BIR CIRCULARIZES THE NEW DAILY MINIMUM WAGE RATES IN NCR EFFECTIVE JULY 16, 2023
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [JULY 17-24]
- BIR CIRCULARIZES THE NEW DAILY MINIMUM WAGE RATES IN NCR EFFECTIVE JULY 16, 2023
- BIR RULINGS ON HOMEOWNERS’ ASSOCIATION, VAT-EXEMPT IMPORTATION OF CARGO VESSEL & VAT-EXEMPT SOCIALIZED HOUSING PROJECTS
- CTA CASE ON THE EXTENT OF LGU POWER TO TAX
- TAX & BUSINESS-RELATED NEWS [JULY 17-24]
- Megaworld to open 1,500-room ‘PH’s biggest hotel’ before end of 2023
- Dennis Uy’s embattled resort seeks fresh funding
- GT Capital looks for opportunity in power sector
- PSE hits back at Holcim
- RPMD survey shows top performing NCR mayors, representatives
- Laguesma admits possible worker displacement due to artificial intelligence
- Retired tax court justice sworn in as JBC member
- J&J must pay $18.8 million to California cancer patient in baby powder suit
- Manila Water to spend P7.84 billion for new Laguna treatment plant
- First PH agricultural import inspection hub rising in Bulacan
- Basic Energy Corp says to add nearshore wind project in Balayan
- DoubleDragon offers golden visa incentive
- Spanish court opens new tax probe into singer Shakira
- Foreigner med school grads can get license, practice in PH
- SC orders Makati to pay P1.26B in deficiency taxes
- UP becomes 1st PH university to craft guidelines for ‘responsible’ AI use
- CHED eyes scholarships for master’s degrees in nursing
- SEC denies Dennis Uy’s request to add asset sale on agenda of stockholders’ meeting
- Batangas eyes regional fish port, housing for gov’t employees
- PPA to open first cruise port in October
- BIR raids more than 700 stores over unpaid excise taxes
- NEDA OKs private takeover of Laguindingan Airport
- Tax bureau eyes boost from continued reforms
- ICTSI bags deal to privatize South African terminal
- Pag-IBIG housing loans made more affordable
- UnionBank deploys dollar-dispensing ATMs
- Phinma Corp. buys assets from parent firm
- PEZA prequalifies 8 ecozone projects worth P 33B
- Nissan Philippines and Department of Tourism launch ‘Drive Pinas’ initiative
- Revilla vows to continue pushing for P150-legislated wage hike
- BIR CIRCULARIZES THE NEW DAILY MINIMUM WAGE RATES IN NCR EFFECTIVE JULY 16, 2023
Revenue Memorandum Circular (RMC) No. 76-2023 issued on July 13, 2023, circularizes the New Daily Minimum Wage Rates in certain sectors/industries under the National Capital Region (NCR) as prescribed by Wage Order No. NCR-24, which was approved on June 26, 2023, and published at The Philippine Star on June 30, 2023. The Wager Order shall take effect after fifteen (15) days from its publication, or on July 16, 2023.
- BIR RULINGS ON HOMEOWNERS’ ASSOCIATION, VAT-EXEMPT IMPORTATION OF CARGO VESSEL & VAT-EXEMPT SOCIALIZED HOUSING PROJECTS
EXTENT OF TAX EXEMPTION OF HOMEOWNERS’ ASSOCIATION
P Homeowners Association, a non-stock, and non-profit residential homeowners’ association, is requesting a tax exemption pursuant to the Republic Act (R.A.) No. 9904 or “Magna Carta for Homeowners and Homeowners’ Associations” in reference to Revenue Memorandum Circular (RMC) No. 9-2013 which clarifies the taxability of association dues, membership fees, and other assessments/charges collected by Homeowners’ Associations. As represented, it is a duly registered Homeowners’ Association with the Housing and Land Use Regulatory Board (HLURB); that its financial statements show the delivery of basic community services under Section 3(d) of R.A. No. 9904; and that the Local Government Unit (LGU) having jurisdiction of the Homeowners Association has issued a Certificate that it does not provide material or financial assistance to the Association in the maintenance of its subdivision since it is a private subdivision and the allocation of funds for private subdivisions is contrary to law. In ruling, income derived from association dues, membership fees, other assessments, and charges collected in a purely reimbursement basis and rentals of facilities is exempt from income tax, Value-Added Tax (VAT), or Percentage Tax, whichever is applicable; provided, that such income and dues shall be used for the cleanliness, safety, security, and other basic services needed by the members, including the maintenance of the facilities of their respective subdivisions or villages. However, it shall be subject to the applicable internal revenue taxes on its other income from trade, business, or other activities. [BIR RULING NO. 076-2023, JUNE 09, 2023]
VAT-EXEMPT IMPORTATION OF CARGO VESSEL
