BIR FURTHER AMENDS CERTAIN PROVISIONS OF THE TRAIN LAW RELATIVE TO THE CWT RATES ON MERALCO REFUND
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [DECEMBER 16-21]
- NEW SCHEDULE OF SSS CONTRIBUTIONS BY JANUARY 2023
- SUPREME COURT CASE ON REAL PROPERTY TAX EXEMPTION OF LRT
- FIRB SETS THE DEADLINE FOR THE SUBMISSION OF THE ANNUAL TAX INCENTIVES REPORT (ATIR) & ANNUAL BENEFITS REPORTS (ABR) FOR THE TAXABLE YEAR 2022 PURSUANT TO CREATE LAW
- BIR FURTHER AMENDS CERTAIN PROVISIONS OF THE TRAIN LAW RELATIVE TO THE CWT RATES ON MERALCO REFUND
- SEC TRANSFERS HEADQUARTER’S ADDRESS TO MAKATI CITY & CEASES PASAY OPERATIONS
1. TAX & BUSINESS-RELATED NEWS [DECEMBER 16-21]
- PSE issues show cause order to PLDT
- SEC says to only accept online, offsite payments starting February 2023
- Belmonte is top performing NCR mayor for 2022 – survey
- TikTok under pressure as US lawmakers push government ban
- Cybercriminals scam each other out of millions of dollars and take their complaints to Arbitration Rooms, Sophos reports
- PH pitches Central Luzon to South Korean firms
- KFC embraces seniors as staff members
- Yellow Bus to file contempt case vs Koronadal execs for closing its private terminal
- SEC to probe PLDT budget overrun issue; trading losses
- Marcoleta on Pinoy construction workers’ pay in Guam: $500 a week!
- Tulfo seeks free legal education in exchange for two-year gov’t service
- Heads to roll at PLDT, says ‘disappointed’ MVP
- Gov’t workers to receive service incentives
- Tax perks of hundreds of BPOs hang in the balance
- BSP actively promotes warehouse receipts financing
- P200-M Bulacan State University campus opens in San Rafael
- D&L sees growth opportunities in organic products
- PHL given 3 months to comply with EU standards on seafarers
- Megawide closes Cebu airport sale to Aboitiz
- ALI to develop P5.2 billion estate in Bulacan
PSE issues show cause order to PLDT [Manila Bulletin, December 21, 2022]
The Philippine Stock Exchange has issued a show cause letter to PLDT Inc. asking for clarification on the disclosure they made last December 16 regarding P48 billion in “budget overruns.”
https://mb.com.ph/2022/12/21/pse-issues-show-cause-order-to-pldt/
SEC says to only accept online, offsite payments starting February 2023 [ABS-CBN News, December 21, 2022]
All payments will be accepted only through Electronic System for Payments to the SEC (eSPAYSEC) at www.espaysec@sec.gov.ph, or at any branch of the Land Bank of the Philippines (LANDBANK) nationwide by February, the SEC said in a notice dated Dec. 14.
Belmonte is top performing NCR mayor for 2022 – survey [Manila Bulletin, December 21, 2022]
Quezon City Mayor Joy Belmonte took the number one spot in the “Top NCR (National Capital Region) Mayors for the Year 2002 ” survey of the RP- Mission and Development Foundation Incorporated (RPMD) conducted from Nov. 27 to Dec. 2.
https://mb.com.ph/2022/12/21/belmonte-is-top-performing-ncr-mayor-for-2022-survey/
TikTok under pressure as US lawmakers push government ban [The Philippine Star, December 21, 2022]
The US Congress is on the cusp of approving a nationwide ban on using TikTok on government devices because of perceived security risks — thrusting the hugely popular video-sharing platform into a delicate position over Washington’s ties to China.
Cybercriminals scam each other out of millions of dollars and take their complaints to Arbitration Rooms, Sophos reports [Manila Bulletin, December 21, 2022]
Sophos announced in the first of a four-part series, “The Scammers Who Scam Scammers on Cybercrime Forums,” that cybercriminals are scamming each other out of millions of dollars and use arbitration to settle disputes about the scams. The report also reveals how attackers use classic techniques—some decades old, such as typosquatting, phishing, backdoored malware, and fake marketplaces—to carry out their scams against each other.
PH pitches Central Luzon to South Korean firms [Philippine Daily Inquirer, December 21, 2022]
A free trade agreement between the Philippines and South Korea is expected to be signed early next year, which is seen to improve trade and investment relations between the two countries.
https://business.inquirer.net/378805/ph-pitches-central-luzon-to-sokor-firms
KFC embraces seniors as staff members [Manila Bulletin, December 21, 2022]
KFC Philippines is now hiring qualified housewives, househusbands and elderly individuals as part of their store crew because they believe that their experience will be value-adding and to make them feel that they are welcome in KFC to serve quality food.
https://mb.com.ph/2022/12/21/kfc-embraces-seniors-as-staff-members/
Yellow Bus to file contempt case vs Koronadal execs for closing its private terminal [MindaNews, December 20, 2022]
Last Friday, Ogena ordered the shutdown of the private terminal of Yellow Bus along GenSan Drive in Zone 3 due to lack of a business permit.
