Weekly Tax Updates[November 14, 2020]

VIETNAM REBUKES NETFLIX APPLE OVER LACK OF TAX PAYMENTS + SENATE APPROVES ON FINAL READING FIST BILL TO CUSHION BANKS FROM BAD LOANS + DOF EXTENDS DEADLINE FOR PAYMENT OF LOCAL TAXES FEES TO DECEMBER 19

Other Relevant Tax Updates:

• Bureau of Internal Revenue (BIR) Rulings Digest
• BIR International Tax Affairs Division (ITAD) Ruling on Dividends Tax
• Court of Tax Appeals (CTA) Cases Digest
• Tax and Business-Related News [November 7-14]

I. BIR RULINGS DIGEST

• Sale of land classified as capital assetis not subject to VAT and Creditable Withholding Tax (CWT)
• Extent of tax exemption of non-stock savings and loans association
• No specific or particular completed transaction is considered a no ruling area
• Dividend payment to Non-Resident Foreign Corporation (NRFC)registered in the United States of America (USA) is subject to a lower rate of 15% Final Withholding Tax (FWT)
• Sale made by retirement fund of shares of stockis exempt from Capital Gains Tax (CGT)
• Tax-free merger; Net Operating Loss Carry-Over (NOLCO) is not an asset that can be transferred
• Sale of investment property,not held for sale or lease in the ordinary course of business, is subject to CGT and to VAT
• Transfer of land title by homeowners to its memberis not subject to CGT and donor’s tax
• Issuances of an educational institution of various school recordsare subject to Documentary Stamp Tax (DST)
• Change of inventory valuation methodis acceptable if it conforms to the company’s accounting practice and if it reflects the company’s true income
• Tax-exempt statutory merger; NOLCOcan only be availed as a privilege/deduction by the absorbed corporation
• Tax exemption of Philippine Amusement And Gaming Corporation (PAGCOR) shall inure to the benefit of its licensees
• Conditions for retirement benefits to be tax exempt
• Sale of real property for investment purposesis subject to final CGT

 SALE OF LAND CLASSIFIED AS CAPITAL ASSET IS NOT SUBJECT TO VAT AND CWT

B Construction, a general construction business, is seeking confirmation that its sale of land held for investment purposes is subject to 6% CGT and DST but not to VAT and CWT. As represented, it is not engaged in real estate business and it owns parcel of land for investment purposes and not for sale or lease in the ordinary course of business. Likewise, since its acquisition, the parcel of land was not developed or utilized in its operations. Further, to prove that the parcel of land is idle, B Construction presented a Barangay Certification stating that the land is idle as well as a Certification of Land with No Improvement issued by the Office of the City Assessor. In ruling, Revenue Regulations (RR) No. 7-2003 provides the guidelines in determining whether a particular real property is a capital or ordinary asset. Considering the representations and documents presented, parcel of land is classified as a capital asset and the sale of which is subject to CGT and DST but not to VAT and CWT. [BIR RULING NO. 556-2020, SEPTEMBER 24, 2020]

 EXTENT OF TAX EXEMPTION OF NON-STOCK SAVINGS AND LOANS ASSOCIATION

A Co. is seeking a ruling that a Non-Stock Savings and Loan Association (NSSLA) organized and operated exclusively for the mutual benefit of its members is exempt from Gross Receipts Tax (GRT). In reply, NSSLA may be exempt from GRT if it can prove that It does not engage in activities as Non-Bank Financial Intermediary (NBFI) as defined under Revenue Regulations No. 9-2004, that is, if the NSSLA is obtaining funds from the public. However, the BIR cannot confirm the exemption from GRT based only on the representation that its members are all NSSLA organized pursuant to Republic Act (R.A.) No. 8367 or “An Act Providing for the Regulation of the Organization and Operation of Non-Stock Savings and Loan Associations”. Thus, it is incumbent upon A Co. members to prove that it is NSSLA organized pursuant to R.A. No. 8367 and that it is not engaged in the business of being a NBFI, otherwise, it will be considered as NBFI subject to GRT. [BIR RULING NO. 535-2020, SEPTEMBER 23, 2020]

