BIR extends the deadline for the submission of BIR Form 2316
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [FEBRUARY 23-MARCH 1]
- BIR EXTENDS THE DEADLINE FOR THE SUBMISSION OF THE CERTIFICATE OF COMPENSATION PAYMENT/TAX WITHHELD (BIR FORM 2316) FROM FEBRUARY 28, 2024 TO MARCH 31, 2024
- FIRB INCREASES THE INVESTMENT CAPITAL THRESHOLD FOR PROJECTS FOR ITS APPROVAL
- DOJ OPINION ON THE IMPACT OF CREATE LAW ON THE LOCAL BUSINESS TAX EXEMPTION GRANTED TO BOI-REGISTERED ENTERPRISES
I. TAX & BUSINESS-RELATED NEWS [FEBRUARY 23-MARCH 1]
- NEDA bares list of new flagship infrastructure projects
- IRS launches crackdown on 125,000 wealthy ‘non-filers’
- Batangas sugar refinery stops operations
- SC: MMDA has no power to expropriate private property
- Parts of NLEX to be closed for NALEX construction
- Hong Kong scraps property taxes
- Vena Energy open to dialogue amid Rizal wind farm project issues
- STI Education Systems to buy PSBA
- Bogus ‘Ayala’ firms slapped with cease and desist order
- Gwen orders to halt Cebu BRT construction in heritage buffer zones
- Iloilo City school to cease operations after 52 years
- MMDA gives Filipino movies 3-year moratorium on amusement tax
- Marcos: Conclusion on PhilHealth contribution hike coming ‘very soon’
- $1-B Indonesia toll roads enter MVP-RSA mega merger talks
- Warrants out vs big vape seller in P1.2-B tax case
- Massive debt, shrinking subscriber base: Why PLDT backed out of SkyCable deal and Converge steps in as ABS-CBN’s potential savior
- Jollibee Soars to Second Spot Among World’s Fastest-Growing Restaurant Brands
- GSIS eyes more benefits for members
- PH paper makers cry foul over influx of imports
- Pera-pera lang daw? Disgruntled abogado files complaint against Casuela, PNB directors, execs with BSP over year-long salary holdback
- Over 100 may lose livelihood as Zamboanga City mulls closing market due to bats
- BPO industry rides AI wave
- CSC urges govt offices to adopt flexible working schemes
- Group lauds government action on nurse shortage
- LGU execs to foreign retirees: Come to Iloilo
- Power firms to be probed for unfair competition
- Aboitiz completes acquisition of Coca-Cola Philippines
- From aerocity to eco-haven: Ramon Ang-led SMC launches Philippines’ first biodiversity offset site
- Greggy Araneta’s son is new president of Araneta Properties
- Biden’s new rule on independent contractors wages war on workers, women and entrepreneurs
II. BIR EXTENDS THE DEADLINE FOR THE SUBMISSION OF THE CERTIFICATE OF COMPENSATION PAYMENT/TAX WITHHELD (BIR FORM 2316) FROM FEBRUARY 28, 2024 TO MARCH 31, 2024
Revenue Memorandum Circular (RMC) No. 29-2024 issued on February 26, 2024, extends the deadline for the submission of the Certificate of Compensation Payment/Tax Withheld (BIR Form No. 2316) from February 28, 2024 to March 31, 2024.
Highlights include:
1. Only the following documents shall be required in relation to the submission of the said form:
1.1 Sworn Declaration (Annex “C”) under Revenue Regulations (RR) No. 2-2015; and
1.2 Certification of the List of Employees Qualified for Substituted Filing of their Income Tax Return (Annex “F”) under RR No. 11-2018.
2. The submission of BIR Form 2316 without the employee’s signature shall no longer be acceptable, especially for those who are availing the substituted filing.
3. Taxpayers who have already submitted a copy of the certificate using the old format (2018 version) shall no longer need to resubmit the same using the new format (2021 version), provided that the computation reflected thereon is based on the 2023 income tax rates.
III. FIRB INCREASES THE INVESTMENT CAPITAL THRESHOLD FOR PROJECTS FOR ITS APPROVAL
Fiscal Incentives Review Board (FIRB) Advisory No. 003-24, dated February 19, 2024, circularizes the increased investment capital threshold for projects delegated to the IPAs from Php 1 billion and below to Php 15 billion and below. All tax incentive applications endorsed by the IPAs to the FIRB with investment capital of Php 15 billion and below shall be returned by the FIRB Secretariat to the concerned IPA for the appropriate action and subject to the existing procedures of the IPAs. Specifically, all tax incentive applications with investment capital of more than Php 15 billion shall remain within the jurisdiction of the FIRB. Further, the FIRB together with the IPAs retain their authority to monitor the compliance of Registered Business Enterprises (RBEs) of their performance commitments as conditions for the continued enjoyment of incentives granted, regardless of the amount of investment capital.
