[Publications] MTF Articles
By: Zoe Bryce Amac on April 15, 2021. Tax conventions or treaties are mechanisms imposed by a state in order to minimize the effects of double taxation. They provide double taxation reliefs to taxpayers in the form of tax exemptions or preferential tax rates.
By Euney Marie Mata-Perez on April 1, 2021. President Rodrigo Duterte finally signed into law the much-awaited Corporate Recovery and Tax Incentives for Enterprises (Create) Act, or Republic Act 11534, on Mar. 26, 2021 — more than a year since the House of Representatives approved House Bill 4157 in September…
By Euney Marie Mata-Perez on March 25, 2021. On Feb.y 16, 2021, President Rodrigo Duterte signed into law Republic Act (RA) 11523, or the “Financial Institutions Strategic Transfer Act” (FIST), which seeks to aid banks and other credit-granting financial institutions (FIs) to cushion the impact of the coronavirus disease 2019…
By The Manila Times on March 18, 2021. The recently enacted Revised Corporation Code of the Philippines (RCCP) was meant to further ease doing business in the country and increase its competitiveness. But because of the significant economic downturns brought about by the Covid-19 pandemic, several companies and institutions have…
By MARK ANTHONY TAMAYO on March 4, 2021. The process of clearing imported goods from the Bureau of Customs (BoC) is essentially timebound. Every importer must file or lodge a goods declaration, pay the corresponding duties and taxes, and claim or release the goods within the periods prescribed under customs…
By Zoe Bryce Amac on February 25, 2021. The power of taxation is one of the inherent powers of the State and is considered an attribute of sovereignty. Its existence is justified by the so-called lifeblood theory. In Commissioner of Internal Revenue (CIR) v. Algue (GR L-28896, 1988) the Supreme…
By: Atty. Euney Marie Mata-Perez on February 18, 2021. As many of us may be aware by now, the recently ratified Corporate Recovery and Tax Incentives for Enterprises (Create) bill, which now awaits President Rodrigo Duterte’s approval, proposes to reduce the regular corporate income tax (RCIT) rate from 30 percent…
By AZIZA HANNAH BACAY on February 11, 2021. The Bureau of Internal Revenue (BIR) has the power to enforce the collection of unpaid taxes either through summary administrative remedies, such as the issuance of a warrant of distraint and/or levy (WDL), or judicial ones, such as filing a civil or…
By: Atty. Nica Gasapo on February 4,2021. The 1987 Philippine Constitution has set forth requirements a corporation must meet before involving itself in certain activities. Depending on its nationality, a corporation may or may not undertake specific business ventures or invest in certain areas. Indeed, the 1987 Constitution was crafted to…
By: Atty. Euney Marie Mata-Perez on January 28,2021. To claim a refund for an erroneously or illegally collected tax, Section 229 of the National Internal Revenue Code, as amended (Tax Code), provides that the claimant must first file an administrative claim with the commissioner of Internal Revenue (CIR). This claim…
By: Atty. Ellaine Anne L. Bernardino on January 21,2021. The stockholder’s right to examine corporate records is based on his or her interests in the corporation and ownership of corporate property. Under Section 73 of Republic Act 11232, or the Revised Corporation Code (RCC), which took effect on Feb. 23, 2019,…
By: Ramon Vaughn F. Dy III on January 14, 2021. It is an established rule in our jurisdiction that a corporation has a separate and distinct legal personality from that of its shareholders and officers. As an artificial being created by law, a corporation can act only through its people,…
By: Euney Marie Mata-Perez on January 7, 2021 Tax reform is part of the main agenda of the Duterte administration. So it was a welcome development when Republic Act 10963, or the “Tax Reform for Acceleration and Inclusion Act” (Train), took effect on Jan. 1, 2018 to mainly address and amend the…
By: Euney Marie Mata-Perez on December 31, 2020 2020 will always be a year the world cannot forget. At its start, we saw the eruption of the beautiful Taal Volcano. And then we faced a force majeure like no other — the Covid-19 pandemic, prompting countries to try containing it,…
By: Mark Anthony Tamayo on December 24, 2020 Taxes are the lifeblood of the government and should, as an inflexible policy, be collected promptly and without hindrance or delay (see Commissioner of Internal Revenue vs Standard Insurance Co., GR 219340) in order not to disrupt the operations of the government.…
By. Atty. Euney Marie Mata-Perez on December 17, 2020 Last month, the Senate finally passed on third reading Senate Bill 1357, or the “Corporate Recovery and Tax Incentives for Enterprise Act” (Create), which aims to reform our corporate income tax (CIT) and incentives system, and propose significant amendments to our…
By: Atty Gerardo Maximo Francisco on May 7,2020 Covid-19 has caused financial injury and distress to many Filipinos. By early 2021, after the grace periods for loans and other forms of financial assistance granted under Bayanihan 2 will have been exhausted, many more Filipinos will experience the stress and burden…
By: Atty. Irish May Quintana on December 3,2020 The abatement or cancellation of internal revenue tax liability is one of the remedies available to taxpayers. This is pursuant to the broad powers of the Commissioner of Internal Revenue (CIR) to cancel and abate tax liabilities under our National Internal Revenue…