 NO SPECIFIC OR PARTICULAR COMPLETED TRANSACTION IS CONSIDERED A NO RULING AREA

Mr. P is seeking a ruling whether his condominium building consisting of all units is classified as capital asset. In ruling, the BIR did not issue a determinative ruling since the request of Mr. P has no specific or particular completed transaction which is considered a “No-Ruling Area” pursuant to Section 2(t) of Revenue Bulletin No. 1-03. Further, he was not able to meet the guidelines in the processing of request for ruling under Revenue Memorandum Order (RMO) No. 9-2014, which provides that the letter request for ruling must be sworn and executed under oath, must contain a list of submitted documents, and must contain the following affirmations: 

1. A similar inquiry has not been filed and is not pending in another office of the Bureau;
2. There is no pending case in litigation involving the same issues and the same taxpayer or related taxpayer;
3. The issue subject of the request is not pending investigation, on-going audit, administrative protest, claim for refund or issuance of tax credit certificate, collection proceeding or judicial appeal; and
4. The documents are complete and that no other documents will be submitted in connection with the request.

Likewise, Mr. P failed to comply with the requirements that documents to be submitted must be certified as true copy of the original document by the person having custody of the original document. [BIR RULING NO. 534-2020, SEPTEMBER 23, 2020]

DIVIDEND PAYMENT TO NRFC REGISTERED IN THE USA IS SUBJECT TO A LOWER RATE OF 15% FWT

A Company, a domestic holding corporation, is seeking confirmation that dividend to be paid to Ford Motor Company, a NRFC registered in the USA, is subject to the preferential rate of 15% FWT under Section 28(B)(5)(b) of 1997 Tax Code. In ruling, Section 28(B)(5)(b) of 1997 Tax Code requires that the application of 15% preferential final tax rate is subject to the condition that the country in which  the NRFC is domiciled allows a credit against the tax due from the non-resident corporation taxes deemed to have been paid in the Philippines. Since USA, the country in which Ford Motor Company is domiciled, meets the conditions provided in the Tax Code, payment of dividend to Ford Motor Company by A Company is subject to the 15% FWT. [BIR RULING NO. 532-2020, SEPTEMBER 23, 2020]

 SALE MADE BY RETIREMENT FUND OF SHARES OF STOCK IS EXEMPT FROM CGT

C Retirement Plan Fund B (CRPFB) is seeking confirmation that its sale of shares of stock in Primus Holdings, Inc. to C Overseas Investment Corporation is not subject to CGT. As represented, CRPFB is a BIR-approved reasonable employee retirement benefit plan and a beneficial owner of the shares of stock in Primus Holdings, Inc., a domestic corporation. In ruling, Section 60(B) of the 1997 Tax Code provides that for the earning of a retirement fund to be exempt from income tax, two (2) conditions must be met. The conditions are: (1) the contributions are made to the trust by the employer or employees, or both for the purpose of distributing to such employees the earnings and principal of the fund accumulated by the trust in accordance with such plan; and, (2) under the trust instrument, it is impossible at any time prior to the satisfaction of all liabilities with respect to employees under the trust, for any part of the corpus or income to be used for, or diverted to, purposes other than for the exclusive benefit of the employees. Given that CRPFB has met the conditions for income tax exemption, its sale of shares of stock is not subject to CGT, and, consequently from CWT. Likewise, since the exemption is only for income tax, the sale is still subject to DST and Stock Transaction Tax. [BIR RULING NO. 527-2020, SEPTEMBER 15, 2020]

[TAX-FREE MERGER] [NOLCO IS NOT AN ASSET THAT CAN BE TRANSFERRED]

B Capital and Investment Corporation, as the surviving corporation, is seeking confirmation on whether its statutory merger with B Elite Savings Bank, Inc. and B Savings Bank, Inc. is a tax-free transfer/exchange pursuant to the 1997 Tax Code. In ruling, BIR confirmed the following:

