BIR revokes preferential tax treatment for Clark Development Corp
- TAX & BUSINESS-RELATED NEWS [MAY 29-JUNE 5]
- SEC LEGAL OPINION ON THE HOSPITAL’S VALUE CARD NOT EQUIVALENT TO SECURITIES
- BIR DENIED TAX TREATY RULING ON DIVIDENDS
- TAX & BUSINESS-RELATED NEWS [MAY 29-JUNE 5]
- Next BSP chief known ‘in next few days’ – Diokno
- JV of Razon’s MORE Power, Ceneco to boost Negros electricity service
- SEC delays issuance of framework for crypto assets
- Alaska unfazed by prospect of cheap milk imports due to RCEP
- Ex-NEDA chief Karl Chua joins D&L Industries board
- Lapid wants further discount, VAT exemption for senior citizens’ water, electricity bills
- QC finalizes free bus ride for residents
- NEDA board OKs TPLEX extension linking Ilocos to Manila
- Thailand’s Krungsri, Japan’s MUFG to acquire Home Credit Philippines for P24.4-B
- MPIC delisting delayed anew pending valuation report
- Compliance breach: PSE suspends trading of Leviste’s SPNEC, Pagauitan’s Vulcan
- GCash says now accepted in UK, France, Germany, Italy
- Unequal footing no more: BIR revokes preferential tax treatment for Clark Development Corp
- Pinoy Gen Zs prefer remote work – survey
- Philippines’ top coal producer set to make second shipment to Japan
- DENR revises reporting standards for mineral exploration results
- Illicit trade syndicates funding organized crime groups – BIR chief
- NBI to demolish Manila headquarters
- PSA: Imported books are tax-free, duty-free under certain limits, Customs says
- Marcos orders review of tax system
- URC to buy Don Pedro’s mothballed sugar mill assets
- Pateros LGU confident in recovering Fort Bonifacio from Taguig
- Firm to invest $100M in bamboo wood plant
- SEC approves short-selling
- PSE says to dispute BIR’s 2017 P189-M tax deficiency findings
- PH shipping exodus seen sans escrow protection
- PH eyes improving VAT system amid ‘poor’ efficiency
- PBBM welcomes Thai firm’s $2.5-B investment pledge to boost agri
- Saudi Arabia eyes hiring 1M skilled Filipino workers over next 2 years
- Romualdez’s Prime Media says joint venture with ABS-CBN only for radio, not TV
- SEC LEGAL OPINION ON THE HOSPITAL’S VALUE CARD NOT EQUIVALENT TO SECURITIES
[OFFERING OF MEDICAL VALUE CARDS TO HOSPITAL DOES NOT REQUIRE A SECONDARY LICENSE] [MEDICAL VALUE CARDS DO NOT FALL UNDER SECURITIES UNDER THE SECURITIES REGULATION CODE]
Dr. V is requesting an opinion on whether the hospital’s marketing strategy of offering medical value cards would require a secondary license from the Commission. In reply, the Commission referred to Section 3.1 of the Securities Regulation Code (SRC) which provides that securities are shares, participation or interest in a corporation or in a commercial enterprise or profit-making venture and evidenced by a certificate, contract, instrument, whether written or electronic in character which includes investment contracts, certificates of interest or participation in a profit-sharing agreement, certificate of deposit for a future subscription. Citing the Supreme Court case of Roberto Yupangco and Regina De Ocampo vs. OJ Development and Trading Corporation, et. al., G.R. No. 242074, November 10, 2021, the “Howey Test” is employed to determine whether an agreement is an investment contract. However, one of the key elements of an investment contract is the expectation of profits which is absent under the disclosed features of the card as the same would only give a lifetime discount to the cardholders in board and lodging, laboratories, medical procedures, and dental services. Moreover, the offering of medical value cards does not fall under the other types of securities, hence, it does not require a secondary license from the Commission. [SEC OFFICE OF THE GENERAL COUNSEL LEGAL OPINION NO. 23-07, MAY 9, 2023]
- BIR DENIED TAX TREATY RULING ON DIVIDENDS
DENIED TAX TREATY RELIEF APPLICATION ON DIVIDEND PAYMENTS SINCE THE BENEFICIAL OWNER IS AN INDIVIDUAL & NOT CORPORATION IN SINGAPORE