By: Atty. Ellaine Anne Bernardino on November 26, 2020 An intra-corporate dispute is one that arises between a stockholder and the corporation, or among stockholders concerning the internal affairs of the corporation. Previously, the Securities and Exchange Commission (SEC) had the jurisdiction to hear and decide intra-corporate disputes under Section…
By: Atty. Aziza Hannah Bacay on November 19,2020. Republic Act (RA) 11494, or the “Bayanihan to Recover as One Act” (Bayanihan 2), which implements the government’s response and recovery interventions related to the Covid-19 pandemic, granted some tax relief and incentives to taxpayers. One of these incentives is an income…
By. Atty. Euney Marie Mata-Perez on November 12,2020. A government or state exercises its taxing power and authority only on taxpayers, income or transactions that fall within its jurisdiction. Thus, the situs, or place, of taxation is critical in determining whether or not a state has the power to tax,…
By: Atty.Aziza Hannah Bacay on October 29,2020. It has been more than a year since Republic Act 11213, or the “Tax Amnesty Act” (TAA), was enacted. It became effective on March 1, 2019. The TAA originally provided for an estate tax amnesty, a general tax amnesty and a tax amnesty…
By: Atty. Euney Marie Mata-Perez on October 22,2020 Quarantine measures imposed by governments that restrict travel and movement because of the Covid-19 pandemic do not only affect economies, but also tax rules. In taxation and international tax treaty rules, the number of days a taxpayer or its employees and agents…
By Atty. Kathleen Guiang on October 15,2020 The Covid-19 pandemic has not only prompted a global health emergency, but also caused severe global economic stress. In response, the government has implemented various measures and programs to manage its impact. To execute and sustain them, the government had to reallocate some…
By: Atty. Nica Marsha Gasapo on October 8,2020 The Supreme Court has emphasized that a person’s employment — the main source of livelihood for most families — is something that no one may be deprived of without due process of law. This basic doctrine has gained special significance after the…
By: Atty. Ellaine Anne Bernardino & Ramon Dy on October 1,2020 The coronavirus disease 2019 (Covid-19) pandemic has caused numerous businesses to close and millions of Filipinos to lose their jobs. It has also led countless Filipinos under quarantine to use the internet to earn a living, resulting in a…
By: Atty. Mark Anthony Tamayo on September 24,2020. Through the enactment of Republic Act (RA) 9282, the jurisdiction of the Court of Tax Appeals (CTA) has been expanded to include not only civil tax and customs duties cases, but also cases that are criminal in nature, local tax and property…
By: Atty. Irish May Quintana on September 17,2020. In an effort to adopt technological advancements and incorporate developments in the law, jurisprudence and international conventions, the Supreme Court (SC) proposed amendments to the revised rules on evidence (RRE) in A.M. 19-08-15-SC, which took effect on May 1, 2020. The material…
By: Atty. Euney Marie Mata-Perez on September 10,2020. In a landmark decision handed out on March 10, 2020, the Supreme Court (SC) declared void the 30-year-old foreign equity limitation on construction companies imposed under the “Revised Rules and Regulations Governing the Licensing and Accreditation of Contractors in the Philippines” or the…
By: Atty. Kathleene Guiang on September 3,2020 A valid demand is essential to the validity of a Bureau of Internal Revenue (BIR) assessment of deficiency taxes against a taxpayer. This demand is ordinarily expressed in a formal letter of demand (FLD), which is issued and delivered with a final assessment…
By: Atty. Euney Marie Mata-Perez on August 27,2020. Taxpayers recently received some good news on how capital gains tax on the sale of unlisted shares of stocks is now calculated. This came in the form of the Bureau of Internal Revenue’s (BIR) issuance of Revenue Regulations (RR) 20-2020, which revised…
By: Atty. Aziza Hannah Bacay on August 20,2020 Taxes are the lifeblood of the government. To ensure that the government lives, the Bureau of Internal Revenue was granted the power to collect taxes and even issue assessments against taxpayers if their taxes are deficient. To balance this power, the law…
By: Atty. Nica Marsha Gasapo on August 13,2020 Covid-19 has caused so many disruptions in our everyday lives. To curb its spread, the government had to impose strict lockdowns that stalled the economy’s growth. However, certain sectors that capitalized on technology managed to stay afloat and withstood the logistical nightmare…
By: Atty. Mark Anthony Tamayo on August 6,2020 Any scheme that has to do with minimizing, eliminating or altering the incidence of taxation may be closely scrutinized and ultimately questioned by tax authorities. There is no question that the adoption of fraudulent means to deliberately reduce, deceive or conceal one’s…
By: Atty. Gerardo Maximo Francisco on July 30,2020 In a case we handled, the Supreme Court (SC) confirmed the entry of the judgment of its resolution affirming with finality the decisions of the Court of Tax Appeals (CTA) and the Regional Trial Court (RTC) of Makati that Makati City does…
By: Atty. Mark Anthony Tamayo on July 23,2020. In tax litigation, assessments from the Bureau of Internal Revenue (BIR) are generally accorded the presumption of correctness and being made in good faith (Marcos II v. Court of Appeals, GR. 120880, June 5, 1997). In the absence of evidence to the contrary,…
By: Atty. Euney Marie Mata-Perez on July 16,2020 The integrity of a financial system is a key factor in its financial stability. Finance Secretary Carlos Dominguez 3rd and Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno recently reiterated the need to amend Republic Act (RA) 1405, or the “Bank Secrecy…
