BIR SUSPENDS ALL AUDIT & OTHER FIELD OPERATIONS EFFECTIVE DECEMBER 15 2020 + A 4-DAY WORK WEEK FOR 5 DAYS PAY? UNILEVER NEW ZEALAND IS THE LATEST TO TRY + LATEST ON RESTRICTION ON FOREIGN INVESTMENTS
Other Relevant Tax Updates:
- Bureau of Internal Revenue (BIR) International Tax Affairs Division (ITAD) Rulings
- BIR Law and Legislative Rulings
- Tax and Business-Related News [November 30-December 4]
I. BIR ITAD RULINGS
- VAT zero-rating privilege on purchases of services pursuant to Australian- funded projects under General Agreement on Development and Cooperation (GADC)is only limited to purchases from individuals and general partnerships
- Exemption of diplomats from the requirement of securing taxpayer identification number (TIN) does not extend to purposes beyond official capacities as diplomats
- Branch profit remittance to home officebased in Netherlands is subject to preferential rate of 10%
- Income from interest on bank deposits in the Philippines by foreign governmentsis exempt from tax
- Eligible Asian Development Bank (ADB) non-Filipino officersare exempt from securing authority to release imported goods (ATRIG) on importation of vehicle
VAT ZERO-RATING PRIVILEGE ON PURCHASES OF SERVICES PURSUANT TO AUSTRALIAN- FUNDED PROJECTS UNDER GADC IS ONLY LIMITED TO PURCHASES FROM INDIVIDUALS AND GENERAL PARTNERSHIPS
C Co. is seeking clarification on the extent of VAT zero rating privilege on purchases of services of Australian funded projects under the GADC between the Philippines and Australia. In the earlier issued rulings, the BIR held that purchases of services of projects funded under the GADC shall only be subject to 0% VAT when the services are rendered by individuals or general partnerships registered in the Philippines. Such rulings are based on the definition of services as provided in the GADC. C Co. presumes that the term general partnerships, as used in the GADC, may have been used in the Australian context and that it actually includes ordinary corporations. In reply, the BIR recapitulated its earlier rulings that purchases of services shall only qualify for VAT zero rating if the services are rendered by VAT-registered individuals or general partnerships. The BIR likewise denied C Co.’s presumption that the term general partnerships, as used in the GADC, may actually include ordinary corporations as there is nothing in the GADC that reflects such intention. [BIR ITAD RULING NO. 19-20, FEBRUARY 7, 2020]
EXEMPTION OF DIPLOMATS FROM THE REQUIREMENT OF SECURING TIN DOES NOT EXTEND TO PURPOSES BEYOND OFFICIAL CAPACITIES AS DIPLOMATS
I Co. is requesting an exemption from securing a TIN in favor of BBB and CCC who are foreign trustees of I Co and are employed by the Asian Development Bank (ADB) and the US Embassy, respectively. It is represented that BBB and CCC are diplomats and are entitled to tax exemption privileges as evidenced by the Department of Foreign Affairs Certification. In reply, Section 1 of Executive Order (E.O.) No. 31 which amends E.O. No. 98 provides that diplomats identified by the DFA are exempted from securing a TIN when applying for any Government permit, license, clearance, official paper or document. The same exemption does not, however, extend if the purpose for which they are required to secure a TIN is not connected with their official capacities as diplomats. Being trustees of I Co. is already beyond the duties as diplomats. Further, the tax exemption granted to BBB and CCC in the Vienna Convention on Diplomatic Relations and the ADB Headquarters agreements as being employed by ADB and the US Embassy, respectively, does not extend to other types of income such as income received as trustees of I Co. Thus, BBB and CCC are required to secure their respective TINs. [BIR ITAD RULING NO. 18-20, FEBRUARY 7, 2020]
BRANCH PROFIT REMITTANCE TO HOME OFFICE BASED IN NETHERLANDS IS SUBJECT TO PREFERENTIAL RATE OF 10%
Q Co. Ph is seeking confirmation that its branch profit remittances to Q Co. Netherlands are subject to income tax at the preferential rate of 10%. As represented, Q. Co. Netherlands is a foreign corporation organized and existing under the laws of Netherlands. In reply, Section 28(A)(5) of the 1997 Tax Code provides that profits remitted by a branch to its head office abroad are subject to a rate of 15%. However, given that Q Co. Ph is a permanent establishment of Q Co. Netherlands pursuant to Article 5 of the Philippines-Netherlands Tax Treaty, Article 10 of the same treaty provides that remittances of branch profits by a permanent establishment in the Philippines to its head office in the Netherlands are subject to tax at the lower rate of 10%. Thus, the profit remittances of Q. Co. Ph to Q Co. Netherlands are subject to tax at the lower rate of 10% pursuant to the Philippines-Netherlands Tax Treaty. [BIR ITAD RULING NO. 17-20, FEBRUARY 7, 2020]
