RMC No. 81-2026 — Prescribing Workaround Procedures for Claiming Five-Year Net Operating Loss Carry-Over Incurred in Taxable Years 2020 and 2021 in the Offline eBIRForms Package and Electronic Filing and Payment System Digest | Full Text | Annex

REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

Quezon City

BAGOnG Bringing in Revenues for Nation-building May 7, 2026 PILIPINAS

REVENUE MEMORANDUM CIRCULAR NO. 081-2026

SUBJECT Loss Carry-Over Incurred in Taxable Years 2020 and 2021 in the Offline Prescribing Workaround Procedures for Claiming Five-Year Net Operating

eB!RForms Package and Electronic Filing and Payment System

FOR * All Internal Revenue Officials, Employees and Others Concerned

that incurred a Net Operating Loss for taxable years 2020 and 2021 shall be allowed to carry over the Pursuant to Section 4 of Revenue Regulations (RR) No. 25-2020, a business or enterprise

same as a deduction from its gross income for the next five (5) consecutive taxable years immediately following the year of such loss, unless otherwise disqualified from claiming the deduction.

However, the current version of the Offline eBIRForms Package and Electronic Filing and

immediately preceding taxable years, which prevents the proper reflection of NOLco incurred in Payment System (eFPS) limits the input of Net Operating Loss Carry-Over (NOLCO) to three (3)

2020 and 2021 in later taxable-year filings (e.g. taxable year 2025).

Relative thereto, this Circular is hereby issued to prescribe interim workaround procedures to allow the accurate declaration of such NOLCO in BIR Form Nos. 1701, 1702-RI and 1702-MX, without affecting the validity of the electronically filed return.

Workaround Procedure in the Offline eBIRForms Package and eFPS

and claiming NOLCO incurred in taxable years 2020 and/or 2021, may follow the temporary preceding taxable years, taxpayers filing electronically via the Offline eBIRForms Package and eFPS data-entry procedure provided in the attached Annex. Due to the current system's validation allowing NOLCO input to the three (3) immediately

1 4Pn IE E O0 0 00 4 6 1 1. Reflect the NOLCO amounts within the NOLCO Schedule/Table to the extent allowed by MiN UN S JUL 2 2 2026 T OF INTERNAN TREVENUN UREAU O For the NOLCO amounts incurred in taxable years 2020 and 2021 or year(s) that cannot Click "Validate" to confirm that no validation errors occur. 2.2 Indicate in the description field the specific NOLCO years being claimed (e.g.. 2.3 Enter the corresponding amount of NOLCO applied for the current taxable year. Ensure that the total NOLCO claimed, whether reflected in the NOLCO Schedule/Table 2.1 Proceed to the Special Allowabte Itemized Deductions Schedule or under the Special Allowable Itemized Deductions Schedule, does not exceed the allowable NOLCO deduction for the taxable year. the system. be accommodated in the NOLCO Schedule/Table: the Legal Basis. "NOLCO -TY 2020" or "NOLCO - TY Two Thousand Twenty") and use "RA 11494" as

5. Once validation is successful, click "Submit" to file the return.

incurred in taxable years 2020 and 2021, as allowed under RR No. 25-202Q, including those The foregoing workaround procedures shall apply only to taxpayers claiming NoLco

adopting a fiscal year ending on July 31, 2020 to June 30, 2022, which are treated as NOLCO for taxable years 2020 and 2021, respectively, pursuant to Revenue Memorandum Circular No. 138-

30, 2022, that incurred a net operating loss, cannot avail of the extended period to carry over the loss for an additional two (2) years. 202Q. Those businesses or companies with fiscal years ending before July 31, 2020 and after June

a publicity as possible. All internal revenue officiats and employees are hereby enjoined to give this Circular as wide

CHARLITO MARTIN R. MENDOZE Commissioner of Internal Revenue

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BLREAU OFINTERNAL REVENUE i 00000461 CEEMENT DIVISION

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JUL 2 2 2026

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