RSL, a corporation engaged in the domestic shipping business duly accredited by Maritime Industry Authority (MARINA), is requesting Value-Added Tax (VAT) Exemption on its importation of one unit deck cargo vessel pursuant to Section 109 (1)(T) of the 1997 Tax Code, as amended. In reply, Section 109 (1)(T) of the 1997 Tax Code, as amended, provides that the importation of cargo vessels destined for domestic transport operations shall be exempt from VAT. In relation, Section 4.109-1 (B)(1)(t) of the Revenue Regulations (RR) No. 16-2005, as amended by RR No. 15-2015, provides that for importation to be VAT-exempt, the importation of cargo vessel shall be subject to the requirements on restriction on vessel importation and mandatory vessel retirement program of MARINA. As noted, the imported deck cargo vessel has been issued by MARINA with the required. Hence, the importation of the said vessel is deemed compliant with the requirements on restriction on vessel importation and mandatory vessel retirement program of MARINA, thus, VAT exempt. [BIR RULING NO. 075-2023, JUNE 9, 2023]
EXTENT OF VAT EXEMPTION OF SOCIALIZED HOUSING PROJECTS
A Co. is requesting an exemption from payment of taxes in connection with the construction of Mariano Marcos State University IP Student Dormitory Project. In reply, socialized housing is defined as housing projects and programs covering homes and lots or home lots only undertaken by the government or the private sector for the underprivileged and homeless citizens which shall include sites and services development, long-term financing, and other benefits pursuant to Section 20 of the Republic Act (R.A.) No. 7279, as amended by R.A. No. 10884 (Balanced Housing Development Program Amendments). Here, the construction of A Co. of the subject dormitory is outside the definition of “socialized housing” in relation to the tax incentives under Section 10 of the R.A. No. 7279 since the grant of exemption is limited and with the view to reduce the cost of housing units for the benefit of the underprivileged and homeless. Consequently, the request for tax exemption from project-related income tax and Value-Added Tax (VAT) is DENIED. [BIR RULING NO. 030-2023, APRIL 12, 2023]
- CTA CASE ON THE EXTENT OF LGU POWER TO TAX
IT WILL BE DIFFICULT FOR LGUs TO ENJOY GENUINE & MEANINGFUL LOCAL AUTONOMY IF THEY COULD INCREASE ONLY UP TO 10% OF THE TAX RATES UNDER THE LOCAL GOVERNMENT CODE (LGC) DURING ITS ENTIRE EXISTENCE
Petitioner San Roque Power Corporation filed a Petition for Review seeking to annul the earlier Decision and Resolution denying its claim for a refund or tax credit of the excess Local Business Tax (LBT). Petitioner insisted that Section 191 and Article 281 of the IRR limit the LGU’s authority to increase LBT at a rate not exceeding 10% of the rate imposed in Section 143 of the LGC; that the 10% cap under Section 191 is a cap on aggregate adjustments; and the LGU’s aggregate adjustments cannot go beyond 10%. On the other hand, the Respondent Municipality of San Manuel, Pangasinan countered that the pronouncements of the Supreme Court (SC) in the De Lima and Mindanao Shopping cases would negate the allegation of the Petitioner that the adjustment referred to in Section 191 is a cumulative or aggregate adjustment of the tax rates and that the adjustment be reckoned on the rates fixed under the LGC. In ruling, the Court finds merit on the Respondent’s arguments. In the De Lima case, the SC explicitly declared that the option to increase the tax rates under the LGC arises every five (5) years. When the LGU decides to take that option, the basis for the adjustment or increase would be the prevailing tax rate. In the Mindanao Shopping case, the SC clarified that the maximum 10% adjustment under Section 191 of the LGC is based on the adjusted tax rate. Given the foregoing jurisprudential pronouncement and the 10% threshold under Section 191, Respondent San Manuel could have increased the LBT rate to 66% of 1% of gross sales or receipts. Still, it only imposed 65% of 1%. Indeed, Respondent San Manuel did not violate Section 191 when it passed Section 2A.02 (b) and (c) of the 2018 Revenue Code, increasing the LBT rate from 60% of 1% to 65% of 1% in excess of Php 2 Million gross sales or receipts on “wholesalers, distributors, or dealers in any article of commerce of whatever kind or nature” and on “contractors, and other independent contractors,” based on the prevailing or adjusted tax rate. Hence, the Petitioner is not entitled to refund the alleged excess LBT paid. Moreover, having established that the elements of litis pendentia are present, the Court ruled that Petitioner is guilty of forum shopping. Consequently, the Petition was DENIED. [SAN ROQUE POWER CORPORATION VS. MUNICIPALITY OF SAN MANUEL, PANGASINAN & ELIZABETH T. CORPUZ IN HER CAPACITY AS MUNICIPAL TREASURER OF SAN MANUEL, PANGASINAN, CTA AC NO. 256, MAY 10, 2023]
Megaworld taps AI to predict disasters in townships [Inquirer Mobile, July 17, 2023]
Property giant Megaworld Corp. is opening a data science lab that will use artificial intelligence (AI) to help the company rapidly respond to disasters and accidents across its 30 townships in the country.