1. Qualification for non-recognition of gain or loss for income tax purposes pursuant to the Articles and Plan of Merger;  
2. Exempt from DST on the cancellation of the surrendered shares by the absorbed corporations. However, DST shall be imposed on the original issuance of shares by the surviving corporation in favor of the shareholders of the absorbed corporations; a)      Exempt from Donor’s Tax on the transfer of assets to the surviving corporation since essential elements of a valid donation are met to wit: (a) reduction of the patrimony of the donor; (b) increase in the patrimony of the donee; and (c) intent to do an act of liberality. Upon evaluation, there was no intention to donate the assets and the transaction is purely for a legitimate business purpose; 
3. Exempt from VAT on the transfer of assets to the surviving corporation. The assets/properties transferred were mainly financial assets. These were neither goods/properties that are used in business, held for sale or lease by the transferors, nor intended for sale or for use in the course of business;  
4. Entitlement to carry forward and apply the excess CWT of the absorbed corporations as credit against its Minimum Corporate Income Tax (MCIT) or Regular Corporate Income Tax (RCIT), or may be subject of a claim for refund or issuance of TCC; 
5. Entitlement to carry forward and credit the excess MCIT of the absorbed corporations against its RCIT for the three (3) immediately succeeding taxable years reckoned from the date of payment of the MCIT; 
6. Tax-free merger does not cover the accumulated unutilized NOLCO of the absorbed corporations as a deduction from its gross income. NOLCO is not an asset that can be transferred, as this privilege/deduction can be availed of merely by the absorbed corporations. [BIR RULING NO. 512-2020, SEPTEMBER 9, 2020]

SALE OF INVESTMENT PROPERTY, NOT HELD FOR SALE OR LEASE IN THE ORDINARY COURSE OF BUSINESS, IS SUBJECT TO CGT AND TO VAT

E Co., a financial holding company, owns parcels of land only for investment purposes and not for sale or lease in the ordinary course of business, is seeking confirmation on whether sale of real properties for investment purposes is subject to CGT and DST but not to VAT. In ruling, the BIR defined the capital assets as properties that are not for sale in the ordinary course of business and properties that are not held by the taxpayer as part of their inventory. Perusal of documents showed that E Co’s properties have been idle and vacant since the time of its acquisition. Moreover, there are neither improvements erected on the land nor reported operation or commercial activity and the properties have been treated as investment properties and have not been used in the ordinary course of business. Thus, the subject properties are classified as capital assets which are subject to CGT and DST but not to VAT and CWT. [BIR RULING NO. 489-2020, SEPTEMBER 7, 2020]

TRANSFER OF LAND TITLE BY HOMEOWNERS TO ITS MEMBER IS NOT SUBJECT TO CGT AND DONOR’S TAX

S  Association is requesting exemption from CGT on transfer of title of land in favor of its member. In ruling, transfer by S Association to its member who has made full payment of the purchased subdivided lot is not subject either to CGT or CWT, considering that the said transfer of property is made only as a formality to finally effect the transfer to its member. Likewise, the said transfer is not subject to Donor’s Tax since there is no donative intent on the part of the association to donate the said property to its member. [BIR RULING NO. 460-2020, AUGUST 18, 2020]

ISSUANCES OF AN EDUCATIONAL INSTITUTION OF VARIOUS SCHOOL RECORDS ARE SUBJECT TO DST

Department of Education is seeking exemption from Documentary Stamp Tax (DST) on various school credentials issued, and, if not granted, that the imposition of the same be deferred until the Enhanced Community Quarantine (ECQ) period is lifted. In ruling, Revenue Memorandum Circular (RMC) No. 25-2008 provides the obligation of educational institutions to remit the DST in respect of issuance of taxable certificates such as diploma, transcript of records, and other taxable certificates. In BIR Ruling No. 143-2010 it was ruled that notwithstanding the tax exemption of educational institutions, they are “collecting agents” for the BIR for the purpose of remitting the DST on various school records issued by them in favor of non-exempt person or entities. In the request for the deferment, Revenue Regulations (RR) No. 30-2020 provides for the extension of statutory deadlines and timelines for the filing and submission of any documents and the payment of taxes during the ECQ period. [BIR RULING NO. 447-2020, AUGUST 18, 2020]

CHANGE OF INVENTORY VALUATION METHOD IS ACCEPTABLE IF IT CONFORMS TO THE COMPANY’S ACCOUNTING PRACTICE AND IF IT REFLECTS THE COMPANY’S TRUE INCOME