IV. DOJ OPINION ON THE IMPACT OF CREATE LAW ON THE LOCAL BUSINESS TAX EXEMPTION GRANTED TO BOI-REGISTERED ENTERPRISES
Department of Trade and Industry (DTI) is requesting an opinion on three issues related to the Local Business Tax (LBT) exemption for Board of Investments (BOI) Registered Business Entities (RBEs) in light of Republic Act (R.A.) No. 11534, also known as the CREATE Act. The issues involve the repeal of the legal basis for LBT exemption, the independence of LBT exemption from other incentives under the CREATE Act, and the legality of BOI Memorandum Circular (MC) No. 2022-005. On the repeal of the legal basis for LBT Exemption, the DOJ clarifies that the BOI’s authority to certify enterprises as pioneer or non-pioneer, determining eligibility for LBT exemption under Section 133(g) of R.A. No. 7160 (Local Government Code or LGC), remains intact despite the CREATE Act’s repeal of certain provisions of Executive Order (E.O.) No. 226 (Omnibus Investments Code of 1987). The LGC’s Section 133(g) continues to serve as the legal basis for the LBT exemption, unaffected by the CREATE Act. On independence of LBT Exemption from other incentives, the DOJ emphasizes that the LBT exemption granted to BOI RBEs is independent of other incentives provided under the CREATE Act. Despite the CREATE Act’s aim to streamline the national tax incentive system, the LBT exemption can co-exist with other tax incentives, as it is not expressly repealed by the CREATE Act. Lastly, on the legality of BOI MC No. 2022-005, the DOJ expresses its inability to provide a conclusive opinion on the legal basis of BOI MC No. 2022-005, as the query lacks specific details about the Circular. It notes that the issuance of MC No. 2022-005 would require a thorough understanding of its content and legal foundation, which is not provided in the query. [DEPARTMENT OF JUSTICE LEGAL OPINION NO. 09, SERIES OF 2024, FEBRUARY 13, 2024]
NEDA bares list of new flagship infrastructure projects [The Philippine Star, March 1, 2024]
The National Economic and Development Authority (NEDA) has identified the projects that were added to the government’s list of infrastructure flagship projects (IFPs).
IRS launches crackdown on 125,000 wealthy ‘non-filers’ [Inquirer.Net, March 1, 2024]
Beginning this week, the IRS will start sending out noncompliance letters to more than 25,000 people who earn more than $1 million per year and 100,000 people with incomes between $400,000 and $1 million who failed to pay their taxes between 2017 and 2021.
https://business.inquirer.net/448030/irs-launches-crackdown-on-125000-wealthy-non-filers
Batangas sugar refinery stops operations [The Philippine Star, March 1, 2024]
Listed sugar and ethanol producer Roxas Holdings Inc. (RHI) yesterday said it permanently ceased the operations of its wholly owned subsidiary Central Azucarera Don Pedro Inc. (CADPI) in Batangas to slash its losses.
https://www.philstar.com/business/2024/03/01/2337118/batangas-sugar-refinery-stops-operations
SC: MMDA has no power to expropriate private property [Philippine Daily Inquirer, March 1, 2024]
Citing Sections 3 and 5 of the Republic Act No. 7924 that created the MMDA, the Supreme Court said that the provisions made “no mention at all of the power to expropriate.” The case dates back to September 2007 when Diamond Motor was informed that the MMDA was planning to demolish the floodwall within 10 meters from the strip of the bank of the San Juan River.
https://newsinfo.inquirer.net/1912341/sc-mmda-has-no-power-to-expropriate-private-property
Parts of NLEX to be closed for NALEX construction [The Philippine Star, March 1, 2024]
NALEX, according to the Toll Regulatory Board website, consists of two phases. The first phase is a “proposed 136.4-kilometer expressway that is envisioned to provide connectivity between the Metro/Mega Manila, the New Manila International Airport, and Central Luzon as an extension and/or linkage of the Metro Manila Skyway-Stage 3 at Balintawak.”
https://philstarlife.com/news-and-views/143342-parts-of-nlex-closed-nalex-construction
Hong Kong scraps property taxes [The Manila Times, February 29, 2024]
Hong Kong has long been among the world’s least affordable residential markets, but property prices have retreated.
