SUPREME COURT INVALIDATES BIR CIRCULAR IMPOSING TAXES ON CONDO UNIT OWNERS DUES & CHARGES + BIR: ONLY 24.9% OF LARGE TAXPAYERS PAID AHEAD OF JUNE 15 DEADLINE
Other Relevant Tax Updates:
- Bureau of Internal Revenue (BIR) clarifies obligations of persons conducting business transactions through any forms of electronic media
- Taxand Business-Related News [June 13-19]
I. BIR CLARIFIES OBLIGATIONS OF PERSONS CONDUCTING BUSINESS TRANSACTIONS THROUGH ANY FORMS OF ELECTRONIC MEDIA
Revenue Memorandum Circular No. 60-2020, issued on June 10, 2020, circularizes the notice of the BIR that all persons conducting digital business transactions, such as but not limited to sellers/merchants and their partners in payment gateway, delivery channels, internet service providers and other facilitators, are required to register with the BIR on or before July 31, 2020. Otherwise the corresponding penalty will be imposed. Past transactions are encouraged to be declared and paid with the corresponding tax without the penalty if paid on or before July 31, 2020. Compliance includes issuance of official receipts or sales invoice, maintenance of registered books of accounts and accounting records, withholding of tax and filing the corresponding tax returns and payment on time.
II. TAXAND BUSINESS-RELATED NEWS [JUNE 13-19]
- DTI: Sellers operating on ‘irregular’ basis not required to register
- SC invalidates BIR circular levying taxesimposed on condo unit owners’ dues, charges
- BIR targeting Netflix, Lazada, not small-time online sellers
- Temporary taxmeasure on oil imports yields P1.49B in revenue
- BIR’s 2020 taxgoal slashed to below P2-trillion mark
- Indonesia defends digital taxpolicy despite US scrutiny
- BIR to taxmedia streaming platforms, wholesale suppliers not small online sellers — official
- De Lima seeks fresh Senate probe on POGOs
- POGOs to stay shut unless taxesare fully paid: BIR
- DOF to online sellers: Registering business with BIR comes with gov’t benefits
- Grab laying off 360 workers as COVID-19 saps demand
- PhilHealth forecasts ‘grim, dangerous’ financial position in 2021 due to COVID crisis
- Boracay reopens but local tourists are nowhere
- BIR: Only 24.9 percent of large taxpayers paid ahead of June 15 deadline
- Malaysia’s AirAsia to resume all domestic routes from July
- SSS extends contribution deadline to June 30
- Gatchalian on BIR proposal to taxonline sellers: ‘Ill-timed, insensitive’
- DOF firm on listing, taxing online sellers
DTI: Sellers operating on ‘irregular’ basis not required to register [Philippine Daily Inquirer, June 19, 2020]
Sellers that are operating “intermittently or irregularly” as well as those selling homemade items as a hobby are not required to register, the Department of Trade and Industry (DTI) said Friday.
SC invalidates BIR circular levying taxes imposed on condo unit owners’ dues, charges [Manila Bulletin, June 18, 2020]
The Supreme Court (SC) has invalidated a Bureau of Internal Revenue (BIR) circular that imposes a 12 per cent value-added tax (VAT) and 32 per cent income tax on association dues, membership fees and other charges collected by condominium corporations from its members and tenants.
BIR targeting Netflix, Lazada, not small-time online sellers [Philippine Daily Inquirer, June 18, 2020]
Netflix, Lazada and other big online merchants are the target of tax collectors, Bureau of Internal Revenue (BIR) Deputy Commissioner Arnel Guballa said, allaying fears that the agency was running after small online sellers.
Temporary tax measure on oil imports yields P1.49B in revenue [Philippine Daily Inquirer, June 18, 2020]
The additional 10-percent import duties temporarily slapped on certain oil products amid the COVID-19 crisis so far raised P1.49 billion in additional revenue for the government.
Source: https://business.inquirer.net/300198/temporary-tax-measure-on-oil-imports-yields-p1-49b-in-revenue#ixzz6PmdK7WPw
BIR’s 2020 tax goal slashed to below P2-trillion mark [Philippine Daily Inquirer, June 17, 2020]
The Bureau of Internal Revenue’s (BIR) 2020 tax-collection goal has been further reduced to P1.74 trillion—lower than its actual 2019 take—amid a COVID-19-induced recession that had shut down many firms, leaving millions of Filipinos jobless and without income.
Indonesia defends digital tax policy despite US scrutiny [Philippine Daily Inquirer, June 17, 2020]
The Indonesian government will press ahead with collecting digital tax despite a recent announcement by the United States Trade Representatives (USTR) to investigate such a policy, which the US said was aimed squarely at its technology giants.