By: Atty. Euney Marie Mata-Perez on July 9,2020 The coronavirus disease 2019 (Covid-19) pandemic and the community quarantines imposed to curb its spread certainly affected people’s lifestyles. It also affected their spending habits, as seen in the increase in the use of the internet and various online platforms to purchase…
By: Atty. Euney Marie Mata-Perez Because of the serious threat posed by the coronavirus disease 2019 (Covid-19) pandemic to the health, safety and security of Filipinos, a state of national emergency was declared over the country under Section 2 of Republic Act (RA) 11469, or “the Bayanihan to Heal as…
By: Atty. Euney Marie Mata-Perez on June 25,2020 The coronavirus disease 2019 (Covid-19) pandemic has spurred the growth of digital and online transactions, and this highlighted the taxation issues about them. In May, we saw the filing of House Bill 6765, or the “Digital Economy Act of 2020.” Sponsored by…
By: Atty. Euney Marie Mata-Perez on June 18,2020 The community quarantines brought about by the coronavirus disease 2019 (Covid-19) pandemic pushed many to use electronic or online platforms, like Facebook, Viber and Instagram, to continue their businesses or start new ones. However, there was some resistance when the Bureau of…
By: Atty. Euney Marie Mata-Perez on June 11,2020 We celebrate Independence Day on June 12, 122 years after Gen. Emilio Aguinaldo declared independence from Spain and waved the first Philippine flag at his residence in Kawit, Cavite. On this day, we celebrate our love and loyalty for our country. Our…
By: Atty. Euney Marie Mata-Perez on June 4,2020 I am a probinsiyana. I was born in Cebu City, my mother’s home city. I partly grew up there, as well as in Dipolog City in Zamboanga del Norte, my father’s home province. I have beautiful memories growing up in Dipolog. As someone…
By: Atty. Euney Marie Mata-Perez on May 28,2020 The coronavirus disease 2019 (Covid-19) pandemic gave rise to some benefits. The Department of Finance (DoF) recently added proposed enhancements or amendments to the Corporate Income Tax and Incentives Reform Act (Citira), now renamed the Corporate Recovery and Tax Incentives for Enterprises…
By: Atty. Euney Marie Mata-Perez on May 21,2020 The huge impact of the coronavirus disease 2019 (Covid-19) pandemic on the health and mobility of our people, as well as on our businesses and economy as a whole, is beyond what we all thought. The enhanced community quarantine (ECQ) imposed in…
Dear Valued Clients and Friends, We are sending to you a copy of Department of Labor and Employment (DOLE) Labor Advisory No. 18 dated May 18, 2020, providing for the guidelines on the cost of Covid-19 prevention and control measures. The employer shall shoulder the cost of Covid-19 prevention and…
Dear Valued Clients and Friends, We are sending to you a copy of Department of Labor and Employment (DOLE) Labor Advisory No. 17 dated May 18, 2020, providing for the guidelines on employment preservation upon resumption of business operation. The DOLE encourages employers to adopt work-from-home or implement a telecommuting…
Dear Valued Clients and Friends, We are sending to you a copy of Bureau of Internal Revenue (BIR) Revenue Memorandum Circular (RMC) No. 47-2020 dated May 11, 2020, prescribing for the guidelines on temporary measures adopted by taxpayers relative to the receipting/invoicing requirements during the Enhanced Community Quarantine (ECQ), in…
By: Atty. Mark Anthony Tamayo on May 14,2020 One significant trade facilitation measure in customs clearance procedure and formalities was the adoption of the Revised Kyoto Convention (RKC) provisions relating to provisional or incomplete goods declaration (PGD) in the Customs Modernization and Tariff Act (CMTA). To implement these provisions, the…
Dear Valued Clients and Friends, We are sending to you a copy of Department of Labor and Employment (DOLE) Department Order No. 213, which prescribes for the guidelines in the prescription of actions and suspension of reglementary periods to file pleadings, motions, and documents before the DOLE Regional Offices, Bureaus,…
Dear Valued Clients and Friends, We are sending to you a copy of Interim Guidelines on Workplace Prevention and Control of Covid-19 issued by the Department of Trade and Industry (DTI) and Department of Labor and Employment (DOLE) on April 30, 2020. The DTI and DOLE Interim Guidelines is issued…
By: Atty Gerardo Maximo Francisco on May 7,2020 At some point, the enhanced community quarantine (ECQ) still in effect in many areas in the Philippines will be downgraded by the government to the level of a general community quarantine (GCQ). Hopefully, this vital decision to shift to a GCQ will…
Dear Valued Clients and Friends, We are sending to you a copy of Bureau of Customs (BOC) Office of the Commissioner (Ocom) Memo No. 89-2020 dated April 23, 2020, entitled, “Extending the Suspension of Actual and Face-to-Face Seizure and Forfeiture Proceedings”. The BOC declared that Memorandum dated March 18, 2020…
Dear Valued Clients and Friends, We are sending to you a copy of Bureau of Customs (BOC) Office of the Commissioner (Ocom) Memo No. 82-2020 dated April 13, 2020, entitled, “Online Submission of Documents for Export Processing”. The BOC allowed its accredited exporters, licensed custom brokers, and declarants to submit…
Dear Valued Clients and Friends, We are sending to you a copy of Bureau of Customs (BOC) Office of the Commissioner (Ocom) Memo No. 80-2020 dated April 13, 2020, entitled, “Guidelines for the Online Filing and Submission of Goods Declaration for Warehousing and the Processing thereof during the ECQ as…
