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OUR VISION

TAXATION CHALLENGES OF POGOs

By:Euney Marie J. Mata-Perez on December 5,2019

The Philippines is becoming a major player in the offshore gaming industry worldwide.

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CBWS IN AND OUT CONCEPT

By: Mark Anthony P. Tamayo on November 28,2019

Last of two parts
IN last week’s column, we discussed the basic concept of a customs bonded warehouse (CBW) in line with the newly issued guidelines under Customs Administrative Order (CAO) 13-2019.

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CBWS IN AND OUT CONCEPT

By: Mark Anthony P. Tamayo on November 21,2019

First of two parts
The new guidelines on the establishment, operation, supervision and control of customs bonded warehouses (CBWs) was recently issued by the Department of Finance (DoF) and Bureau of Customs (BoC).

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OECD PROPOSED RULES ON TAXATION OF DIGITALIZING ECONOMIES

By: Euney Marie J. Mata-Perez on November 14,2019

NEW rules on taxation of digitalized transactions are being proposed by OECD (Organization for Economic Co-operation and Development), and these rules will be game changing in international taxation.

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THE GLOBAL TAX ADVISERS PLATFORM AND ITS PRIORITIES

By: Euney Marie J. Mata-Perez on November 7,2019

The world is getting smaller. Cross-border and digital transactions are becoming an integral part of business and everyday life. Thus, a global approach to taxing digital transactions is essential; otherwise, the risk of different countries promulgating their own rules leading to double taxation is very high. There are also calls for the use of taxation to contribute to sustainability, increasing tax morale and tax certainty, as well as respect for taxpayers’ rights.

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HOW DOES CITIRA-PROPOSED TAX INCENTIVES RATIONALIZATION WORK?

By: Euney Marie J. Mata-Perez on October 31,2019

So much has been written about the rationalization of tax incentives under the proposed Comprehensive Income Tax and Incentives Rationalization Act (Citira) or House Bill 4157. Thus, an understanding as to how the rationalization actual works is crucial.

View more >

10-year period to lower CIT under Citira — too long?

By: Euney Marie J. Mata-Perez on October 24,2019

In a joint statement released this week, 11 business groups expressed support for the “overall corporate income tax framework” under the proposed Corporate Income Tax and Incentives Rationalization Act (Citira) or House Bill 4157. Citira proposes, among others, the lowering of the existing 30-percent corporate income tax (CIT) to 20 percent and the rationalizing of our fiscal or tax incentives. It has been approved on third and final reading by the House of Representatives last month, fasttracking the government’s corporate tax reform package.

View more >

‘DISTINCT BUT INSEPARABLE’: TP AND CUSTOMS VALUATION RULES

By: Mark Anthony Tamayo on October 17,2019

MULTINATIONAL companies engaged in related party transactions normally set up their respective transfer pricing (TP) policies for the purpose of achieving their specific operating profit margin targets. It is common though that the target would materially fall outside of the arm’s-length range at year-end. This is due to myriad reasons relating to unexpected changes in, among others, market developments, regulations, competition, or in economic circumstances at the regional or country specific level.

View more >

UPWARD OR DOWNWARD? TP AUDIT VS CUSTOMS AUDIT

By: Mark Anthony Tamayo on October 10,2019

Under Republic Act 10963, or the Tax Reform for Acceleration and Inclusion Act (Train), the excise tax rates (which went up from last year’s rates) on diesel, bunker fuel and gasoline will further increase in 2020. A likely consequence of an excise tax hike is the possible surge in fuel smuggling.

View more >

EMPLOYER-EMPLOYEE RELATIONSHIP TEST

By: Gerardo Maximo V. Francisco on October 3,2019

The jurisdiction of the National Labor Relations Commission (NLRC) is limited to cases or disputes where there is an employer-employee relationship between the parties. If no such employer-employee relationship exists, then the regular courts would have jurisdiction over the case or dispute.

View more >

REVISITING BIR RULES ON VALUATION OF UNLISTED SHARES OF STOCK

By: Euney Marie J. Mata-Perez on September 26,2019

IN sale of shares outside the facilities of the stock exchange, gain is calculated by deducting cost from the higher of the selling price or the fair market value of the shares sold. Unlike valuation of land, our National Internal Revenue Code (Tax Code) does not contain any express provision prescribing how to determine fair market value of shares of stock of corporations for taxation purposes. This gave the tax authorities some leeway in determining share valuation.

