LIST: Long weekends in 2024
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [DECEMBER 27-JANUARY 2]
- BIR IMPOSES WITHHOLDING TAX ON GROSS REMITTANCES MADE BY ELECTRONIC MARKETPLACE OPERATORS & DIGITAL FINANCIAL SERVICES PROVIDED TO SELLERS/MERCHANTS
- SEC INTEGRATES COMPLIANCE OF NEWLY REGISTERED CORPORATIONS WITH THE eSPARC REGULAR & OneSEC PORTALS & THE AUTOMATIC ENROLMENT TO THE eFast PORTAL
- FIRB CIRCULARIZES THE UPDATED TEMPLATES FOR THE ANNUAL TAX INCENTIVES REPORT & ANNUAL BENEFITS REPORT OF COOPERATIVES
- COURT OF TAX APPEALS CASES
- TAX & BUSINESS-RELATED NEWS [DECEMBER 27-JANUARY 2]
1. OFWs may find it harder to send remittance if PH falls into FATF blacklist
2. Crowdfunding SME seeks SEC help in possible fraud
3. LIST: Long weekends in 2024
4. Lawmaker wants civil servants to work in their hometowns
5. Venture capital firm Seedin suspends payouts
6. College of medicine bills signed into law
7. Kidapawan City says goodbye to 2 iconic food establishments
8. Taguig exempts jobseekers from securing mayor’s clearance
9. Tan Caktiong shuts first Jollibee Singapore branch after a decade
10. Meralco takes over service in Nasugbu
11. Pangasinan expressway to spur tourism, growth potential in Northern Luzon
12. PH secures 2 new free trade deals in 2023
13. UK will let those on tourist visas work in the country from the new year
14. DILG: 493 LGUs to get ‘good governance incentive fund’
15. Rules on crypto transfer tightened
16. ERC: Cheaper coal ‘stabilized’ ’23 power costs
17. BI introduces virtual annual report for foreigners
18. History comes alive: Find out how Manny Pangilinan made award-winning ‘GomBurZa’ a reality
19. Housing board OKs 4% rent hike cap
20. Legal battles loom as first Mickey Mouse copyright ends
21. New York Times sues Microsoft, OpenAI over copyright
22. Lawyers, accountants told to report suspicious transactions
23. Baguio, BCDA seek talks over Camp John Hay row
24. Makati stops collection of amusement tax
25. Singapore readies sales tax hike as demographic crunch looms
26. FDC bonds, Dagupan Electric IPO get SEC nod
27. Heads up, Robinsons Bank customers: How the merger with BPI will affect you
28. Philippine semiconductor manufacturers eye local silicon wafer fabrication
29. Mega ecozone in Puerto Princesa to open within Marcos’ term
30. Negros Occidental, Bacolod to pay hotel P12M for erroneous demolition
- BIR IMPOSES WITHHOLDING TAX ON GROSS REMITTANCES MADE BY ELECTRONIC MARKETPLACE OPERATORS & DIGITAL FINANCIAL SERVICES PROVIDED TO SELLERS/MERCHANTS
Revenue Regulations (RR) No. 16-2023 issued on December 21, 2023, further amends the provisions of Revenue Regulations (RR) No. 2-98, as amended, to impose withholding tax on gross remittances made by electronic marketplace operators and digital financial services providers to sellers/merchants.
Highlights include:
- The imposition of 1% on ½ of the gross remittances of the online platform providers to the sellers of the goods and services.
- The withholding tax shall not apply in the following cases:
2.1 If the annual total gross remittances to an online merchant for the past taxable year have not exceeded Php 500,000;
2.2 If the cumulative gross remittances to an online merchant in a taxable year has not yet exceeded Php 500,000;
2.3 If the online merchant is duly exempt from or subject to a lower income tax rate pursuant to any existing law or treaty with proof of entitlement to be submitted to online platform providers.
- Electronic marketplace, for withholding tax purposes, includes marketplace for online shopping, food delivery platforms, platforms for booking of resort, hotel, motel, inn, house, condominium unit, bed space, room for rent and other similar lodging accommodations located in the Philippines, and other similar online service or product marketplaces.