Dear Valued Clients and Friends, We are sending to you a copy of Bureau of Internal Revenue (BIR) Revenue Regulations (RR) No. 11-2020 dated April 30, 2020, entitled, “Amends Section 2 of RR No. 10-2020 relative to the extension of statutory deadlines and timelines for the filing and submission of…
By: Atty Gerardo Maximo Francisco on April 30,2020 “A probationary employee or probationer is one who is on trial for an employer, during which the latter determines whether or not the former is qualified for permanent employment. Indeed, the employer has the right, or is at liberty, to choose who…
Dear Valued Clients and Friends, We are sending to you a copy of Securities and Exchange Commission (SEC) Memorandum Circular No. 13, series of 2020 dated April 21, 2020. It provides for an extended deadline for submission of sustainability report (SR) for publicly listed companies (PLCs) whose fiscal year ends on…
Dear Valued Clients and Friends, We are sending to you a copy of Securities and Exchange Commission (SEC) Memorandum Circular No. 12, series of 2020, published on April 15, 2020. SEC MC No. 12 prescribes the following rules to be adopted by publicly-listed companies for sale of corporate assets: Sale…
Dear Valued Clients and Friends, We are sending to you a copy of Securities and Exchange Commission (SEC) Notice April 22, 2020. The SEC extended the filing of Integrated Annual Corporate Governance Report by publicly listed companies until July 30, 2020. Should you have questions on the above article, please…
By: Atty. Carence Navidad on April 23,2020 FILIPINOS’ “bayanihan spirit” is again on display amid the coronavirus disease 2019 (Covid-19) pandemic. Various sectors have been contributing financially, donating various medical equipment, supplies and food to several health facilities and frontline workers across the country. Republic Act 11469, or the “Bayanihan…
Dear Valued Clients and Friends, We are sending to you a copy of Bureau of Customs (BOC) Customs Memorandum Order (CMO) No. 10-2020 dated April 8, 2020, entitled, “Summary Abandonment Proceedings during Enhanced Community Quarantine.” The abandonment proceedings for the refrigerated containers and dry vans is summarized as follows: Imported…
Dear Valued Clients and Friends, We are sending to you a copy of Bureau of Internal Revenue (BIR) Revenue Memorandum Circular (RMC) No. 44-2020 dated April 17, 2020, entitled, “Issuance of temporary electronic copies of VAT Certificates (VCs) and VAT Identification Cards (VICs) due to the continuing implementation of the…
Dear Valued Clients and Friends, We are sending to you a copy of Bureau of Internal Revenue (BIR) Revenue Memorandum Circular (RMC) No. 43-2020 dated April 17, 2020, entitled, “Prescribes the guidelines in the acceptance of payment of internal revenue taxes during the Enhanced Community Quarantine period”. During the Enhanced…
Dear Valued Clients and Friends, We are sending to you a copy of Bureau of Internal Revenue (BIR) Revenue Memorandum Circular (RMC) No. 42-2020 dated April 17, 2020. The BIR provided guidelines for the taxpayers who will be filing manually or will be using Offline eBIRForms Package or are enrolled…
By Atty. Aziza Hannah Bacay on April 16,2020 With the Luzon-wide enhanced community quarantine (ECQ) extended until April 30, it is just proper for the Bureau of Internal Revenue (BIR) to also extend various statutory and tax deadlines. Such an extension is mandated by Republic Act 11469, or the “Bayanihan…
Dear Valued Clients and Friends, We are sending to you a copy of Bureau of Internal Revenue (BIR) Revenue Regulation (RR) No. 10-2020 dated April 14, 2020, which extends further the statutory deadlines and timelines for the submission and/or filing of various documents and/or returns, as well as the payment…
Dear Valued Clients and Friends, We are sending to you a copy of the Securities and Exchange Commission (SEC) Notice issued on April 8, 2020, providing for a summary of guidelines on the filing of reports and other documents during the enhanced community quarantine. Should you have questions on the…
Dear Valued Clients and Friends, We are sending to you a copy of the Securities and Exchange Commission (SEC) Notice dated March 30, 2020 providing for the procedure for remote filing of monitoring clearance for amendments to Articles of Incorporations and By-Laws. For applications for ordinary amendments (change of corporate…
Dear Valued Clients and Friends, We are sending to you a copy of Bureau of Internal Revenue (BIR) Revenue Memorandum Circular (RMC) No. 41-2020 dated April 8, 2020. The filing of application for new Authority to Print (ATP) receipts/invoices for expiring principal and supplementary receipts/invoices where the expiration date(s) falls…
Dear Valued Clients and Friends, We are sending to you a copy of Bureau of Internal Revenue (BIR) Revenue Memorandum Circular (RMC) No. 40-2020 dated April 8, 2020, providing for the implementing rules and regulations of Republic Act No. 11256 (An Act to Strengthen the Country’s Gross International Reserves, Amending…
Dear Valued Clients and Friends, We are sending to you a copy of Bureau of Internal Revenue (BIR) Revenue Memorandum Circular (RMC) No. 38-2020 dated April 8, 2020, extending further the deadline for availment of Tax Amnesty on Delinquencies from May 23, 2020 until June 8, 2020. Should you have…
Dear Valued Clients and Friends, We are sending to you a copy of Bureau of Internal Revenue (BIR) Revenue Memorandum Circular (RMC) No. 39-2020 dated April 8, 2020, providing for additional 15 calendar days on the due dates for the submission and/or filing of certain documents and/or returns as well…