D Co. is seeking approval to change its accounting method of valuing inventories from Weighted Average method to First-In-First-Out (FIFO) Method. As represented, D Co.’s decision to change its inventory method was brought about to align its method of inventory with its parent company and provide a valuation of inventory which is more reflective of the current market values. Moreover, by using FIFO method, it would establish a more effective and orderly inventory management system, thus, minimizing losses caused by obsolete and perishable stocks. Considering that it would clearly reflect the true income of the Company, the BIR granted authority to D Co. to change its inventory valuation from Weighted Average Method to FIFO Method. [BIR RULING NO. 447-2020, AUGUST 9, 2020]

[TAX-EXEMPT STATUTORY MERGER] [NOLCO CAN ONLY BE AVAILED AS A PRIVILEGE/DEDUCTION BY THE ABSORBED CORPORATION]

N Asia, Inc., as the surviving corporation, is seeking confirmation whether its statutory merger with S Asia Food, Inc. is a tax-free merger in accordance with Section 40(C)(2) and 6(b) of the 1997 Tax Code. In ruling, BIR confirmed the following:

1. Qualification for non-recognition of gain or loss for income tax purposes pursuant to the Plan of Merger; 
2. Exempt from VAT, and any unused input tax of can be transferred to the surviving corporation; 
3. Not subject to donor’s tax given the presence of the following essential requisites: (a) reduction of the patrimony of the donor; (b) increase in the patrimony of the donee; and (c) intent to do an act of liberality. Upon evaluation, there was no intention to donate the assets and the transaction is purely for a legitimate business purpose; 
4. Exempt from DST on all the integral parts of the merger, such as absorption of real properties, and surrender of shares in exchange for shares. However, DST shall be imposed on the original issuance of shares by the surviving corporation in favor of the stockholders of the absorbed corporation;  
5. Entitlement to carry forward and apply the excess CWT of the absorbed corporations as credit against its MCIT or RCIT; 
6. Entitlement to carry forward and credit the excess MCIT of the absorbed corporations against its RCIT for the three (3) immediately succeeding taxable years reckoned from the date of payment of the MCIT; 
7. Tax-free merger does not cover the accumulated unutilized NOLCO of the absorbed corporations as a deduction from its gross income. NOLCO is not an asset that can be transferred, as this privilege/deduction can be availed of merely by the absorbed corporations;
8. Imposition of 10% Final Withholding Tax on dividends constructively received by the individual shareholders of the absorbed corporation. [BIR RULING NO. 427-2020, JULY 30, 2020]

TAX EXEMPTION OF PAGCOR SHALL INURE TO THE BENEFIT OF ITS LICENSEES

S Gaming Co., a licensee of PAGCOR, is seeking confirmation on whether its income derived from electronic gaming operations shall be subject to 5% Franchise Tax, in lieu of all kinds of taxes. In ruling, Section 13 (2) of Presidential Decree (P.D.) No. 1869 provides that no tax of any kind or form, income or otherwise, as well as fees, charges or levies of whatever nature, shall be assessed from the corporation, except a Franchise Tax of 5% of the gross revenue derived by the corporation from its operation. In the case of Bloomberry Resorts and Hotels, Inc. vs. CIR, the Supreme Court affirmed the applicability of the tax exemption provisions of P.D. No. 1869 to PAGCOR licensees. Since S Gaming Co. is a holder of gaming licenses issued by PAGCOR, the exemption from taxes, fees and charges enjoyed by PAGCOR is extended to it. Thus, the income derived by S Gaming Co solely from its electronic gaming operation, is subject only to 5% Franchise Tax. However, any other related services not falling under gaming operations, shall be subject to corporate income tax and VAT. [BIR RULING NO. 426-2020, JULY 28, 2020]

CONDITIONS FOR RETIREMENT BENEFITS TO BE TAX EXEMPT

O Co. is seeking confirmation that the retirement benefit to be received by one of its employees is tax exempt. In ruling, retirement benefits shall only be exempt if the two (2) conditions provided under Section 32 (B)(6)(a) of the Tax Code, are both present, to wit: (1) the employee had been in the service of O Co for at least ten (10) years; and (2) the employee is at least fifty (50) years old at the time of retirement. Since the employee has rendered twenty-one (21) years of service in the company and is fifty-one (51) years old at the time of his retirement, the subject conditions were met. Thus, retirement benefits shall be exempt from income tax, and consequently, from withholding tax. [BIR RULING 416-2020, JULY 24, 2020]

