PhilHealth to recommend decrease in contribution
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [JULY 25-30]
- BIR FURTHER EXTENDS THE TRANSITORY PERIOD FOR THE ACTUAL IMPOSITION OF WITHHOLDING TAX ON GROSS REMITTANCES MADE BY DIGITAL FINANCIAL SERVICES PROVIDERS
- DEPARTMENT OF JUSTICE OPINIONS
I. TAX & BUSINESS-RELATED NEWS [JULY 25-30]
- PhilHealth to recommend decrease in contribution
- Risa: Pogos used corporate layering to evade audit
- Philippines retains 52nd spot in world competitiveness
- Cryptocurrency PayPal USD now available in PH through GCash
- Trump Wants To Eliminate Income Taxes: 4 Ways That May Impact the Housing Market
- Philippines dislodged as 2nd biggest banana exporter
- Mitsubishi Motors to join Honda-Nissan alliance, Nikkei reports
- SEC chair Aquino: ‘Sustainability’ no longer mere buzzword
- Hofileña family opts to file raps vs. Amorsolo painting thieves
- LPG business fuels Pryce’s record profit
- LTFRB accredits 14 new transport network companies
- SEC unveils new digital services
- Mining industry eyes uniform tax treatment
- Philex income falls to P305M; firm upbeat on Silangan
- EPIRA amendments should result in lower electricity prices — Gatchalian
- 4 Japanese firms in Batangas ecozone to hire over 1,400 workers
- Filinvest unveils new F&B venture in Camp John Hay
- Batangas to Subic by train? DOTr says to fund feasibility study
- Indonesia launches ‘golden visa’ program to attract business investment
II. BIR FURTHER EXTENDS THE TRANSITORY PERIOD FOR THE ACTUAL IMPOSITION OF WITHHOLDING TAX ON GROSS REMITTANCES MADE BY DIGITAL FINANCIAL SERVICES PROVIDERS
Revenue Memorandum Circular (RMC) No. 79-2024 issued on July 15, 2024, further extends the transitory period prior to the actual imposition of withholding tax on gross remittances made by digital financial services providers to sellers/merchants prescribed under Revenue Regulations (RR) No. 16-2023. The extension is given to finally complete their respective system adjustment. The transitory period is extended for another ninety (90) days or until October 12, 2024. For electronic marketplace operators, they shall impose the withholding tax to sellers/merchants beginning July 15, 2024.
It may be recalled that previously, the BIR issued RMC No. 55-2024 which provides that the 90-day transitory period for e-marketplace operators and Digital Financial Services Providers (DFSPs) to comply with the provisions of RR No. 16-2023 is extended for additional 90 days or until July 14, 2024.
Under RR No. 16-2023, e-marketplace operators and DFSPs are required to ensure that all sellers/merchants are registered with the BIR by requiring the submission of their Certificate of Registration (BIR Form 2303), requiring sellers/merchants to submit a BIR-received Sworn Declaration on the amount of gross remittances, monitor gross payments and deduct/remit the withholding tax, and provide the sellers/merchants the withholding tax certificates (BIR Form 2307).
III. DOJ OPINIONS
PRIVATE DIRECTORS OF GOVERNMENT OWNED & CONTROLLED CORPORATION ARE EXEMPT FROM THE FILING OF SALN SINCE THEY FALL OUTSIDE THE CODE OF CONDUCT & ETHICAL STANDARDS FOR PUBLIC OFFICIALS & EMPLOYEES
Commissioner-in-charge of the PCGG is requesting an opinion on whether the directors of United Coconut Chemicals, Inc.’s (Cocochem) who represent or were elected by its minority private stockholders (private directors) are required to file their Statement of Assets and Liabilities (SALNs) in accordance with law. Cocochem is of the view that private directors should not be required to submit their SALNs on the grounds that the private directors were elected pursuant to the Corporations Code and the Revised Corporation Code, and not appointed in accordance with the Republic Act (R.A.) No. 10149, otherwise known as the “GOCC Governance Act of 2011” (GOCC Law); and, that the private directors are not public officers, officials, or employees. In reply, the DOJ agreed. To be considered a GOCC, following its definition under Administrative Code of 1987, these requisites must concur, namely: (1) any agency organized as a stock or non-stock corporation; (2) vested with functions relating to public needs whether governmental or proprietary in nature; and (3) owned by the Government directly or through its Instrumentalities either wholly, or, where applicable as in the case of stock corporations, to the extent of at least 51% of its capital stock. Under Section 23 of R.A. No. 11232 or the Revised Corporation Code, “Except when the exclusive right is reserved for holders of founders’ shares, each stockholder or member shall have the right to nominate any director or trustee who possesses all of the qualifications and none of the disqualifications set forth” therein. The other matter that must be addressed is whether Cocochem’s private directors-a non-chartered GOCC-are regarded