V Co. is requesting confirmation that the dividend payments made to BBB, a Spanish individual and a resident of Singapore, are subject to the preferential income tax rate of 15% pursuant to Article 10 (2) (a) of the Philippine-Singapore (PH-SG) Tax Treaty. In reply, Section 25 (B) of the 1997 Tax Code, as amended, provides that income derived by a nonresident alien not engaged in trade or business within the Philippines is subject to income tax at the rate of 25%. However, under Section 32 (B) (5) of the same Code, such income is exempt to the extent required by any treaty obligation binding upon the Philippine government. In this relation, Article 10 of the PH-SG Tax Treaty provides that the lower rate of 15% shall be applied only when the recipient is the beneficial owner of the dividends and a company that holds at least 15% of the outstanding shares of the voting stock of the paying company during the part of latter’s taxable year which precedes the date of payment of the dividend and during the whole of its prior taxable year, if any. Given that the second requisite is absent since the beneficial owner of the dividends is an individual resident of Singapore and not a company, a higher rate of 25% shall be imposed on the dividends paid. [BIR ITAD RULING NO. 006-23, MARCH 21, 2023]
Next BSP chief known ‘in next few days’ – Diokno [The Philippine Star, June 5, 2023]
“I have been consistent in saying that the governor of BSP should not be an ex-banker. That is a disqualification because you will be one of the boys,” Diokno told reporters.
https://www.philstar.com/business/2023/06/05/2271443/next-bsp-chief-known-in-next-few-days-diokno
JV of Razon’s MORE Power, Ceneco to boost Negros electricity service [Inquirer Mobile, June 5, 2023]
A unit of power distribution utility MORE Power Iloilo is seeking a joint venture agreement with an electric cooperative in Negros Occidental to address illegal power tapping in the province amid tight supply.
SEC delays issuance of framework for crypto assets [The Philippine Star, June 5, 2023]
The Securities and Exchange Commission (SEC) has pushed back the issuance of a framework for the issuance of digital assets in the Philippines, heeding the lessons from the collapse of Bahamas-based cryptocurrency exchange FTX in late 2022.
https://www.philstar.com/business/2023/06/05/2271456/sec-delays-issuance-framework-crypto-assets
Alaska unfazed by prospect of cheap milk imports due to RCEP [Inquirer Mobile, June 5, 2023]
Import tariffs on milk products stood at 3 percent before RCEP, with most of these goods seeing it reduced to zero during the first year of implementation of the regional free trade agreement.
Ex-NEDA chief Karl Chua joins D&L Industries board [The Philippine Star, June 5, 2023]
Former Socioeconomic Planning Secretary Karl Kendrick Chua will join the board of listed chemicals manufacturer D&L Industries as an independent director.
Lapid wants further discount, VAT exemption for senior citizens’ water, electricity bills [Manila Bulletin, June 5, 2023]
Senator Manuel “Lito” Lapid has called for the passage of a bill seeking to further provide discounts to senior citizens, by giving them the five percent discount on water and electricity bills.
QC finalizes free bus ride for residents [manilastandard.net, June 4, 2023]
The current Q City Bus Program is now a part of the implemented programs of the city government-managed public transport system after Belmonte signed Ordinance No. SP-3184, S-2023, introduced by Councilors Alfred Vargas and Ram Medalla.
https://manilastandard.net/lgu/314337250/qc-finalizes-free-bus-ride-for-residents.html
NEDA board OKs TPLEX extension linking Ilocos to Manila [ABS-CBN News, June 2, 2023]
National Economic And Development Authority Secretary Arsenio Balisacan said the NEDA Board, which is chaired by President Ferdinand Marcos Jr, approved the P23.4 billion expressway which will connect the Ilocos Region to Central Luzon and Metro Manila.