SEC to probe PLDT budget overrun issue; trading losses [ABS-CBN News, December 20, 2022]
PLDT earlier said it is undergoing reorganization after the overrun was discovered. It said its main business units – Wireless, Home and Enterprise – were not affected.
https://news.abs-cbn.com/business/12/20/22/sec-to-probe-pldt-budget-overrun-issue
Marcoleta on Pinoy construction workers’ pay in Guam: $500 a week! [Manila Bulletin, December 20, 2022]
Marcoleta took part in a fact-finding mission in the United States (US) territory that lasted from Dec. 11 to 15. The mission was led by House Committee on Overseas Workers Affairs Chairman Kabayan Rep. Ron Salo.
https://mb.com.ph/2022/12/20/marcoleta-on-pinoy-construction-workers-pay-in-guam-500-a-week/
Tulfo seeks free legal education in exchange for two-year gov’t service [The Philippine Star, December 20, 2022]
Sen. Raffy Tulfo has filed a bill that seeks to make attending law school in state universities and colleges free, but those who graduate and eventually become lawyers must work in government for two years.
Heads to roll at PLDT, says ‘disappointed’ MVP [Inquirer Mobile, December 19, 2022]
He also ordered the hiring of a third-party auditor that was not associated with PLDT’s external auditor, SGV & Co., to scour the company’s books from top-to-bottom to search for potential cases of fraud.
Gov’t workers to receive service incentives [Manila Bulletin, December 19, 2022]
The Department of Budget and Management (DBM) said President Marcos has approved the release of a one-time Service Recognition Incentive (SRI) to qualified government workers ahead of the holiday celebrations.
https://mb.com.ph/2022/12/19/govt-workers-to-receive-service-incentives/
Tax perks of hundreds of BPOs hang in the balance [Inquirer Mobile, December 19, 2022]
Information released on Friday by the Board of Investments (BOI), one of the Department of Trade and Industry’s investment promotion agencies, said they received only 786 endorsements as of the morning of Dec. 15, a day before the Dec. 16 deadline.
BSP actively promotes warehouse receipts financing [Manila Bulletin, December 19, 2022]
An updated law will expand access to credit by professionalizing the warehousing activity through the accreditation of warehouses and warehouse operators and establishment of an electronic warehouse receipts registry, explained the BSP.
https://mb.com.ph/2022/12/19/bsp-actively-promotes-warehouse-receipts-financing/
P200-M Bulacan State University campus opens in San Rafael [The Manila Times, December 19, 2022]
THE new San Rafael campus of the Bulacan State University (BulSU) in Barangay San Roque, San Rafael, Bulacan was formally inaugurated on Dec. 14, 2022.
D&L sees growth opportunities in organic products [CNN, December 19, 2022]
Listed D&L Industries, through its sister company, hopes to boost its revenue streams with a venture focused on organic personal care products targeting the country’s high-end consumer market.
PHL given 3 months to comply with EU standards on seafarers [BusinessWorld, December 18, 2022]
The Philippines was given three months from the creation of the advisory board by the European Commission to remedy all the deficiencies pointed out by the European Maritime Safety Agency (EMSA), Mr. Marcos noted in his return speech from Belgium streamed live on Facebook.
Megawide closes Cebu airport sale to Aboitiz [Inquirer Mobile, December 17, 2022]
The P25-billion deal allows Aboitiz Equity Ventures subsidiary Aboitiz InfraCapital Inc. to take full ownership of the airport venture known as GMR Megawide Cebu Airport Corp. by 2024.
ALI to develop P5.2 billion estate in Bulacan [The Philippine Star, December 16, 2022]
Ayala Land Inc. (ALI) is pouring an initial investment of P5.2 billion to jumpstart its newest estate, Crossroads, which will rise in Plaridel, Bulacan.
https://www.philstar.com/business/2022/12/16/2231067/ali-develop-p52-billion-estate-bulacan
2. NEW SCHEDULE OF SSS CONTRIBUTIONS BY JANUARY 2023
Social Security System (SSS) Circular No. 2022-033, issued on December 13, 2022, announces the new schedule of SSS contributions effective January 2023 with the increase in SS contribution rate to 14%, the minimum Monthly Salary Credit (MSC) to Php 4,000, and the maximum MSC to Php 30,000, as per Social Security Commission (SSC) Resolution No. 751, Series of 2022, dated November 25, 2022. The new table reflects the contributions for SS, the Employees’ Compensation (EC), and the Workers’ Investment and Savings Program (WISP) administered by SSS.
