By: Euney Marie J. Mata-Perez on December 6, 2018
Senate Bill 1979 (in relation to House Bill 4800) proposes to impose a royalty tax on both metallic and non-metallic mining operations conducted outside mineral reservations, whether large scale or small scale, at three percent of the market value of the gross output of minerals or mineral products extracted or produced for the first three years from the effectivity of the law, four percenton the fourth year and five percent on the fifth year. It also proposes to impose an additional government share which will be due when the basic government share (on all collected taxes, royalties, fees and related payments from mining contractors) is less than 50 percent of the net mining revenue.
By: Euney Marie J. Mata-Perez on November 29, 2018
Medical and hospitalization costs in the Philippines are not cheap and could be daunting for ordinary employees. Thus, to cover these costs, many employers obtain group health insurance plans or “health cards” for their employees or contribute to health and hospitalization benefit plans. The issue arises on whether premium costs paid for such group health insurance would be subject to the fringe benefits tax (FBT) or withholding/income tax on compensation income.
By: Euney Marie J. Mata-Perez on November 22, 2018
We are finally moving forward on the proposed general and estate tax amnesties.
The Senate approved Senate Bill No. 2059 (SB 2059) on third and final reading last Nov. 19, 2019. On the other hand, the House of Representatives approved its counterpart House Bill No. 8554 (HB 8554) on final reading on Nov. 20, 2018.
By: Euney Marie Mata-Perez on November 15, 2018
Mutual trust and respect between taxpayers and tax authorities, as well as fairness in tax laws, are cornerstones to a successful and effective tax system. Taxation is one of the State’s inherent and great powers. However, when exercising such power, the State should recognize taxpayers’ rights. Taxpayers, on the other hand, have the duty to comply with tax laws and pay their taxes correctly.
While we have the bill of rights enshrined in our constitution, we do not have a focused law setting out taxpayer’s rights and obligations. Some fundamental rights, such as the right to due process, including the right to be properly notified of and dispute assessments and decisions, have been upheld by our courts.
By: Euney Marie J. Mata-Perez on November 8, 2018
In the recently published 2019 World Bank Doing Business (DB) Report, the ranking of the Philippines dropped 11 notches from 113th place for the year 2018 to 124th place for the year 2019 out of 190 economies. In 2017, the Philippines was ranked 99th.
The World Bank (WB) noted that while the Philippines improved in terms of starting a business, dealing with construction permits and protecting minority investors, it did not do well when it came to trading across borders. According to the DB Report, “[t]he Philippines made trading across borders more difficult by increasing the number of inspections for importing, thereby increasing the average time for border compliance.” This slide in ranking was also attributed to the steep costs of business registration and policies of lengthy imports inspection.
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