TAX & BUSINESS-RELATED NEWS [APRIL 11-12] BIR CIRCULARIZES THE GUIDELINES IN THE FILING & PAYMENT OF 2021 ANNUAL ITR BIR CLARIFIES ISSUES RELATIVE TO THE NON-IMPOSITION OF SURCHARGE ON AMENDED TAX RETURNS BIR CLARIFIES THE DEADLINE FOR THE FILING OF ANNUAL ITR & NON-IMPOSITION OF SURCHARGE ON AMENDED RETURNS BIR CLARIFIES THE GUIDELINES ON THE USE OF eAFS & THE USE OF E-SIGNATURES TAX & BUSINESS-RELATED NEWS [APRIL 6-10] BIR ISSUES IRR ON TAXATION OF PROPRIETARY EDUCATIONAL INSTITUTION & NON-PROFIT HOSPITALS BIR FURTHER CLARIFIES THE AVAILMENT PERIOD OF VAT ZERO-RATING INCENTIVES OF EXISTING REEs UNDER IPAs BIR PRESCRIBES A UNIFORM TEMPLATE FOR VAT ZERO PERCENT CERTIFICATION ISSUED BY IPA
| 1. TAX & BUSINESS-RELATED NEWS [APRIL 6-7] | | Bangladesh loses NY lawsuit vs Bloomberry PT&T aiming to expand coverage via tie-up with US firms PXP Energy suspends exploration on DoE directive SRA chief slams critics: Move to import sugar needed, justified DTI mandates ‘certification’ of air conditioners, TVs, lamps Loophole to allow remote work for 30% of BPO staff Digital payments top P 42T in BSP-backed system Sun Cellular No More: All Subscribers To Be Migrated To Smart This Month African swine fever infection downtrend reported IT-BPO workers want WFH arrangements indefinitely Mozilla bucks Philippine SIM card registration law Cebu-Cordova Bridge set to open this month Duterte signs law extending Smart franchise by 25 years Incentives for P119-B projects approved
| We saw these tax and business-related news on various news sites, and we thought you should see them. DMD is not responsible for the content of these news, and anything written thereon does not necessarily reflect DMD views or opinions. | Bangladesh loses NY lawsuit vs Bloomberry [Inquirer Mobile, April 12, 2022] Billionaire Enrique Razon Jr.’s Bloomberry Resorts Corp., operator of the Solaire Resort & Casino along Manila Bay, said the Supreme Court of New York had dismissed the 2020 civil complaint of Bangladesh Bank for “lack of jurisdiction.” PT&T aiming to expand coverage via tie-up with US firms [Inquirer Mobile, April 12, 2022] Philippine Telegraph and Telephone Corp. (PT&T) is laying the groundwork to expand its footprint over 10 times in the next two years through a strategic partnership with US-based investment firms. PXP Energy suspends exploration on DoE directive [BusinessWorld, April 12, 2022] PXP Energy Corp. and its subsidiary Forum (GSEC 101) Ltd. have put on hold activities for two petroleum exploration service contracts as directed by the Energy department until the issuance of the “necessary clearance to proceed.” SRA chief slams critics: Move to import sugar needed, justified [Inquirer Mobile, April 12, 2022] Sugar Regulatory Administration (SRA) chief Hermenegildo Serafica denied any midnight deal in the agency’s plan to import sugar, saying the government needs to move now in order to avert a potential supply shortfall in the coming months. DTI mandates ‘certification’ of air conditioners, TVs, lamps [Inquirer Mobile, April 12, 2022] The Department of Trade and Industry (DTI) has issued a rule on the mandatory product certification of energy consuming products such as room air conditioners, television sets and fluorescent lamps, with a warning to distributors and retailers of penalties if such order is not observed. Loophole to allow remote work for 30% of BPO staff [Inquirer Mobile, April 11, 2022] The co-chair of the Fiscal Incentives Review Board (FIRB) said business process outsourcing (BPO) firms can have up to 30 percent of their employees working off-site, although the companies might only be eligible for tax incentives for work done in the office. Digital payments top P 42T in BSP-backed system [Inquirer Mobile, April 11, 2022] The Bangko Sentral ng Pilipinas (BSP) is pushing for taking in more participants in its digital payment settlement system, dubbed PhilPaSSplus, as overall transactions more than doubled over a period of years to reach P42.4 trillion at the end of February. Sun Cellular No More: All Subscribers To Be Migrated To Smart This Month [Unbox.PH, April 11, 2022] Sun Cellular originally came to the country in September of 2001. Now marking its 21st birthday in the country and with quite an expansive user base, Smart parent company PLDT decided to purchase Digitel in 2011. This purchase also marked their ownership of Sun Cellular, although it had been operating under its own name until this piece of news broke out. African swine fever infection downtrend reported [Inquirer Mobile, April 11, 2022] The