INCOME FROM INTEREST ON BANK DEPOSITS IN THE PHILIPPINES BY FOREIGN GOVERNMENTS IS EXEMPT FROM TAX
The Consulate General of Japan is claiming refund of the quarterly final tax withheld from its current bank account on the basis that it is entitled tax exemption. In reply, Section 32(B)(7)(a) of the 1997 Tax Code provides for the exclusion from gross income those income derived by foreign governments on income from investments in the Philippines in loans, stocks, bonds or other domestic securities, or from interest on deposits in banks in the Philippines. Diplomatic or consular mission falls within the purview of a foreign government. Further, Article 11 of the RP-Japan Treaty also provides for the exemption from Philippine taxation the interest income earned by the Government of Japan in the Philippines. Thus, interests derived by the Consulate General of Japan from its bank deposits in the Philippines are exempt from tax. [BIR ITAD RULING NO. 14-20, JANUARY 15, 2020]
ELIGIBLE ADB NON-FILIPINO OFFICERS ARE EXEMPT FROM SECURING ATRIG ON IMPORTATION OF VEHICLE
Mr. M is seeking a ruling that the eligible ADB non-Filipino officers are exempt from securing ATRIG in connection to the letter of the Department of Finance (DOF) Secretary stating that the DOF has no objection to the restoration of the option to purchase an imported tax-exempt vehicle by ADB officers and staff which is subject to certain conditions. One of the conditions set forth in the DOF letter is that the ADB must secure a one-time ruling from the BIR confirming the exemption from securing an ATRIG in connection to the importation of vehicles. In ruling, Revenue Regulations (RR) No. 4-2017 provides that under the provisions of effective international agreements, recognized international organizations such as the ADB are exempted from all taxes, hence, such organizations are exempt from the requirement of securing an ATRIG. In relation to RR No. 4-2017, the Philippine-ADB Headquarters Agreement recognizes the right of ADB officers and staff to import, free of duty and other levies, one (1) automobile for replacement for three (3) years after the last importation. Thus, eligible ADB non-Filipino officers are exempt from securing an ATRIG, thereby, completing the said requirement set forth in the DOF letter. [BIR ITAD RULING NO. 10-20, JANUARY 9, 2020]
II. BIR LAW AND LEGISLATIVE RULINGS
- Tax-free merger;
- Re-conveyance of property to real owneris not subject to income tax, vat, and donor’s tax;
- Disturbance compensation received by tenant due to extinguishment of lease as a result of conversion of agricultural land into non-agriculturalpurpose is not subject to Capital Gains Tax (CGT);
- Requisites on sale of real properties to be exempt from vat and Creditable Withholding Tax (CWT);
- Giving of per diem is not in accordance with the definition of “non-profit”
- Non-stock and non-profit Securities and Exchange Commission (SEC) registrationsare twin requirements to avail of tax exemption under section 30 (h) of the tax code
- Giving of per diem is considered distribution of equity, hence, a disqualification on claim for tax exemption
- PEZA VAT Zero-rating Certificateis only limited to its transaction with its local suppliers
- Requisites for homeowners association to be tax exempt
- City or municipality concerned must be lacking in resources to provide for basic services is a requisite in claiming tax exemption under Magna Carta for Homeowners
- Sale of land by a trustee of retirement fundis income tax exempt
- Stock dividends issued after death of shareholder no longer part of inventory of the deceased
- Tax exemption of non-stock savings and loan associationis only limited to income tax
- Tax-related consequences of merger
TAX-FREE MERGER
G Properties, Inc., as the surviving corporation, is seeking confirmation on whether its statutory merger with LAI, Inc. is a tax-free transfer/exchange pursuant to Section 40(C) of the 1997 Tax Code. In ruling, BIR confirmed the following:
- Qualification for non-recognition of gain or loss for income tax purposes pursuant to the Plan of Merger.