CVC Capital set to take control of The Medical City [Inquirer Mobile, July 17, 2023]
Luxembourg-based private equity and investment firm CVC Capital Partners will acquire a majority stake in The Medical City (TMC), thus ending a five-year dispute among the top stakeholders of one of the country’s premier private health-care institutions.
Lucio Co set to list P 30-B REIT; SM’s pushed back to 2024 [Inquirer Mobile, July 17, 2023]
Retail and banking tycoon Lucio Co is planning to list a P30-billion real estate investment trust (REIT) this year as billionaires Enrique Razon Jr. and the Sy family, which was planning to launch the country’s largest-ever initial public offering (IPO), defer plans amid volatile conditions.
AMLC freezes assets of 6 more individuals [The Philippine Star, July 16, 2023]
Under Republic Act 10168 or the Terrorism Financing Prevention and Suppression Act of 2012 (TFPSA), relevant government agencies including the Land Transportation Office (LTO), Land Registration Authority (LRA), Registry of Deeds, Maritime Industry Authority, and the Civil Aviation Authority of the Philippines (CAAP) are mandated to implement a freeze order against individuals or groups designated as terrorists by the ATC.
https://www.philstar.com/business/2023/07/16/2281304/amlc-freezes-assets-6-more-individuals
ERC: Luzon DUs face penalties for non-submission of reports [The Philippine Star, July 16, 2023]
According to the ERC, 18 Luzon distribution utilties have yet to submit their grid compliance monitoring reports (GCMR) for 2022.
Senate bars Maxim from operating as MC taxi [The Manila Times, July 15, 2023]
THE Senate Committee on Public Services has ordered Maxim Taxi Philippines Inc., a Russian-owned transport network service, to stop its operation as a passenger motorcycle taxi pending the approval of its application with the government transport regulating agency.
BOC seizes P240M worth of counterfeit goods in Subic port [GMA News Online, July 15, 2023]
The shipments were initially reported to contain t-shirts but were later found to contain assorted brand new apparel with logos and designs of branded goods, with an estimated value of P240,000,000.00, said the BOC.
NEA extends P560.7 million loans to ECs in H1 [The Philippine Star, July 15, 2023]
The program consists of regular, calamity and concessional loans, stand-by and short-term credit loans, single-digit system loss, renewable energy and modular generator set loans.
https://www.philstar.com/business/2023/07/15/2281078/nea-extends-p5607-million-loans-ecs-h1
Hotel’s tax deficiency assessment reversed [The Manila Times, July 15, 2023]
THE Supreme Court has voided the tax deficiency assessment issued by the Commissioner of Internal Revenue (CIR) against Grand Plaza Hotel Corp., the company said on Friday.
Opposition to DOF-backed sugar tax hike mounts [Inquirer Mobile, July 15, 2023]
The Food Caterers Association of the Philippines (FCAP), an umbrella organization of small, medium and large catering companies in the country, on Friday told the Inquirer that this tax increase will cause price hikes in the beverage products that they offer, costs that will then be passed on to consumers.
SSS fails to collect P92.4 billion contributions from delinquent employers [The Philippine Star, July 15, 2023]
“Under Section 22 of the Social Security Act of 2018, the right of a covered employee to the benefits of the SSS coverage is not prejudiced by the failure or refusal of the employer to pay or remit the contributions prescribed therein. Hence, the SSS is still bound to pay members benefits corresponding to the uncollected premium contributions, which may negatively affect the Reserves of the SSS,” it added.
AirAsia grows logistics arm with new cargo aircraft [Inquirer Mobile, July 14, 2023]
Teleport, the logistics arm of Capital A Berhad, formerly the AirAsia Group, on Wednesday night officially launched its first-ever freighter-dedicated aircraft, upgrading the company’s operational capacity amid its bid to dominate the logistics scene in Asia.
