BCDA, NDC sign partnership for New Clark City dev’t
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEW [OCTOBER 30 – NOVEMBER 6]
- BIR CIRCULARIZES THE REVOCATION OF THE INCREASE IN ZONAL VALUE IN ZAMBOANGA AS A RESULT OF RPVARA
- BIR CIRCULARIZES THE REVISED BIR FORM 1900 ON APPLICATION FOR PERMIT TO USE LOOSE-LEAF BOOKS OF ACCOUNTS & INVOICES
- SEC LEGAL OPINIONS DIGEST
I. TAX & BUSINESS-RELATED NEWS [OCTOBER 30 – NOVEMBER 6]
- SteelAsia ships P511.24M worth steel bars to Canada
- IC wants hands off on HMOs
- Nvidia surpasses Apple as world’s biggest company
- BCDA, NDC sign partnership for New Clark City dev’t
- Senate panel wants removal of budget for DSWD’s AKAP
- DOTr in talks for additional direct PH-Canada flights
- TGI Fridays Philippines unaffected by bankruptcy filing in US
- President Marcos issues EO integrating, harmonizing infrastructure development
- PNU officials witness signing of ARAL Bill, welcome ID teacher participants
- Japan firms, ALI eye Market! Market! Project
- PBBM signs laws creating new court branches across PH
- Ombudsman explains decision on ERC case
- Residents ‘to benefit’ from Camotes airport
- Marcos declares local holidays for November, December
- DepEd: Gapan City students exhibit impressive learning performance
- Colliers: Leisure projects to spur demand for residential assets
- DTI to probe impact of increased cement importation
- BIR files 2 cases of tax evasion via ‘ghost receipts’
- Filipino eToro users face investment dilemma as platform exits Philippines
- EU probes shopping app Temu over illegal products
- Los Angeles County sues Pepsi and Coca-Cola over plastic bottles
- Grant amnesty to hospitals with unresolved cases, PhilHealth urged
- SEC OKs dissolution of URC unit
- LIST: Palace announces regular holidays, special days in 2025
- Bukidnon tops 2023 agri, fisheries production
- STI’s 84% surge in earnings due to higher enrollment
- UK firm gets green light for drilling exploration
- Asialink secures P1-billion credit line from Maybank
II. BIR CIRCULARIZES THE REVOCATION OF THE INCREASE IN ZONAL VALUE IN ZAMBOANGA AS A RESULT OF RPVARA
Revenue Memorandum Circular (RMC) No. 114-2024, issued on October 18, 2024, circularizes the Department Order (DO) No. 072-2024, revoking the implementation of DO No. 062-2024 and filing of refund for taxes erroneously paid as a result of the increase in zonal values of real properties in areas covered by DO No. 062-2024 in Zamboanga City.
The revocation is a result of the impact of the recently approved Real Property Valuation Assessment Reform Act (RPVARA).
III. BIR CIRCULARIZES THE REVISED BIR FORM 1900 ON APPLICATION FOR PERMIT TO USE LOOSE-LEAF BOOKS OF ACCOUNTS & INVOICES
Revenue Memorandum Circular (RMC) No. 117-2024, issued on October 18, 2024, circularizes the availability of the revised BIR Form No. 1900 [Application for Permit to Use Loose-Leaf Books of Accounts/Invoices and Other Accounting Records] October 2024 (ENCS).