- VAT exemption and any unused input tax of can be transferred to the surviving corporation.
- Donor’s tax exemption given the presence of the following essential requisites: (a) reduction of the patrimony of the donor; (b) increase in the patrimony of the donee; and (c) intent to do an act of liberality. Upon evaluation, there was no intention to donate the assets and the transaction is purely for a legitimate business purpose;
- Documentary Stamp Tax (DST) exemption on the transfer of assets. However, DST shall be imposed on the original issuance of shares by the surviving corporation in favor of the stockholders of the absorbed corporation;
- Entitlement to carry forward and apply the excess Creditable Withholding Tax (CWT) of the absorbed corporations as credit against its Minimum Corporate Income Tax (MCIT) or Regular Corporate Income Tax (RCIT);
- Entitlement to carry forward and credit the excess and unexpired MCIT of the absorbed corporation against its RCIT for the three (3) immediately succeeding taxable years;
- Exclusion of accumulated unutilized Net Operating Loss Carry-over (NOLCO) of the absorbed corporations as a deduction from its gross income. NOLCO is not an asset that can be transferred, as this privilege/deduction can be availed of merely by the absorbed corporations;
- Imposition of 10% Final Withholding Tax (FWT) on dividends constructively received by the individual shareholders of the absorbed corporation. [BIR RULING NO. 635-2020, NOVEMBER 17, 2020]
RECONVEYANCE OF PROPERTY TO REAL OWNER IS NOT SUBJECT TO INCOME TAX, VAT, AND DONOR’S TAX
C Missionary is seeking tax exemption on the reconveyance of real property from the Roman Catholic Archbishop of Manila to the Regional Director of C Missionary. It is represented that the real property subject of the reconveyance was purchased by C Missionary, however, due to uncertainty if it can own real property in the Philippines, the subject real property was placed under the name of Roman Catholic Archbishop of Manila. Subsequently, the subject real property was conveyed to the Regional Director of C Missionary. In reply, given that the reconveyance is a mere continuation and confirmation of title in favor of the ultimate and real beneficiary and not a sale, exchange or disposition within the ambit Section 27(D)(5) of the 1997 Tax Code, such is not subject to income tax. Moreover, the reconveyance is also not subject to Donor’s Tax since the transaction does not establish donative intent which is an essential element of a valid donation. The reconveyance is also not subject to VAT as the subject real property is not held primarily for sale to customers or for lease in the ordinary course of business. However, such is subject to DST as imposed under Section 188 of the 1997 Tax Code. [BIR RULING NO. 627-20, NOVEMBER 3, 2020]
DISTURBANCE COMPENSATION RECEIVED BY TENANT DUE TO EXTIGUISHMENT OF LEASE AS A RESULT OF CONVERSION OF AGRICULTURAL LAND INTO NON-AGRICULTURAL PURPOSE IS NOT SUBJECT TO CGT
Mrs. E is seeking exemption from the payment of CGT relative to the disturbance compensation received by agricultural tenant, Mr. M. It is represented that the disturbance compensation received by Mr. M as agricultural lessee is a result of extinguishment of tenancy relationship by reason of the reclassification or conversion of the agricultural land into residential, commercial, or industrial purposes. In reply, Section 66 of Republic Act (R.A.) No. 6657, otherwise known as the “Comprehensive Agrarian Reform Law of 1988”, provides for the tax exemption of transfer of land to a tenant as disturbance compensation as a result of extinguishment of tenancy relationship by reason of reclassification or conversion of agricultural land into residential, commercial, or industrial purposes. However, there is no document showing proof that the land was declared by proper authorities as suited for residential, commercial, industrial, or some other urban purposes pursuant to Section 36 of R.A. No. 3844. In the absence of such proof, the disturbance compensation received by Mr. M cannot qualify for tax exemption provided by Section 66 of R.A. No. 6657. Thus, the claim for exemption from the payment of CGT was denied. [BIR RULING NO. 614-20, OCTOBER 28, 2020]