https://news.abs-cbn.com/business/06/02/23/neda-board-oks-tplex-extension-linking-ilocos-to-manila
Thailand’s Krungsri, Japan’s MUFG to acquire Home Credit Philippines for P24.4-B [ABS-CBN News, June 2, 2023]
Home Credit Philippines or HC Consumer Finance Philippines Inc said on Friday it was acquired by Thailand’s Bank of Ayudhya PCL or Krungsri and Japan’s Mitsubishi UFJ Financial Group for P24.4 billion.
https://news.abs-cbn.com/business/06/02/23/krungsri-mufg-to-acquire-home-credit-philippines
MPIC delisting delayed anew pending valuation report [Inquirer Mobile, June 2, 2023]
The voluntary exit of the Metro Pacific Investment Corp. (MPIC) from the main board of the local bourse will take more time as the P49-billion tender offer will not be put up for a vote during the upcoming annual shareholders’ meeting (ASM) after a valuation report on the company is finalized.
Compliance breach: PSE suspends trading of Leviste’s SPNEC, Pagauitan’s Vulcan [Bilyonaryo, June 2, 2023]
Trading in shares of techpreneur Leandro Leviste’s SPNEC and former mayor Hilario G. Pagauitan-led Vulcan Industrial & Mining was halted on June 2 after their public ownership level fell below the mandated minimum of 20 percent.
GCash says now accepted in UK, France, Germany, Italy [ABS-CBN News, June 2, 2023]
Harrods, Liberty London and Harvey Nichols in the UK; Printemps in France; Müller and dm-drogerie markt in Germany, as well as itTaxi, and IVS Group in Italy, are among the merchants that accept GCash payments via Alipay+, GCash said in a statement.
https://news.abs-cbn.com/business/06/02/23/gcash-says-now-accepted-in-uk-france-germany-italy
Unequal footing no more: BIR revokes preferential tax treatment for Clark Development Corp [Bilyonaryo, June 1, 2023]
Lumagui said “despite being structured as a stock corporation, it is evident that CDC is a GOCC that operates and performs as a regulatory agency. Thus, unless there is a law that expressly states otherwise, CDC must be treated on par with other GOCCs regardless of its formation or the nature of its operations.”
Pinoy Gen Zs prefer remote work – survey [The Philippine Star, June 1, 2023]
Filipino students prefer to work remotely and expect to earn an annual salary of P374,403 or around P31,000 per month once they finish school, according to a survey conducted by an employer branding firm.
https://www.philstar.com/headlines/2023/06/01/2270562/pinoy-gen-zs-prefer-remote-work-survey
Philippines’ top coal producer set to make second shipment to Japan [interaksyon, June 1, 2023]
Top Philippine coal producer Semirara Mining and Power Corp. said on Thursday it will ship 50,000 tonnes of coal to Japan’s Shikoku Electric Power Co Inc., as it diversifies its export markets and cuts reliance on China.
DENR revises reporting standards for mineral exploration results [The Philippine Star, June 1, 2023]
The new guidelines amended Departmnent Administrative Order 2010-09 to allow the local mining industry to adopt with advances and upgrades of internationally accepted standards as set out in the Philippine Mineral Reporting Code of 2020 (PMRC 2020).
Illicit trade syndicates funding organized crime groups – BIR chief [Inquirer.Net, June 1, 2023]
“In many instances, money generated from illicit trade is used to fund organized crime resulting in heightened security risks both locally and internationally,” Lumagui said.
NBI to demolish Manila headquarters [The Philippine Star, May 31, 2023]
The NBI has moved its operations to the V-Tech Tower along Quezon Avenue in Quezon City.
https://www.philstar.com/nation/2023/05/31/2270404/nbi-demolish-manila-headquarters
PSA: Imported books are tax-free, duty-free under certain limits, Customs says [interaksyon, May 31, 2023]
“Are you planning to purchase books from abroad? Good news! You can import books to the Philippines without paying any customs duties and taxes, as long as they are not intended for advertising purposes,” BOC said.