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BY: Atty. Kathlene Guiang on April 9, 2020 The imposition of a Luzon-wide enhanced community quarantine last month has prompted government agencies to issue circulars aimed at helping ease its impact on the lives of taxpayers. One of them, the Bureau of Internal Revenue (BIR), issued memorandum circulars and revenue…
MTF Updates – BIR RR No. 9-2020 dated April 7, 2020 Dear Valued Clients and Friends, We are sending to you a copy of Bureau of Internal Revenue (BIR) Revenue Regulation (RR) No. 9-2020 dated April 7, 2020, which implements Section 4 (Z) and Section 4 (EE) of Bayanihan to…
Dear Valued Clients and Friends, We are sending to you a copy of Bureau of Internal Revenue (BIR) Revenue Memorandum Circular (RMC) No. 37-2020 dated April 6, 2020, entitled “Filing of the Tax Returns and Payment of Taxes before the Extended Deadline.” Taxpayers who file their tax returns within the…
Dear Valued Clients and Friends, We are sending to you a copy of Bureau of Internal Revenue (BIR) Revenue Memorandum Circular (RMC) No. 36-2020 dated April 6, 2020, entitled “Further Clarification on the Exemption from Documentary StampTax (DST) Relief for Qualified Loans pursuant to Revenue Regulations No. 8-2020 dated April…
Dear Valued Clients and Friends, We are sending to you a copy of Bureau of Internal Revenue (BIR) Revenue Memorandum Order (RMO) No. 10-2020 dated March 30, 2020, which provides for the exemption from Authority to Release Imported Goods (ATRIG) requirements of all goods imported under Section 4, Paragraph (o)…
Dear Valued Clients and Friends, We are sending to you a copy of Bureau of Internal Revenue (BIR) Revenue Regulations (RR) No. 08-2020 dated April 2, 2020, which implements Section 4(aa) of the Republic Act No. 11469, otherwise known as the Bayanihan To Heal As One Act. Pursuant to Sec.…
Dear Valued Clients and Friends, We send to you a copy of Bureau of Internal Revenue (BIR) Revenue Regulations No. 7-2020 dated March 30, 2020, which implements Section 4 of Republic Act No. 11469 otherwise known as the Bayanihan to Heal as One Act and compiles the extension of the statutory deadlines and timelines…
By: Atty. Euney Marie Mata-Perez on 2Apr20 The coronavirus disease 2019 (Covid-19) pandemic is greatly affecting all of us. To contain or manage the pandemic, the government imposed an enhanced community quarantine (ECQ) covering Luzon, which we hope would end on April 12. Due to the serious threat to health,…
Dear Valued Clients and Friends, We are sending you a copy of SSS Circular No. 2020-006, dated March 28, 2020: Extension of Deadline of Remittance Contributions. The SSS approved the extension of deadline of remittance of contributions by employers (Regular and Household) and self-employed, voluntary and non-working spouse members as follows: Type…
Dear Valued Clients and Friends, The Bureau of Customs, in a Memorandum dated March 23, 2020 (please see attached), has SUSPENDED the 7-day period to lodge goods declaration for the duration of the enhanced community quarantine (ECQ). "At any time during the declaration of ECQ, lodgement and filing of goods declaration may…
Dear Valued Clients and Friends, Revenue Memorandum Circular No. 33-2020: Extends Deadline of Tax Amnesty on Delinquencies under Revenue Regulations (RR) No. 4-2019, as amended by RR No. 5-2020. Pursuant to RR No. 5-2020 which stated that the availment of the Tax Amnesty on Delinquencies may be extended if the circumstances warrant…
Dear Valued Clients and Friends, Revenue Memorandum Circular No. 32-2020: Extends the deadline for the filing of Certificate of Residence for Tax Treaty Relief (CORTT) Forms. The deadline for filing of CORTT Forms for final withholding taxes on dividends, interests, royalties paid on or before March 10, 2020 is hereby extended until…
Dear Valued Clients and Friends, Revenue Memorandum Circular No. 31-2020: Extends the period of submission or filing of documents and correspondences pursuant to certain provisions in the Tax Code, as amended, and existing Revenue Regulations. The submission or filing of documents and correspondences is extended as specified below. Documents/Correspondence Extension Letter Answer…
Dear Valued Clients and Friends, Revenue Memorandum Circular No. 30-2020: Amending Revenue Memorandum Circular (RMC) No. 29-2020 and clarifications on RMC 28-2020 relative to the Extension of deadlines for the filing of CY 2019 Income Tax Returns and other various returns and payment of taxes due thereon. Required attachments for…
By: MARK ANTHONY TAMAYO March 26, 2020 Last of two parts Last week, we discussed the salient features of the recently issued Customs Administrative Order (CAO) 02-2020 in relation to the dispute settlement and protest rules arising from tariff classification issues. Such issues may affect the assessment of duties, taxes…
By MARK ANTHONY TAMAYO March 19, 2020 First of two parts Under the self-assessment scheme, importers are responsible for reporting the details of their importations with the Bureau of Customs (BoC). These details — which must be reflected in the goods declaration — include the value of the imported goods…
By: Nica Marsha Gasapo on March 12,2020 The proper issuance of a letter of authority (LOA), which is a written official authority issued by the Bureau of Internal Revenue (BIR) to its representatives to conduct a tax audit, is a strict legal requirement for the validity of a BIR tax assessment. The LOA…
By: Kathleen Guiang on March 5,2020 Under the Local Government Code of 1991, owners or administrators of real property, whether natural or juridical persons, are required to prepare and file with the provincial, city or municipal assessor, a sworn statement declaring the true value of their property. Such declaration shall contain a…