View more >

THE MAJOR AND OTHER AMENDMENTS PROPOSED BY CITIRA

By: Euney Marie J. Mata-Perez on September 19,2019

The House of Representatives of this 18th Congress approved on third and final reading House Bill 4157 or the Citira (Corporate Income Tax and Incentive Rationalization Act), Package 2 of the government’s Comprehensive Tax Reform Program. As we all know, the counterpart version of this bill (previously named Tax Reform for Attracting Better and High-Quality Opportunities or Trabaho bill) was approved by the House of Representatives of the 17th Congress way back in September 2018. However, the deliberations of the previous bill did not progress since then because of the 2019 elections. Now, it will be the Senate’s turn to deliberate on it.

View more >

PROPOSED AMENDMENTS TO THE PUBLIC SERVICE ACT OF 1936

By: Kathlene Guiang on September 12,2019

Under the 1987 Philippine Constitution, the grant of franchise, certificate, or any other form of authorization for the operation of a public utility is limited to Filipino citizens and to entities at least 60 percent of whose capital is owned and controlled by Filipino citizens.

View more >

LIABILITIES OF CORPORATIONS VESTED WITH PUBLIC INTEREST

By: Euney Marie J. Mata-Perez on September 5,2019

With the passage of the Revised Corporation Code (RCC), it is now important for corporations to determine whether or not they qualify as “corporations vested with public interest”.

View more >

UNDERSTANDING THE FUEL MARKING PROGRAM

By: Mark Anthony P. Tamayo on August 29, 2019

Under Republic Act 10963, or the Tax Reform for Acceleration and Inclusion Act (Train), the excise tax rates (which went up from last year’s rates) on diesel, bunker fuel and gasoline will further increase in 2020. A likely consequence of an excise tax hike is the possible surge in fuel smuggling.

View more >

CTRP PACKAGE 2+ AND THE PENDING MINING TAX BILLS

By: Euney Marie J. Mata-Perez on August 22, 2019

With the passage of Republic Act 11346, which increases the excise tax on tobacco products to P45 per pack by 2020 from the current P35, Congress is quickly working on the passage of the other bills comprising the so-called Package 2+ of the Comprehensive Tax Reform Program (CTRP).

View more >

WHAT HAPPENED TO THE PROPOSED AMENDMENTS TO BANK SECRECY ACT?

By: Euney Marie J. Mata-Perez on August 15,2019

The news is replete with discussions on the refiling of the proposed bills for the other TRAIN Packages with the 18th Congress. However, there seems to be no discussion yet on any proposed amendment to the Bank Secrecy Act, Republic Act (RA) 1405, as amended, particularly the proposed amendments to Section 6 of the National Internal Revenue Code (Tax Code).

View more >

NEW SEC NAME GUIDELINES

By: Nica Marsha Gasapo on August 8,2019

The Securities and Exchange Commission (SEC) issued the Amended Guidelines and Procedures on the Use of Corporate and Partnership Names (Amended Guidelines) through SEC Memorandum Circular (MC) 13, Series of 2019.

View more >

THE BUSINESS OF VAT

By: Euney Marie J. Mata-Perez on August 1, 2019

There is a specific rationale behind the imposition of value-added tax (VAT). VAT was not intended to be imposed on every transaction or transfer. Its imposition must bear some relevance to the taxpayer’s role or link in the production chain. While ultimately it is a tax on consumption (since the final consumers bear the entire VAT), VAT is actually assessed on various levels of the production chain and imposed based on the “value-added” or contribution by the taxpayer in the production chain. The absence or presence of profit is immaterial.

View more >

PH’s FIRST DIGITAL ASSET TOKEN OFFERING, OTHER BLOCKCHAIN NEWS

By: Samantha L. Poblacion on July 25,2019

There have been several major developments in the virtual currency space since our article, entitled “Regulating the Virtual Currency Space”, which was published on July 8, 2018.