BIR shuts down 2 cigarette manufacturers in Subic [GMA Network News, July 14, 2023]
Upon inspection, the operatives found that machines used by the firms were also not registered. The brand of cigarette manufactured was also not listed with the BIR.
COA tells UP to blacklist PLDT subsidiary over failure to complete million-peso IT project [The Philippine Star, July 14, 2023]
In its 2022 audit report on the UP system, government auditors noted that the state university has failed to sanction ePLDT for the five years and 11 months delay in the full implementation of the eUP project.
P52.1-B deals keep Laguna-Pampanga rail project on track [Philippine Daily Inquirer, July 14, 2023]
The 147-kilometer railway system that will link Pampanga and Laguna provinces—the longest in the country—came closer to reality with the signing by the Department of Transportation (DOTr) of three contract packages (CPs) worth a combined P52.1 billion.
https://newsinfo.inquirer.net/1801489/p52-1-b-deals-keep-laguna-pampanga-rail-project-on-track
Aboitiz InfraCapital touts sustainability in Batangas ecozone [ABS-CBN News, July 14, 2023]
The 800-hectare Philippine Economic Zone Authority (PEZA)-registered ecozone in the towns of Lipa and Malvar in Batangas is the flagship project of Aboitiz InfraCapital Economic Estates.
Ayala Land logs record sales for new BGC project [Inquirer Mobile, July 13, 2023]
About 28 percent of the tower’s total inventory of 523 units was sold over two days. Park East Place, Alveo’s 20th project in BGC, is expected to bring in total sales of P20 billion and will be turned over to buyers in 2030. Jugo said projects such as Park East Place successfully lured buyers due to its location at the corner of the busy 32nd Street and 9th Avenue in BGC, one of the prime business districts in Metro Manila.
Megawide forays into real estate, acquires property developer for P5.2B [GMA Network News, July 13, 2023]
In a disclosure to the Philippine Stock Exchange on Thursday, Megawide announced its shareholders approved the acquisition of 100% of PH1 World Developers Inc. (PH1) from Citicore Holdings Investment Inc. (CHII) during its annual stockholders’ meeting held on July 12.
CA junks ERC ruling denying Meralco, SMC rate hike [Inquirer Mobile, July 13, 2023]
In a statement, Power for People Coalition convenor Gerry Arances slammed the CA decision that “releases SMC from any consequences of breaking a contract simply because it is not earning enough from a commitment it has made voluntarily.”
BIR exceeds 5-month collection target [The Philippine Star, July 13, 2023]
According to a statement released, the BIR collected a total of P1.056 trillion during the first five months of the year, exceeding the set collection goal for the period by P1.331 billion.
https://www.philstar.com/business/2023/07/13/2280794/bir-exceeds-5-month-collection-target
Aboitiz Power taps UGEP for rooftop solar power [Inquirer Mobile, July 13, 2023]
Aboitiz Power Corp. has tapped renewable energy firm Upgrade Energy Philippines Inc. (UGEP) to develop solar rooftop projects across the country and accelerate energy transition in commercial and industrial markets.In a statement, AboitizPower said its subsidiary, AboitizPower Distributed Renewables Inc. (APX), entered into a joint venture with UGEP to expand the company’s portfolio and meet the needs of businesses under its retail group.
Goodbye, Greenbelt 1: Iconic mall to be torn down [GMA Lifestyle, July 13, 2023]
The Philippine Daily Inquirer reports that Greenbelt 1, one of Ayala Land’s flagship malls as well as its oldest, will be torn down by the first half of next year so that it can be replaced with a new development.
Tighter Pogo rules finalized [Inquirer Mobile, July 13, 2023]
Amid tough scrutiny from lawmakers, the Philippine Amusement and Gaming Corp. (Pagcor) board recently approved a new playbook that will tighten the screening and make it a lot costlier for Philippine offshore gaming operators (Pogos) to exist in this jurisdiction.
Apex Mining tamps down gold project talk [Inquirer Mobile, July 13, 2023]
Apex Mining Co. Inc. of billionaire Enrique Razon Jr. clarified the recent visit of the company’s top executive and geologists in Mongolia has nothing to do with the potential divestment of the gold project in the East Asian country.
‘DOF tax hike bid on sugary drinks favors imported sweeteners’ [Inquirer Mobile, July 12, 2023]
The Philippine Sugar Millers Association (PSMA) escalated to President Marcos its appeal to reconsider the Department of Finance’s (DOF) proposal to double excise taxes on sweetened drinks as this would severely affect the local sugar industry.
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