BIR wins tax case versus San Miguel
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [NOVEMBER 14-21]
- SEC AMENDS THE GUIDELINES ON ASSET VALUATIONS FOR SEC-ACCREDITED APPRAISAL COMPANIES OR PROFESSIONAL SERVICES ORGANIZATIONS
- BIR AMENDS THE PERTINENT PROVISIONS ON CREDITABLE WITHHOLDING TAX FOR JOINT VENTURES/CONSORTIUMS
- BIR PRESCRIBES THE POLICIES & GUIDELINES FOR THE OPTIONAL VAT REGISTRATION OF REGISTERED BUSINESS ENTERPRISES CLASSIFIED AS DOMESTIC MARKET ENTERPRISES UNDER THE 5% GROSS INCOME TAX PURSUANT TO CREATE LAW
- PEZA FURTHER REVISES THE GUIDELINES ON THE APPLICATION FOR THE ISSUANCE OF THE CERTIFICATE OF VAT ZERO-RATING & CERTIFICATE OF ENTITLEMENT TO TAX INCENTIVES (CETI)
- PEZA DELEGATES THE APPROVAL OF LETTER OF AUTHORITY (LOA) ON LOCAL SALES & DROP-OFF EXPORT TO THE ZONE OFFICES CONCERNED
- TAX & BUSINESS-RELATED NEWS [NOVEMBER 14-21]
- Universal Robina loses profiteering challenge
- JG Summit to infuse P11B into olefins unit
- Senior citizen files suit after being denied discounts on ‘promo’ with no DTI approval
- Shakira: Singer settles Spanish tax fraud case with €7.5m fine
- Aboitiz, CCEP firm up $1.8-B Coke acquisition
- Bad moves: Dennis Uy’s incurs P171 million losses from Chelsea’s boat sale and abandoned warehouse project
- Startup Hive Health makes HMO acquisition
- BIR warns vs ‘altered’ cash registers
- Erwin Tulfo seeks House probe into digital bank’s alleged link to gambling apps; Maya denies
- BIR wins tax case versus San Miguel
- DMW closes down consultancy firm offering seafarer jobs abroad
- NGCP told to refund P200B to consumers
- SEC AMENDS THE GUIDELINES ON ASSET VALUATIONS FOR SEC-ACCREDITED APPRAISAL COMPANIES OR PROFESSIONAL SERVICES ORGANIZATIONS
SEC Memorandum Circular No. 21, Series of 2023, dated November 14, 2023, amends SEC Memorandum Circular No. 2, Series of 2014, concerning guidelines on asset valuations. The revision of guidelines on asset valuation focuses on accreditation, operational requirements, and reporting requirements for appraisal companies and valuation specialists.
Highlights include the adjustment of the ownership requirements to 100% Filipino-owned under the 12th Foreign Investment Negative List (issued on June 27, 2022) to comply with the requirements that no foreigners are allowed to practice a profession in the Philippines, which include among others, Real Estate Services, unless their home country allows Filipinos to be admitted to the practice of said profession.
- BIR AMENDS THE PERTINENT PROVISIONS ON CREDITABLE WITHHOLDING TAX FOR JOINT VENTURES/CONSORTIUMS
Revenue Regulations (RR) No. 14, 2023 issued on November 10, 2023, further amends the pertinent provisions of Revenue Regulations (RR) No. 2-98, as amended by adding items (V) and (W) to impose Creditable Withholding Tax on certain income payments by joint ventures/consortiums. Specifically, income payments made by joint ventures, whether incorporated or not, taxable, or non-taxable, to their local/resident supplier of goods and services, shall be subjected to 1% and 2%, respectively. Likewise, the distributive share of co-venturers/members from the net income of the joint venture/consortium not taxable as corporation shall be subjected to 15% withholding tax for each co-venturer/member from the net income of the joint venture/consortium not taxable as corporation prior to actual or constructive distribution thereof.
- BIR PRESCRIBES THE POLICIES & GUIDELINES FOR THE OPTIONAL VAT REGISTRATION OF REGISTERED BUSINESS ENTERPRISES CLASSIFIED AS DOMESTIC MARKET ENTERPRISES UNDER THE 5% GROSS INCOME TAX PURSUANT TO CREATE LAW
Revenue Regulations (RR) No. 13-2023 issued on November 10, 2023, prescribes the policies and guidelines for the optional Value-Added Tax (VAT) registration of Registered Business Enterprises (RBEs) classified as Domestic Market Enterprises (DMEs) under the 5% Gross Income Tax (GIT) during the transitory period pursuant to Rule 18, Section 5 of the amended Implementing Rules and Regulations (IRR) of Republic Act (R.A.) No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE Act).
Highlights include:
- RBE-DME can retain a 5% GIE incentive for ten (10) years under Section 311(C) of the CREATE Act.
2. RBE-DME can register as a VAT taxpayer by obtaining a Certification from the relevant Investment Promotion Agency (IPA) expressly stating that the 5% GIE shall be in lieu of all taxes except VAT. The Certification, accompanied by a request letter and a notarized “Deed of Waiver,” is submitted to the IPA.
3. The waiver is irrevocable and applicable throughout the remaining transitory period.
4. Non-VAT registered RBEs with Certification must update their status with the Revenue District Office (RDO).
5. The regulations shall apply prospectively under Section 3 of the amended IRR of CREATE.
6. DMEs opting for VAT registration cannot claim refunds for transactions preceding the amended IRR’s effectivity.
- PEZA FURTHER REVISES THE GUIDELINES ON THE APPLICATION FOR THE ISSUANCE OF THE CERTIFICATE OF VAT ZERO-RATING & CERTIFICATE OF ENTITLEMENT TO TAX INCENTIVES (CETI)
PEZA Memorandum Order 2023-014, dated November 3, 2023, further revises the guidelines on the application for the issuance of the Certificate of Value-Added (VAT) Zero-Rating and Certificate of Entitlement to Tax Incentives (CETI) to qualified Registered Business Enterprises (RBEs). The guidelines are issued in line with the PEZA Memorandum Circular (MC) No. 2023-038 and in compliance with the mandatory implementation of the Electronic Payment and Collection System (EPCS). Highlights include the new checklist of requirements and procedures to be followed.