- SEC INTEGRATES COMPLIANCE OF NEWLY REGISTERED CORPORATIONS WITH THE eSPARC REGULAR & OneSEC PORTALS & THE AUTOMATIC ENROLMENT TO THE eFast PORTAL
SEC Memorandum Circular (MC) No. 23, Series of 2023 dated December 18, 2023, integrates certain reportorial requirements with the registration process and provides for the automatic enrollment of newly registered corporations in the SEC online submission portal. Specifically, new corporations will no longer have to submit separate reports for their official and alternate email addresses and mobile phone numbers required under MC 28, as well as information on their beneficial owners pursuant to MC 1 starting December 18. They shall be required to provide such information during the registration process either through eSPARC or through its subsystem, One-Day Submission and E-registration of Companies (OneSEC).
- FIRB CIRCULARIZES THE UPDATED TEMPLATES FOR THE ANNUAL TAX INCENTIVES REPORT & ANNUAL BENEFITS REPORT OF COOPERATIVES
Fiscal Incentives Review Board (FIRB) Advisory 019-202 dated December 20, 2023, circularizes the availability of updated templates for the Annual Tax Incentives Report (ATIR) and Annual Benefits Report (ABR) of Cooperatives. Registered cooperatives are required to use these updated templates when submitting their ATIR and ABR (Annexes A and B) to the Cooperative Development Authority (CDA). Additionally, the CDA will use these templates when submitting the consolidated ATIR and ABR and the master list of cooperatives (Annexes C, D, and E) for Taxable Year 2023, as per DOF-DTI JAO No. 001-20231 and FIRB Advisory No. 007-2023.
- CTA CASES
[REFUND OF ERRONEOUSLY PAID WITHHOLDING TAX AS A RESULT OF VAGUE TRAIN LAW ON VETO ON 15% ROHQ TAX] [ERRONEOUSLY PAID TAXES MAY ALSO COME IN THE FORM OF TAX PAYMENTS FOR THE WRONG CATEGORY OF TAX] [TAXES WITHHELD & REMITTED WITHOUT STATUTORY AUTHORITY CONSTITUTES ERRONEOUSLY PAID TAX WHICH IS REFUNDABLE]
Petitioner Royal Caribbean Cruises Ltd. filed a Petition for Review seeking a refund of erroneously paid 15% Final Withholding Tax (FWT). The Petitioner argued that the claim for a refund should be granted because it is only liable for the payment of withholding taxes on wages using the graduated tax rate based on the Tax Reform for Acceleration and Inclusion (TRAIN) Law as vetoed. In ruling, the Court held that considering the confusion brought about by the amendment introduced to Section 25 of the 1997 Tax Code, as amended by the TRAIN Law, and the subsequent veto of the President to the proviso of Section 6(F) of the TRAIN Law, the Petitioner should not be faulted for having paid both the 15% FWT and the withholding taxes on wages to avoid being penalized, as the question of whether the 15% FWT or the regular income tax is applicable may be considered a doubtful question of law. Since the said proviso was vetoed by then-President Duterte, it effectively removed the preferential tax rate of 15% of gross income of employees of Regional Headquarters/Regional Operating Headquarters (RHQs/ROHQs), Offshore Banking Units (OBUs), and petroleum service contractors and subcontractors, effective January 1, 2018. Thus, said employees’ salaries, wages, annuities, compensation, remuneration, and other emoluments, such as honoraria and allowances, are now subject to the regular income tax rate. Consequently, the Petitioner’s payment of the 15% FWT is without statutory basis or not legally due. Hence, the Petition was GRANTED. [ROYAL CARIBBEAN CRUISES LTD., DOING BUSINESS UNDER THE NAME RCL REGIONAL OPERATING HEADQUARTERS VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 10256, NOVEMBER 7, 2023]
[DECLARATION OF UNCONSTITUTIONALITY OF REVENUE MEMORANDUM CIRCULAR NO. 32-2022] [THE TAX PRIVILEGE UNDER PRESIDENTIAL DECREE NO. 1869, AS TO THE PAYMENT OF 5% FRANCHISE TAX, DOES NOT EXTEND TO PAGCOR’S LICENSEES]
