By: Atty. Rio Krisel G. Bautista on May 16,2024 Section 249 of the National Internal Revenue Code, as amended (the “Tax Code”), provides for deficiency interest and delinquency interest, which may be assessed and collected on any unpaid amount of tax. Deficiency interest is assessed and collected from the date…

By: Atty. Raida Argeli Grefiel on May 2,2024 The National Internal Revenue Code, as amended, (the “Tax Code”) authorizes the Commissioner of Internal Revenue (“CIR”) or his duly authorized representative to conduct audits, in light of the power of the Bureau of Internal Revenue (“BIR”) to assess and collect taxes.…

By: Atty. Cara Angela N. Flores on April 25,2024 Section 203 of the National Internal Revenue Code, as amended (the “Tax Code”), entitled “Period of Limitation Upon Assessment and Collection”, provides that taxes shall be assessed within three (3) years after the last day prescribed by law for the filing…

By: Atty. Xela Leona D. Laqui on April 18,2024 Under Section 222 of the National Internal Revenue Code, as amended (“Tax Code”), the ten-year prescriptive period for the Commissioner of Internal Revenue (CIR) to assess tax applies in cases where a taxpayer files a false or fraudulent return with intent…

By: Atty. Sarah T. Ganto on April 5,2024 With the issuance of Revenue Memorandum Circular (“RMC”) No. 5-2024, as clarified by RMC No. 38-2024, on the taxation of cross-border services, another topic tackled by the said RMCs equally merits discussion: the taxation of reimbursements among multinational enterprises. RMC No. 5-2024…

By: Atty. Euney Marie J. Mata-Perez on March 21,2024 On March 15, 2024, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular No. (RMC) No. 38-2024 clarifying its earlier pronouncements in RMC No. 5-2024 on the taxation of cross-border transactions.  To recall, in Aces Philippines Cellular Satellite Corp. v.…

By: Atty. Lew Earvin Manarin on March 14,2024 The Corporate Recovery and Tax Incentives for Enterprises Act (the “CREATE Act”) introduced amendments to our National Internal Revenue Code (“Tax Code”) which were aimed to eliminate tax uncertainty, offer tax assistance to struggling enterprises affected by the COVID-19 pandemic, and streamline…

By: Atty. Keanu P. Castañeda on March 7,2024 Republic Act No. 11976 otherwise known as the “Ease of Paying Taxes” (“EOPT”) amended Sections 204 and 229 of our National Internal Revenue Code, as amended (the “Tax Code”) and modified the rules and procedures on the claims for refund of erroneously…

By: Atty. Jigo P. Arevalo on February 28,2024 The world of international trade, particularly for agricultural products, can be a labyrinth of regulations and tariffs. Like many other countries, the Philippines navigates this intricate landscape using a system of Tariff-Rate Quotas (TRQs), specifically in-quota and out-quota rates. Understanding these terms…

By: Atty. Nica Marsha V. Gasapo on February 22,2024. In Commissioner of Internal Revenue v. Toledo Power Corporation (G.R. No. 259309, February 13, 2023) (the “Toledo Case”), the Supreme Court overturned the findings of the Court of Tax Appeals (“CTA”) both in Division and En Banc, and held that payments…

By: Atty. Euney Marie J. Mata-Perez on February 15,2024 In their position paper dated February 13, 2024, representatives of certain private sector groups requested Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui to review, revisit, and reconsider the provisions of Revenue Memorandum Circular (RMC) No. 5-2024 dated January 10, 2024,…

By: Atty. Nica Marsha V. Gasapo on February 8,2024 The Financial Rehabilitation and Insolvency Act (“FRIA”) or Republic Act No. 10142 was enacted with the aim of offering debtors an avenue to preserve and maximize the value of their assets and prioritize claims; and, at the same time, ensuring fair…

By: Atty. Euney Marie J. Mata-Perez on February 2,2024 In my interview with Business Outlook last Thursday, January 24, 2024, I was asked if we are competitive as a country from a taxation point of view.  I mentioned that while there have been efforts, through tax reforms, to make the…

By: Atty. Euney Marie J. Mata-Perez on January 25,2024 In its Revenue Memorandum Circular No. 5-2024 (RMC 5-2024), the Bureau of Internal Revenue (BIR) is espousing new rules regarding the situs or source of income.  RMC 5-2024 sprung from the decision of the Supreme Court in Aces Philippines Cellular Satellite…

By: Atty. Euney Marie J. Mata-Perez on January 18,2024 In taxation of foreign corporations in the Philippines, the determination of source of income is key, and this determination has taken a significant turn lately. Taxation is an inherent power of sovereignty of a state. For a state to exercise such…

By: Atty. Euney Marie J. Mata-Perez on January 11,2024 The Philippine tax scene is abuzz again with the passage of Republic Act No. 11976, or the Ease of Paying Taxes (EOPT) Act on January 5, 2024.  The main objective of the Act is to provide a healthy environment for the…

By: Atty. Euney Marie J. Mata-Perez on January 4,2024 Happy new year everyone!  Time flies so fast, and we are now in 2024.  It has been four years that our law firm, Mata-Perez, Tamayo & Francisco has been contributing weekly to this column, More to Follow Column of The Manila…

By: Atty. Nica Marsha Gasapo on December 21,2023 As the curtains fall on another trip around the sun, it is important to dissect the events that unfolded in the past months. The conclusion of the year is not merely a time for reflective musings; it also a strategic and opportune…