By: Euney Marie J. Mata-Perez on February 27,2020 In my article titled “Model taxpayer charter” that was published in The Manila Times on Nov. 15, 2018, I discussed the need for a taxpayer charter to protect taxpayers against threats on their rights, especially in the advent of various world-wide initiatives such…
By: Euney Marie J. Mata-Perez on February 20,2020 The Senate Ways and Means Committee released Committee Report 50 dated Feb. 17, 2020, endorsing Senate Bill (SB) 1357, in substitution of SBs 535, 595 and 702, taking into consideration House Bill (HB) 4157, the proposed Corporate Income Tax and Incentives Rationalization Act…
By: Euney Marie J. Mata-Perez on February 13,2020 The year 2020 started right for the viability of REITs or real estate investment trusts. The last of the major roadblocks for the creation of REITs has finally been removed, more than ten years after the passage of Republic Act (RA) 9856, or…
By: Euney Marie J. Mata-Perez on February 6,2020 In last week’s article, we discussed that, under our National Internal Revenue Code, as amended (Tax Code), and existing regulations, donations in excess of P250,000 in any taxable year shall be exempt from donor’s tax if they are made to the national government,…
By: Euney Marie J. Mata-Perez on January 30,2020 The recent Taal Volcano eruption spurred once again the generosity of the Filipino spirit. Many Filipinos participated in countless relief efforts in various capacities, whether as volunteers or donors. Thus, it is good once again to be reminded of the benefits of giving…
By: Mark Anthony P. Tamayo on January 23,2020 Last of a series In last week’s article, we completed the discussion on the 11 Incoterms® rules as they relate to cross-border commercial transactions. In this last series, we shall focus on the possible effects and consequences of the chosen Incoterm® rule by…
By: Mark Anthony P. Tamayo on January 16,2020 Second of a series In last week’s article, we discussed the relevance of Incoterms 2020 as well as the salient features of Incoterms EXW (Ex Works), FOB (Free On Board), CPT (Carriage Paid To) and CFR (Cost and Freight), as they relate to…
By: Mark Anthony P. Tamayo on January 9,2020 The idea of the International Commercial Terms, or Incoterms®, was first conceived by the International Chamber of Commerce in 1921, with the first edition published in 1936. Since 1980, Incoterms® have been updated every decade in order to align the rules with changes…
By: Euney Marie J. Mata-Perez on December 26,2019 THIS year passed like a breeze. We just celebrated Christmas. Everyone is still in a holiday mood. In our last article for the year, we deem it fit to look back at 2019 and review some…
By: Euney Marie J. Mata-Perez on December 19,2019 The withholding tax obligations in the Philippines are not simple. Philippine taxpayers are required to withhold creditable withholding taxes (CWT) at varying rates on several income payments, and remit the taxes withheld to the Bureau of Internal Revenue (BIR). A CWT is an…
By: Euney Marie J. Mata-Perez on December 5,2019 The Philippines is becoming a major player in the offshore gaming industry worldwide. Owing to our regulatory framework, offshore gaming operations can be granted licenses and be regulated, thereby, be legalized in the country. The main licensor is the Philippine Amusement and Gaming…
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. In this column, we shall discuss the associated costs in…
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). Customs Administrative Order (CAO) No. 13-2019, which took effect…
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. The power of taxation is exercised by each state. It is generally exercised over…
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…
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. In the overall, Citira…
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…
By: Mark Anthony P. 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…
By: Mark Anthony P. Tamayo on October 10,2019 The long awaited guidelines for transfer pricing (TP) examinations was recently issued by the Bureau of Internal Revenue (BIR) under Revenue Audit Memorandum Order (RAMO) 1-2019 dated Aug. 20, 2019. It is basically a manual of standardized procedures and techniques to be adopted…
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.…
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…
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…
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…
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”. If they so qualify, they will be subject to following additional obligations under the code:…
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…
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…
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,…
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. The amended guidelines introduce amendments to the Consolidated Guidelines and Procedures on the…
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…
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. In the said article, we mentioned that the Securities and Exchange Commission (SEC) issued an advisory…
By: Euney Marie J. Mata-Perez on July 18, 2019 Editor’s note: An earlier version of this article cited the wrong case number for Commissioner of Internal Revenue vs. Maersk Global Service Centres (Philippines), Ltd. The correct case number should be CTA EB Case No. 1786 and not 1789 as previously stated. See…
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)…
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.
