SEC further extends amnesty applications until December 31, 2023
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [OCTOBER 26-NOVEMBER 6]
- SEC FURTHER EXTENDS AMNESTY APPLICATIONS UNTIL DECEMBER 31, 2023
- SEC PROVIDES GUIDELINES ON THE SUBMISSION OF DIGITAL COPIES OF APPLICATIONS, COMPLIANCE DOCUMENTS & OTHER REQUESTS & FURTHER REDUCES THE NUMBER OF HARD COPIES TO BE FILED
- BIR REITERATES RULES ON THE WITHHOLDING OF TAXES FOR THE SALE OF REAL PROPERTY ON INSTALLMENT
- DEPARTMENT OF FINANCE (DOF) OPINION ON THE TAXABILITY OF AFP TOTAL ADMINISTRATIVE DISABILITY PENSION BENEFITS
- TAX & BUSINESS-RELATED NEWS [OCTOBER 26-NOVEMBER 6]
- House bill on safety, protection of BPO workers filed
- OceanaGold hikes gold production target for Didipio mine
- Northern Samar sees tourism boost with Australian cruise ship visit
- 4 agri-tech solutions to get P100 million grant funding from NEDA
- ‘Crypto King’ Sam Bankman-Fried guilty of FTX fraud
- To Attract GEN Zs, employers urged to Focus on well-being, ESG
- Ayala completes phase 1 of Mindanao technopark
- PNR: Naga-Legazpi route seen to reopen on Christmas Day
- Manila ranks 7th on list of world’s top 10 remote work hubs
- Palace declares local holidays
- BIR plans online sellers tax in time for Christmas
- More international franchises expected to enter Philippines
- Largest solar rooftop in Philippines to be put up in Pampanga
- CMI reviving chromite mining site in Zambales
- UnionBank to give up Citi brand in early 2024
- SC tells Pasay court: Resolve common train station dispute
- PhilHealth urged to raise hospital coverage by 20%
- Bicol cites progress of expressway, bridge, railway, cruise terminal projects
- Now Corp to offer satellite internet
- Fish port opens in Davao Oriental’s ‘tuna highway’
- HMOs get relief on liquidity requirements
- CREATE amendments to improve Philippines investment climate, says DOF
- Marcos signs law institutionalizing automatic LGU income classification
- Aboitiz expands industrial estate as offices drop remote work setup
- Cybersecurity Concerns Arise as Over Four Million Deceased Still Enrolled in PhilHealth
- Marcos transfers DAP to NEDA
- Foreign banks can hold foreclosed property for only 5 years, SC rules
- Cebu to sell NFA rice at P20/kilo soon —Gov. Gwen Garcia
- SEC FURTHER EXTENDS AMNESTY APPLICATIONS UNTIL DECEMBER 31, 2023
SEC Memorandum Circular No. 20, Series of 2023, dated November 6, 2023, further extends the amnesty applications until December 31, 2023. The final extension is granted in consideration of requests from the public as well as numerous applications with incomplete submission of amnesty requirements, such as the Petition to Lift Order of Suspension or Revocation for corporations with suspended or revoked Certificates of Incorporation (COI), and the Audited Financial Statements (AFS) through the SEC Electronic Filing and Submission Tool (eFAST).
Corporations only have until December 31, 2023, to signify their intent to apply for amnesty and settle corresponding amnesty fees. The subsequent period starting from January 1 to January 31, 2024, shall only be dedicated to the submission of amnesty requirements and supporting documents. Failure to comply within the submission period shall warrant the forfeiture of the paid amnesty or filing fees in favor of the Commission. Thereafter, an updated scale of fines and penalties for the covered reportorial requirements shall be effective on January 1, 2024.