View more >

INPUT VAT AS INCOME TAX DEDUCTIONS

By: Euney Marie J. Mata-Perez on July 18, 2019

Should input value-added tax (VAT) or VAT passed on by a taxpayer’s supplier of goods or services be allowed as a deduction from income tax, if the claim for refund or tax credit was denied or disallowed?

View more >

LIBERALIZING FOREIGN OWNERSHIP IN RETAIL TRADE BUSINESS

By: Aziza Hannah Bacay on July 11,2019

Our present government has been pushing to liberalize foreign ownership restrictions to drive growth.
Among the sectors the government is looking at to liberalize is the retail trade. It is also looking at introducing amendment to the Public Service Act (Commonwealth Act No. 146) and the Foreign Investment Act (Republic Act [RA] No. 7042) in this regard.

View more >

UNPACKING THE ESTATE TAX AMNESTY PROCEDURE

By: Samantha L. Poblacion on July 5, 2019

In pursuit of its mandate to enact the implementing rules and regulations (IRR) of the Tax Amnesty Act (otherwise known as Republic Act 11213), the Bureau of Internal Revenue (BIR) released the IRRs for availment of amnesty on estate and delinquent taxes.

View more >

PROPOSED AMENDMENTS TO REIT IRR

By: Euney Marie J. Mata-Perez on June 27, 2019

In last week’s article, we mentioned that it has been almost 10 years since the passage of (RA 9856), or “An Act Providing the Legal Framework for Real Estate Investment Trust and for Other Purposes” (REIT Act). However, up to this date, no REIT has been established in our country.

View more >

TAXATION AND OTHER ISSUES OF REITS

By: Euney Marie J. Mata-Perez on June 20, 2019

First of 2 parts)
It has been almost ten years since the passage of Republic Act No. 9856, or An Act Providing the Legal Framework for Real Estate Investment Trust and for Other Purposes (REIT Act of 2009). However, up to this date, no REIT has been established in our country.

View more >

MORE PRIVILEGES AND RIGHTS TO PWDS

By: Nica Marsha Gasapo on June 13, 2019

On May 27, 2019, House Bill (HB) 9106 (HB 9106) entitled “An Act Granting Additional Privileges to Persons with Disabilities,” was approved on third reading by members of the House of Representatives of the 17th Congress, and transmitted to the Senate on May 28, 2019. The bill seeks to amend the Magna Carta for Persons with Disabilities (Republic Act 7277, as amended, or the ‘Magna Carta’ and grant additional privileges to persons with disabilities (PWDs). Although the 17th Congress ended its sessions last week without the bill being enrolled or passed into law, we expect HB 9106, or the amendments it proposes, will be refiled with the next Congress for their consideration.

View more >

REVISITING REFORMS

CLICK THIS LINK TO REGISTER


View more >

THE PROPOSED SIN TAX BILL AND THE NEW ESTATE TAX AMNESTY RULES

By: Euney Marie J. Mata-Perez on June 6, 2019

MTF Tax and Legal Seminar

Before I discuss today’s topic, I would like to invite everyone to our CPD-accredited legal and tax seminar scheduled on July 17, 2019. Please check our website, www.mtfcounsel.com or email us at info@mtfcounsel.com if interested. Topics will include customs and tax updates, data privacy and the new Revised Corporation Code.
Sin tax bill

View more >

SEC NOTICE – USE OF THE GENERAL INFORMATION SHEET WITH BENEFICIAL OWNERSHIP DISCLOSURE PAGE

By: Atty. Medienne Isabelle M. Castillon

On May 30, 2019, the Securities and Exchange Commission (SEC) requested the public to comment on the latest version of the General Information Sheet (GIS) which requires the disclosure of beneficial owners. Pursuant to SEC Memorandum Circular No. 17, Series of 2018, the latest version of the GIS shall contain a Beneficial Ownership Information page. In the said page, the corporate secretary shall disclose “any natural person who ultimately owns or controls the corporation” as well as “contributors or donors” which may either be a corporation, partnership, or trust.

View more >

PIERCING THE VEIL OF OPC’s

By: Euney Marie J. Mata-Perez on May 30, 2019

A corporation is an artificial person with a juridical personality separate from its stockholders, directors, and officers. With this personality, corporations enjoy the benefits of succession, limited liability protection, centralized management and generally free-transferability of shares.