Petitioners BB International Leisure and Resort Development Corporation, Hann International Leisure, Inc., and Hann Philippines, Inc. filed a Petition for Certiorari and Prohibition seeking for the suspension of collection and/or issuance of a Temporary Restraining Order (TRO) and/or Writ of Preliminary Injunction in relation to the Respondent Commissioner of Internal Revenue (CIR)’s Revenue Memorandum Circular (RMC) No. 32-2022 which clarifies the tax treatment of the Philippine Amusement and Gaming Corporation (PAGCOR), its licensees and contractees. The Petitioner insisted that RMC No. 32-2022 is void and contrary to law as it violates the constitutional right to equal protection of law and non-impairment of contract. Likewise, the imposition of the 5% Franchise Tax (FT) is arbitrary, unconscionable, and unjust. In ruling, the Court held that the fifth (5th) sentence of the first (1st) paragraph of Item IV of the said RMC, specifically on the imposition of 5% FT, has no legal basis as Presidential Decree (P.D.) No. 1869, otherwise known as the PAGCOR Charter, does not extend to PAGCOR’s licensees. Thus, the Respondent acted with grave abuse of discretion amounting to lack or excess of jurisdiction in inserting the 5% FT as among the taxes imposed on PAGCOR’s licensees within the Special Economic Zone. However, since the fifth (5th) sentence of the first (1st) paragraph of Item IV of RMC No. 32-2022 is the only issue and found invalid, all the other parts of said rules and regulations remain valid. There is also no necessity to issue a TRO or Permanent Injunctive Order. Consequently, the Petition was PARTIALLY GRANTED. [BB INTERNATIONAL LEISURE & RESORT DEVELOPMENT CORPORATION, HANN INTERNATIONAL LEISURE, INC. (FORMERLY WIDUS INTERNATIONAL LEISURE, INC.) & HANN PHILIPPINES, INC. (FORMERLY WIDUS PHILIPPINES, INC.) VS. BIR, CIR & JOHN DOES & JANE DOES, AS PERSONS ACTING FOR IN BEHALF, OR UNDER THE AUTHORITY OF BIR & CIR, CTA CASE NO. 10841, OCTOBER 27, 2023]
OFWs may find it harder to send remittance if PH falls into FATF blacklist [Inquirer.Net, January 2, 2024]
The Philippines landed on the FATF’s grey list in 2021 after the international agency’s evaluation of the country’s measures against money laundering.
Crowdfunding SME seeks SEC help in possible fraud [The Philippine Star, January 2, 2024]
SeedIn also informed SEC that it is investigating the matter and will provide more details in due time, aside from conducting a forensic audit to determine the extent of the possible fraud.
https://www.philstar.com/headlines/2024/01/02/2322844/crowdfunding-sme-seeks-sec-help-possible-fraud
LIST: Long weekends in 2024 [Rappler, January 1, 2024]
Malacañang on Friday, October 13, released the regular holidays and special non-working days in 2024, and at least six of them fall near weekends.
https://www.rappler.com/nation/list-long-weekends-philippines-2024/
Lawmaker wants civil servants to work in their hometowns [Philippine Daily Inquirer, January 1, 2024]
Quirino Rep. Midy Cua is pushing for a measure that will allow civil servants to work or be assigned to their home provinces and limit their outside assignments to three years.
https://newsinfo.inquirer.net/1882094/lawmaker-wants-civil-servants-to-work-in-their-hometowns
Venture capital firm Seedin suspends payouts [Philippine Daily Inquirer, January 1, 2024]
A digital crowdfunding portal supporting micro, small and medium enterprises (MSMEs) is investigating its former chief executive over allegedly fraudulent activity, resulting in a temporary halt to withdrawals or payouts to stakeholders.
https://newsinfo.inquirer.net/1882089/venture-capital-firm-seedin-suspends-payouts
College of medicine bills signed into law [The Philippine Star, January 1, 2024]
President Marcos recently signed Republic Act 11970, 11971, 11972 and 11974, establishing the medicine programs in the SUCs in Benguet, Quezon, Northern Samar and Leyte, respectively.
https://www.philstar.com/nation/2024/01/01/2322679/college-medicine-bills-signed-law
Kidapawan City says goodbye to 2 iconic food establishments [The Philippine Star, January 1, 2024]
The two food outlets are known stopover dining locations for residents of this city travelling to Davao City and back using private vehicles.