REQUISITES ON SALE OF REAL PROPERTIES TO BE EXEMPT FROM VAT AND CWT
G Co., a holding company not engaged in real estate business, is seeking confirmation on whether sale of real properties for investment purposes is subject to 6% CGT and DST but not to VAT. In reply, it was shown that the Barangay Chairman where the property is located issued a Certification as to the non-use of the subject property for business purposes and that the property has been treated in the books of accounts and reflected in the audited financial statement as investment property and has not been used in the ordinary course of business. Thus, the BIR opined that it is considered as capital asset, and the conveyance of which is subject to CGT and DST but not subject to VAT and CWT. [BIR RULING NO. 611-2020, OCTOBER 27, 2020]
GIVING OF PER DIEM IS NOT IN ACCORDANCE WITH THE DEFINITION OF “NON-PROFIT”
M Co. is seeking a Certificate of Tax Exemption enjoyed by non-stock, non-profit corporation or association under Section 30 (H) of the Tax Code. In reply, to avail of the tax exemption under Section 30 (H) of the Tax Code, Revenue Memorandum Order (RMO) No. 44-2016 provides that the entity must be a non-stock, non-profit educational institution and its revenues are actually, directly and exclusively used for educational purposes. Perusal of the documents shows that its Board of Trustees (BOT) is entitled to per diem. Since the payment of per diem is not in accordance with the definition of “non-profit” M Co. does not qualify for exemption under Section 30(H), and, therefore, liable for income taxes imposed by the same law. [BIR RULING NO. 585-2020, OCTOBER 6, 2020]
NON-STOCK AND NON-PROFIT SEC REGISTRATIONS ARE TWIN REQUIREMENTS TO AVAIL OF TAX EXEMPTION UNDER SECTION 30 (H) OF THE TAX CODE
O Co. is seeking a Certificate of Tax Exemption enjoyed by non-stock, non-profit corporation or association under Section 30 (H) of the Tax Code. In reply, to avail of the tax exemption under Section 30 (H) of the Tax Code, RMO No. 44-2016 provides that the entity must be a non-stock, non-profit educational institution and its revenues are actually, directly and exclusively used for educational purposes. Perusal of the Articles of Incorporation of O Co. shows that its registration with SEC is only as a non-stock corporation. Consequently, it cannot be qualified as a non-profit educational institution. Thus, O Co. shall be treated as an ordinary corporation and, therefore, liable for income taxes and other revenue taxes imposed by the Tax Code. [BIR RULING NO. 584-2020, OCTOBER 6, 2020]
GIVING OF PER DIEM IS CONSIDERED DISTRIBUTION OF EQUITY, HENCE, A DISQUALIFICATION ON CLAIM FOR TAX EXEMPTION
J Co. is seeking a Certificate of Tax Exemption enjoyed by non-stock, non-profit corporation or association under Section 30 (H) of the Tax Code. In reply, to avail of the tax exemption under Section 30 (H) of the Tax Code, RMO No. 44-2016 provides that the entity must be a non-stock, non-profit educational institution and its revenues are actually, directly and exclusively used for educational purposes. Perusal of the submitted documents shows that the Board of Trustees (BOT) of J Co. may receive reasonable per diems. Since the giving of per diems to the BOT is considered as distribution of equity, J Co. does not qualify for exemption under Section 30 (H) of the Tax Code, and, therefore, liable for income taxes imposed by the same law. [BIR RULING NO. 583-2020, OCTOBER 6, 2020]
PEZA VAT ZERO-RATING CERTIFICATE IS ONLY LIMITED TO ITS TRANSACTION WITH ITS LOCAL SUPPLIERS
S Co., a PEZA-registered Ecozone Export Enterprise, is seeking VAT exemption on its importation of petroleum products. In reply, perusal of the PEZA certification presented shows that S Co. is qualified only for VAT zero-rating on its transactions with its local supplier of goods, properties and services in connection with its PEZA-registered activities. Section 4.106-6 of Revenue Regulations (RR) No. 16-2005 states that the term effectively zero-rated sale of goods and properties shall refer to the local sale of goods and properties by a VAT-registered person to a person or entity who was granted indirect tax exemption under special laws. Thus, importation of S Co. is subject to VAT pursuant to Section 107 (A) of the Tax Code. [BIR RULING 581-2020, OCTOBER 6, 2020]
