Central Luzon workers will get P40 wage hike on Oct. 16
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [SEPTEMBER 29-OCTOBER 5]
- SEC EXTENDS THE AMNESTY APPLICATION PERIOD UNTIL NOVEMBER 6, 2023
- SEC REVISES THE GUIDELINES ON THE DETERMINATION OF RETAINED EARNINGS FOR DIVIDEND DECLARATION
- BIR PROVIDES TAX COMPLIANCE REMINDERS TO ALL CANDIDATES & OTHER PARTICIPANTS IN ANY NATIONAL OR LOCAL ELECTIONS, INCLUDING BARANGAY OR SANGGUNIAN KABATAAN (SK) ELECTIONS
- BIR CIRCULARIZES AMENDMENTS ON NON-INCOME RELATED TAX INCENTIVES UNDER CREATE LAW
- COURT OF TAX APPEALS CASES
- TAX & BUSINESS-RELATED NEWS [SEPTEMBER 29-OCTOBER 5]
- US poultry breeder eyes Philippine operations
- DENR moves to formalize small scale mining sector
- 14 Philippine Universities Shine in 2024 Times Higher Education World Rankings: The Big Four Lead the Way
- Dennis A. Uy finds potential buyer for Mactan casino
- Palace declares holidays in 5 local government units
- These are the agencies with the highest complaints resolution rates in 2022
- Over 7K BIR positions remain vacant due to low salary —official
- Ninja Van is BPI’s new logistics partner
- BIR says salaries for its lawyers, accountants no longer competitive
- CTPL optional for car registration—Insurance chief
- SEC extends amnesty program anew to Nov
- Ignore unknown callers, turn off mobile data to avoid scams: CICC official
- Senate bill pushes discounted document fees for poor jobseekers
- Central Luzon workers will get P40 wage hike on Oct. 16
- Cebu City, 3 towns named most improved LGUs
- La Union named 7th most competitive province in PH
- Koreans offer training for Bataan nuke power plant
2. SEC EXTENDS THE AMNESTY APPLICATION PERIOD UNTIL NOVEMBER 6, 2023
SEC Memorandum Circular (MC) No. 17, Series of 2023, dated September 28, 2023, extends the amnesty application period and payment of amnesty fees for eligible corporations until November 6, 2023. Supporting reportorial documents for all applications must be submitted between November 7, 2023, and December 4, 2023, and failure to comply with this requirement will result in the forfeiture of paid amnesty or filing fees. The revised fines and penalties prescribed in the Circular will be enforced starting on November 7, 2023.
3. SEC REVISES THE GUIDELINES ON THE DETERMINATION OF RETAINED EARNINGS FOR DIVIDEND DECLARATION
SEC Memorandum Circular (MC) No. 16, dated September 19, 2023, revises the guidelines on the determination of Retained Earnings Available for Dividend Declaration, superseding previous directives under SEC MC No. 11-2008. Highlights include the scope and applicability of the determination of availability of retained earnings, amendments, and format on the reconciliation of retained earnings available for dividends, and exceptions to the prohibition on retention of surplus profits in excess of paid-in capital.
4. BIR PROVIDES TAX COMPLIANCE REMINDERS TO ALL CANDIDATES & OTHER PARTICIPANTS IN ANY NATIONAL OR LOCAL ELECTIONS, INCLUDING BARANGAY OR SANGGUNIAN KABATAAN (SK) ELECTIONS
Revenue Memorandum Circular (RMC) No. 97-2023, issued on September 22, 2023, provides tax compliance reminders to all candidates and other participants in any national or local elections, including Barangay or Sangguniang Kabataan (SK) Elections.
Highlights include:
- Bureau of Internal Revenue (BIR) registration and payment of registration fees are not prerequisites for filing a certificate of candidacy for any national or local elections, including Barangay or SK elections. A candidate may, however, register with the BIR as a taxpayer under Executive Order No. 98 to get a Tax Identification Number (TIN) which he may use in government transactions. He shall not be required to pay the annual registration fee.