as public officers or not. DOJ relied on the case of Quiogue v. Estacio, Jr. which provided the requisites to be a public officer, to wit; (1) taking part in the performance of public functions in the government, or performing in said Government or any of Its branches public duties as an employee, agent, or subordinate official, of any rank or class; and (2) that his authority to take part in the performance of public functions or to perform public duties must be by direct provision of law, or, by popular election, or, by appointment by competent authority. Applied herein, the second (2nd) requisite is amiss since none of the modes of assumption of office apply to the private directors of Cocochem. To reiterate, the private directors of Cocochem were elected by the private shareholders in accordance with the Revised Corporation Code. Therefore, they are not public officers. The private directors of Cocochem fall outside the coverage of R.A. No. 6713 or the Code of Conduct and Ethical Standards for Public Officials and Employees which requires all public officials and employees to accomplish and submit declarations under oath of their assets, liabilities, net worth and financial and business interests. [DEPARTMENT OF JUSTICE OPINION NO. 31, SERIES OF 2024, JULY 10, 2024]
DOJ OPINION ON THE COMPLIANCE REQUIRED FOR THE VALID ISSUANCE OF PWD IDS FOR MORE THAN FIVE YEARS
Atty. N. is requesting a legal opinion on behalf of the Councilor of Quezon City, on whether Local Government Units (LGUs) may impose a Person with Disability (PWD) identification card validity of more than five (5) years, particularly for the benefit of PWDs with permanent disabilities. The legal basis used for the inquiry falls under Administrative Order (A.O.) No. 001, Series of 2021, wherein it provides that PWD identification cards shall have a validity of five (5) years, however, existing laws do not provide for a limited period for the ID cards. Instead, the laws give LGUs broad administrative authority and discretion in the issuance of PWD ID cards. Also stated, that the five (5)-year validity imposed by A.O. No. 1, was merely directory and not mandatory in setting a guide as to the minimum period of validity of the PWD ID cards issuance and renewal. On another note, the Department of Social Welfare and Development (DSWD) sheds light on the basis for the standard five (5)-year validity of the PWD identification cards stating that it is for the regular updating of the Philippine Registry for Persons with Disabilities (PRPWD). Section 5 of the IRR of R.A. No. 11228, otherwise known as “An Act Providing for the Mandatory PhilHealth Coverage for All Persons with Disability, amending for the Purpose, R.A. No. 7277, otherwise known as the Magna Carta for Persons with Disability,” provides that the Department of Health (DOH) shall maintain an updated database of PWDs including their health and development needs through its PRPWD for the purpose of the PWDs’ entitlement to PhilHealth benefits. Under Section 5 of the Implementing Rules and Regulations (IRR) of R.A. No. 11228, it would appear that the five {5)-year validity period of the PWD identification cards is for the regular updating of the data registry in the DOH-PRPWD, which serves as the basis for the availment of PhilHealth benefits of the PWDs. Issuing a PWD identification cards with a validity period of more than five (5) years may be inconsistent with the purpose and intention of the provisions of Item VI (1) of the NCDA A.O. No. 001, series of 2021 and Section 5 of the IRR of R.A. No. 11228. [DEPARTMENT OF JUSTICE OPINION NO. 30, SERIES OF 2024, JULY 10, 2024]
A STATE UNIVERSITY PRESIDENT MAY EXCEED CONVENTIONAL RETIREMENT PARAMETERS CONTINGENT UPON EXEMPLARY PERFORMANCE & CONCORDANT RECOMMENDATION
Professor E is requesting a legal opinion on the power of the Board of Regents (BoR) of Cavite State University (CSU) to extend the term of Dr. R as President of CSU. Dr. R initially assumed the presidency of CSU in Indang, Cavite on 06 October 2016, for a term from 2016 to 2020. Following a favorable evaluation in early 2020, Dr. R was reappointed on 06 October 2020, for a second (2nd) term, however, the Board elected to shorten this term to three (3) years and 48 days, a duration, which Professor E argued is inconsistent with the mandates of Republic Act (R.A.) No. 8468 (converting The Don Severino Agricultural College in the Municipality of Indang, Province of Cavite into Cavite State University). The queries raised were: (1) Can the Board, through its inherent corporate power, extend the term of the President beyond retirement age but not later than age 70 as provided for in R.A. No. 8468 and 8292; (2) Will there be legal impediment if the Board asserts its power and authorities for extending the term of the incumbent President up to age 70? In reply, Section 7 of