Marcos orders review of tax system [The Manila Times, May 31, 2023]
Marcos presided over a sectoral meeting on Tuesday in Malacañang to discuss the fiscal incentives for exports and domestic market-oriented enterprises.
https://www.manilatimes.net/2023/05/31/news/national/marcos-orders-review-of-tax-system/1893758
URC to buy Don Pedro’s mothballed sugar mill assets [Inquirer Mobile, May 31, 2023]
Gokongwei-led food and beverage giant Universal Robina Corp. (URC) is acquiring the mothballed assets of Central Azucarera Don Pedro Inc. (Cadpi) that will accelerate the expansion of its sugar mill in Batangas province.
Pateros LGU confident in recovering Fort Bonifacio from Taguig [Manila Bulletin, May 31, 2023]
Case 73387-TG was filed by Pateros on March 27, 2012 before the Pasig RTC Branch 271 against Makati and Taguig, which sought “judicial declaration that Parcel 4 of Survey Plan Psu-2031 comprising about 766 ha., partly occupied by respondents Makati and Taguig, is within the territorial jurisdiction of Pateros,” according to the Supreme Court decision.
https://mb.com.ph/2023/5/31/pateros-confident-in-winning-case-to-recover-lands-from-taguig
Firm to invest $100M in bamboo wood plant [The Manila Times, May 31, 2023]
A COMPANY fronted by former Agriculture secretary Luis Lorenzo Jr. is investing up to $100 million or P5.5 billion to put up an engineered bamboo wood plant in Cagayan de Oro City.
SEC approves short-selling [The Philippine Star, May 31, 2023]
Short-selling is a trading strategy wherein investors bet on a stock whose price is deemed to fall. It involves an investor borrowing shares and then buying the same number of shares at a lower price.
https://www.philstar.com/business/2023/05/31/2270252/sec-approves-short-selling
PSE says to dispute BIR’s 2017 P189-M tax deficiency findings [ABS-CBN News, May 30, 2023]
In a disclosure, the PSE said the assessment involves alleged deficiencies in various taxes such as income tax, value-added tax, and expanded withholding tax, among others.
https://news.abs-cbn.com/business/05/30/23/pse-says-to-dispute-birs-2017-tax-deficiency-findings
PH shipping exodus seen sans escrow protection [Inquirer Mobile, May 30, 2023]
Associated Marine Officers and Seamen’s Union of the Philippines legal head Noli Partido said the escrow provision in House Bill No. 7325 protects seafarers as wages, statutory claims and undisputed claims would not be included in the mandatory escrow account, a provision currently missing in a counterpart bill in the Senate.
PH eyes improving VAT system amid ‘poor’ efficiency [ABS-CBN News, May 30, 2023]
Compared to the Philippines, Indonesia has a 0.50 VAT efficiency level with 11 percent VAT rate, Singapore’s efficiency level is at 0.71 while its VAT rate is just at 8 percent. Meanwhile, Vietnam has a 0.70 efficiency level and an 8 percent VAT rate and Thailand has a 0.79 efficiency rate with its 7 percent VAT level, DOF data showed.
https://news.abs-cbn.com/business/05/30/23/ph-eyes-improving-vat-system-amid-poor-efficiency
PBBM welcomes Thai firm’s $2.5-B investment pledge to boost agri [Philippine News Agency, May 30, 2023]
President Ferdinand R. Marcos Jr. welcomed Tuesday the plan of Thailand conglomerate Charoen Pokphand Group (CP Group) to invest about USD2.5 billion (PHP140.8 billion) to further boost the Philippines’ agriculture sector.
https://www.pna.gov.ph/articles/1202532
Saudi Arabia eyes hiring 1M skilled Filipino workers over next 2 years [The Philippine Star, May 30, 2023]
According to Ople, Saudi Arabia’s hospitality, construction, and information and technology sectors need more Filipino workers.
Romualdez’s Prime Media says joint venture with ABS-CBN only for radio, not TV [Rappler, May 29, 2023]
“The objective of the JV is to provide accurate and balanced news and information to the country and public service. The content produced by the joint venture will be distributed to radio, cable TV and other platforms, including the stations under Philippine Collective Media Company (PCMC). The business model is similar to various local studios and production companies but the content we will produce are not for free TV broadcast,” Prime Media president and chairman Manolito Manalo said.
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