3. SUPREME COURT CASE ON REAL PROPERTY TAX EXEMPTION OF LRT
[AN INSTRUMENTALITY OF THE NATIONAL GOVERNMENT CANNOT BE TAXED BY LOCAL GOVERNMENT] [PROPERTIES OWNED BY A NATIONAL GOVERNMENT INSTRUMENTALITY ARE EXEMPT FROM REAL PROPERTY TAXATION] [REAL PROPERTY OWNED BY THE STATE IS NOT TAXABLE]
Petitioner Light Rail Transit Authority filed a Petition for Review seeking the cancellation of the earlier Resolution of the Court of Appeals affirming the ruling of the Regional Trial Court that Petitioner should not be extended a tax exemption. Petitioner claimed that it is a government instrumentality exempt from local taxation. It is operating the light rail system for the Republic of the Philippines, which is the true owner of the subject real properties. In ruling, the Court discussed the definition of a government instrumentality and a Government-Owned and Controlled Corporation (GOCC) in relation to the Administrative Code of 1987. A close scrutiny of the definition of GOCC in the said Code will show that the Petitioner would not fall under such definition. Since the Petitioner is neither a stock nor a non-stock corporation, it does not qualify as a GOCC. Petitioner is merely an attached agency to the Department of Transportation. Hence, the Petitioner, being an instrumentality of the national government, cannot be taxed by local government. The Court agreed with the Petitioner’s position that the real owner of the properties is actually the State and concluded that the properties of the Petitioner are not merely patrimonial properties but are properties of the public dominion that cannot be subjected to real property tax. Consequently, the Petition was GRANTED. [LIGHT RAIL TRANSIT AUTHORITY VS. CITY OF PASAY, REPRESENTED BY THE CITY TREASURER & THE CITY ASSESSOR, G.R. NO. 211299, JUNE 28, 2022, UPLOADED NOVEMBER 8, 2022]
4. FIRB SETS THE DEADLINE FOR THE SUBMISSION OF ATIR & ABR FOR THE TAXABLE YEAR 2022 PURSUANT TO CREATE LAW
Fiscal Incentives Review Board (FIRB) Advisory No. 010-2022, dated November 23, 2022, reminds all the Investment Promotion Agencies (IPAs), Registered Business Enterprises (RBEs), and Other Registered Entities (OREs) of the deadline for the submission of the Annual Tax Incentives Report (ATIR) and Annual Benefits Reports (ABR) for the taxable year 2022. The deadline for the RBEs and OREs to submit all annexes of ATIR and ABR shall be on May 17, 2023. Following the deadline for the RBEs and OREs for all annexes of ATIR and ABR, the IPAs and OGAs shall submit the consolidated ATIR and ABR per IPA to the FIRB and Bureau of Internal Revenue (BIR) on June 16, 2023.
It may be recalled that under CREATE Law Implementing Rules and Regulations (IRR) Part IV, Rule 11, Section 2, all RBEs and OREs availing of tax incentives shall, within thirty (30) calendar days from the statutory deadline for filing of tax returns and payment of taxes, are required to submit to the IPAs or OGAs administering tax incentives the ATIR and ABR, copy furnish the FIRB.
5. BIR FURTHER AMENDS CERTAIN PROVISIONS OF THE TRAIN LAW RELATIVE TO THE CWT RATES ON MERALCO REFUND
Revenue Regulations (RR) No. 15-2022, issued on December 9, 2022, further amends certain provisions of RR No. 2-98 as amended by RR No. 11-2018, which implemented the provisions of Republic Act (RA) No. 10963, otherwise known as the “Tax Reform for Acceleration and Inclusion (TRAIN) Act,” relative to some changes in the rate of Creditable Withholding Tax (CWT) on certain income payments, particularly on the MERALCO Refund.
Highlights include:
- MERALCO refund arising from the ERC Case No. 2020-043, ERC Case Nos. 2010-069, and RC Orders promulgated on February 19, 2021, and April 29, 2022, shall now be subject to 15% CWT on the gross amount of refund given by MERALCO to non-residential customers.
- Interest income on the refund of meter deposits determined, computed, and paid in accordance with the Distribution Services and Open Access Rules (DSOAR); (i) Residential and General Service customers whose monthly electricity exceeds 200 kwh as classified by MERALCO shall now be subject to 10% CWT, whereas (2) Non-Residential Customers will be subject to a 15% CWT.
- Interest income on the refund paid through direct payment or application against customer’s billings by other electric Distribution Utilities (DUs); (i) Residential and General Service customers whose monthly electricity consumption exceeds 200 kwh-as classified by the concerned DU shall now be subject to 10% CWT, while (2) Non-Residential Customers will be subject to a 15% CWT.
6. SEC TRANSFERS HEADQUARTER’S ADDRESS TO MAKATI CITY & CEASES PASAY OPERATIONS
In an Advisory issued on December 1, 2022, the Securities and Exchange Commission (SEC) has informed the public that it has moved and completed its transfer to its main office operations to The SEC Headquarters, 7907 Makati Avenue, Salcedo Village, Bel-Air, Makati City as of November 30, 2022. Likewise, the SEC has ceased operations at its former main office within the Philippine International Convention Center (PICC) Complex in Pasay City. The SEC will continue to observe a “zero face-to-face transaction” policy, in line with the zero-contact policy and automation of business-related transactions mandated by Republic Act No. 11032 or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018.
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