- Candidates who later engage in business, have purchased goods and/or services for the campaign and election activities, have received donations and campaign contributions, or, in general, have income payments subject to Withholding Tax, must register or update their BIR registration details with the Revenue District Office (RDO) where such candidate is registered and pay the corresponding registration fee.
- Income payments made by political parties and candidates of any national and local elections, including Barangay and SK elections, on all their purchase of goods and services related to campaign expenditures, and income payments made by individuals or juridical persons for their purchases of goods and services intended to be given as campaign contributions to political parties and candidates shall be subject to five percent (5%) Creditable Withholding Tax (CWT).
- All candidates must maintain a record of contributions, donations, and expenditures, which will be used for the Statement of Contributions and Expenditures submitted to the Commission on Elections.
- All candidates receiving donations and campaign contributions shall purchase from the RDO where they are registered, the Non-VAT BIR Printed Receipts to be issued for every contribution in cash or in kind. For contribution in kind, it shall be valued at fair market value.
- All candidates who fail to register and comply with the requirements of the BIR will be subjected to penalties under existing laws and issuances.
5. BIR CIRCULARIZES AMENDMENTS ON NON-INCOME RELATED TAX INCENTIVES UNDER CREATE LAW
Revenue Memorandum Circular (RMC) No. 91-2023 issued on September 11, 2023, circularizes the amendment to Rule 18, Section 5 of the Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 11534, or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. As amended, the Registered Export Enterprises (REEs) whose income tax-based incentives have expired may continue to enjoy Value-Added Tax (VAT) zero-rating on local purchases until the Electronic Sales Reporting System of the Bureau of Internal Revenue (BIR) under Section 237-A of the CREATE Law is fully operational, or until the expiration of the Transitory Period referred to in Section 311 (C) of the CREATE Law, whichever comes earlier. Also, a Registered Business Enterprise (RBE) classified as a Domestic Market Enterprise (DME) which is located inside the economic or freeport zone during the transitory period will be allowed to register as a VAT taxpayer.
6. COURT OF TAX APPEALS CASES
[ONE OF THE REQUISITES FOR THE CLAIM OF VAT REFUND IS THAT THERE MUST BE ZERO-RATED OR EFFECTIVELY ZERO-RATED SALES] [SUPERIORITY OF WRITTEN EVIDENCE OVER ORAL EVIDENCE]
Petitioner Sankyu-ATS Consortium-B filed a Petition for Review seeking to annul the earlier Decision of the Respondent Commissioner of Internal Revenue (CIR) denying the Petitioner’s claim for Value-Added Tax (VAT) refund. The Petitioner asserted that it is entitled to a VAT refund and/or issuance of a Tax Credit Certificate (TCC) in the amount of Php 3.7 Million which is attributable to its zero-rated sales of goods and services to Philippines Sinter Corporation (PSC) as it was able to comply with the requisites. On the other hand, the Respondent countered that the Court has no jurisdiction over the Petition considering that the Petitioner failed to submit the complete documentary requirements in support of its application for a refund, which is tantamount to non-filing. In ruling, the Court held that it has jurisdiction over the Petition, however, the Petitioner was unable to prove that its sales were zero-rated or effectively zero-rated. The records of the case revealed that the PEZA Certificate of Registration of PSC, Petitioner’s only client, was denied admission for failure to submit the duly marked document. True, the Petitioner’s witness testified that its only client during the pertinent taxable period is PEZA-registered, and this was not questioned nor rebutted by the Respondent. The Petitioner’s bare assertion, without any documentary evidence, is not sufficient to prove that PSC is indeed a PEZA-registered export enterprise. As the Petitioner was unable to prove compliance with the 3rd requisite for a VAT refund, the Court need not belabor on the other requisites for refund. The Petitioner was unable to establish its claim. Consequently, the Petition was DENIED for lack of merit. [SANKYU-ATS CONSORTIUM-B VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 10471, AUGUST 1, 2023]
[IT IS THE DECISION OR RULING, NOT THE INACTION OF THE COMMISSIONER OF CUSTOMS, THAT IS APPEALABLE TO THE CTA]
