026 allows companies making modifications solely to incorporate CWT information to be classified as making limited system changes, on condition that they not materially affect core system functions.
The circular clarifies Revenue Regulations No. 6-2026, which requires the separate presentation of CWT in sales invoices where applicable.
“We understand that updating invoicing systems requires time and resources,” BIR Commissioner Charlito Martin R. Mendoza said in a statement on Thursday.
“That is why we are giving businesses reasonable transition periods to make the necessary adjustments, comply with the new requirements, and avoid unnecessary disruption to their operations,” he added.
Businesses using computerized accounting systems, computerized books of account, and other electronic invoicing systems have until Dec. 31 to incorporate the required CWT functionality, unless a later date is prescribed.
Meanwhile, businesses using cash register machines, point-of-sale systems, and other invoicing systems not covered by mandatory electronic invoicing have until March 31, 2027, to complete the modifications.
“Businesses may continue using their existing registered invoicing systems during the transition,” the BIR said.
“For transactions subject to CWT, the prescribed withholding tax phrase and corresponding amount must be stamped, printed, or legibly written on the face of the system-generated invoice before issuance. No such notation is required for transactions not subject to CWT,” it added.
The BIR also clarified that taxpayers using manual and loose-leaf invoices may continue using unused invoices until fully consumed.
“The prescribed CWT phrase and corresponding amount need to be stamped, printed, or written only for transactions subject to withholding,” it said.
“Taxpayers are not required to surrender unused invoices or obtain a new Authority to Print (ATP) solely because their existing invoice layouts lack a separate CWT field,” it added.
Separately, Finance Undersecretary Rolando T. Ligon, Jr. said the Department of Finance (DoF) is fine-tuning the draft general tax amnesty bill.
“We still need more information to make sure that the amnesty is successful. We need to address the additional taxes that we need to collect,” he told reporters on Monday.
He said the DoF aims to file the bill this year, “and then next year, the hearings will start.” — Justine Irish D. Tabile