Vena Energy open to dialogue amid Rizal wind farm project issues [GMA News Online, February 29, 2024]
Singapore-based Vena Energy on Thursday said it remained open to dialogue with stakeholders after the Masungi Georeserve Foundation expressed concern over drilling operations for a wind farm project in the conservation area in Tanay, Rizal.
STI Education Systems to buy PSBA [Philippine Daily Inquirer, February 28, 2024]
Education and ports tycoon Eusebio Tanco is buying the 61-year old Philippine School of Business Administration, which has local campuses in Manila and Quezon City, in a bid to expand his school network.
https://business.inquirer.net/447791/sti-education-systems-to-buy-psba
Bogus ‘Ayala’ firms slapped with cease and desist order [GMA News Online, February 28, 2024]
Citing an order dated February 22, the SEC said it ordered “bogus” Ayala Corporation Group Inc., Ayala Corporation Budgetarian Online Shop, Global Online Ayala Corporation, Bellavita Ayala Corporation, and Ayala Corporation E Commerce to “immediately cease and desist from further engaging in the unlawful solicitation, offer, and/or sale of securities in the form of investment contracts without the necessary license from the SEC.”
Gwen orders to halt Cebu BRT construction in heritage buffer zones [Cebu Daily News, February 28, 2024]
Gov. Gwendolyn Garcia has ordered proponents of the Cebu Bus Rapid Transit (BRT) to halt civil works near Fuente Osmeña and the Capitol building for heritage protection purposes.
Iloilo City school to cease operations after 52 years [Inquirer Visayas, February 28, 2024]
In a letter to stakeholders, parents, teachers, learners, and alumni dated Feb. 15, Maria Lourdes Josefina Garcia, owner of St. Joseph School Iloilo, announced the institution’s permanent closure by the end of school year 2023-2024.
https://newsinfo.inquirer.net/1911314/iloilo-city-school-to-cease-operations-after-52-years
MMDA gives Filipino movies 3-year moratorium on amusement tax [GMA News Online, February 28, 2024]
MMC president and San Juan City Mayor Francis Zamora said the NCR mayors passed a resolution to help the Filipino movie industry.
Marcos: Conclusion on PhilHealth contribution hike coming ‘very soon’ [Inquier.Net, February 28, 2024]
PhilHealth contributions have increased from 4 percent to 5 percent of the employee’s monthly salary in 2024. Health Secretary Teodoro Herbosa has asked Marcos to suspend the hike, as Philhealth had enough money to give benefits.
https://newsinfo.inquirer.net/1911208/fwd-marcos-on-philhealth-2
$1-B Indonesia toll roads enter MVP-RSA mega merger talks [Philippine Daily Inquirer, February 26, 2024]
The toll road giant, whose Philippine portfolio spans over 300-kilometers and includes the North Luzon Expressway, Subic Clark Tarlac Expressway and Cebu-Cordova Link Expressway, is awaiting the upcoming results of the auction of a roughly 700-kilometer portion of the Trans-Java project.
https://business.inquirer.net/447299/1-b-indonesia-toll-roads-enter-mvp-rsa-mega-merger-talks
Warrants out vs big vape seller in P1.2-B tax case [Philippine Daily Inquirer, February 26, 2024]
The BIR said Tap Fog and its conspirators were charged for “unlawful possession or removal” of products subject to excise tax without payment of the imposts, as well as for selling heated tobacco products and vapor products at a price lower than the combined excise and value-added taxes.
https://newsinfo.inquirer.net/1910469/warrants-out-vs-big-vape-seller-in-p1-2-b-tax-case
Massive debt, shrinking subscriber base: Why PLDT backed out of SkyCable deal and Converge steps in as ABS-CBN’s potential savior [Bilyonaryo, February 26, 2024]
A Babbler revealed that during the due diligence, PLDT discovered the extent of SkyCable’s liabilities, estimated at P13 billion. Despite still being open to paying the agreed-upon price, PLDT balked at absorbing such significant debts given SkyCable’s dire state.
https://bilyonaryo.com/2024/02/26/massive-debt-shrinking-subscriber-base-why-pldt-backed-out-of-skycable-deal-and-converge-steps-in-as-abs-cbns-potential-savior/business/
Jollibee Soars to Second Spot Among World’s Fastest-Growing Restaurant Brands [Esquire, February 26, 2024]
Amid its aggressive global expansion, Jollibee Foods Corp. (JFC) has earned the distinction of being the world’s second fastest-growing restaurant brand, according to Brand Finance, a leading independent brand valuation agency. Jollibee’s brand value soared 51 percent to $2.3 billion, moving up from 20th to 17th in this year’s Global Restaurant Rankings.
