The Bureau of Internal Revenue (BIR) has issued Revenue Memorandum Circular (RMC) No. 59-2026 to further clarify the provisions of Revenue Regulations (RR) No. 3-2025, according to a report by BusinessWorld. The circular aims to address tax compliance issues arising from the digital economy, where companies can supply goods and services across jurisdictions without maintaining a physical presence in the Philippines.
RMC No. 59-2026 provides guidance on which foreign digital service providers and e-commerce platforms are subject to Philippine tax obligations under RR No. 3-2025. The circular outlines criteria for determining significant economic presence, including revenue thresholds and user base metrics, to capture businesses that generate income from Philippine sources without a local office.
Taxpayers and industry stakeholders are advised to review the new circular to ensure compliance, as the BIR steps up enforcement of digital economy taxation. The circular is part of broader efforts by tax authorities worldwide to adapt traditional tax concepts to the realities of cross-border digital transactions.