REQUISITES FOR HOMEOWNERS ASSOCIATION TO BE TAX EXEMPT
A Co., a non-stock non-profit association, is seeking a Certificate of Tax Exemption enjoyed by non-stock, non-profit corporation under Section 30 of the Tax Code. In reply, A Co. which is a residential homeowner association is not among those contemplated under Section 30 of the Tax Code, hence, it may not avail the tax exemption imposed under the said section. However, Revenue Memorandum Circular (RMC) No. 9-2013 provides that the association dues and income derived by A Co. from rentals of its properties may be exempted if the following conditions are met: (1) the homeowners association must be a duly constituted “Association”; (2) the Local Government Unit (LGU) having jurisdiction over the association must issue certification identifying the basic services being rendered by the homeowners association and stating in the certification that its lack of resources to render such services; and (3) the association must present proof that the income and dues are used for cleanliness , safety and other basic services needed by the members. Since there was no showing that A Co. met the conditions, the request for issuance of Certificate of Tax Exemption was denied. [BIR RULING NO. 576-2020, OCTOBER 6, 2020]
CITY OR MUNICIPALITY CONCERNED MUST BE LACKING IN RESOURCES TO PROVIDE FOR BASIC SERVICES IS A REQUISITE IN CLAIMING TAX EXEMPTION UNDER MAGNA CARTA FOR HOMEOWNERS
V Co. is requesting a ruling confirming its exemption from income tax and VAT or Percentage Tax pursuant to Section 18 of Republic Act (R.A.) No. 9904, otherwise known as the “Magna Carta for Homeowners and Homeowners’ Associations”. It is represented that V Co. is a non-stock and non-profit residential homeowners’ association duly registered with the Housing and Land Use Regulatory Board (HLURB). In reply, V Co. does not fall within the purview of homeowners’ associations which may be exempt from tax pursuant to Section 18 of R.A. No. 9904. Section 18 of R.A. No. 9904 provides a qualification that the city or municipality concerned must be lacking in resources to provide for basic services. Such requisite qualification is absent in the certification issued by the LGU presented by V Co. Thus, V Co. is subject to all applicable internal revenue taxes. [BIR RULING NO. 575-20, OCTOBER 6, 2020]
SALE OF LAND BY A TRUSTEE OF RETIREMENT FUND IS INCOME TAX EXEMPT
E Retirement Fund Co., a trustee, is seeking confirmation that the sale of a parcel of land registered under its name in trust for the E Corporation Retirement Fund is exempt from income tax. In reply, Section 60(B) of the Tax Code provides two (2) conditions in order that the earnings of a retirement fund may be exempt from income tax, to wit: 1) the contributions are made to the trust by the employer, or employees, or both for the purpose of distributing to such employees the earnings and principal of the fund accumulated by the trust in accordance with such plan; and 2) under the trust instrument it is impossible, at any time prior to the satisfaction of all liabilities with respect to employees under the trust, for any part of the corpus or income to be used for, or diverted to, purposes other than for the exclusive benefit of the employees. These two (2) conditions are sufficiently met by E Corporation Retirement Plan and approved as reasonable retirement benefit plan. In CIR v. Court of Appeals, G.R. No. 95022, the tax exemption of the income derived by a retirement fund from its investments had already been settled. The Supreme Court held that tax-exemption is likewise to be enjoyed by the income of the pension trust. Otherwise, taxation of those earnings would result in a diminution of accumulated income and reduce whatever the trust beneficiaries would receive out of the trust fund. Thus, E Corporation Retirement Plan, being a reasonable benefit plan, is exempt from income tax, and, consequently, from CWT on its sale of a parcel of land. [BIR RULING NO. 573-2020, OCTOBER 6, 2020]