SALE OF REAL PROPERTY FOR INVESTMENT PURPOSES IS SUBJECT TO FINAL CGT

C Holdings Corporation is seeking confirmation whether sale of its real properties for investment purposes is subject to the 6% CGT and DST. In ruling, the applicable taxes would be imposed depending upon the classification of assets whether they are capital or ordinary. In the case of the taxpayer, perusal of the documents showed that the subject real properties were acquired for investment purposes and initially recorded as capital assets. Moreover, these were never used in the course of trade or business for more than two (2) years, no improvements were introduced, and the taxpayer is not engaged in the real estate business, thus, no income was generated from the time it was incorporated. Thus, the conveyance of which is subject to CGT and DST. [BIR RULING NO. 404-2020, JULY 23, 2020]

II. BIR ITAD RULING ON DIVIDENDS TAX

[DIVIDENDS PAID BY DOMESTIC CORPORATION TO NRFC ARE SUBJECT TO 15% INCOME TAX RATE] [TO QUALIFY FOR 15% INCOME TAX ON DIVIDENDS PAID, NRFC COUNTRY OF RESIDENCE MUST ALLOW TAX SPARING CREDIT EQUIVALENT TO 15% FOR TAXES DEEMED PAID IN THE PHILIPPINES] [PHILIPPINE SUBSIDIARY MUST BE SUBJECT TO 30% RCIT TO WARRANT THE REDUCTION OF TAX ON DIVIDENDS IT PAID TO NRFC]

F PH, a domestic corporation owned and controlled by F US, is seeking confirmation that dividends paid to F US are subject to income tax at the rate of 15% under Section 28(B)(5)(b) of 1997 Tax Code. In ruling, F PH or the Philippine subsidiary which paid the dividends is subject to 30% Regular Corporate Income Tax on its taxable income which warrants the reduction of tax on dividends it paid to its non-resident corporation stockholders. Moreover, F US is a US resident, and under its tax law, it allows a ‘deemed paid’ or ‘tax sparing’ credit equivalent to at least 15% for taxes deemed paid in the Philippines against the US tax of F US. Thus, dividends paid are subject to 15% income tax rate. [BIR ITAD RULING NO. 54-2020, JUNE 26, 2020]

III. CTA CASES DIGEST

[ALKYLATE AND SIMILARS PRODUCTS ARE WITHIN THE SCOPE OF SECTION 148 OF THE TAX CODE WHICH MUST BE SUBJECTED TO EXCISE TAX] [PROCESS OF PRODUCTION OF ALKYLATE HAS UNDERGONED THE PROCESS OF DISTILLATION, WHICH IS SUBJECT TO EXCISE TAX]

Petitioner Petron Corporation filed a Petition for Review seeking refund of Excise Tax on importation of alkylate. Petitioner anchored its refund on the claim that alkylate should not be subject to excise tax because the said chemical cannot be considered as a “motor fuel” as mentioned in Section 148 of the 1997 Tax Code. Likewise, Section 148 of the 1997 Tax Code is limited only to fractions or distillation products primarily derived from distillation of crude oil, thus, the subject alkylate which is not produced by the primary distillation of crude oil, but by the primary process of alkylation must not be subjected to excise tax. On the other hand, Respondents Commissioner of Internal Revenue (CIR) and Commissioner of Customs (COC) countered that pursuant to Customs Memorandum Circular (CMC) No. 164-2012, Alkylate is a product of distillation subject to Excise Tax. In ruling, while the process of alkylate is not directly produced through the process of distillation, it cannot be denied that its existence was derived from the utilization of two raw materials namely, “olefins and isobutene”, which are both products of crude oil distillation. Thus, from its inception up to the end of the process of alkylation, the process of distillation contributes to the production, purification and enhancement of alkylate in order for it to be fitted as fuel additives or blending components in the production of motor fuel or gasoline. And since the production of Alkylate is within the provision of Section 148, is it only correct to subject it to excise tax. Thus, the Court DENIED the Petition for lack of merit. [PETRON CORPORATION VS. COMMISSIONER OF INTERNAL REVENUE, COMMISIONER OF CUSTOMS AND COLLECTOR OF CUSTOMS (PORT OF LIMAY, BATAAN), CTA CASE NO. 8544, OCTOBER 21, 2020]