R.A. No. 8468 allows the extension of the term of the President of the University beyond the age of retirement but not later than the age of seventy (70), whose performance has been unanimously rated as outstanding and upon unanimous recommendation by the Search Committee. Said provision delineates additional powers of the Board, specifically granting it authority to extend the term of the University President beyond the typical age of retirement, up to a maximum of 70 years, conditional upon the President’s performance being rated as outstanding by unanimous consensus and similarly recommended by the Search Committee. The legislative intent, clearly discernible from the cited statutes, envisages a scenario where the presidency of a higher education institution may exceed conventional retirement parameters, contingent upon exemplary performance and concordant recommendation. This statutory framework allows for the extension of Dr. R’s tenure beyond conventional retirement limits, provided his performance continues to meet the exceptional criteria set forth, and the unanimity of the recommendation is maintained. DOJ categorically opines that, both under R.A. No. 9832 and R.A. 8292, a person appointed as President of a state university or college, after these laws took effect, may only serve for two (2) terms consisting of four (4) years each, or a maximum of eight (8) years, regardless of whether the second term is by “re-appointment” or by “extension. [DEPARTMENT OF JUSTICE OPINION NO. 32, SERIES OF 2024, JUNE 28, 2024]
PhilHealth to recommend decrease in contribution [ABS-CBN News, July 30, 2024]
After increasing the contribution rate from 4 percent to 5 percent early this year, PhilHealth now said it will recommend to President Ferdinand Marcos Jr. to bring down the amount.
https://news.abs-cbn.com/news/2024/7/30/philhealth-to-recommend-decrease-in-contribution-1839
Risa: Pogos used corporate layering to evade audit [InquirerPlus, July 30, 2024]
Sen. Risa Hontiveros asserts that various companies were established to safeguard both those operating Pogos and those harboring fugitives. The “dirty tactics” include corporate layering to avoid scrutiny.
https://plus.inquirer.net/news/risa-pogos-used-corporate-layering-to-evade-audit/
Philippines retains 52nd spot in world competitiveness [The Philippine Star, July 30, 2024]
The Philippines remains at 52nd place out of 67 economies in overall competitiveness, although it improved three spots in terms of governance in the 2024 World Competitiveness Report.
New AFASA Law Strengthens Fight Against Financial Scams [Good News Pilipinas, July 30, 2024]
AFASA’s goal is to “protect all persons from falling prey to the various cybercrime schemes by regulating the use of financial accounts, and preventing their use in fraudulent activities.” This law complements existing regulations like the Cybercrime Prevention Act and the SIM Registration Act, bolstering security measures against evolving scam tactics.
https://www.goodnewspilipinas.com/new-afasa-law-strengthens-fight-against-financial-scams/
MVP-led DigiCo acquires stake in Bayad Center [Philippine Daily Inquirer, July 30, 2024]
DigiCo, which is jointly owned by PLDT Inc., Manila Electric Co. (Meralco) and Metro Pacific Investments Corp. (MPIC), on Monday said it would acquire a 10-percent interest in bills payment service provider Bayad Center.
https://business.inquirer.net/472096/mvp-led-digico-acquires-stake-in-bayad-center
Hundreds of China Merchants Join Protest Against Temu Fines [Bloomberg News, July 30, 2024]
Hundreds of merchants staged a rally at PDD Holdings Inc.’s offices in southern China this week, protesting what they called unfair penalties that Temu’s owner is increasingly levying.
https://finance.yahoo.com/news/hundreds-china-merchants-join-protest-070257373.html
Cryptocurrency PayPal USD now available in PH through GCash [GMA News Online, July 30, 2024]
American fintech firm PayPal’s cryptocurrency PayPal USD (PYUSD) is now available in the Philippine market through Globe-backed digital wallet and finance app GCash.
https://www.gmanetwork.com/news/money/personalfinance/915197/paypal-usd-gcash/story/
Trump Wants To Eliminate Income Taxes: 4 Ways That May Impact the Housing Market [Yahoo Finance, July 29, 2024]
With the 2024 presidential election approaching quickly, former President Trump is campaigning hard to show voters how he can help the American people. One of his big campaign promises is to impose an all-tariff policy that would allow the U.S. to eliminate income taxes.
https://finance.yahoo.com/news/trump-wants-eliminate-income-taxes-134924624.html
Philippines dislodged as 2nd biggest banana exporter [The Philippine Star, July 29, 2024]
The FAO said Guatemala shipped 2.6 million metric tons of bananas last year, about 300,000 MT more than the 2.3 million MT exported by the Philippines.