STOCK DIVIDENDS ISSUED AFTER DEATH OF SHAREHOLDER NO LONGER PART OF INVENTORY OF THE DECEASED
Mrs. ZS, wife of the deceased Mr. ES, is seeking confirmation whether BIR Ruling No. 156-98 (DA-336-08) is still effective. In the said ruling, the BIR opined that stock dividends issued after the death of a shareholder no longer forms part of the inventory of assets of the deceased stockholder as these already belong to his heirs and that said stock dividends can be transferred to his heirs, without the necessity of having the Certificate Authorizing Registration and Tax Clearance Certificate amended. In reply, dividends are recognized as revenue on the date of declaration. Article 777 of the Civil Code provides that the rights to the succession are transmitted from the moment of the death of the decedent. Thus, Mr. ES’s properties, including the shares, are transmitted to his heirs through his death by virtue of intestate succession. From that time on, Mr. ES ceased to be its owner and any gain or benefit, such as stock dividend, realized from the shares shall then be accounted or credited to the heirs as the owners thereof. Since the stock dividends were declared when the ownership of the original shares has long been transmitted to Mr. ES’s heirs, the shares issued as stock dividends can be transferred to the heirs without amending the Certificate Authorizing Registration and Tax Clearance Certificate. [BIR RULING NO. 572-2020, OCTOBER 6, 2020]
TAX EXEMPTION OF NON-STOCK SAVINGS AND LOAN ASSOCIATION IS ONLY LIMITED TO INCOME TAX
- Co is seeking to revalidate its tax exemption pursuant to Republic Act (R.A.) No. 8367 entitled “An Act Providing for the Regulation of the Organization and Operation of Non-Stock Savings and Loan Associations”. As represented, S Co. is authorized to operate as a non-stock savings and loan association by the Bangko Sentral ng Pilipinas (BSP) as evidenced by its Certificate of Authority. In reply, Section 5 of R.A. No. 8367 provides for the exemption of a non-stock savings and loan association from income tax. However, such exemption does not cover income from properties, real or personal, or any activity conducted for profit, regardless of the manner of disposition. Given that Section 5 of R.A. No. 8367 only provides exemption from income tax, S Co. is liable to Gross Receipts Tax (GRT) on income derived from its operations. Likewise, S Co. shall also be subject to Documentary Stamp Tax (DST) on its transactions such as loan agreements, mortgages, pledges, foreclosures and sales. [BIR RULING NO. 569-20, OCTOBER 1, 2020]
TAX-RELATED CONSEQUENCES OF MERGER
D Properties Co., as the surviving corporation, is seeking confirmation on whether its merger with G.A. Holdings Co. and G.F Holdings Co. is a tax-free merger pursuant to Section 40 (C) of the 1997 Tax Code. In reply, BIR confirmed the following:
- Qualification for non-recognition of gain or loss for income tax purposes pursuant to the Articles and Plan of Merger.
- Exemption from DST, Donor’s Tax, and VAT on the transfer of assets.
- Exemption from DST on the cancellation of the surrendered shares by the absorbed corporations. However, DST shall be imposed on the (a) original issuance of shares by the surviving corporation in favor of the shareholders of the absorbed corporations; and (b) issuance of surviving corporation’s shares that were previously owned by the absorbed corporations and were reacquired.
- Entitlement to carry forward and apply the excess CWT of the absorbed corporations as credit against its income tax due, or may be subject of a claim for refund or issuance of tax credit certificate.
- Exclusion of NOLCO of the absorbed corporations as a deduction from its gross income. NOLCO is not an asset that can be transferred, as this privilege/deduction can be availed of by the absorbed corporations only.
