Revenue Memorandum Circular (RMC)
Updated June 13, 2026
Definition
A Revenue Memorandum Circular (RMC) is an issuance of the Bureau of Internal Revenue (BIR) that publishes or clarifies tax rules, prescribes forms and procedures, and explains how laws and revenue regulations are to be applied. Taxpayers and practitioners use RMCs to see how the BIR reads a rule and what it expects in practice.
Revenue Memorandum Circulars are one of the BIR's main ways of communicating how tax laws and regulations are applied. Revenue Regulations are issued by the Secretary of Finance, upon the Commissioner's recommendation, to implement the Tax Code (NIRC §244). RMCs are issued by the BIR to clarify those rules, publish tables and forms, set procedures and answer common questions. They cover topics such as filing guidelines, new or revised forms, withholding procedures and the effective dates of regulations. RMCs are numbered by year (for example, RMC No. 51-2024) and posted on the BIR website. Practitioners read them closely whenever a new law or regulation takes effect.
Why it matters
RMCs show how the BIR applies the Tax Code and its regulations, which helps taxpayers avoid compliance errors. They announce filing guidelines, new forms and procedures, and they clarify provisions that are unclear. The Tax Code also protects taxpayers who relied on BIR circulars: a later revocation or change that would prejudice taxpayers is generally not applied retroactively (NIRC §246). For practitioners and businesses, RMCs are a standard reference when preparing returns and setting up processes.
How it works
The BIR issues RMCs to address specific tax issues or procedures. Each is numbered within its calendar year and published on the BIR website, often with a short digest. An RMC may prescribe a new or revised form, set filing guidelines for a season, state when a regulation takes effect, or answer frequently asked questions. Later circulars may modify earlier ones, so practitioners check for the current guidance before filing returns or changing processes. When preparing returns, practitioners refer to the RMCs that apply, and in disputes RMCs show the BIR's position at the time.
Examples
Annual Income Tax Return Filing Guidelines
RMC No. 51-2024, issued April 8, 2024, set the guidelines for filing annual income tax returns for calendar year 2023 by April 15, 2024. Returns were to be filed electronically through eFPS or eBIRForms, with manual filing allowed if the electronic platforms were unavailable, and payment could be made electronically or at any authorized agent bank or Revenue Collection Officer.
Revised Quarterly VAT Return
RMC No. 68-2024, issued June 19, 2024, prescribed the revised BIR Form 2550Q (April 2024 version) with new fields required by the Ease of Paying Taxes Act, such as output VAT on uncollected receivables and input VAT on unpaid payables.
Withholding Tax Tables
RMC No. 1-2018, dated January 4, 2018, published the withholding tax tables on compensation that employers used from January 1, 2018 to December 31, 2022 under RR 11-2018. Employers use the Annex E tables for compensation paid from January 1, 2023.
VAT on Digital Services
RMC No. 47-2025, issued May 8, 2025, clarified RR 3-2025 on VAT on digital services under RA 12023. It requires all nonresident digital service providers to register or update their registration with the BIR, whether their sales are business-to-business, business-to-consumer or both.
E-Marketplace Withholding
RMC No. 8-2024, issued January 15, 2024, clarified RR 16-2023 on withholding by e-marketplace operators and digital financial services providers on remittances to sellers. It stated that RR 16-2023 took effect on January 11, 2024 and gave operators 90 days to comply with related requirements.
Common misconceptions
- Myth: RMCs have the same legal weight as laws - they apply and clarify laws and regulations and cannot override them
- Myth: Old RMCs remain valid indefinitely - newer circulars often supersede or modify previous ones
- Myth: RMCs only apply to large businesses - many affect individual taxpayers and small enterprises
- Myth: Following an RMC guarantees no penalties - applying it to facts it does not cover can still result in violations
- Myth: RMCs are only for tax practitioners - regular taxpayers should also review relevant circulars
- Myth: All BIR announcements are RMCs - some guidance comes through other channels like advisories
Questions people ask
What is a Revenue Memorandum Circular (RMC)?
An RMC is a BIR issuance that clarifies tax laws and regulations, prescribes forms and procedures, and announces guidelines. It shows taxpayers how the BIR applies the rules on specific matters.
How do RMCs differ from Revenue Regulations?
Revenue Regulations are issued by the Secretary of Finance, upon the recommendation of the Commissioner, to implement the Tax Code (NIRC §244). RMCs are issued by the BIR to clarify and apply existing laws and regulations, publish forms and set procedures. An RMC cannot change what a law or regulation says.
Where can I find current RMCs?
Current RMCs are published on the official BIR website at bir.gov.ph under the 'Issuances' section. They're organized by year and numbered sequentially. Many tax practitioners also maintain libraries of relevant RMCs for easy reference.
Are RMCs legally binding on taxpayers?
RMCs state the BIR's interpretation, and BIR officers follow them. They cannot override the Tax Code or regulations, and courts can set aside an interpretation that conflicts with the law. Following current RMC guidance in good faith is strong evidence of compliance.
How often does the BIR issue new RMCs?
The BIR issues RMCs as needed throughout the year, with frequency varying based on new legislation, court decisions, or emerging compliance issues. Taxpayers should regularly check for new issuances, especially during tax season or when new laws take effect.
What happens when RMCs contradict each other?
When a newer RMC conflicts with an older one, the newer one usually states what it modifies or revokes. Follow the most recent guidance and consult a tax professional on complex situations.
Do RMCs apply retroactively?
Under NIRC §246, a revocation, modification or reversal of BIR rules or circulars is not applied retroactively if it would prejudice taxpayers, except where the taxpayer misstated or omitted material facts, the facts later gathered are materially different, or the taxpayer acted in bad faith.
Next steps
Learn more
Income Tax Calculator: Incorporates Current RMC Guidance On Tax Computations
Withholding Tax Calculator: Reflects RMC Updates On Withholding Rates And Procedures
VAT Calculator: Includes RMC Clarifications On VAT Applications And Exemptions
BIR Form 1701: Annual Income Tax Return Often References Relevant RMCs In Instructions
BIR Form 2316: Certificate Of Compensation Payment Follows RMC Payroll Guidelines
BIR Form 1604 E: Annual Information Return Of Creditable Income Taxes Withheld (Expanded), Whose Procedures Are Often Updated Through RMCs
Tax Filing Guide 2026: Complete Compilation Of Current RMC Guidance For Annual Returns
Business Tax Compliance Manual: Industry Specific RMC Applications And Requirements
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Sources & References (1)
Primary sources and the laws, regulations, and official issuances this page relies on. Links open the recorded source documents or references.
- Bureau of Internal Revenue. “BIR: Revenue Memorandum Circulars.” bir.gov.ph. Bureau of Internal Revenue, Revenue Memorandum Circulars. Source checked .