incidence of African swine fever (ASF) in the Philippines has substantially waned after the outbreak was first detected in 2019, according to the Department of Agriculture (DA). IT-BPO workers want WFH arrangements indefinitely [BusinessWorld, April 11, 2022] In a statement over the weekend, Alliance of Call Center Workers (ACW) Co-Convenor Emman D. David said that the best solution for IT-BPO workers is to have a hybrid work arrangement that allows employees to choose their preferred method. Mozilla bucks Philippine SIM card registration law [Manila Bulletin, April 11, 2022] Mozilla, the global non-profit behind the open-source web browser Firefox, opposes the implementation of the Philippine SIM Card Registration Law. Cebu-Cordova Bridge set to open this month [Inquirer Visayas, April 11, 2022] After four years, the 8.9-kilometer bridge that links Cebu City in mainland Cebu to Cordova town on Mactan Island will finally open to the public this month. Duterte signs law extending Smart franchise by 25 years [The Manila Times, April 11, 2022] The chief executive signed last April 8 Republic Act 11678 that gave the Manny Pangilinan-owned firm, formerly known as Meridian Telekoms Inc., the franchise to operate until 2047. Incentives for P119-B projects approved [The Manila Times, April 11, 2022] THE Fiscal Incentives Review Board (FIRB) has approved, upon the recommendation of the Board of Investments (BoI), the grant of tax incentives to five big-ticket projects with a combined investment capital of P119.5 billion. | 2. BIR CIRCULARIZES THE GUIDELINES IN THE FILING & PAYMENT OF 2021 ANNUAL ITR | Revenue Memorandum Circular (RMC) NO. 44-2022, issued on April 12, 2022, circularizes the guidelines in the filing and payment of 2021 Annual Income Tax Returns (AITRs). eFPS filers can now use BIR Form No. 1702 RT (January 2018 ENCS version) under eFPS platform. | 3. BIR CLARIFIES ISSUES RELATIVE TO THE NON-IMPOSITION OF SURCHARGE ON AMENDED TAX RETURNS | Revenue Memorandum Circular (RMC) No. 43-2022, issued on April 12, 2022, clarifies certain issues in relation to RMC No. 54-2018 and RMC No. 46-99 on the non-imposition of the 25% surcharge under Section 248 (A) of the Tax Code, as amended. 1. If the taxpayer was able to file the initial tax return on or before the prescribed due date for the filing, the 25% surcharge shall not be imposed on the amended tax returns. 2. The 25% surcharge shall be imposed on a tax deficiency found during an audit if the particular tax return being audited was found to have been filed beyond the prescribed period or due date. | 4. BIR CLARIFIES THE DEADLINE FOR THE FILING OF ANNUAL ITR & NON-IMPOSITION OF SURCHARGE ON AMENDED RETURNS | Revenue Memorandum Circular (RMC) No. 42-2022, issued on April 12, 2022 clarifies the deadline for the filing of Annual Income Tax Return (AITR), guidelines in the manner of filing and payment thereof, and non-imposition of surcharge on amended returns. a. The deadline for the filing of Calendar Year 2021 AITR is on or before April 18, 2022, since April 15, 2022 falls on a non-working holiday. b. Amendments may be filed on or before May 16, 2022 without imposition of penalties. Any overpayment of taxes paid as a result of amendment may be carried over as tax credit against the same tax type in the succeeding period, or file for refund. c. Electronic signature shall be deemed equivalent to an actual signature or “wet signature” for filing purposes. d. Required attachments to the AITR electronically filed/amended shall be submitted on or before May 31, 2022 to the BIR where the taxpayer is registered or through Electronic Audited Financial Statements (eAFS) facility. | 5. BIR CLARIFIES THE GUIDELINES ON THE USE OF eAFS & THE USE OF E-SIGNATURES | Revenue Memorandum Circular (RMC) No. 40-2022, issued on April 6, 2022, provides clarifications and guidelines on the use of Electronic Audited Financial Statement (eAFS) System as well as the use of electronic signature on all tax returns, attachments, and documents required to submit in the Annual Income Tax Returns (AITR). The submission of eFiled AITR and its attachments to eAFS is applicable to any taxable year, whether fiscal or calendar year. The existing procedures on the submission of filed AITR and its attachments to eAFS system shall be observed. Likewise, the use of electronic signature applies to all tax returns, attachments, and documents required to submit AITR and returns. | 6. TAX & BUSINESS-RELATED NEWS [APRIL 6-10] | | PEZA permits hybrid work for BPOs, RBEs up to September 12 