[ONLY REGIONAL DIRECTORS, DEPUTY COMMISSIONERS, COMMISSIONER, AND OTHER OFFICIALS AUTHORIZE BY THE COMMISSIONER CAN SIGN A LETTER OF AUTHORITY (LOA) TO BE VALID] [MEMORANDUM OF ASSIGNMENT IS NOT EQUIVALENT TO LOA MAKING ASSESSMENT VOID] [IN THE ABSENCE OF LOA, ASSESSMENT IS A NULLITY]

Petitioner CIR filed a Petition for Review seeking to reverse the Court Special Third Division’s earlier decision cancelling the assessment issued against the Respondent Central Luzon Drug Corporation. Petitioner argued that the Memorandum of Assignment signed by a Division Chief constitutes a valid authority to assess the Respondent. On the other hand, Respondent countered that there was no valid Letter of Authority (LOA) authorizing the Revenue Officer to conduct examination. In ruling, the Court cited the Supreme Court case in Medicard Philippines Inc. vs. Commissioner of Internal Revenue which provides that under Revenue Memorandum Order (RMO) No. 43-90, the CIR identifies those officials who are authorized to issue and sign LOA. As noted, the Chief of LT-RAD I is not included therein. As OIC-Chief of LT-RAD I, in his capacity, he is bereft of any power to authorize the examination of taxpayers or to effect any modification or amendment to a previously-issued LOA because only the CIR or his duly authorized representatives are granted such power. Thus, the Petition was DENIED due to lack of merit. [COMMISSIONER OF INTERNAL REVENUE VS. CENTRAL LUZON DRUG CORPORATION, CTA EN BANC CASE NO. 2038, SEPTEMBER 18, 2020]

IV. TAX AND BUSINESS-RELATED NEWS [NOVEMBER 7-14]

• BSP eyes unified digital payments standard
• Healthcare BPOs see opportunity to upgrade PH systems amid pandemic
• Digital-only bank for overseas Pinoys books over 12,000 accounts: DOF
• Vietnam rebukes Netflix, Apple over lack of tax payments
• Foreign direct investments hit $637-M in August, up for fourth straight month
• Despite shrinking economy, Dominguez hopeful PH can recover by managing COVID-19 risks
• Senate approves on final reading FIST bill to cushion banks from bad loans
• DOE says Udenna deal in Malampaya shares a ‘voidable contract’
• DOF extends deadline for payment of local taxes, fees to Dec. 19
• Mining companies oppose COA call for more royalties
• BIR tax take exceeds pandemic-pared goal to hit P134.4B
• SMEs with good track records to enjoy cheaper loans

BSP eyes unified digital payments standard [Philippine Daily Inquirer, November 14, 2020]

The central bank wants a single unified standard adopted across the entire digital payments landscape in order to expedite the country’s transition to a “cash light” economy—a shift that has already received an impetus from the changes during the coronavirus pandemic.

Source: https://business.inquirer.net/311685/bsp-eyes-unified-digital-payments-standard#ixzz6dmR9YVOm 

Healthcare BPOs see opportunity to upgrade PH systems amid pandemic [ABS-CBN News, November 11, 2020]

The COVID-19 pandemic presents an opportunity for Philippine hospitals, clinics, insurance companies and government agencies to make their healthcare data systems more interoperable, an industry group of BPOs that handle healthcare information said on Wednesday. 

Source: https://news.abs-cbn.com/business/11/11/20/healthcare-bpos-see-opportunity-to-upgrade-ph-systems-amid-pandemic

Digital-only bank for overseas Pinoys books over 12,000 accounts: DOF [ABS-CBN News, November 11, 2020]

The Department of Finance on Wednesday said 12,542 accounts were opened in the Overseas Filipino Bank (OFBank) a digital-only bank that caters to Filipinos working abroad. 

