SEC issues guidelines on corporate delinquency status
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [NOVEMBER 7-14]
- SEC ISSUES GUIDELINES ON CORPORATE DECLARATION OF DELINQUENT STATUS & REVOCATION OF CERTIFICATE OF REGISTRATION UNDER THE REVISED CORPORATION CODE
- BIR CLASSIFIES THE COST RELATED TO GOVERNMENT-GRANTED LICENSES OR RIGHTS FOR PUBLIC SERVICES INCLUDING PUBLIC UTILITY AS ADMINISTRATIVE COSTS RATHER THAN DIRECT COSTS OF SERVICES
- TAX & BUSINESS-RELATED NEWS [NOVEMBER 7-14]
- CALAx opens Silang interchange
- Palace orders tariff cut to boost infra, housing
- Solon warns vs imposing 1% withholding tax on online sellers by Decembe
- Businesses urged to comply with EPR, decrease plastic footprint
- Marubeni looking to expand PH presence
- MARINA suspends listing passenger ship’s safety certificate
- DOLE reminds employers: Release 13th month pay before Christmas
- TIN IDs used by foreign workers in raided POGO hub in Pasay ‘authentic’ —PAOCC exec
- Business owners lament drop in Boracay tourist arrivals
- Phase 1 of LRT1 Cavite extension at 94.1% progress rate, commercial ops eyed in Q4 2024 —LRMC
- MIAA welcomes 2 new airlines
- NGCP defends expenses disallowed by ERC
- Meralco unit to invest P200B in PH’s biggest solar farm
- BPOs with full work-from-home schemes can keep tax perks in new House bill
- JoyRide launches Japan-inspired taxi service
- Zubiri: Japan firms threatened to leave PH due to VAT refund issues
- Regulators closely watching 12 financial conglomerates in PH
- SEC ISSUES GUIDELINES ON CORPORATE DECLARATION OF DELINQUENT STATUS & REVOCATION OF CERTIFICATE OF REGISTRATION UNDER THE REVISED CORPORATION CODE
SEC Memorandum Circular No. 19, Series of 2023 dated October 26, 2023, provides guidelines on the declaration of delinquent status and revocation of certificate of registration of corporations under Sections 21 and 177 of the Revised Corporation Code.
Highlights include:
- Revocation of the Certificate of Incorporation upon failure of the corporation to organize and commence its business within five (5) years from its incorporation.
2. The mandate of sending a show cause order to the officers directing them to appear before the Commission and show cause why its status should not be delinquent.
3. Effects of delinquent status.
4. Resumption of operations within two (2) years from receipt of Order of Delinquency and submission of required documents as proof of operations.
5. Revocation of the Certificate of Incorporation upon failure of the corporation to provide requirements specified in Sections 6 and 9.
6. Declaration of Delinquent Status upon failure of the corporation to file its Financial Statements (FS) and/or General Information Sheet (GIS) for three (3) consecutive or intermittent times.
7. Submission of audited FS, GIS, director or trustee compensation report, and director or trustee appraisal or performance report, as applicable, within six (6) months from the receipt of Order of Delinquency.
8. Filing of Petition to Lift the Order of Delinquency within two (2) years from the receipt of Order of Delinquency.
9. Filing of Petition to Lift the Order of Revocation anytime.
10. Submission of documentary requirements for Petition to Lift the Order of Delinquency or Revocation.
11. Issuance by the Commission of reasonable notice and coordination with the appropriate regulatory agency prior to the declaration of delinquent status or revocation of companies.
12. Application of the 2016 Rules of Procedure of the SEC.
- BIR CLASSIFIES THE COST RELATED TO GOVERNMENT-GRANTED LICENSES OR RIGHTS FOR PUBLIC SERVICES INCLUDING PUBLIC UTILITY AS ADMINISTRATIVE COSTS RATHER THAN DIRECT COSTS OF SERVICES
Revenue Memorandum Circular (RMC) No. 115-2023 issued on October 31, 2023, classifies the costs associated with franchises, concessions, licenses, rights, operations agreements, or similar arrangements (herein referred to as Licenses or Rights) granted by the government to operate a public service, including public utility as an Administrative Cost instead of “Direct Cost of Services,” for purposes of computing the gross income to determine the Optional Standard Deduction (OSD) under Section 34 (L) of the Tax Code of 1997, as amended by Section 3 of Republic Act (RA) No. 9504, or the law amending the list of deductions from gross income. Specifically, the circular clarifies that the cost related to government-granted licenses or rights for public services including public utility should be classified as administrative costs rather than direct cost of services. Public service Licenses or Rights, as intangible assets, represent exclusive privileges granted by the government. The associated costs are typically capitalized and amortized over the agreement’s life. On the other hand, administrative costs cover general business management, and legal fees are incurred in obtaining these licenses. Despite not being directly tied to production, these rights are crucial for specific industry operations, providing a legal framework, and ensuring market advantages. The categorization of the costs associated with Licenses or Rights as administrative costs, implies a separate treatment when calculating gross income for tax purposes, impacting taxable income and the Optional Standard Deduction (OSD) application.
CALAx opens Silang interchange [The Manila Times, November 14, 2023]
MPCALA Holdings Inc. (MHI), the company behind the Cavite-Laguna Expressway (CALAx), recently announced the long-awaited inauguration of the Silang (Aguinaldo) Interchange. This 3.9-kilometer, 2x2 lane expressway segment is poised to revolutionize travel for commuters throughout the region.