- PEZA DELEGATES THE APPROVAL OF LETTER OF AUTHORITY (LOA) ON LOCAL SALES & DROP-OFF EXPORT TO THE ZONE OFFICES CONCERNED
PEZA Memorandum Order 2023-11 dated September 20, 2023, delegates to the zone offices the approval of Letter of Authority (LOA) on Local Sales and Drop-off Export Sales of manufactured goods/services by PEZA Registered Export Enterprises (REEs). Highlights include the definition of local sales and drop-off export sales, allowable/prescribed limit, when and who should apply for LOA, procedures on the LOA application, types and determination of local sales rate, documentary requirements, related forms to be accomplished, and processing fees and reports.
Universal Robina loses profiteering challenge [The Manila Times, November 21, 2023]
The company, along with other flour millers, was charged in 2010 by the Trade department’s Bureau of Trade Regulation and Consumer Protection for allegedly failing to reduce prices despite lower cost factors such as global wheat prices, exchange rates, logistics costs and tariffs.
JG Summit to infuse P11B into olefins unit [The Manila Times, November 21, 2023]
JG Summit told the stock exchange that its board of directors, in a meeting last Friday, approved the proposed capital infusion to JG Summit Olefins Corp. (JGSOC), a petrochemical company that operates the country’s first naphtha cracker plant.
Senior citizen files suit after being denied discounts on ‘promo’ with no DTI approval [Inquirer.Net, November 20, 2023]
Commercial establishments cannot tell senior citizens and Persons with Disabilities (PWDs) that they are not entitled to twenty percent discounts, just because the products and services of the outlets are on promotions or on ‘promos.’
Shakira: Singer settles Spanish tax fraud case with €7.5m fine [BBC, November 20, 2023]
Under Spanish law, people who spend more than six months in the country are considered residents for tax purposes. But Shakira says Spain was not where she was mainly living at the time.
https://www.bbc.com/news/entertainment-arts-67472496
Aboitiz, CCEP firm up $1.8-B Coke acquisition [Manila Bulletin, November 20, 2023]
Aboitiz Equity Ventures Inc. (AEV), the investment arm of the Aboitiz Group, and Coca-Cola Europacific Partners Plc (CCEP), have entered into a definitive agreement to jointly acquire Coca-Cola Beverages Philippines Inc. (CCBPI) from The Coca-Cola Company (TCCC) for $1.8 billion.
https://mb.com.ph/2023/11/20/aboitiz-ccep-firm-up-1-8-b-coke-acquisition#google_vignette
Bad moves: Dennis Uy’s incurs P171 million losses from Chelsea’s boat sale and abandoned warehouse project [Bilyonaryo, November 19, 2023]
Chelsea, through its petroleum carrier subsidiary PNX-Chelsea Shipping, lost P90.3 million from the sale of MV San Pedro Calungsod for $2 million last September.
Startup Hive Health makes HMO acquisition [GMA News Online, November 18, 2023]
Hive Health, which was founded by Harvard and Stanford University students in 2021, offers health plans for small and medium enterprises and startups, covering outpatient, inpatient, emergency, and dental care through a nationwide network of 1,700 hospitals and clinics and over 60,000 doctors.
BIR warns vs ‘altered’ cash registers [Inquirer.Net, November 16, 2023]
The sales suppression machines or the software that is called Altered means that, it’s automatic that when a sale comes in it doesn’t reflect the real sale; sometimes erasing sales or changing computations to lower sales and ultimately, lower taxes paid.,” he said in Filipino in a video posted on his Facebook account.
https://newsinfo.inquirer.net/1860290/fwd-bir-issues-stern-warning-vs-altered-cash-registers
Erwin Tulfo seeks House probe into digital bank’s alleged link to gambling apps; Maya denies [GMA News Online, November 16, 2023]
Tulfo made the call under House Resolution 1464 he filed. In a privilege speech, the lawmaker said the digital banks should be probed since the platform of Maya Digital Savings Bank carries links to various gambling apps that openly allows subscribers to participate in gambling activities.
BIR wins tax case versus San Miguel [The Manila Times, November 16, 2023]
“Since SMC failed to obtain a favorable ruling from the BIR declaring that their advances to related parties were not subject to DST, it cannot belatedly claim good faith under a BIR Ruling issued to a different entity,” the Supreme Court was quoted as having ruled.
DMW closes down consultancy firm offering seafarer jobs abroad [GMA News Online, November 14, 2023]
In a statement, the DMW said its Migrant Workers Protection Bureau (MWPB), in coordination with the Manila Police, sealed off the office of Double D Training Consultancy Services (DDTC) at Room 301, MBI Building, Ronquillo corner Ongpin Streets in Sta. Cruz.
NGCP told to refund P200B to consumers [Philippine Daily Inquirer, November 14, 2023]
The National Grid Corp. of the Philippines (NGCP) must immediately refund the P200 billion it had spent on advertising, entertainment, and other expenses after the amount was declared as illegally passed on to consumers by the Energy Regulatory Commission (ERC), opposition Sen. Risa Hontiveros said on Monday.
https://newsinfo.inquirer.net/1859256/ngcp-told-to-refund-p200b-to-consumers
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