Taguig exempts jobseekers from securing mayor’s clearance [The Philippine Star, December 31, 2023]
The city council recently passed Ordinance 109, exempting jobseekers from submitting a mayor’s permit or clearance.
Tan Caktiong shuts first Jollibee Singapore branch after a decade [Bilyonaryo, December 31, 2023]
Jollibee’s branch on the 6th floor of Lucky Plaza along Orchard Road has been closed since November 30, 2023. The branch opened in March 2013, marking Jollibee’s inaugural store in Singapore.
Meralco takes over service in Nasugbu [The Philippine Star, December 31, 2023]
The Sangguniang Bayan of Nasugbu issued Resolution 368 last Dec. 4 endorsing the transfer of electric service in the municipality to Meralco amid widespread dissatisfaction with the current power distributor.
https://www.philstar.com/business/2023/12/31/2322392/meralco-takes-over-service-nasugbu
Pangasinan expressway to spur tourism, growth potential in Northern Luzon [The Philippine Star, December 31, 2023]
The Pangasinan Link Expressway (PLEX), when completed, will further hasten in-land travel time to, from and around Northern Luzon. In the province of Pangasinan alone, tourist destinations like the Hundred Islands as well as pilgrim sites like the Our Lady of Manaoag Church will be much more accessible to travelers sojourning to what once were destinations that needed more time to reach.
PH secures 2 new free trade deals in 2023 [Philippine News Agency, December 31, 2023]
The Philippines added two new free trade agreements (FTAs) this year, the Regional Comprehensive Economic Partnership (RCEP) and its trade pact with South Korea, to ease barriers to trade and investments and boost commercial ties among partners.
https://www.pna.gov.ph/articles/1216143
UK will let those on tourist visas work in the country from the new year [The Economic Times, December 30, 2023]
Starting January 31, 2024, the United Kingdom will introduce significant changes to its Visitor Visas, allowing additional business activities, according to the updated immigration rules published by the UK government.
DILG: 493 LGUs to get ‘good governance incentive fund’ [GMA News Online, December 30, 2023]
The Department of Interior and Local Government (DILG) on Saturday said that 493 local government units (LGUs) are eligible for an “incentive fund” after being given a Seal of Good Local Governance (SGLG).
Rules on crypto transfer tightened [The Philippine Star, December 30, 2023]
The Bangko Sentral ng Pilipinas (BSP) is set to tighten the implementation of rules on virtual asset or cryptocurrency transfers that are considered cross-border wire transfers.
https://www.philstar.com/business/2023/12/30/2322193/rules-crypto-transfer-tightened
ERC: Cheaper coal ‘stabilized’ ’23 power costs [Inquirer Mobile, December 30, 2023]
The average generation charge, or the cost of power purchased from suppliers that accounts for more than 50 percent of a customer’s monthly electricity bill, dropped to P6.97 per kWh in November from P8.95 per kWh last year, equivalent to a 22.12-percent decrease.
BI introduces virtual annual report for foreigners [Philippine News Agency, December 30, 2023]
“This virtual option aims to provide convenience while maintaining compliance through an online registration platform,” he said in a statement on Saturday. “This service is an end-to-end online process where foreign nationals can book, pay, and report online from the comforts of their own homes.”
https://www.pna.gov.ph/articles/1216129
History comes alive: Find out how Manny Pangilinan made award-winning ‘GomBurZa’ a reality [Bilyonaryo, December 29, 2023]
The production of the award-winning Metro Manila Film Festival entry “GomBurZa,” about the three Filipino priests who were martyred during the Spanish occupation, wouldn’t have been possible without the financial backing of a subsidiary of bilyonaryo Manuel V. Pangilinan’s MediaQuest Holdings.
Housing board OKs 4% rent hike cap [The Manila Times, December 29, 2023]
THE National Human Settlements Board (NHSB) has approved a 4 percent increase limit for residential rental rates of P10,000 and below.
https://www.manilatimes.net/2023/12/29/news/national/housing-board-oks-4-rent-hike-cap/1925935
Legal battles loom as first Mickey Mouse copyright ends [ABS-CBN News, December 29, 2023]
The copyright on “Steamboat Willie” — a short, black-and-white 1928 animation that first introduced audiences to the mischievous rodent who would become emblematic of American pop culture — expires after 95 years, on January 1, under US law.