- SEC PROVIDES GUIDELINES ON THE SUBMISSION OF DIGITAL COPIES OF APPLICATIONS, COMPLIANCE DOCUMENTS & OTHER REQUESTS & FURTHER REDUCES THE NUMBER OF HARD COPIES TO BE FILED
SEC Memorandum Circular No. 18 Series of 2023, dated October 9, 2023, introduces guidelines for the submission of digital copies of applications, compliance documents, and other requests and to further reduce the number of hard copies and promote sustainability. Highlights include the documents to be submitted online and in a reduced number of hard copies, the retention period of the hard copies of the documents, and the changes of address where the reports shall be submitted.
- BIR REITERATES RULES ON THE WITHHOLDING OF TAXES FOR THE SALE OF REAL PROPERTY ON INSTALLMENT
Revenue Memorandum Order (RMO) No. 33-2023, issued on September 29, 2023, reiterates Section 3 J of the Revenue Regulation (RR) No. 17-2003 on the withholding of taxes for the sale, exchange, or transfer of real property on installment plan and classified as ordinary asset, wherein the payments in the year of sale do not exceed 25% of the selling price.
Highlights include:
- If the buyer is an individual not engaged in trade or business, no withholding is required to be made on the periodic installment payments. The applicable rate of tax based on the Gross Selling Price (GSP) or Fair Market Value (FMV) of the property at the time of the execution of the Contract to Sell, whichever is higher, shall be withheld on the last installment or installments immediately prior to such last installment, if the last installment is not sufficient to cover the tax due, to be paid to the seller until the tax is fully paid.
2. If the buyer is engaged in trade or business, whether a corporation or otherwise, the tax shall be deducted and withheld by the buyer from every installment, which tax shall be based on the ratio of actual collection of the consideration against the agreed consideration appearing in the Contract to Sell applied to the GSP or FMV of the property at the time of the execution of the Contract to Sell, whichever is higher.
3. The term ‘consideration’ refers to the selling price exclusive of interest. Interest earned as an incident of installment payment, if any, shall be subject to the ordinary income tax rate.
4. No Certificate Authorizing Registration (CAR)/Tax Clearance Certificate (TCL) shall be issued to the buyer unless the withholding tax due on the sale, transfer, or exchange of real property has been fully paid.
- DOF OPINION ON THE TAXABILITY OF AFP TOTAL ADMINISTRATIVE DISABILITY PENSION BENEFITS
TOTAL ADMINISTRATIVE DISABILITY (TAD) PENSION BENEFITS OF THE SURVIVING SPOUSE PURSUANT TO THE “AFP TAX EXEMPTION FOR PAY & ALLOWANCES ACT OF 2001” ARE CONSIDERED EXEMPT FROM INCOME TAX BUT NOT TO ESTATE TAX
Mr. A is requesting a review of BIR Ruling subjecting the Total Administrative Disability (TAD) Pension Benefits received by a surviving spouse of a veteran/member of the Armed Forces of the Philippines (AFS), to estate tax. He argued that under Section 4 of the Republic Act (R.A.) No. 9040, otherwise known as “The AFP Tax Exemption for Pay and Allowances Act of 2001,” the TAD Pension Benefits remained exempt even from estate tax due to him as the sole heir of the deceased surviving spouse. In reply, the DOF agrees with the BIR that the release of TAD Pension Benefits to the surviving spouse, which partakes in the nature of an income, is expressly exempt by law. However, the case is different in terms of estate tax since what is being subject to tax is not the right of the person to receive such income, but the right of the person to transmit the property to their respective heirs at the time of death. The BIR’s position is more in accord with legislative intent to subject the right to transfer properties to heirs to tax in accordance with existing tax laws and finds no reason to reverse and set aside the earlier BIR Ruling. [DEPARTMENT OF FINANCE OPINION NO. 002.2023, SEPTEMBER 21, 2023]
House bill on safety, protection of BPO workers filed [Inquirer.Net November 6, 2023]
Villar filed House Bill (HB) No. 9342 last September 27, which lays out guidelines for labor policies that are fair to workers and measures to shield employees from discrimination.