Mitsubishi Motors to join Honda-Nissan alliance, Nikkei reports [Rappler, July 29, 2024]
Mitsubishi Motors, which is 34% owned by Nissan, will work with Honda and Nissan to finalize the details of their strategic partnership, Nikkei reports, adding the three firms intend to standardize in-vehicle software that controls cars
https://www.rappler.com/business/mitsubishi-motors-join-honda-nissan-alliance/
SEC chair Aquino: ‘Sustainability’ no longer mere buzzword [Philippine Daily Inquirer, July 29, 2024]
In 2019, the SEC issued Memorandum Circular No. 4, or the Sustainability Reporting Guidelines for Publicly Listed Companies, in response to the growing need for transparency among such corporations. The commission followed in the footsteps of its international counterparts in issuing standards for sustainability reporting.
https://business.inquirer.net/471894/sec-chair-aquino-sustainability-no-longer-mere-buzzword
Hofileña family opts to file raps vs. Amorsolo painting thieves [Inquirer Visayas, July 29, 2024]
The owner of the museum where the 88-year-old painting by National Artist Fernando Amorsolo was stolen has decided to file complaints against at least two persons who were linked to the daylight theft.
https://newsinfo.inquirer.net/1967076/hofilena-family-opts-to-file-raps-vs-amorsolo-painting-thieves
LPG business fuels Pryce’s record profit [The Philippine Star, July 28, 2024]
Listed Pryce Corp. saw its net income balloon to P1.32 billion in the first half, up by 61 percent from the P819.68 million earned a year earlier due to the improved operations of its liquified petroleum gas (LPG) business.
https://www.philstar.com/business/2024/07/28/2373405/lpg-business-fuels-pryces-record-profit
LTFRB accredits 14 new transport network companies [GMA News Online, July 28, 2024]
The 14 new TNCs are Angkas Technologies, Aztech Solution International Corp., Get Express Global Corporation, GoCab Corp., Hail Transport Inc., Leggo Information Technology Solutions, Metrophills Transport Association Inc., Para Xpress Technology Services Inc., Peek Up Philippines Corporation., PureRide Corporation, RL Soft Corporation, Taxsee Philippines Inc., Unified Transport Operations League Corp., and UNLA LA Corporation.
SEC unveils new digital services [The Philippine Star, July 28, 2024]
The commission’s five new digital services are the SEC Zuper Easy Registration Online (ZERO), Electronic Submission Authentication Portal (eSAP), SEC Foreign Investments Registration Station (FIRST) Green Lane Unit, Electronic Application For Modification Of Entity Name And Data (eAMEND) and Swift Corporate and Other Records Exchange (SCORE) Protocol.
https://www.philstar.com/business/2024/07/28/2373401/sec-unveils-new-digital-services
Mining industry eyes uniform tax treatment [The Manila Times, July 28, 2024]
During an industry luncheon on Friday, Philippine Nickel Industry Association (PNIA) President Dante Bravo highlighted the need for a uniform tax treatment for mining companies. He said that the current 2-percent tax rate imposed by local government units is burdensome for mining companies.
Philex income falls to P305M; firm upbeat on Silangan [The Manila Times, July 27, 2024]
PHILEX Mining Corp. on Friday reported a second-quarter core net income of P305 million, down from the P314 million recorded a year earlier, even as output and prices rose.
EPIRA amendments should result in lower electricity prices — Gatchalian [GMA News Online, July 27, 2024]
The senator issued the statement after President Ferdinand “Bongbong” Marcos Jr., in his third State of the Nation Address (SONA), urged lawmakers to review EPIRA to determine if there is a need to amend the law.
4 Japanese firms in Batangas ecozone to hire over 1,400 workers [The Philippine Star, July 27, 2024]
These four companies are Brother Industries (Philippines) Inc., Canon Business Machines (Philippines) Inc. (CBMP), Ibiden Philippines Inc. and the Philippine Manufacturing Co. of Murata Inc.
Filinvest unveils new F&B venture in Camp John Hay [The Philippine Star, July 26, 2024]
Filinvest Hospitality plans to build a restaurant called The Hay Diner on the newly acquired space, which was the former site of Cantinetta.
https://www.philstar.com/business/2024/07/26/2372943/filinvest-unveils-new-fb-venture-camp-john-hay
Batangas to Subic by train? DOTr says to fund feasibility study [ABS-CBN News, July 26, 2024]
The project is seen to be a collaborative effort involving the US, Sweden, and the Asian Development Bank, according to Batan.
Indonesia launches ‘golden visa’ program to attract business investment [NikkeiAsia, July 25, 2024]
Indonesia has launched a “golden visa” that allows investors and professionals with coveted skills to stay in the country for five or 10 years.
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