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…
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…
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…
CLICK THIS LINK TO REGISTER SPEAKERS: Atty. Euney Marie J. Mata-Perez Atty. Mark Anthony P. Tamayo Atty. Gerardo Maximo V. Francisco TOPICS: The Tax Reform Package by Atty. Euney Mata-Perez Updates on the recent developments in the implementation of the TRAIN Law Salient features of the recently enacted Tax Amnesty…
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…
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…
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. However, this separate personality can…
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,…
By: Euney Marie J. Mata-Perez on May 16, 2019 The Asia-Oceana Tax Consultants’ Association, as represented by its President, Atty. Euney Marie J. Mata-Perez, attended as an observer of the first Conference of the Belt and Road Initiative Tax Administration Cooperation Forum (BRITACOF) hosted by the State Taxation Administration of…
By: Euney Marie J. Mata-Perez on May 16, 2019 China’s Belt and Road Initiative (BRI) is a development strategy adopted by the Chinese government involving infrastructure development and investments in various countries and international organizations in Europe, Asia, Middle East, Latin America and Africa. “Belt” refers to the overland routes…
By: Samantha L. Poblacion on May 10, 2019 The Philippine startup community awaits with bated breath for the approval of the Innovative Startup Bill. According to a senate press release in May 2018, the bill will provide support to innovative and tech startups, which pertain to businesses that provide unique…
By: Nica Marsha Gasapo on May 2, 2019 Yesterday, May 1, was Labor Day and April was Autism Awareness Month. For today’s article, we will discuss Philippine laws geared toward the welfare and integration of persons with disability (PWDs). These laws seek to destroy social barriers that prejudice the rights…
By: Mark Anthony P. Tamayo on April 25, 2019 (Last of three parts) In last week’s article, we briefly discussed Republic Act (RA) No. 8752 (Anti-dumping Act) and RA No. 8751 (Countervailing Duty Act) as trade protection instruments, which can be used against unfair trade practices. In this article, we…
By: Mark Anthony P. Tamayo on April 18, 2019 (Second of three parts) In last week’s article, we discussed briefly Republic Act (RA) No. 8800 (Safeguard Measures Act) as a protection tool to address the unexpected surge in imports that cause (or threaten to cause) serious injury to the domestic…
By: Mark Anthony P. Tamayo on April 11, 2019 First of three parts The multifaceted systems of controls and taxes on traded goods were believed to be in existence over three centuries ago, when travelling merchants offered, on their own accord, customs fees to monarchs and sovereign rulers for the…
By: Richelle Dianne R. Patawaran on April 4, 2019 The Revised Corporation Code (RCC), which took effect on Feb. 23, 2019, recently introduced significant changes to the conduct of corporate meetings and in effect imposed additional obligations on the corporate secretary in the conduct of such meetings. One such change…
By: Euney Marie J. Mata-Perez on March 28, 2019 Republic Act No. 11232 or the Revised Corporation Code (RCC) has expanded the role and increased the powers of the Securities and Exchange Commission (SEC). Senator Franklin Drilon, the main author of the law, said during the very well-attended joint forum…
By: Richelle Dianne R. Patawaran on March 21, 2019 With the 2019 Philippine general election less than two months away, and with the recent passage of the Revised Corporation Code (RCC), we take this opportunity to revisit the issue of whether political contributions by corporations are allowed under the law.