GSIS eyes more benefits for members [The Philippine Star, February 26, 2024]
Government workers can look forward to a Living Benefit program that the Government Service Insurance System (GSIS) is studying and is hoping to complete by April this year, following a significant increase in the GSIS Fund which posted last year a 33 percent increase in revenue that it now intends to plow back as benefits to its members.
https://www.philstar.com/business/2024/02/26/2336077/gsis-eyes-more-benefits-members
PH paper makers cry foul over influx of imports [Philippine Daily Inquirer, February 26, 2024]
The Pulp and Paper Manufacturers Association of the Phils. will seek safeguards or antidumping measures for containerboards corrugating medium and testliner, materials that are typically used in packaging products.
https://business.inquirer.net/447298/ph-paper-makers-cry-foul-over-influx-of-imports
Pera-pera lang daw? Disgruntled abogado files complaint against Casuela, PNB directors, execs with BSP over year-long salary holdback [Bilyonaryo, February 25, 2024]
In November last year, Go initially urged the board to formally investigate treasurer Maria Paz. D. Lim and human resources OIC Socorro D. Corpuz for allegedly withholding his salary illegally since March 2023. He said this action was carried out on instructions from higher management and without the board’s authorization.
Over 100 may lose livelihood as Zamboanga City mulls closing market due to bats [GMA News Online, February 25, 2024]
Over 100 stall owners at a night market in Pettit Barracks, Zamboanga City will have their livelihood affected once the city decides to suspend the market’s operation due to the presence of bats.
BPO industry rides AI wave [The Philippine Star, February 25, 2024]
“The AI landscape is a battleground, demanding a strategic update to align goals with the ever-evolving realities of the Philippine IT-BPM sector. With a determined focus on upskilling and re-skilling, IBPAP charges forward to achieve ambitious targets for job creation and revenue by 2025,” IBPAP said.
https://www.philstar.com/business/2024/02/25/2335863/bpo-industry-rides-ai-wave
CSC urges govt offices to adopt flexible working schemes [The Manila Times, February 24, 2024]
The Civil Service Commission (CSC) urged government agencies in Metro Manila to adopt flexible work arrangements (FWAs) to support initiatives of the Metropolitan Manila Development Authority to ease the traffic situation in the country.
Group lauds government action on nurse shortage [The Philippine Star, February 24, 2024]
The Clinical Care Associates (CCA) Upskilling Program – a collaboration of the government and the private sector launched last year – has produced around 300 graduates, PSAC Health Sector lead Paolo Borromeo said during a meeting at Malacañang on Thursday.
https://www.philstar.com/headlines/2024/02/24/2335773/group-lauds-government-action-nurse-shortage
LGU execs to foreign retirees: Come to Iloilo [The Philippine Star, February 24, 2024]
Local government officials led by Mayor Jerry Treñas made a pitch for the potential of this city as a haven for retirees to the delegates in the Winter Escapade tour program.
https://www.philstar.com/nation/2024/02/24/2335663/lgu-execs-foreign-retirees-come-iloilo
Power firms to be probed for unfair competition [Philippine Daily Inquirer, February 24, 2024]
The Energy Regulatory Commission (ERC) and the Philippine Competition Commission (PCC) are joining forces to look into anticompetitive behavior in the power sector.
https://business.inquirer.net/446947/power-firms-to-be-probed-for-unfair-competition
Aboitiz completes acquisition of Coca-Cola Philippines [The Philippine Star, February 24, 2024]
In a stock exchange filing, Aboitiz Equity Ventures Inc. (AEV) said the parties have closed the transaction following the completion of all the conditions precedent to the acquisition.
From aerocity to eco-haven: Ramon Ang-led SMC launches Philippines’ first biodiversity offset site [Bilyonaryo, February 23, 2024]
Located in Malolos, Bulacan, this project marks the launch of the country’s first biodiversity offset site, which is part of San Miguel Aerocity’s nature-based solutions for the development of the New Manila International Airport (NMAI) project.
Greggy Araneta’s son is new president of Araneta Properties [Rappler, February 23, 2024]
Luis Marcos Araneta, treasurer of Araneta Properties, was elected president replacing Alcid effective Thursday. Luis is the youngest son of Greggy and Irene Marcos Araneta, the President’s younger sister.
https://www.rappler.com/business/greggy-son-luis-marcos-new-president-araneta-properties/
Biden’s new rule on independent contractors wages war on workers, women and entrepreneurs [USA Today, February 23, 2024]
With its recent rule restricting the classification of independent contractors, the Biden administration has made it clear: It wants to wage war on workers – and is willing for women to be the collateral damage.
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