- In order that the reorganization can be considered as merger under Section 40 (C) of the Tax Code, the parties to the merger should comply with the requirements set forth under Revenue Regulations (RR) No. 18-2001. [BIR RULING NO. 512-2020, SEPTEMBER 9, 2020]
III. TAX AND BUSINESS-RELATED NEWS [NOVEMBER 30-DECEMBER 4]
- A 4-day work week for 5 days’ pay? Unilever New Zealand is the latest to try
- PH medium-term export targets under review
- BIR collects P548M from closed shops
- Creba backs passage of Create
- Velasco ‘open’ to easing constitutional restriction on foreign investments
- BSP extends lower minimum liquidity ratio for small banks
- BSP orders non-banks to report crimes within 10 days
- Pag-IBIG postpones hike of decades-old contribution rate
- Customs bureau sees 2020 collection exceeding target
- Finance chief tells PITC: Return P1.15-B interest earnings to national treasury
A 4-day work week for 5 days’ pay? Unilever New Zealand is the latest to try [ABS-CBN News, December 4, 2020]
Unilever New Zealand said it would begin a one-year experiment to allow all 81 of its employees to earn their full salaries while working one day fewer per week, a move the company said might actually boost productivity and improve employees’ work-life balance.
PH medium-term export targets under review [Philippine Daily Inquirer, December 4, 2020]
The Department of Trade and Industry (DTI) is reviewing to see if reaching at least $122 billion worth of exported goods and services in 2022 is still doable, as the global market copes with the pandemic.
Source: https://business.inquirer.net/312973/ph-medium-term-export-targets-under-review#ixzz6fkhee5Jy
BIR collects P548M from closed shops [Manila Times, December 3, 2020]
The Bureau of Internal Revenue (BIR) raked in millions of taxes from closed shops in the first nine months of the year, according to the Department of Finance (DoF).
Creba backs passage of Create [Manila Times, December 3, 2020]
The Chamber of Real Estate and Builders’ Associations Inc. (Creba) on Wednesday called for the passage of the Corporate Recovery and Tax Incentives Reform Act (Create) to ramp up the country’s economic recovery.
Source: https://www.manilatimes.net/2020/12/03/business/business-top/creba-backs-passage-of-create/804265/
Velasco ‘open’ to easing constitutional restriction on foreign investments [ABS-CBN News, December 3, 2020]
House Speaker Lord Allan Velasco on Thursday said he is “open” to relaxing the constitutional restriction on foreign investments, but said the 18th Congress may no longer have time to pursue it.
BSP extends lower minimum liquidity ratio for small banks [Manila Bulletin, December 3, 2020]
The 16 percent minimum liquidity ratio (MLR) for stand-alone thrift, rural and cooperative banks has been extended until December 31, 2021, a year longer from its previous ending date of end-2020, based on a Bangko Sentral ng Pilipinas (BSP) memorandum.
Source: https://mb.com.ph/2020/12/03/bsp-extends-lower-minimum-liquidity-ratio-for-small-banks/
BSP orders non-banks to report crimes within 10 days [Manila Bulletin, December 3, 2020]
The Bangko Sentral ng Pilipinas (BSP) has instructed non-banks such as pawnshops to report crimes or losses of at least P20,000 or more within 10 days from its initial discovery.
Source: https://mb.com.ph/2020/12/03/bsp-orders-non-banks-to-report-crimes-within-10-days/
Pag-IBIG postpones hike of decades-old contribution rate [Manila Bulletin, December 2, 2020]
After consulting with labor and employer groups, Pag-IBIG Fund will defer the January 2021 increase of its members’ monthly contributions. This is in considerationof the plight of both workers and business owners during the pandemic.
Source: https://mb.com.ph/2020/12/02/pag-ibig-postpones-hike-of-decades-old-contribution-rate/
Customs bureau sees 2020 collection exceeding target [Philippine Daily Inquirer, December 1, 2020]
A consistent collection of duties and other taxes that exceeded targets for six months is driving confidence in the Bureau of Customs (BOC) of surpassing its full year target of collecting P506 billion.
Source: https://business.inquirer.net/312856/customs-bureau-sees-2020-collection-exceeding-target#ixzz6fkhncCPF
Finance chief tells PITC: Return P1.15-B interest earnings to national treasury [ABS-CBN News, November 30, 2020]
Finance Secretary Carlos Dominguez has asked the Department of Trade and Industry (DTI) to return to the Bureau of Treasury some P1.5 billion in interest earnings the Philippine International Trading Corp. (PITC) made through public funds lodged in the state trading company.
If you wish to get a copy of the complete texts of the above issuances, send us an email thru taxseminars@dmdcpa.com.ph.
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