Petitioner L.T.J.S. Store filed a Petition for Review seeking the reversal of the assailed Resolution and the reinstatement of its Petition for Duty and Tax Refund before the Court in Division. The Petitioner claimed that Respondent Commissioner of Customs’ unjustifiable inaction and unfair delay forced it to file a Petition for Duty and Tax Refund with the Court in Division on June 25, 2021. In ruling, while exhaustion of administrative remedies is not necessary where there is unreasonable delay or official inaction that will irretrievably prejudice the Petitioner, the Court held the said exception not applicable as the Petitioner failed to allege and substantiate the material facts surrounding the supposed “unjustifiable inaction and unfair delay” of Respondents in acting on its protest and appeal. Moreover, the Petition failed to show whether the pertinent procedures for dispute settlement under the Customs Modernization and Tariff Act have been violated by Respondents. Nonetheless, even if the Court in Division had jurisdiction over Respondents’ inaction, the case would still not prosper because of the Petitioner’s failure to comply with the requirements under Section 2, Rule 6 of the Revised Rules of the Court of Tax Appeals (CTA), in relation to Section 2 Rule 42 of the Revised Rules of Court. A cursory reading of the Petition for Duty and Tax Refund reveals that it has no allegation of the Court’s jurisdiction, no statement of material dates showing that it was filed on time, no statement of the issue/s that puts forth the questions of fact or law to be considered by the Court, no argument or reason for the allowance of the appeal was adduced, no jurisprudence cited, and no certified true copies of the assailed judgments or final order. Moreover, even if the Petitioner properly filed a Petition, the Court in Division would still dismiss the same for having been filed out of time on June 25, 2021, or 32 days later. Consequently, the Petition was DENIED. [L.T.J.S. STORE, REPRESENTED BY ITS OWNER/PROPRIETOR MR. ANTONIO DE JESUS SILVA VS. HON. DISTRICT COLLECTOR OF CUSTOMS, MICP; & HON. COMMISSIONER OF CUSTOMS, REY LEONARDO B. GUERRERO, CTA EN BANC CASE NO. 2563, JULY 27, 2023]
US poultry breeder eyes Philippine operations [The Philippine Star, October 5, 2023]
Alabama-based poultry breeding company Aviagen Inc. is eyeing to set up operations in the Philippines as part of an agricultural technology trade mission with other US firms that are eyeing to invest in the country’s agriculture sector to help contribute to food security.
https://www.philstar.com/business/2023/10/05/2301188/us-poultry-breeder-eyes-philippine-operations
DENR moves to formalize small scale mining sector [The Philippine Star, October 5, 2023]
The Department of Environment and Natural Resources (DENR) will require small scale miners to register to form an association to formalize the sub-mining industry.
https://www.philstar.com/business/2023/10/05/2301190/denr-moves-formalize-small-scale-mining-sector
14 Philippine Universities Shine in 2024 Times Higher Education World Rankings: The Big Four Lead the Way [Good News Pilipinas, October 4, 2023]
Fourteen Philippine universities have made it to the 2024 Times Higher Education World University Rankings (THE WUR), expanding its presence from just 10 schools in 2023. Leading the pack are the “Big Four”—Ateneo de Manila University, the University of the Philippines, De La Salle University, and the University of Santo Tomas.
Dennis A. Uy finds potential buyer for Mactan casino [Manila Bulletin, October 3, 2023]
Davao tycoon Dennis A. Uy has found a potential buyer or majority investor in Cebu-based real estate developer AppleOne Properties Inc. for his integrated casino resort project in Mactan as he continues to sell-off assets to pay for debt and costly expansion of his telecom business.
https://mb.com.ph/2023/10/3/dennis-a-uy-finds-potential-buyer-for-mactan-casino
Palace declares holidays in 5 local government units [The Philippine Star, October 3, 2023]
The holidays were contained in separate proclamations signed by Executive Secretary Lucas Bersamin by the authority of President Marcos last month.
https://www.philstar.com/nation/2023/10/03/2300733/palace-declares-holidays-5-local-government-units
These are the agencies with the highest complaints resolution rates in 2022 [Manila Bulletin, October 3, 2023]
The Civil Service Commission’s (CSC) “Contact Center ng Bayan” has honored the top 10 government agencies for achieving the highest resolution rates for Fiscal Year 2022.