IV. SEC LEGAL OPINIONS DIGEST
APPLICABILITY OF THE 19-LENDER RULE TO LENDING TRANSACTIONS INVOLVING 19 OR FEWER LENDERS
TF Co. is seeking an opinion on whether its lending activities would be exempt from registration under the Securities Regulation Code (SRC) if it engages in lending transactions involving 19 or fewer lenders. In reply, the SEC referred to the “19-Lender Rule” under the SRC, which exempts a company from the registration requirement if its lending activities involve 19 or fewer lenders and do not constitute a public offering. The exemption is valid as long as there is no advertisement or public solicitation of the lending activities. TF Co. can continue its lending operations without registration, provided the total number of lenders does not exceed 19 and there is no public solicitation. [SEC OFFICE OF THE GENERAL COUNSEL OPINION NO. 24-24, SEPTEMBER 11, 2024]
REPRESENTATIVE OFFICE OF A FOREIGN COMPANY IS ALLOWED TO DEAL DIRECTLY TO ITS PARENT COMPANY’S CLIENTS
R Co. is seeking an opinion on whether a representative office in the Philippines is allowed to deal directly with its parent company’s clients outside the Philippines. In reply, Sec. 1(q) of the Implementing Rules and Regulation (IRR) of Republic Act (R.A.) No. 7042 or the Foreign Investment Act (FIA), as amended, states that a representative office deals directly with the parent company’s clients, but does not earn income from the host country, and is entirely funded by the head office. Its functions include, but are not limited to, sharing information, promoting the company’s products, and ensuring product quality. Therefore, a representative office of a foreign corporation is an extension and does not have legal identity separate from its parent company. Thus, it is allowed to deal directly with its parent company’s clients within and outside the Philippines if its activities relate to information dissemination, promotion, and quality control of its parent company’s products. Moreover, the office should be fully subsidized by its head office and does not derive income in the Philippines. [SEC OFFICE OF THE GENERAL COUNSEL OPINION NO. 24-22, SEPTEMBER 10, 2024]
NON-STOCK, NON-PROFIT CORPORATION CAN ENGAGE TO PROFITABLE BUSINESS ACTIVITIES THAT ARE INCIDENTAL TO ITS PURPOSE
W Foundation is seeking an opinion on whether a non-stock, non-profit organization, can establish a Business Process Outsourcing (“BPO”) service or contact/call center that will serve its affiliates in other countries, without amending its Article of Incorporation (AOI). In reply, Section 86 of the Revised Corporation Code (RCC) provides that a non-stock corporation is one where income cannot be distributed as dividends to members, trustees, or officers. Any profits obtained incidental to its operation must be used to further the organization’s purpose. Sec. 13 of the RCC also states that the purposes of which must be indicated in the AOI. As a rule, non-stock, non-profit corporations, are not empowered to venture profitable business activities, unless those activities are incidental and reasonably necessary to carry out their purpose. As a result, the purpose clause provision in a non-stock corporation’s AOI will play a significant role in evaluating whether it is permitted to engage in profit-generating business activities. If the business activity is not incidental, necessary, or essential, it cannot be undertaken by a non-stock corporation. To recall, W Foundation is a Christian social development organization that not only provides humanitarian help during calamities but is also authorized to promote growth and dissemination of knowledge on Christian transformational development. As stated in the AOI, the corporation intends to conduct activities that raise awareness of poverty concerns and provide opportunities to be involved in the Foundation’s mission in the Philippines and other countries. Therefore, the establishment of a BPO service may act as a streamlined unit within a business to manage client issues. Since W Foundation is a member of this international community with common goals, any assistance provided by W Foundation is essential and practically in pursuit of the organization’s mission and purposes. Thus, a non-stock, non-profit organization can establish a BPO service, without amending its AOI for as long as the rendering of contact or call center services is reasonable and not primarily for profit making and is limited to its affiliates. Also, any profit derived therefrom is not distributable to its members but is used for furtherance of corporate services. [SEC OFFICE OF THE GENERAL COUNSEL OPINION NO. 24-21, AUGUST 16, 2024]
SteelAsia ships P511.24M worth steel bars to Canada [Philippine Daily Inquirer, November 6, 2024]
One of the Philippines’ largest producers of steel products, SteelAsia Manufacturing Corporation, on Tuesday said it shipped P511.24 million ($8.8 million) worth of high-strength steel bars to Canada, marking its seventh shipment to its inaugural first-world market.
https://business.inquirer.net/488645/steelasia-ships-p511-24m-worth-steel-bars-to-canada
IC wants hands off on HMOs [The Philippine Star, November 6, 2024]
It was in November 2015 when then president Benigno Aquino III transferred the jurisdiction of HMOs from the Department of Health (DOH) to the IC.
https://www.philstar.com/business/2024/11/06/2397880/ic-wants-hands-hmos
Nvidia surpasses Apple as world’s biggest company [Inquirer.net, November 6, 2024]
Chip-making giant Nvidia surpassed Apple on Tuesday to become the highest valued company in the world as the artificial intelligence boom continues to excite Wall Street.