OceanaGold hikes gold production target for Didipio mine [The Philippine Star, November 6, 2023]
Australian-Canadian mining firm OceanaGold Corp. has raised its gold production forecast for its Didipio mine in Nueva Vizcaya this year, with the Philippine mine as a major driver to meet the lower end of its full-year target output of the precious metal.
Northern Samar sees tourism boost with Australian cruise ship visit [Philippine Daily Inquirer, November 4, 2023]
The islands of Biri and Capul in Northern Samar marked a tourism milestone on Wednesday after an Australian cruise ship made its port call in the province, the first such visit since the Eastern Visayas region’s inclusion in cruise tourism in 2013.
4 agri-tech solutions to get P100 million grant funding from NEDA [GMA News Online, November 4, 2023]
Four agricultural technologies solutions were among the projects approved by the National Innovation Council Executive Technical Board of the National Economic and Development Authority (NEDA) to receive grant funding under the 2023 Innovation Grants.
‘Crypto King’ Sam Bankman-Fried guilty of FTX fraud [BBC, November 3, 2023]
Sam Bankman-Fried, who once ran one of the world’s biggest cryptocurrency exchanges, has been found guilty of fraud and money laundering at the end of a month-long trial in New York.
To Attract GEN Zs, employers urged to Focus on well-being, ESG [Inquirer Mobile, November 2, 2023]
He added that Gen Zs seek assistance in adapting to work realities, highlighting that returning to on-site work and engaging in regular face-to-face interactions with teams and managers can become a culture shock for this generation.
Ayala completes phase 1 of Mindanao technopark [The Manila Times, November 2, 2023]
AYALALAND Logistics Holdings Corp. said Wednesday it had finished the first phase development of Laguindingan Technopark in Misamis Oriental, Mindanao.
PNR: Naga-Legazpi route seen to reopen on Christmas Day [GMA News Online, November 1, 2023]
Earlier, Transportation Assistant Secretary for Railways Jorjette Aquino said among the upcoming rail projects is the South Long Haul project, which will span from Calamba, Laguna to Daraga, Albay.
Manila ranks 7th on list of world’s top 10 remote work hubs [Philippine Daily Inquirer, November 1, 2023]
Founded by Dutch website developer Pieter Levels in 2014 with headquarters in Medellin, Colombia, Nomad List is dedicated to the rising trend of traveling remote workers, also called digital nomads.
Palace declares local holidays [The Philippine Star, October 31, 2023]
Malacañang has declared holidays in various localities of the country to allow residents to participate in the celebration of their community festivals.
BIR plans online sellers tax in time for Christmas [Philippine Daily Inquirer, October 31, 2023]
The government is hoping to start collecting a 1-percent withholding tax from operators of online marketplaces before December this year, as it seeks to cash-in on the exponential growth in e-commerce transactions during the pandemic.
More international franchises expected to enter Philippines [The Philippine Star, October 31, 2023]
According to Trade Secretary Alfredo Pascual, around 90 percent of the 1,800 franchise brands in the Philippines are homegrown.
Largest solar rooftop in Philippines to be put up in Pampanga [The Philippine Star, October 31, 2023]
Singapore-based TotalEnergies ENEOS will put up the largest rooftop solar photovoltaic system in the Philippines to support Real Steel Corp. (RSC)‘s efforts to lead the transition of the steel manufacturing industry toward a more sustainable future.
CMI reviving chromite mining site in Zambales [The Philippine Star, October 31, 2023]
Consolidated Mines Inc. (CMI) is reviving a chromite mine in Masinloc, Zambales previously operated by Benguet Corp.
UnionBank to give up Citi brand in early 2024 [Philippine Daily Inquirer, October 30, 2023]
Union Bank of the Philippines aims to drop the Citi brand for all credit cards in early 2024, marking a new era for the Aboitiz-led lender more than a year since it completed the P72-billion takeover of Citi’s consumer business in the Philippines.
SC tells Pasay court: Resolve common train station dispute [BusinessWorld, October 30, 2023]
THE SUPREME COURT (SC) has ordered a Pasay City court to resolve a dispute involving the construction of a common train station that would connect separate rail systems in front of the Trinoma mall, which was originally supposed to be in front of the SM North EDSA mall.
