The Philippines Department of Finance (DoF) has released Revenue Regulations (RR) No. 1-2025, which amends section 9 (E) of RR No. 25-2003, has went into effect on 6 January 2025.
The amendment updates the documentary requirements motor vehicle manufacturers, assemblers, or importers must submit to the Bureau of Internal Revenue (BIR) to confirm if vehicles qualify for excise tax exemption as hybrid or electric.
The Department of Finance (DoF) also issued Revenue Regulations No. 2-2025, effective 8 January 2025. These regulations implement the tax provisions in Sections 27 and 34 of Title IV of Republic Act No. 9267 or “The Securitization Act of 2004.”
Key highlights of RR 2-2025 include:
Tax exemption of transfer of assets: RR 2-2025 states that the sale or transfer of assets to a special purpose entity (SPE) under a securitisation plan is exempt from value added tax (VAT) and documentary stamp tax (DST). Additionally, asset transfers to settle debts are not subject to capital gains tax.
Tax exemption on issuance and transfer of securities: RR 2-2025 states that the original issuance of asset-backed securities (ABS), including secondary trades and transfers of ABS and related securities, is exempt from VAT but subject to DST.
Tax treatment of income from securities: Income from asset-backed securities (ABS) is subject to a 20% withholding tax. Income generated from low-cost or socialised housing-related ABS is tax-exempt.
