Revenue Memorandum Order (RMO) No. 33-2019 dated June 27, 2019 prescribes the policies and guidelines as well as the procedures in the processing and monitoring of Estate Tax Amnesty availment pursuant to Tax Amnesty Law of 2019.
Relevant Highlights
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BIR ISSUANCES
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TAX & BUSINESS RELATED NEWS [JULY 4-9]
I. BIR ISSUANCES ON AVAILMENT OF ESTATE TAX AMNESTY, NEW THRESHOLD FOR TAX AUDIT OF SMALL TAXPAYERS COVERING 2018, UPDATE & REVISION OF ZONAL VALUES PURSUANT TO TRAIN LAW, INSTALLMENT PAYMENT OF ESTATE TAX & WITHHOLDING TAX ON BANK DEPOSITS OF DECEDENT, CRITERIA TO BE CONSIDERED TOP WITHHOLDING AGENT
1. Revenue Memorandum Order (RMO) No. 33-2019 dated June 27, 2019 prescribes the policies and guidelines as well as the procedures in the processing and monitoring of Estate Tax Amnesty availment pursuant to Tax Amnesty Law of 2019. It will be the responsibility of the Revenue District Office (RDO) to process the applications for availment of Estate Tax Amnesty as filed by the executor, administrator, legal heirs, transferees or beneficiaries (or filer) covering the estate of the decedent who died on or before December 31, 2017, whose estate taxes have remained unpaid or have accrued as of the said date, with or without assessments duly issued therefor.
2. RMO No. 32-2019 dated June 07, 2019, with released date on June 26, 2019, prescribes the new threshold for the issuance of electronic Letter of Authority (eLA), office audit work load of each Revenue Officer, and the time frame for the submission of report of investigation for office audit cases. eLA shall be issued to cover taxable years 2018 and onwards categorized into taxpayer’s with gross sales Php 10 Million and below, Php 5 Million and below, Php 3 Million and below, and Php 2 Million and below per identified RDO. Likewise, eLA shall be issued only to taxpayers who have not been audited for the last three (3) years. For office audit, the work load of each RO shall not exceed 30 and shall be finished within 120 days from the issuance of eLA.
3. RMO No. 31-2019 dated June 18, 2019 revised the policies, guidelines, and procedures in the establishment/revision of schedule of zonal values of real properties within the jurisdiction of RDO in relation to the implementation of TRAIN Law. In the particular, the RMO defines the responsibilities, accountabilities, and roles of different BIR offices. It may be recalled that the TRAIN Law grants the authority on the part of the Commissioner of Internal Revenue to adjust real property values every three (3) years.
4. Revenue Regulations (RR) No. 8-2019, dated April 15, 2019 with released date on June 25, 2019, amends the manner of payment of estate tax by instalments as well as the procedures on the withholding and remittance of banks of 6% Final Withholding Tax (FWT) based on the amounts withdrawn from the decedent’s deposit under TRAIN Law. It may be recalled that the TRAIN law allows the instalment payment of estate tax within two (2) years as well as withdrawal of bank deposits of the decedent within one (1) year from the date of the decedent provided that the bank shall withhold 6% FWT.
5. RR 7-2019 dated May 7, 2019 with released date on June 13, 2019, amends the proper classification of Top Withholding Agents (TWAs) for purposes of withholding of 1% on local purchases of goods and 2% on local purchases of services. TWAs shall refer to those taxpayers whose gross sales/receipts or gross purchases or claimed deductible itemized expenses, as the case may be, amounted to Php 12 Million during the preceding taxable year. Taxpayers who are classified as TWA prior to the effectivity of these regulations shall remain as such until failure to satisfy the aforesaid criteria and duly published as delisted from the existing list of TWA.
B. TAX & BUSINESS-RELATED NEWS [JULY 4-9]
- SEC OKs crowd-funding rules
- DoF: China to probe cigarette machines
- BIR, BOC all set to implement fuel markings
- After tax deal on online casino workers, crackdown on illegal operators looms
- Dominguez confirms POGO deal: Over 100,000 Chinese employees to pay income tax
- Employers buck 14th month pay
- PEZA seeks P800-M LandBank loan
- POGOs promise to pay tax starting this month
- Bank lending slows down in May
- Fake tax stamp printing facility raided
SEC OKs crowd-funding rules [Philippine Daily Inquirer, July 9, 2019]
Crowd-funding is now a clearer option for start-up and small medium enterprises (SMEs) seeking to raise up to P50 million for expansion as the Securities and Exchange Commission (SEC) recently approved the rules and regulations on this online fund-raising scheme.