View more >

NEW MATERIAL RELATED PARTY TRANSACTION DISCLOSURE RULES

By: Euney Marie J. Mata-Perez on May 23, 2019

To promote good governance and protect minority stockholders, the Securities and Exchange Commission (SEC) recently issued Memorandum Circular No. 10, Series of 2019, promulgating the Rules on Material Related Party Transactions for Publicly-Listed Companies. The rules became effective on April 27, 2019.

View more >

OUR VISION

HOW DOES CITIRA-PROPOSED TAX INCENTIVES RATIONALIZATION WORK?

By: Euney Marie J. Mata-Perez on October 31,2019

So much has been written about the rationalization of tax incentives under the proposed Comprehensive Income Tax and Incentives Rationalization Act (Citira) or House Bill 4157. Thus, an understanding as to how the rationalization actual works is crucial.

View more >

10-year period to lower CIT under Citira — too long?

By: Euney Marie J. Mata-Perez on October 24,2019

In a joint statement released this week, 11 business groups expressed support for the “overall corporate income tax framework” under the proposed Corporate Income Tax and Incentives Rationalization Act (Citira) or House Bill 4157. Citira proposes, among others, the lowering of the existing 30-percent corporate income tax (CIT) to 20 percent and the rationalizing of our fiscal or tax incentives. It has been approved on third and final reading by the House of Representatives last month, fasttracking the government’s corporate tax reform package.

View more >

‘DISTINCT BUT INSEPARABLE’: TP AND CUSTOMS VALUATION RULES

By: Mark Anthony Tamayo on October 17,2019

MULTINATIONAL companies engaged in related party transactions normally set up their respective transfer pricing (TP) policies for the purpose of achieving their specific operating profit margin targets. It is common though that the target would materially fall outside of the arm’s-length range at year-end. This is due to myriad reasons relating to unexpected changes in, among others, market developments, regulations, competition, or in economic circumstances at the regional or country specific level.

View more >

UPWARD OR DOWNWARD? TP AUDIT VS CUSTOMS AUDIT

By: Mark Anthony Tamayo on October 10,2019

Under Republic Act 10963, or the Tax Reform for Acceleration and Inclusion Act (Train), the excise tax rates (which went up from last year’s rates) on diesel, bunker fuel and gasoline will further increase in 2020. A likely consequence of an excise tax hike is the possible surge in fuel smuggling.

View more >

EMPLOYER-EMPLOYEE RELATIONSHIP TEST

By: Gerardo Maximo V. Francisco on October 3,2019

The jurisdiction of the National Labor Relations Commission (NLRC) is limited to cases or disputes where there is an employer-employee relationship between the parties. If no such employer-employee relationship exists, then the regular courts would have jurisdiction over the case or dispute.

View more >

REVISITING BIR RULES ON VALUATION OF UNLISTED SHARES OF STOCK

By: Euney Marie J. Mata-Perez on September 26,2019

IN sale of shares outside the facilities of the stock exchange, gain is calculated by deducting cost from the higher of the selling price or the fair market value of the shares sold. Unlike valuation of land, our National Internal Revenue Code (Tax Code) does not contain any express provision prescribing how to determine fair market value of shares of stock of corporations for taxation purposes. This gave the tax authorities some leeway in determining share valuation.

View more >

THE MAJOR AND OTHER AMENDMENTS PROPOSED BY CITIRA

By: Euney Marie J. Mata-Perez on September 19,2019

The House of Representatives of this 18th Congress approved on third and final reading House Bill 4157 or the Citira (Corporate Income Tax and Incentive Rationalization Act), Package 2 of the government’s Comprehensive Tax Reform Program. As we all know, the counterpart version of this bill (previously named Tax Reform for Attracting Better and High-Quality Opportunities or Trabaho bill) was approved by the House of Representatives of the 17th Congress way back in September 2018. However, the deliberations of the previous bill did not progress since then because of the 2019 elections. Now, it will be the Senate’s turn to deliberate on it.

View more >

PROPOSED AMENDMENTS TO THE PUBLIC SERVICE ACT OF 1936

By: Kathlene Guiang on September 12,2019

Under the 1987 Philippine Constitution, the grant of franchise, certificate, or any other form of authorization for the operation of a public utility is limited to Filipino citizens and to entities at least 60 percent of whose capital is owned and controlled by Filipino citizens.