By: Atty. Mark Anthony Tamayo on December 15,2023. Correctly classifying imported goods is crucial for international trade. It influences trade statistics, regulations, and the determination of duty rates. The Harmonized System (HS), a globally adopted framework developed by the World Customs Organization (WCO), provides a standardized numerical approach to classify…

By: Euney Marie J. Mata-Perez on November 30,2023 There is a big difference between protesting an assessment and claiming for refund of erroneously paid local business taxes (LBT).  The remedies for each action are sets out in separate sections of the Local Government Code of 1991 (LGC).  Under Section 195…

By Stefan Miguel Raymundo Del Rosario on November 23,2023 Republic Act No. 11576 (RA 11576) was enacted 2021, amending Batas Pambansa Blg. 129 or the Judiciary Reorganization Act of 1980 (BP 129), by revising and increasing the jurisdiction thresholds of the Regional Trial Court (“RTC”) and First-Level Courts, i.e., the…

By: Atty. Lew Earvin H. Manarin on November 16,2023 In line with the Supreme Court’s drive to decongest the dockets of lower courts and to promote efficiency in an increasingly digitalized legal system, it issued the “Guidelines on Submission of Electronic Copies of Pleadings and other Court Submissions being filed…

By: Atty. Keanu P. Castañeda on November 9,2023 Tax exemption and tax amnesty are two important concepts in Philippine taxation law, but they are often confused. It is important to understand the difference between the two. Tax Exemption is the condonation of a tax liability conferred upon to persons or…

By: Atty. Euney Marie Mata-Perez on October 26,2023 The amendments introduced by the Corporate Recovery and Tax Incentives for Enterprises (“CREATE”) Act, Republic Act (RA) No. 11534 dated March 26, 2021, and RA No. 10963, the Tax Reform for Acceleration and Inclusion (“TRAIN”) Law, to our National Internal Revenue Code…

By: Atty. Sarah T. Ganto on October 19,2023 Quo warranto is a remedy to assail an illegal intrusion into a public office or position (not a private one).  It is also the proper remedy when the State questions the existence of a de facto corporation or the unlawful exercise of…

By: Atty. Cara Angela N. Flores on October 12,2023 Under Section 30(E) of the Tax Code, nonstock corporation or association organized and operated exclusively for religious, charitable, scientific, athletic, or cultural purposes, or for the rehabilitation of veterans are exempt from income tax as long as no part of its…

By: Atty. Euney Marie J. Mata-Perez on October 5,2023. Recently, the Bureau of Internal Revenue (BIR) issued Revenue Regulations No. 11-2023 (the “Regulation”) dated September 14, 2023, which prescribes the use of electronic mail (e-mail) and electronic signature as additional mode of service of Warrants of Garnishment (WGs). The Regulation…

By: Atty. Xela Leona D. Laqui on September 21,2023 Republic Act (RA) No. 11956 was passed amending RA No. 11213, the Estate Tax Amnesty Act, to extend the period to avail the estate amnesty tax for another two years or until June 14, 2025. Significantly, it also expanded the coverage…

By: Atty. Euney Marie Mata-Perez on September 14,2023 I was just inducted as a member of NOWCD, the NextGen Organization of Women Corporate Directors,  the Philippine chapter of Women Corporate Directors International. Incorporated on September 24, 2021, NOWCD seeks to bring together a trusted community of experienced and engaged directors…

By Euney Marie Mata-Perez on September 7,2023 Republic Act (RA) No. 11954  established the Maharlika Investment Fund (MIF) to strengthen the investment activities of the country's top-performing government financial institutions and promote economic growth and social development. It was established consistent with laudable State policy to generate, preserve and grow…

By Euney Marie Mata-Perez on August 24, 2023 THE amendments to the National Internal Revenue Code of 1997 (Tax Code), introduced by Republic Act (RA) 11534 (Create) and by RA 10963, or the "Tax Reform for Acceleration and Inclusion" (Train), particularly on the imposition of value-added tax (VAT) on indirect…

By: Atty. Euney Marie Mata-Perez on August 17,2023 IMPROVING board diversity is increasingly seen as contributing to good corporate governance, and its promotion has attracted good governance advocates as well as regulators. There had been studies that suggested that corporate boards structured along demographic diversity, such as gender, age, ethnicity,…

By Euney Marie Mata-Perez on August 3,2023. I WAS invited by the Tax Accountancy Association Union of Chinese Taipei (Taauct) to speak during its Corporate Integrity and Sustainable Development Asia Regional Seminar recently held in Taiwan. Deputy ministers from the Ministry of Finance and Ministry of Justice were guest speakers,…

By Stefan Miguel Raymundo Del Rosario on July 13, 2023 THE Bureau of Internal Revenue (BIR), pursuant to its powers to collect taxes, is empowered to institute criminal prosecution cases, including tax evasion cases, against erring taxpayers for criminal violations under the National Internal Revenue Code of 1997 (Tax Code).…

By Euney Marie Mata-Perez on July 6,2023 SECTION 2 of Republic Act 8799, or the "Philippines' Securities Regulation Code," declares that the State shall establish a socially conscious, free market that regulates itself, encourage the widest participation of ownership in enterprises, enhance democratization of wealth, promote the development of the…

By Nica Marsha Gasapo on June 22,2023 THE board of directors of a corporation is the seat of corporate power. Under the law, the board is clothed with authority to exercise the corporate powers, conduct all business and control all properties of the corporation. The election of the members of…