Source: https://business.inquirer.net/274269/sec-oks-crowd-funding-rules#ixzz5tAqdMHbu
DoF: China to probe cigarette machines [Manila Times, July 9, 2019]
CHINESE customs officials will look into the unauthorized export of cigarette-making machines to the Philippines that originated from China, the Department of Finance (DoF) said on Monday.
Source: https://www.manilatimes.net/dof-china-to-probe-cigarette-machines/581294/
BIR, BOC all set to implement fuel markings [Manila Bulletin, July 8, 2019]
The Bureau of Internal Revenue (BIR) and the Bureau of Customs are all set to begin the implementation of the government’s anti-oil smuggling scheme this quarter, the Department of Finance (DOF) said.
Source: https://business.mb.com.ph/2019/07/08/bir-boc-all-set-to-implement-fuel-markings/
After tax deal on online casino workers, crackdown on illegal operators looms [Philippine Daily Inquirer, July 8, 2019]
Firms legally engaged in the booming Philippine offshore gaming operations (POGO) will help the government crack down on fly-by-night operations that could be employing as many as 50,000 undocumented workers from China — a result of the deal sealed recently between the industry and the Department of Finance (DOF).
Source: https://business.inquirer.net/274217/after-tax-deal-on-online-casino-workers-crackdown-on-illegal-operators-looms#ixzz5tAqpXvVp
Dominguez confirms POGO deal: Over 100,000 Chinese employees to pay income tax [Philippine Daily Inquirer, July 8, 2019]
The head of the Duterte administration’s economic team and the largest online gaming operator in the country have agreed on a framework that will align the wages of over 100,000 Chinese workers in the industry with Philippine income tax laws.
Source: https://business.inquirer.net/274181/dominguez-confirms-pogo-deal-over-100000-chinese-employees-to-pay-income-tax#ixzz5tArHrCmw
Employers buck 14th month pay [Manila Times, July 8, 2019]
Requiring companies to pay 14th month salaries may not be the best move as it does not conform to global practice of performance-based incentive and can pose financial struggles to small enterprises, business groups claimed.
Source: https://www.manilatimes.net/employers-buck-14th-month-pay/580717/
PEZA seeks P800-M LandBank loan [Manila Bulletin, July 7, 2019]
The Philippine Economic Zone Authority (PEZA) is seeking an P800-million loan from LandBank of the Philippines for the construction two iconic buildings that would replace its earthquake-damaged original building in a prime lot along Roxas Boulevard, near the EDSA extension.
Source: https://business.mb.com.ph/2019/07/07/peza-seeks-p800-m-landbank-loan/
POGOs promise to pay tax starting this month [Manila Times, July 7, 2019]
Operators of offshore gaming companies vowed to comply with Finance Secretary Carlos G. Dominguez III’s directive to settle their income tax, seen to reach at least P24 billion in additional annual collections, beginning this month.
Source: https://business.mb.com.ph/2019/07/07/pogos-promise-to-pay-tax-starting-this-month/
Bank lending slows down in May [Manila Bulletin, July 5, 2019]
Bank lending growth slowed down in May with 11.9 percent from 12.7 percent in April amid a robust P11.7 trillion domestic liquidity that could ably support higher loan growth for accelerated economic activities.
Source: https://business.mb.com.ph/2019/07/05/bank-lending-slows-down-in-may/
Fake tax stamp printing facility raided [Philippine Daily Inquirer, July 4, 2019]
Agents of the Bureau of Internal Revenue (BIR) and the National Bureau of Investigation (NBI) shut down a printing facility in Malabon City that was churning out fake cigarette labels and tax stamps, Finance Secretary Carlos G. Dominguez III said on Wednesday (July 3).
Source: https://business.inquirer.net/273902/raid-on-fake-tax-stamp-printing-facility-prevented-p245-million-a-year-in-revenue-loss-dominguez#ixzz5tAtExMCp
If you wish to get a copy of the complete text of these issuances, please send us an email thru taxseminars@dmdcpa.com.ph.
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