View more >

LIABILITIES OF CORPORATIONS VESTED WITH PUBLIC INTEREST

By: Euney Marie J. Mata-Perez on September 5,2019

With the passage of the Revised Corporation Code (RCC), it is now important for corporations to determine whether or not they qualify as “corporations vested with public interest”.

View more >

UNDERSTANDING THE FUEL MARKING PROGRAM

By: Mark Anthony P. Tamayo on August 29, 2019

Under Republic Act 10963, or the Tax Reform for Acceleration and Inclusion Act (Train), the excise tax rates (which went up from last year’s rates) on diesel, bunker fuel and gasoline will further increase in 2020. A likely consequence of an excise tax hike is the possible surge in fuel smuggling.

View more >

CTRP PACKAGE 2+ AND THE PENDING MINING TAX BILLS

By: Euney Marie J. Mata-Perez on August 22, 2019

With the passage of Republic Act 11346, which increases the excise tax on tobacco products to P45 per pack by 2020 from the current P35, Congress is quickly working on the passage of the other bills comprising the so-called Package 2+ of the Comprehensive Tax Reform Program (CTRP).

View more >

WHAT HAPPENED TO THE PROPOSED AMENDMENTS TO BANK SECRECY ACT?

By: Euney Marie J. Mata-Perez on August 15,2019

The news is replete with discussions on the refiling of the proposed bills for the other TRAIN Packages with the 18th Congress. However, there seems to be no discussion yet on any proposed amendment to the Bank Secrecy Act, Republic Act (RA) 1405, as amended, particularly the proposed amendments to Section 6 of the National Internal Revenue Code (Tax Code).

View more >

NEW SEC NAME GUIDELINES

By: Nica Marsha Gasapo on August 8,2019

The Securities and Exchange Commission (SEC) issued the Amended Guidelines and Procedures on the Use of Corporate and Partnership Names (Amended Guidelines) through SEC Memorandum Circular (MC) 13, Series of 2019.

View more >

THE BUSINESS OF VAT

By: Euney Marie J. Mata-Perez on August 1, 2019

There is a specific rationale behind the imposition of value-added tax (VAT). VAT was not intended to be imposed on every transaction or transfer. Its imposition must bear some relevance to the taxpayer’s role or link in the production chain. While ultimately it is a tax on consumption (since the final consumers bear the entire VAT), VAT is actually assessed on various levels of the production chain and imposed based on the “value-added” or contribution by the taxpayer in the production chain. The absence or presence of profit is immaterial.

View more >

PH’s FIRST DIGITAL ASSET TOKEN OFFERING, OTHER BLOCKCHAIN NEWS

By: Samantha L. Poblacion on July 25,2019

There have been several major developments in the virtual currency space since our article, entitled “Regulating the Virtual Currency Space”, which was published on July 8, 2018.

View more >

INPUT VAT AS INCOME TAX DEDUCTIONS

By: Euney Marie J. Mata-Perez on July 18, 2019

Should input value-added tax (VAT) or VAT passed on by a taxpayer’s supplier of goods or services be allowed as a deduction from income tax, if the claim for refund or tax credit was denied or disallowed?

View more >

LIBERALIZING FOREIGN OWNERSHIP IN RETAIL TRADE BUSINESS

By: Aziza Hannah Bacay on July 11,2019

Our present government has been pushing to liberalize foreign ownership restrictions to drive growth.
Among the sectors the government is looking at to liberalize is the retail trade. It is also looking at introducing amendment to the Public Service Act (Commonwealth Act No. 146) and the Foreign Investment Act (Republic Act [RA] No. 7042) in this regard.

View more >

UNPACKING THE ESTATE TAX AMNESTY PROCEDURE

By: Samantha L. Poblacion on July 5, 2019

In pursuit of its mandate to enact the implementing rules and regulations (IRR) of the Tax Amnesty Act (otherwise known as Republic Act 11213), the Bureau of Internal Revenue (BIR) released the IRRs for availment of amnesty on estate and delinquent taxes.