Palace orders tariff cut to boost infra, housing [The Manila Times, November 14, 2023]
IMPORT duties on natural gypsum and anhydrite, minerals used in the manufacture of plasterboard and cement, have been temporarily cut to zero in support of the government’s housing and infrastructure programs.
Solon warns vs imposing 1% withholding tax on online sellers by December [GMA News Online, November 13, 2023]
“It would be better if they wait for the law to be passed. Because before you collect taxes from the people, you need to listen to them first. They will do it (1%) through Executive Order or RMC (Revenue Memorandum Circular), but there is already a bill that passed the crucible of public opinion in the House when it comes to taxing digital services, and that is pending in the Senate,” Salceda said.
Businesses urged to comply with EPR, decrease plastic footprint [Philippine Daily Inquirer, November 13, 2023]
Republic Act No. 11898, or the EPR Act of 2022, mandates “obliged enterprises,” or companies with total assets exceeding P100 million, to register their EPR programs with the National Solid Waste Management Commission.
https://newsinfo.inquirer.net/1858743/businesses-urged-to-comply-with-epr-decrease-plastic-footprint
Marubeni looking to expand PH presence [The Manila Times, November 13, 2023]
Marubeni holds a 20-percent equity stake in Maynilad, which is majority owned by Metro Pacific Investments Corp. (MPIC) and 25-percent owned by DMCI Holdings Inc.
MARINA suspends listing passenger ship’s safety certificate [GMA News Online, November 13, 2023]
The Maritime Industry Authority (MARINA) on Monday suspended the passenger ship safety certificate (PSSC) of a vessel forced to return to port in Cagayan de Oro (CDO) after it reportedly encountered a listing problem in the waters off Laguindingan, Misamis Oriental.
DOLE reminds employers: Release 13th month pay before Christmas [The Philippine Star, November 11, 2023]
“No request or application for exemption from payment of the 13th month pay, or for deferment of its payment shall be accepted and allowed,” according to the labor advisory.
TIN IDs used by foreign workers in raided POGO hub in Pasay ‘authentic’ —PAOCC exec [GMA News Online, November 10, 2023]
The PAOCC official said they are investigating how these foreign nationals applied to get the TIN IDs because the usual procedure in getting this would require personal appearance in BIR offices.
Business owners lament drop in Boracay tourist arrivals [Philippine Daily Inquirer, November 10, 2023]
While data from the Malay Tourism Office would show otherwise, business owners on the resort island believed the number of tourists, particularly those coming from South Korea, China and Taiwan, was down.
Phase 1 of LRT1 Cavite extension at 94.1% progress rate, commercial ops eyed in Q4 2024 —LRMC [GMA News Online, November 10, 2023]
The Phase 1 of the LRT1 Cavite Extension Project covers the first five additional stations spanning 6.7 kilometers within the city of Parañaque, namely Redemptorist, MIA, PITX Asia World, Ninoy Aquino, and Dr. Santos.
Manning company told to pay $90,000 to seafarer injured in basketball game [ABS-CBN News, November 9, 2023]
In a decision promulgated on July 10, 2023, the Supreme Court 3rd Division ordered Wilhelmsen Smith Bell Manning, Inc., Wilhelmsen Ship Management Ltd. and corporate officers of Smith Bell Manning, Inc. to pay seafarer Rosell Arguilles total and permanent disability benefits due him, with 6% per annum interest.
MIAA welcomes 2 new airlines [ABS-CBN News, November 9, 2023]
The entry of Greater Bay Airlines and Batik Air brings the total number of air carriers hosted by NAIA to 48, with its 42 international carriers serving 57 destinations.
NGCP defends expenses disallowed by ERC [GMA News Online, November 9, 2023]
In determining the partial allowable revenues of NGCP, the ERC excluded employees’ benefits that were sought to be recovered from consumers.
Meralco unit to invest P200B in PH’s biggest solar farm [Inquirer Mobile, November 8, 2023]
The renewable energy unit of distributor Manila Electric Co. (Meralco) plans to spend P200 billion to help develop what is slated to be the country’s largest solar farm that will be built by businessman Leandro Leviste’s company.
BPOs with full work-from-home schemes can keep tax perks in new House bill [The Philippine Star, November 8, 2023]
House ways and means panel chairperson Rep. Joey Salceda (Albay, 2nd District) said on Tuesday that the proposed CREATE amendments — which is likely to be passed next week — will allow the IT-BPO sector to “fully undertake work-from-home schemes.”
JoyRide launches Japan-inspired taxi service [GMA News Online, November 8, 2023]
At a press launch in Antipolo City, JoyRide introduced its “Super Taxi” service, which features onboard amenities designed to enhance passenger comfort, convenience, and safety.
Zubiri: Japan firms threatened to leave PH due to VAT refund issues [GMA News Online, November 8, 2023]
Senate finance committee chairman Sonny Angara, who is answering on behalf of the economic managers as the sponsor of the 2024 GAB, explained that the VAT refund will be paid within 90 days, but there are cases that are still pending before the courts.
Regulators closely watching 12 financial conglomerates in PH [Manila Bulletin, November 7, 2023]
For the first time, the central bank-led Financial Sector Forum (FSF) has identified 12 financial conglomerates engaged in banking activities in the country that they will be closely monitoring.
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