Over 7K BIR positions remain vacant due to low salary —official [GMA News Online, October 2, 2023]
Gatchalian and Senator Sonny Angara backed BIR’s call for higher salaries, saying a competitive pay is critical to have an efficient tax collector.
Ninja Van is BPI’s new logistics partner [Manila Bulletin, October 2, 2023]
Ayala-led Bank of the Philippine Islands (BPI) said it has a new logistics partner in NinJa Van Philippines, subsidiary of Ninja Logistics Pte Ltd. of Singapore.
https://mb.com.ph/2023/10/2/article-1163
BIR says salaries for its lawyers, accountants no longer competitive [Inquirer.Net, October 2, 2023]
Gatchalian noted that hastening processes would not do much to make BIR’s offerings competitive, especially as Lumagui cited the huge salary discrepancy between entry-level positions for lawyers. For example, Lumagui noted that the entry-level at their bureau is P27,000 monthly, but CSC gives lawyers a salary of P51,000.
CTPL optional for car registration—Insurance chief [Manila Bulletin, October 2, 2023]
Insurance Commissioner Reynaldo A. Regalado said comprehensive insurance coverage should meet the mandatory requirement for car registration or renewal with the LTO, as it already includes the mandated CTPL.
https://mb.com.ph/2023/10/2/ctpl-optional-for-car-registration-insurance-chief
SEC extends amnesty program anew to Nov [The Manila Times, October 2, 2023]
The SEC’s amnesty program had an original deadline of April 30. Following requests from corporates, however, the regulator extended this twice: first until June and then up to September 30.
Ignore unknown callers, turn off mobile data to avoid scams: CICC official [ABS-CBN News, October 1, 2023]
Being more difficult to reach could help the public avoid mobile phone scams, an official said Sunday as he issued reminders amid the continued proliferation of scams despite efforts like SIM Card registration to curb them.
Senate bill pushes discounted document fees for poor jobseekers [ABS-CBN News, October 1, 2023]
He said that passage of the proposed “Kabalikat sa Hanapbuhay” bill will benefit members of more than 5.59 million households get access to documents like birth certificates and police and National Bureau of Investigation clearances that they have to submit to potential employers.
Central Luzon workers will get P40 wage hike on Oct. 16 [Philippine Daily Inquirer, September 30, 2023]
The RTWPB of Central Luzon stated that daily wages for workers in non-agricultural establishments in Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac and Zambales will rise to P500 from P460 for establishments with ten or more employees and to P493 from P453 for those with fewer than ten employees.
https://newsinfo.inquirer.net/1839003/central-luzon-workers-will-get-p40-wage-hike-on-oct-16
Cebu City, 3 towns named most improved LGUs [The Freeman, September 30, 2023]
Rankings of cities and municipalities are based on the sum of their scores on four pillars: including economic dynamism, government efficiency, infrastructure, resiliency, and innovation while provincial rankings are based on population and income weighted average of the overall scores of cities and municipalities under a province.
La Union named 7th most competitive province in PH [Philippine News Agency, September 29, 2023]
Among the LGU top awardees in the CMCI in the province of La Union this year were San Fernando City as Top 3 in the government efficiency pillar (component city) and Top 5 in the resilience pillar (component city).
https://www.pna.gov.ph/articles/1210829
Koreans offer training for Bataan nuke power plant [Inquirer Mobile, September 29, 2023]
A senior executive from the Korea Hydro and Nuclear Power Co. Ltd. (KHNP), a subsidiary of the Korea Electric Power Corp., said in a recent interview that the training will take two to three years, which would include classroom training, as well as practical experience.
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