https://business.inquirer.net/488548/nvidia-surpasses-apple-as-worlds-biggest-company
BCDA, NDC sign partnership for New Clark City dev’t [Philippine News Agency, November 6, 2024]
As the government’s investment arm, the NDC pursues commercial, industrial, agricultural, and mining ventures to provide necessary impetus to national economic development. This is aligned with the BCDA’s mission of transforming former military bases into centers of economic development.
https://www.pna.gov.ph/articles/1237208
Senate panel wants removal of budget for DSWD’s AKAP [Inquirer.Net, November 6, 2024]
The AKAP funding became controversial after it was linked to the signature campaign for Charter change.
https://newsinfo.inquirer.net/2001970/senate-panel-wants-removal-of-budget-for-dswds-akap
DOTr in talks for additional direct PH-Canada flights [GMA News Online, November 5, 2024]
Talks are ongoing for additional direct flights between the Philippines and Canada, with Air Canada exploring possible Asia-Pacific routes, according to the Department of Transportation (DOT).
TGI Fridays Philippines unaffected by bankruptcy filing in US [The Philippine Star, November 4, 2024]
The Bistro Group, a franchisee of TGI Fridays in the country, said that it “operates independently” and that the restaurants under its helm are “unaffected” by the restructuring process of TGI Fridays Inc. in the US.
President Marcos issues EO integrating, harmonizing infrastructure development [The Philippine Star, November 4, 2024]
In issuing Executive Order 72, Marcos stressed the need for an integrated master-planning development and convergence programs toward sustainable, resilient and modernized infrastructure facilities and services.
PNU officials witness signing of ARAL Bill, welcome ID teacher participants [The Manila Times, November 4, 2024]
RA No. 12028, also known as “An Act Establishing an Academic Recovery and Accessible Learning Program, Appropriating Funds, and for Other Purposes,” is a landmark legislation that aims to address the learning gaps caused by pandemic-related school closures by establishing a free, national intervention and remedial program.
Japan firms, ALI eye Market! Market! Project [Philippine Daily Inquirer, November 4, 2024]
Among those keen on this proposed transit-oriented development (TOD) are Japanese conglomerates Mitsubishi and Marubeni, BCDA president Joshua Bingcang said in a recent chat with the Inquirer.
https://business.inquirer.net/488113/japan-firms-ali-eye-market-market-project
PBBM signs laws creating new court branches across PH [Philippine News Agency, November 3, 2024]
President Ferdinand R. Marcos Jr. has signed into law 11 measures creating additional court branches in various parts of the country.
https://www.pna.gov.ph/articles/1236960
Ombudsman explains decision on ERC case [The Manila Times, November 3, 2024]
“When the reason for the preventive suspension has already ceased, justice and fair play demands that the preventive suspension should not be for the full six-month period allowed by law but should immediately be lifted,” The Ombudsman added.
https://www.manilatimes.net/2024/11/03/news/national/ombudsman-explains-decision-on-erc-case/1996444
Residents ‘to benefit’ from Camotes airport [Sunstar, November 3, 2024]
Once completed, the airport will accommodate private and passenger planes with a capacity of 70 to 80 people.
https://www.sunstar.com.ph/cebu/residents-to-benefit-from-camotes-airport
Marcos declares local holidays for November, December [GMA News Online, November 2, 2024]
The list of special non-working days provided under various proclamations, issued by Executive Secretary Lucas Bersamin by authority of President Ferdinand Marcos Jr., are as follows:
26 Filipinos Make Stanford’s Top 2% Scientists in the World List [Spot.PH, November 2, 2024]
Pinoy researchers are making waves. Twenty-six Filipino scientists just cracked Stanford University’s prestigious “World’s Top 2% Scientists” list for 2024, highlighting the talent and contributions that Filipino minds bring to the international scientific community. This ranking picks the cream of the crop—the top 2% of scientists globally—using data from the Scopus database provided by Elsevier.
DepEd: Gapan City students exhibit impressive learning performance [Inquirer.net, November 2, 2024]
The agency then said that the feat “highlighted the city’s resourcefulness in managing limited Maintenance and Other Operating Expenses (MOOE).”