New York Times sues Microsoft, OpenAI over copyright [Inquirer.Net, December 29, 2023]
The New York Times sued ChatGPT-maker OpenAI and Microsoft in a US court on Wednesday, alleging that the companies’ powerful AI models used millions of articles for training without permission.
https://newsinfo.inquirer.net/1880860/new-york-times-sues-microsoft-openai-over-copyright
Lawyers, accountants told to report suspicious transactions [The Philippine Star, December 29, 2023]
On the other hand, the AMLC said lawyers and accountants working in a private firm or a sole practitioner who, by way of business or occupation, provides purely legal or accounting services to their clients, are not required to file covered transaction reports and suspicious transaction reports.
Baguio, BCDA seek talks over Camp John Hay row [Philippine Daily Inquirer, December 29, 2023]
The proposed dialogue arose because of a House bill that would exclude 13 barangays inside Camp John Hay, keeping intact their roads, open spaces, and public structures like schools and churches.
https://newsinfo.inquirer.net/1880759/baguio-bcda-seek-talks-over-camp-john-hay-row
Makati stops collection of amusement tax [The Manila Times, December 28, 2023]
MAKATI Mayor Abigail Binay said that the Sangguniang Panlungsod approved her request to suspend the collection of amusement taxes to boost tourism and support artists in the city.
Singapore readies sales tax hike as demographic crunch looms [CNBC, December 28, 2023]
The goods and services tax, which is levied on everything from groceries to diamond rings, will be increased by one percentage point to 9% on Monday, the second phase of a two-stage rate hike. This year the sales tax was raised to 8% from the previous 7%, which had been unchanged for 15 years.
https://www.cnbc.com/2023/12/28/singapore-readies-sales-tax-hike-as-demographic-crunch-looms.html
FDC bonds, Dagupan Electric IPO get SEC nod [Inquirer Mobile, December 28, 2023]
The Securities and Exchange Commission (SEC) greenlighted the P32-billion bond registration of Filinvest Development Corp. (FDC) and P1.17-billion public offering of Dagupan Electric Corp., proceeds of which are earmarked for expansion plans and other corporate spending.On Thursday, the regulator issued the approval of the public offerings of both companies.
Heads up, Robinsons Bank customers: How the merger with BPI will affect you [Rappler, December 28, 2023]
“Except for the transfer of deposits of the depositors from RBank (Robinsons Bank) to BPI upon the effectivity of the Merger, which will result in Rbank deposits being assumed by BPI as its deposit liabilities, subject to applicable terms and conditions for the same type of BPI deposits in accordance with pertinent BSP rules and regulations, there shall be no change in the rights of depositors of the Constituent Banks in view of the Merger,” the banks said in a notice of merger released to creditors and depositors of BPI and Robinsons Bank.
https://www.rappler.com/business/how-robinsons-bank-bpi-merger-affect-customer/
Philippine semiconductor manufacturers eye local silicon wafer fabrication [ABS-CBN News, December 28, 2023]
“Most of our integrated circuit design companies have to rely on Taiwan to develop the prototypes. It costs higher, it takes longer, and we lose the intellectual property,” said SEIPI President Danilo Lachica.
https://news.abs-cbn.com/business/12/28/23/ph-semiconductor-makers-eye-local-wafer-fabrication
Mega ecozone in Puerto Princesa to open within Marcos’ term [Inquirer Mobile, December 27, 2023]
The Philippine Economic Zone Authority (Peza) is targeting to open the 26,000-hectare Iwahig mega economic zone planned at a prison complex in Puerto Princesa, Palawan, within the term of President Marcos. “This will be a legacy of the current administration that we are able to develop. Massive developments like this take three to five years [to complete],” Peza Director General Tereso Panga told reporters last week. He said further that the Department of Justice was already reviewing the draft of the memorandum of agreement for this undertaking.
Negros Occidental, Bacolod to pay hotel P12M for erroneous demolition [Inquirer, December 27, 2023]
The Negros Occidental Provincial Development Council, in its year-end meeting on Dec. 18, approved the appropriation of close to P12 million in payment to Sugarland Hotel owned by the family of Felix Yusay in compliance with a Supreme Court (SC) order.
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