Source: https://news.abs-cbn.com/business/11/11/20/digital-only-bank-for-overseas-pinoys-books-over-12000-accounts-dof

Vietnam rebukes Netflix, Apple over lack of tax payments [ABS-CBN News, November 11, 2020]

Vietnam’s information minister on Tuesday accused foreign streaming companies like Netflix and Apple of skirting their tax responsibilities, saying it would create unfair competition for domestic firms.

Source: https://news.abs-cbn.com/business/11/11/20/vietnam-rebukes-netflix-apple-over-lack-of-tax-payments

Foreign direct investments hit $637-M in August, up for fourth straight month [ABS-CBN News, November 11, 2020]

 The Philippines booked a $637 million net inflow of foreign direct investments (FDI) in August, which was 46.9 percent higher compared to the same month last year, the Bangko Sentral ng Pilipinas said on Wednesday. 

Source: https://news.abs-cbn.com/business/11/11/20/foreign-direct-investments-hit-637-m-in-august-up-for-fourth-straight-month

Despite shrinking economy, Dominguez hopeful PH can recover by managing COVID-19 risks [ABS-CBN News, November 10, 2020]

After the economy shrank 11.5 percent in the third quarter, marking the first time in 35 years that the country’s gross domestic product (GDP) contracted for three straight quarters.

Source: https://news.abs-cbn.com/business/11/10/20/despite-shrinking-economy-dominguez-hopeful-ph-can-recover-by-managing-covid-19-risks

Senate approves on final reading FIST bill to cushion banks from bad loans [ABS-CBN News, November 10, 2020]

The Senate on Tuesday unanimously passed on final reading the Financial Institutions Strategic Transfer (FIST) Act bill to cushion banks from the possible build-up of bad loans due to the COVID-19 crisis.

Source: https://news.abs-cbn.com/business/11/10/20/senate-approves-on-final-reading-fist-bill-to-cushion-banks-from-bad-loans

DOE says Udenna deal in Malampaya shares a ‘voidable contract’ [Philippine Daily Inquirer, November 10, 2020]

The Department of Energy (DOE) said during Tuesday’s hearing at the Senate that the Chevron-Udenna deal approved in March concerning the 45-percent stake in the Malampaya shares is a “voidable contract.”

Source: https://business.inquirer.net/311478/doe-says-udenna-deal-in-malampaya-shares-a-voidable-contract#ixzz6dmRXfVAn

DOF extends deadline for payment of local taxes, fees to Dec. 19 [ABS-CBN News, November 9, 2020]

Payment of local taxes, fees and charges imposed by local government units are extended to December 19 this year, the Finance department said on Monday in compliance with the Bayanihan 2 law.

Source: https://news.abs-cbn.com/business/11/09/20/dof-extends-deadline-for-payment-of-local-taxes-fees-to-dec-19

Mining companies oppose COA call for more royalties [Philippine Daily Inquirer, November 8, 2020]

The country’s biggest group of mining companies has opposed the recommendation of the Commission of Audit (COA) and the Department of Finance (DOF) to impose royalties on mining projects outside mineral reservations areas (MRAs).

Source: https://business.inquirer.net/311359/mining-companies-oppose-coa-call-for-more-royalties#ixzz6dmRtdZmA

BIR tax take exceeds pandemic-pared goal to hit P134.4B [Philippine Daily Inquirer, November 7, 2020]

The Bureau of Internal Revenue (BIR) collected P134.4 billion in taxes in October, exceeding the month’s downscaled goal albeit still lower than last year’s take amid a pandemic-induced recession.
Source: https://business.inquirer.net/311231/bir-tax-take-exceeds-pandemic-pared-goal-to-hit-p134-4b#ixzz6dmSCh21T 

SMEs with good track records to enjoy cheaper loans [Philippine Daily Inquirer, November 7, 2020]

The central bank will create an information storehouse that will help small and medium enterprises with good prospects and reliable credit track records obtain cheaper loans from participating banks, according to the country’s chief financial regulator.

Source: https://business.inquirer.net/311229/smes-with-good-track-records-to-enjoy-cheaper-loans#ixzz6dmSPMKlb 

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