View more >

PROPOSED AMENDMENTS TO REIT IRR

By: Euney Marie J. Mata-Perez on June 27, 2019

In last week’s article, we mentioned that it has been almost 10 years since the passage of (RA 9856), or “An Act Providing the Legal Framework for Real Estate Investment Trust and for Other Purposes” (REIT Act). However, up to this date, no REIT has been established in our country.

View more >

TAXATION AND OTHER ISSUES OF REITS

By: Euney Marie J. Mata-Perez on June 20, 2019

First of 2 parts)
It has been almost ten years since the passage of Republic Act No. 9856, or An Act Providing the Legal Framework for Real Estate Investment Trust and for Other Purposes (REIT Act of 2009). However, up to this date, no REIT has been established in our country.

View more >

MORE PRIVILEGES AND RIGHTS TO PWDS

By: Nica Marsha Gasapo on June 13, 2019

On May 27, 2019, House Bill (HB) 9106 (HB 9106) entitled “An Act Granting Additional Privileges to Persons with Disabilities,” was approved on third reading by members of the House of Representatives of the 17th Congress, and transmitted to the Senate on May 28, 2019. The bill seeks to amend the Magna Carta for Persons with Disabilities (Republic Act 7277, as amended, or the ‘Magna Carta’ and grant additional privileges to persons with disabilities (PWDs). Although the 17th Congress ended its sessions last week without the bill being enrolled or passed into law, we expect HB 9106, or the amendments it proposes, will be refiled with the next Congress for their consideration.

View more >

REVISITING REFORMS

CLICK THIS LINK TO REGISTER


View more >

THE PROPOSED SIN TAX BILL AND THE NEW ESTATE TAX AMNESTY RULES

By: Euney Marie J. Mata-Perez on June 6, 2019

MTF Tax and Legal Seminar

Before I discuss today’s topic, I would like to invite everyone to our CPD-accredited legal and tax seminar scheduled on July 17, 2019. Please check our website, www.mtfcounsel.com or email us at info@mtfcounsel.com if interested. Topics will include customs and tax updates, data privacy and the new Revised Corporation Code.
Sin tax bill

View more >

SEC NOTICE – USE OF THE GENERAL INFORMATION SHEET WITH BENEFICIAL OWNERSHIP DISCLOSURE PAGE

By: Atty. Medienne Isabelle M. Castillon

On May 30, 2019, the Securities and Exchange Commission (SEC) requested the public to comment on the latest version of the General Information Sheet (GIS) which requires the disclosure of beneficial owners. Pursuant to SEC Memorandum Circular No. 17, Series of 2018, the latest version of the GIS shall contain a Beneficial Ownership Information page. In the said page, the corporate secretary shall disclose “any natural person who ultimately owns or controls the corporation” as well as “contributors or donors” which may either be a corporation, partnership, or trust.

View more >

PIERCING THE VEIL OF OPC’s

By: Euney Marie J. Mata-Perez on May 30, 2019

A corporation is an artificial person with a juridical personality separate from its stockholders, directors, and officers. With this personality, corporations enjoy the benefits of succession, limited liability protection, centralized management and generally free-transferability of shares.

View more >

NEW MATERIAL RELATED PARTY TRANSACTION DISCLOSURE RULES

By: Euney Marie J. Mata-Perez on May 23, 2019

To promote good governance and protect minority stockholders, the Securities and Exchange Commission (SEC) recently issued Memorandum Circular No. 10, Series of 2019, promulgating the Rules on Material Related Party Transactions for Publicly-Listed Companies. The rules became effective on April 27, 2019.

View more >

PRACTICE AREAS

With a team approach that combines the tax, corporate, litigation and labor proficiency of our partners and lawyers, we provide holistic, practicable and hands-on assistance from the boardroom to the courtroom.

Contact Information

Our office address:

15/f Unit A. ACT Tower, H.V. Dela Costa St.
Salcedo Village, Makati City 1227 Philippines

Telefax: +632 831-1297

Telephone: +632 808-5375 • +632 815-0069

Email: info@mtfcounsel.com

Partners

Euney Marie J. Mata-Perez
euney.mata-perez@mtfcounsel.com

Mark Anthony P. Tamayo
mark.tamayo@mtfcounsel.com

Gerardo Maximo V. Francisco
gary.francisco@mtfcounsel.com