BIR to tax media streaming platforms, wholesale suppliers not small online sellers — official [Philippine Daily Inquirer, June 17, 2020]
Efforts of the Bureau of Internal Revenue to tax online services will target media streaming platforms such as Netflix and Amazon and wholesale suppliers such as Alibaba, but not small online sellers, an official of the tax bureau said on Wednesday.
De Lima seeks fresh Senate probe on POGOs [ABS-CBN News, June 17, 2020]
Opposition Sen. Leila de Lima on Wednesday sought to investigate what she called an “increasing frequency” of illegal activities linked to Chinese-run offshore gaming firms in the Philippines.
Source: https://news.abs-cbn.com/business/06/17/20/de-lima-seeks-fresh-senate-probe-on-pogos
POGOs to stay shut unless taxes are fully paid: BIR [ABS-CBN News, June 17, 2020]
Unless they pay their tax liabilities full, offshore gaming firms or POGOs should not be allowed to reopen, the Bureau of Internal Revenue said Wednesday.
Source: https://news.abs-cbn.com/business/06/17/20/pogos-to-stay-shut-unless-taxes-are-fully-paid-bir
DOF to online sellers: Registering business with BIR comes with gov’t benefits [Philippine Daily Inquirer, June 16, 2020]
Finance Assistant Secretary Tony Lambino said this Tuesday as he urged online sellers to register their businesses with the Bureau of Internal Revenue (BIR) as mandated by law to enjoy government benefits.
Grab laying off 360 workers as COVID-19 saps demand [ABS-CBN News, June 16, 2020]
Southeast Asian ride-hailing and payments firm Grab announced on Tuesday that is laying off 360 employees, or under 5 percent of its workforce as the COVID-19 crisis saps demand.
Source: https://news.abs-cbn.com/business/06/16/20/grab-laying-off-360-workers-as-covid-19-saps-demand
PhilHealth forecasts ‘grim, dangerous’ financial position in 2021 due to COVID crisis [ABS-CBN News, June 16, 2020]
The Philippine Health Insurance Corporation (PhilHealth) on Tuesday said it expects to have a “grim” and “dangerous” financial position starting next year as it estimates to incur a deficit until 2024 due to the COVID pandemic.
Boracay reopens but local tourists are nowhere [ABS-CBN News, June 16, 2020]
Business remained slow in tourist-favorite Boracay Island, local officials said Tuesday, as authorities continue to implement restrictions in a bid to curb the spread of coronavirus disease (COVID-19).
Source: https://news.abs-cbn.com/business/06/16/20/boracay-reopens-but-local-tourists-are-nowhere
BIR: Only 24.9 percent of large taxpayers paid ahead of June 15 deadline [Philippine Daily Inquirer, June 15, 2020]
Only almost a fourth of firms that the Bureau of Internal Revenue (BIR) had registered as large taxpayers were able to settle their 2019 tax dues ahead of the extended June 15 deadline.
Source: https://business.inquirer.net/299983/bir-only-24-9-percent-of-large-taxpayers-paid-ahead-of-june-15-deadline#ixzz6Pmew8vSB
Malaysia’s AirAsia to resume all domestic routes from July [ABS-CBN News, June 15, 2020]
Malaysian budget carrier AirAsia Group will restart all domestic routes from July, Chief Executive Officer Tony Fernandes said on Monday, after the government eased movement curbs for containing the coronavirus.
Source: https://news.abs-cbn.com/business/06/15/20/malaysias-airasia-to-resume-all-domestic-routes-from-july
SSS extends contribution deadline to June 30 [ABS-CBN News, June 15, 2020]
The Social Security System said Monday it further extended the deadline for contribution payments to June 30, as members reeled from the coronavirus pandemic.
Source: https://news.abs-cbn.com/business/06/15/20/sss-extends-contribution-deadline-to-june-30
Gatchalian on BIR proposal to tax online sellers: ‘Ill-timed, insensitive’ [Philippine Daily Inquirer, June 13, 2020]
Senator Sherwin Gatchalian has dismissed as “ill-timed” and “insensitive” the move of the Bureau of Internal Revenue (BIR) to tax online resellers who are still reeling from the impact of the coronavirus pandemic.
DOF firm on listing, taxing online sellers [Philippine Daily Inquirer, June 13, 2020]
The Department of Finance (DOF) did not buckle to calls not to force online sellers to register with the Bureau of Internal Revenue (BIR) and pay taxes while the country is battling the new coronavirus disease (COVID-19) pandemic.
Source: https://business.inquirer.net/299851/dof-firm-on-listing-taxing-online-sellers#ixzz6PmfSN7wJ
If you wish to get a copy of the complete texts of the above issuances, send us an email thru taxseminars@dmdcpa.com.ph.
Recent Comments