PEZA-BIR to resolve WFH tax incentives issue Bandwagon bust: Dennis Uy abandons P2.4B e-Commerce project, gets stuck with unpaid China Bank loan Duterte insists ABS-CBN still has unpaid taxes Facebook Parent Meta Might Soon Launch ‘Zuck Bucks’ Digital Currency Antitrust body OKs UnionBank's acquisition of Citi PH consumer banking business Oplan Kandado nets P3-B unpaid taxes Albert Del Rosario loads up P64M PLDT shares CTA junks Makati suit to tax local firm DOF pushes land valuation reform before Duterte is gone Mandaue City retakes 45-hectare lot from man, who illegally claimed city property Zuellig Pharma, ICTSI team up to ‘build a pandemic-resilient Philippines’ Authentication platform launched for Philippine natl ID BSP pushes for more Islamic banking reforms Nestle defends itself over continued Russia presence Filinvest gears up for recovery following earnings slowdown last year Qatar Airways rebuilding global staff, recruiting Filipinos BlackBerry plans to settle lawsuit over BlackBerry 10, avoid U.S. trial Duterte says to stop e-sabong if authorities link illegal activities to it Filipino restaurant Kasama recognized with Michelin star SEC revokes corporate papers of Ponzi scheme perfumery Just-In: Philippines’ Largest Digital Payment Firm Enables Crypto Trading SN Aboitiz Power set to build energy storage system JAPAN’S TAMIYA TO BUILD P1.5-BILLION NEW PRODUCTION PLANT IN CEBU Filinvest Land plans renewable energy plants in Tarlac, Laguna
| We saw these tax and business-related news on various news sites, and we thought you should see them. DMD is not responsible for the content of these news, and anything written thereon does not necessarily reflect DMD views or opinions. | PEZA permits hybrid work for BPOs, RBEs up to September 12 [Yugatech, April 10, 2022] In consideration of information technology-business process outsourcing (IT-BPOs) firms and registered business enterprises (RBEs) which cannot immediately transition by April 1 in accordance to the “return to office” mandate, Philippine Economic Zone Authority (PEZA) Director General Charito Plaza has announced that the agency is accepting applications for letter of authority from PEZA-registered BPOs and RBEs seeking to implement an extended hybrid work arrangement. PEZA-BIR to resolve WFH tax incentives issue [Manila Bulletin, April 10, 2022] The Philippine Economic Zone Authority (PEZA) is confident it can resolve with the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) whatever incentives issue in the implementation of the 70-30 (onsite-work from home) ratio hybrid work arrangement for its registered business enterprises (RBEs). Bandwagon bust: Dennis Uy abandons P2.4B e-Commerce project, gets stuck with unpaid China Bank loan [Bilyonaryo, April 9, 2022] Davao-based businessman Dennis Uy has thrown overboard Chelsea Logistics and Infrastructure Holdings’ e-commerce project due to his failure to stop his company from bleeding over the last four years. Duterte insists ABS-CBN still has unpaid taxes [Inquirer Visayas, April 9, 2022] Despite the Bureau of Internal Revenue’s (BIR) findings that it has paid its taxes regularly, President Duterte maintained that ABS-CBN still has unsettled taxes with the government worth billions of pesos. Facebook Parent Meta Might Soon Launch ‘Zuck Bucks’ Digital Currency [Beebom, April 9, 2022] A report by the Financial Times, citing sources familiar with the matter, suggests that Meta’s financial wing, Meta Financial Technology, is planning to launch a virtual currency for the metaverse. The virtual currency, internally known as “Zuck Bucks”, will not be a cryptocurrency. Instead, it will be an in-app currency, much like the virtual currencies, we find in online games like Fortnite, Roblox, and Valorant. Antitrust body OKs UnionBank's acquisition of Citi PH consumer banking business [ABS-CBN News, April 9, 2022] The Philippine Competition Commission on Friday said it has approved UnionBank's acquisition of Citi Philippines' consumer banking business. Oplan Kandado nets P3-B unpaid taxes [The Manila Times, April 8, 2022] In a statement released on Thursday, the DoF said the BIR shut down the operations of 523 establishments in 2021 for different Tax Code violations under its Oplan Kandado program, resulting in a revenue take of P2.95 billion in back taxes. Albert Del Rosario loads up P64M PLDT shares [Bilyonaryo, April 8, 2022] Del Rosario, who has been director of the company since 2016, bought a total of 35,360 TEL shares at a price range of P1,795 to P1,800 on April 7. CTA junks Makati