By: Euney Marie J. Mata-Perez on March 14, 2019 In ranking the ease of doing business (EODB) of economies, the World Bank (WB) also evaluates a country’s protection of the interests of minority investors. In this regard, it considers two indices, namely, 1) conflicts of interest regulation, and 2) shareholders’…
By: Samantha Poblacion on March 7, 2019 The past month rendered an important and interesting decision from the Philippine Competition Commission (PCC). On Feb. 12, 2019, the PCC denied the prospective acquisition by Universal Robina Corp.-Balayan (URC) of the sugarcane milling and refinery assets of Central Azucarera Don Pedro Inc.…
By: Euney Marie J. Mata-Perez on February 28, 2019 Finally, the Revised Corporation Code or Republic Act No. 112321 (RCC) was signed into law by the President on February 20, 2019 and published in the Official Gazette on Feb. 21, 2019. It will thus become effective on March 8, 2019.…
By: Euney Marie J. Mata-Perez on February 21, 2019 A year ago today, we published our first article in this column, entitled “A Good Beginning” (https://mtfcounsel.com/2018/02/22/a-good-beginning). It was the beginning of a journey and, after publishing a total of 52 articles, we continue to write. We are grateful to, and…
MTF Managing Partner, Atty. Euney Marie J. Mata-Perez, was one of the panelists during the Ease of Doing Business (EODB) Forum held on January 30, 2019 at the Ateneo Professional Schools Auditorium, Rockwell, Makati, Philippines. Atty. Mata-Perez, along with other local experts, were invited to discuss the implications of Republic…
By: Atty. Euney Marie J. Mata-Perez In response to the thrust of the Asia-Oceana Tax Consultants’ Association to have more exchange of information among its members in the Asia-Pacific region, the Tax-Accountancy Association Union of Republic of Chinese Taipei (TAAUT) held a regional tax conference last January 21, 2019 in…
By: Euney Marie J. Mata-Perez on February 14, 2019 Private corporations are created by fiction of law, and they owe their existence to the law establishing them. In our jurisdiction, such law is the Corporation Code. Upon the issuance by the Securities and Exchange Commission (SEC) of its certificate of…
By: Euney Marie J. Mata-Perez on February 7, 2019 In response to the thrust of the Asia-Oceana Tax Consultants’ Association (AOTCA) to have more exchange of information among its members in the Asia-Pacific region, the Tax-Accountancy Association Union of Republic of Chinese Taipei (TAAUCT) held a regional tax conference last…
By: Mark Anthony P. Tamayo on January 31, 2019 Last of two parts In last week’s article, we discussed briefly the coverage of a post clearance audit (PCA) under customs administrative order (CAO) 01-2019 and the potential issues that may be raised by the post clearance audit group (PCAG) of…
By: Mark Anthony P. Tamayo on January 25, 2019 (First of two parts) The regulation on the guidelines of the Post Clearance Audit (PCA) and Prior Disclosure Program (PDP) has finally been signed by the Department of Finance (DOF) Secretary last Jan. 9, 2019. Embodied under Customs Administrative Order (CAO)…
By: Euney Marie J. Mata-Perez on January 17, 2019 All corporations are now required to disclose their ultimate beneficial owners. This requirement is no longer limited to publicly-listed corporations. In Securities and Exchange Commission’s (SEC) Memorandum Circular No. 17, Series of 2018, SEC has required all SEC-registered domestic corporations, both…
By: Euney Marie J. Mata-Perez on January 10, 2019 It is now clear that the proposed Tax Amnesty Act (TAA) will be passed soon. The report of the Bicameral Conference Committee which harmonized the provisions of the tax amnesty bills (House Bill Nos. 4814 and 8554 and Senate Bill No.…
By: Euney Marie J. Mata-Perez on January 3,2019. Happy new year! The year 2018 was an interesting year in the tax arena. Republic Act 10963 or the Tax Reform for Acceleration and Inclusion (Train) Law, amending the National Internal Revenue Code (Tax Code), became effective on January 1, 2018. We then…
The annual yuletide festival is certainly the most joyous time of the year. Not only do we celebrate the birth of our Lord but it is also the time to reconnect with friends, acquaintances and most specially, family and relatives. It is traditionally a season of gift giving, remembering dearly…
By: Euney Marie J. Mata-Perez on December 20, 2018 The Senate and the House of Representatives have ratified a bicameral conference committee report that harmonized provisions of tax amnesty bills (House Bills 4814 and 8554 and Senate Bill 2059 [SB 2059]) passed by both houses of Congress.
By Euney Marie J. Mata-Perez on December 13, 2018 Advent is the time for giving. Thus, it is a good time to be reminded of the taxes imposed on donations and the tax benefits of making them.
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…
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…
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…
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…
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…
By: Euney Marie J. Mata-Perez on November 1, 2018 We just attended the 2018 World Conference of the International Tax Specialist Group (ITSG) held in the beautiful Rosewood Hotel in Beijing last Oct.r 24-26, 2018. The conference was attended by around 80 tax specialists and advisers from all over the…
By: Nica Marsha V. Gasapo on October 25, 2018 A worker and an employer enter into an employment contract to realize their respective interests—the worker, to make ends meet; the employer, to earn profits. An employment contract, however, is a special contract because the State can step in to regulate…
By: Felson M. Dalaguete on October 18, 2018 A corporation that permits the accumulation of earnings and profits beyond the reasonable needs of the business is subject to the 10 percent Improperly Accumulated Earnings Tax (IAET). If the accumulation is justified to be within the reasonable needs of the business,…
By: Elreen Joy O. De Guzman on October 11, 2018 Under Senate Bill (SB) No. 1280, the proposed Revised Corporation Code of the Philippines, a single natural person, trust, or estate can form a one-person corporation (OPC). Unlike a sole proprietorship, an OPC will have a juridical personality separate from…
By: Aziza Hannah Bacay on October 4, 2018 A part of taxpayer’s due process rights under law is to be subject to a tax audit and assessment (for deficiency taxes) by the BIR only within certain defined periods, known as “prescriptive periods.” If the BIR does not make a tax…
By: Felson Dalaguete on September 27, 2018 The Commissioner of Internal Revenue (CIR) is empowered by law to audit the books of taxpayers. Such audits must be conducted by the CIR or his duly authorized officer. The authority given to revenue officers should be set out in a duly-issued and…
By: Euney Marie Mata-Perez on September 20, 2018 The Asia-Oceana Tax Consultants’ Association (AOTCA) International Tax Conference held in Ulaanbaatar, Mongolia just concluded on September 13, 2018. Panels of international speakers from various jurisdictions spoke on the history, challenges, development and other aspects of tax avoidance and general anti-tax avoidance…