Colliers: Leisure projects to spur demand for residential assets [Philippine Daily Inquirer, November 2, 2024]
Data from Colliers show that as of the third quarter, there were 27,200 unsold condominium units in Metro Manila. Of the total, 32 percent are in the lower mid-income segment; 25 percent, upper mid-income; and 24 percent, affordable.
https://business.inquirer.net/487905/colliers-leisure-projects-to-spur-demand-for-residential-assets
DTI to probe impact of increased cement importation [GMA News Online, November 2, 2024]
In a notice issued on October 28, Trade Secretary Ma. Cristina Roque said this is pursuant to Section 6 of Republic Act No. 8800 or the Safeguard Measures Act which provides that the DTI Secretary may initiate preliminary safeguard investigation if there is evidence that increased imports of the product under consideration would be a threat to a specific product’s local sector.
BIR files 2 cases of tax evasion via ‘ghost receipts’ [Philippine Daily Inquirer, November 1, 2024]
“The BIR continues to fight the war against ghost receipts. Last August 2024, the BIR partnered with Ateneo de Manila University-Department of Mathematics to develop an algorithm that will detect companies possibly using such receipts,” BIR said.
https://business.inquirer.net/487783/bir-files-2-cases-of-tax-evasion-via-ghost-receipts
Filipino eToro users face investment dilemma as platform exits Philippines [interaksyon, November 1, 2024]
Online trading platform eToro recently announced it will be closing operations in the Philippines, leaving many Filipino investors uncertain about the future of their portfolios.
EU probes shopping app Temu over illegal products [Inquirer.net, November 1, 2024]
The probe is being launched under a mammoth law known as the Digital Services Act (DSA) that forces the world’s largest tech firms to do more to protect European consumers online.
https://business.inquirer.net/487900/eu-probes-shopping-app-temu-over-illegal-products
Los Angeles County sues Pepsi and Coca-Cola over plastic bottles [Associated Press, November 1, 2024]
A European Union consumer protection group and environmental organizations filed a legal complaint against Coca-Cola, Nestle, and Danone last November, accusing them of being misleading when representing packaging as 100% recycled or 100% recyclable.
Grant amnesty to hospitals with unresolved cases, PhilHealth urged [The Philippine Star, November 1, 2024]
Private Hospitals Association of the Philippines Inc. (PHAPI) president Jose Rene de Grano said the issue of suspension is not a simple thing as this deprives suspended hospitals of PhilHealth accreditation.
SEC OKs dissolution of URC unit [The Philippine Star, November 1, 2024]
In a stock exchange filing, URC said that the SEC has given the green light to the amendment of the articles of incorporation of URC Beverage Ventures Inc. (UBVI), shortening its corporation term.
https://www.philstar.com/business/2024/11/01/2396694/sec-oks-dissolution-urc-unit
LIST: Palace announces regular holidays, special days in 2025 [ABS-CBN News, October 31, 2024]
Malacañang on Thursday announced the regular holidays and special non-working days for 2025, based on Proclamation No. 727 signed by Executive Secretary Lucas Bersamin.
Bukidnon tops 2023 agri, fisheries production [Business Mirror, October 31, 2024]
PSA data indicate that among the top 10 provinces with the highest value of production at current prices in 2023, Bukidnon emerged as leader with P155.28 billion.
https://businessmirror.com.ph/2024/10/31/bukidnon-tops-2023-agri-fisheries-production/
STI’s 84% surge in earnings due to higher enrollment [Philippine Daily Inquirer, October 31, 2024]
In a stock exchange filing on Wednesday, STI said its net income reached P1.6 billion from P873.8 million the previous year.
https://business.inquirer.net/487687/stis-84-surge-in-earnings-due-to-higher-enrollment
GSIS remittance not part of mayor’s duties — SC [GMA News Online, October 31, 2024]
In a 21-page resolution dated in June, the SC Special First Division cited the Local Government Code, which refers to municipal mayors as “chief executives” and not “heads of offices” under the GSIS Act of 1997.
UK firm gets green light for drilling exploration [The Manila Times, October 31, 2024]
LONDON-BASED Metals Exploration, a gold producer in the Philippines, has announced that it has received final approval from Philippine authorities “for the commencement of exploration drilling activities in the Abra tenements.”
Asialink secures P1-billion credit line from Maybank [Manila Bulletin, October 30, 2024]
“Asialink holds a unique connection to Malaysia, and I personally ensure that any Malaysian-affiliated company operating in the Philippines will receive our bank’s dedicated support,” Solosa said.
https://mb.com.ph/2023/2/10/asialink-secures-p1-billion-credit-line-from-maybank
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