suit to tax local firm [Philippine News Agency, April 8, 2022] In a 21-page decision on March 30 and uploaded recently, the CTA en banc denied the petition filed through City Treasurer Jesusa Cuneta against Casop Atlas Corporation (CAC). DOF pushes land valuation reform before Duterte is gone [Inquirer Mobile, April 8, 2022] Dominguez had said that in case the pending bills on land valuation and capital market taxation won’t pass in the current 18th Congress, they would be part of the fiscal consolidation proposal for the next administration’s consideration. Mandaue City retakes 45-hectare lot from man, who illegally claimed city property [Cebu Daily News Inquirer, April 8, 2022] The Mandaue City government has repossessed almost 45 hectares of timberland in Barangay Paknaan from an individual who illegally claimed the property as his own. Zuellig Pharma, ICTSI team up to ‘build a pandemic-resilient Philippines’ [Inquirer Mobile, April 8, 2022] Zuellig Pharma is also working with the International Container Terminal Services Inc. (ICTSI) group, which in turn leads a Philippine consortium of private sector entities procuring Moderna vaccine doses for their employees and the communities. To recall, the government allowed the private sector to source their own vaccines, provided that they enter into “tripartite” agreements with the national government and the vaccine manufacturers. Authentication platform launched for Philippine natl ID [The Manila Times, April 8, 2022] THE Philippine Statistics Authority (PSA) introduced on Friday the Philsys Check, an authentication platform for the Philippine national ID. BSP pushes for more Islamic banking reforms [Inquirer Mobile, April 8, 2022] Diokno explained that the main difference between conventional banking and Islamic banking is that the latter does not involve interest, which is prohibited by Shari’ah law. Instead, Islamic finance is founded on risk sharing. Nestle defends itself over continued Russia presence [ABS-CBN News, April 8, 2022] The head of Swiss food giant Nestle defended his company's continued presence in Russia, saying that access to food, in particular for babies, is a fundamental right even in a time of war. Filinvest gears up for recovery following earnings slowdown last year [Inquirer Mobile, April 8, 2022] The Gotianun family’s banking, property and power conglomerate Filinvest Development Corp. (FDC) said on Thursday that net income last year fell 28 percent to P6.1 billion amid mixed results from its various business units. Qatar Airways rebuilding global staff, recruiting Filipinos [Manila Bulletin, April 8, 2022] Qatar Airways is recruiting “a significant number of staff from the Philippines” this month, mostly for cabin crew, lounge and contact center personnel, but declined to give a specific number, Chief Customer Experience Officer, Rossen Dimitrov told the Manila Bulletin. BlackBerry plans to settle lawsuit over BlackBerry 10, avoid U.S. trial [Reuters, April 7, 2022] BlackBerry Ltd plans to settle a more than eight-year-old lawsuit claiming it defrauded shareholders by inflating the success and profitability of its long-discontinued BlackBerry 10 smartphones. Duterte says to stop e-sabong if authorities link illegal activities to it [ABS-CBN News, April 7, 2022] President Rodrigo Duterte on Thursday threatened to kill e-sabong franchises in the country and said he is willing to forego billions of pesos in revenue from the gambling platform if authorities link illegal activities to it. Filipino restaurant Kasama recognized with Michelin star [Philstar.com, April 7, 2022] Filipino restaurant and bakery Kasama, based in Chicago, USA, was recently honored with a prestigious Michelin Star, two years into their operations. SEC revokes corporate papers of Ponzi scheme perfumery [Inquirer Mobile, April 7, 2022] The SEC said in a statement on Thursday (April 7) that it had revoked the corporate papers of ScentoWorld and Brendahl Cruz Holdings, companies said to be affiliated with Brendahl Cruz, described on the company’s Facebook page as the president and CEO. Just-In: Philippines’ Largest Digital Payment Firm Enables Crypto Trading [CoinGape, April 6, 2022] The Philippines-based fintech and digital payments firm PayMaya on Wednesday has rolled out features to buy, sell, and earn crypto on its app. With the expansion into crypto services, the company has further extended its leadership in the digital payments sector and made cryptocurrencies more accessible to Filipinos. SN Aboitiz Power set to build energy storage system [BusinessWorld, April 6, 2022] ABOITIZ Power Corp.’s joint venture with Norwegian firm Scatec will start this month the construction of a 20-megawatt (MW) battery energy storage system (BESS) located at the Magat hydroelectric power plant in Ramon, Isabela province, the listed energy company said on Tuesday. JAPAN’S TAMIYA TO BUILD P1.5-BILLION NEW PRODUCTION PLANT IN CEBU [Sugbo.PH, April 6, 2022] Tamiya Philippines Inc., a subsidiary of the Tamiya Group of Japan, has announced a P1.5 billion expansion at Cebu Light Industrial Park. Filinvest Land plans renewable energy plants in Tarlac, Laguna [BusinessWorld, April 6, 2022] FILINVEST Land, Inc. (FLI) announced on Tuesday that it signed a memorandum of understanding with Filinvest-ENGIE Renewable Energy Enterprise, Inc. (FREE) to explore installing renewable energy generation facilities in its projects in Tarlac and Laguna. | 7. BIR ISSUES IRR ON TAXATION OF PROPRIETARY EDUCATIONAL INSTITUTION & NON-PROFIT HOSPITALS | Revenue Regulations No. 3-2022, issued on April 8, 2022, implements the provisions of Republic Act (R.A.) No. 11635 or the Act Amending Section 27 (B) of the National Internal Revenue Code (NIRC) of 1997, as amended, and for Other Purposes, on the income taxation of proprietary educational institutions and hospitals which are non-profit. a. The following institutions shall be covered by the preferential 10% corporate income tax rate; provided, that beginning July 1, 2020 until June 30, 2023, the rate of 1% shall apply: 1. Proprietary educational institutions 2. Hospitals which are non-profit 3. Non-stock, non-profit educational institutions whose net income or assets accrue/inure to or benefit any member or specific person b. The 25% regular corporate income tax rate shall be imposed on the entire taxable income of the institutions mentioned above, if their gross income from unrelated trade, business or other activity exceeds 50% of the total gross income they derived from all sources. c. Non-stock, non-profit educational institution shall be subject to the rate of 25% regular corporate income tax on the portion of its revenues or assets not used actually, directly, and exclusively for educational purposes. | 8. BIR FURTHER CLARIFIES THE AVAILMENT PERIOD OF VAT ZERO-RATING INCENTIVES OF EXISTING REEs UNDER IPAs | Revenue Memorandum Circular (RMC) No. 38-2022, issued on April 6, 2022, clarifies the transitory provisions for the non-income related tax incentives specifically the VAT zero-rating on purchases of Registered Export Enterprises (REEs) under Investment Promotion Agencies (IPAs.) It may be recalled that pursuant to CREATE Act and its implementing rules and regulations, REEs shall be entitled to VAT zero-rating on local purchases that are directly attributable and exclusively used in the registered project or activity. a. All existing REEs prior to CREATE that will continue to avail their existing income tax incentives may continue to enjoy the Value-Added Tax (VAT) zero-rating on local purchases that are directly attributable and exclusively used in the registered project or activity until the expiration of the transitory period, as follows: 1. REEs enjoying only an Income Tax Holiday (ITH)-until the remaining period of the ITH. 2. REEs granted an ITH and/or 5% tax on gross income earned-until the expiration of the ten (10) year
b. If the income tax incentive of an REE has already expired prior to CREATE, VAT zero-rating on local purchases could no longer be availed since the extent for the availment of VAT zero-rating on local purchases is anchored on the transitory provision above. | 9. BIR PRESCRIBES A UNIFORM TEMPLATE FOR VAT ZERO PERCENT CERTIFICATION ISSUED BY IPA | Revenue Memorandum Circular (RMC) No. 36-2022, issued on April 6, 2022, prescribes the format of Value-Added Tax (VAT) zero-rating certification issued by Investment Promotion Agencies (IPAs) to the duly Registered Export Enterprises (REEs). The format includes the registered activity, entitlement to tax incentives, applicable goods and services, and template. All IPAs are required to submit a masterlist of all REEs which have been issued the said certification to Audit Information Tax Exemption Incentives Division (AITEID). | Thank you and best regards, WILLIE B. SANTIAGO Lawyer & Certified Public Accountant Tax & Corporate Services Division TL : (+632) 8 894-5892 Loc. 703 Website: www.dmdcpa.com.ph Don Jacinto Building De la Rosa corner Salcedo Streets Legaspi Village, Makati City 1229 Philippines | | |
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