PhilHealth urged to raise hospital coverage by 20% [Philippine Daily Inquirer, October 30, 2023]
AGRI party-list Rep. Wilbert Lee wants the Philippine Health Insurance Corp. (PhilHealth) to raise by at least 20 percent its hospitalization coverage for members.
Bicol cites progress of expressway, bridge, railway, cruise terminal projects [Inquirer.Net, October 29, 2023]
During the groundbreaking ceremony of a road dike and flood mitigation structure in Legazpi City on Thursday, Co said that an “expressway, the revival of the train system, a cruise ship terminal, and the ambitious link between Matnog, Sorsogon and Samar that will connect major islands Luzon and Visayas” are being planned for the region.
Now Corp to offer satellite internet [The Philippine Star, October 29, 2023]
Tech provider Now Corp. has signed a partnership with Arizona-based Mangata Networks Inc. to introduce another broadband from space product for enterprises in the Philippines.
Fish port opens in Davao Oriental’s ‘tuna highway’ [Inquirer Mobile, October 28, 2023]
The Philippine Fisheries Development Authority (PFDA) inaugurated a new fish port in Mati City this week as it promised an additional source of livelihood for residents in the capital of Davao Oriental.
HMOs get relief on liquidity requirements [The Philippine Star, October 28, 2023]
The Insurance Commission has provided health maintenance organizations (HMOs) some regulatory relief on liquidity requirements as the industry continues to take a hit from rising health costs.
CREATE amendments to improve Philippines investment climate, says DOF [The Philippine Star, October 27, 2023]
Under the CREATE to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) bill, major areas of reform include the establishment of a streamlined tax refund system for registered business enterprises (RBEs) and institutionalization of risk-based classification of claims and audit framework.
Marcos signs law institutionalizing automatic LGU income classification [GMA News Online, October 27, 2023]
Signed on Thursday, Republic Act No. 11964 or The Automatic Income Classification of Local Government Units Act seeks to provide a more responsive approach to the promotion of local autonomy and to enable LGUs to realize their full economic potential.
Aboitiz expands industrial estate as offices drop remote work setup [Inquirer Mobile, October 27, 2023]
Conglomerate Aboitiz Equity Ventures Inc. is building up its sprawling industrial estate in Batangas province on expectations that the work from home trend will shift anew and demand for offices will rise, especially in provincial locations. Aboitiz InfraCapital Economic Estates is set to open the first of seven office towers in the LIMA Central Business District in the first quarter of 2023.
Cybersecurity Concerns Arise as Over Four Million Deceased Still Enrolled in PhilHealth [BNN Network, October 26, 2023]
In an alarming disclosure that exposes potential cyber security risks and reaffirms age-old issues of bureaucratic inefficiency, it was revealed recently that more than four million deceased individuals are still enrolled as members in the Philippine Health Insurance Corporation, or PhilHealth.
Marcos transfers DAP to NEDA [GMA News Online, October 26, 2023]
President Ferdinand Marcos Jr. has transferred the Development Academy of the Philippines (DAP) from the Office of the President (OP) to the National Economic and Development Authority (NEDA) as part of the administration’s streamlining and rightsizing efforts.
Foreign banks can hold foreclosed property for only 5 years, SC rules [Philippine Daily Inquirer, October 26, 2023]
In a decision written by Associate Justice Jhosep Lopez, the high court’s Second Division reiterated that under the Republic Act No. 10641, the law allowing full entry of foreign banks in the Philippines that was enacted in 2014, possession of foreclosed property was valid for only five years and the right over such properties should be transferred to a qualified Filipino within the period.
Cebu to sell NFA rice at P20/kilo soon —Gov. Gwen Garcia [Inquirer.Net, October 26, 2023]
The provincial government allocated a budget of P100 million to buy NFA rice, in line with President Marcos’ program for the NFA to buy palay at a higher farmgate price.
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