TAX & BUSINESS-RELATED NEWS [JULY 3-6] BIR REMOVES THE 5-YEAR VALIDITY PERIOD OF RECEIPTS & INVOICES BIR PRESCRIBES THE TEMPLATE FOR SWORN DECLARATION TO BE EXECUTED BY REGISTERED BUSINESS ENTERPRISE BIR ISSUES IRR ON ESTATE TAX EXEMPTION OF TRANSFERS MADE BY A VETERAN IN FAVOR OF PHILIPPINE VETERANS BANK BIR RULINGS DIGEST SEC EXTENDS THE DEADLINE OF COMPLIANCE WITH THE TWO (2) PARTNER REQUIREMENT & TRANSITION FROM SOLE PROPRIETORSHIP TO PARTNERSHIP SEC LEGAL OPINION DIGEST ON RESIDENCY REQUIREMENT OF DIRECTORS TAX & BUSINESS-RELATED NEWS [JUNE 30-JULY 2]
| 1. TAX & BUSINESS-RELATED NEWS [JULY 3-6] | | Ramon S. Ang: Gov’t stands to gain P11 trillion from Aerocity ecozone in Bulacan Starlink can cover only northern PH so far – DICT chief Prime Infra, partner complete first phase of Wawa water project Megawide secures contract to build 1,664 houses in General Trias COA tells LRTA to blacklist contractors of delayed projects, repairs Government forgoes over P500 million revenue from free MRT rides COA notes deficiencies in P16.9 billion TUPAD program Veto of Bulacan ecozone a ‘wise decision’ of Marcos: PEZA Peza: PH needs more special ecozones Ookla says DITO entry improved mobile internet speeds, challenging PH telco duopoly Mark Zuckerberg issues dire economic warning to Meta employees How Chinese crypto king Changpeng Zhao lost US$77.5 billion Ricky Razon’s ICTSI unwinds operations in Davao port
| 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. | Ramon S. Ang: Gov’t stands to gain P11 trillion from Aerocity ecozone in Bulacan [TopGear Philippines, July 5, 2022] In a statement, Ang said that he respects the new administration for its feedback on the project, adding that SMC is looking forward to working with the government to address any issue that may arise from its pursuit of the Aerocity and P740-billion New Manila International Airport (NMIA). Starlink can cover only northern PH so far – DICT chief [Inquirer.Net, July 5, 2022] The Starlink satellite internet service owned by tech billionaire Elon Musk will initially cover only the northern part of the Philippines, Information and Communications Secretary Ivan Uy said on Monday at a Laging Handa briefing. Prime Infra, partner complete first phase of Wawa water project [Inquirer Mobile, July 5, 2022] The first phase of the P26-billion Wawa Bulk Water Supply Project has been completed, according to the infrastructure arm of tycoon Enrique Razon Jr. Megawide secures contract to build 1,664 houses in General Trias [BusinessWorld, July 5, 2022] LISTED construction company Megawide Construction Corp. announced on Monday that it secured its eighth contract with housing developer PHirst Park Homes, Inc. (PPHI). COA tells LRTA to blacklist contractors of delayed projects, repairs [ABS-CBN News, July 4, 2022] In the 2021 annual audit report on the LRTA, government auditors noted that 59% or 13 out of 22 Line 2 rehabilitation projects with a total cost of P984.563 million were delayed from their target completion. Government forgoes over P500 million revenue from free MRT rides [The Philippine Star, July 4, 2022] Data obtained by The STAR showed that the government lost P515.91 million in revenues from MRT-3’s Libreng Sakay program that ran for over three months, or from March 28 to June 30. COA notes deficiencies in P16.9 billion TUPAD program [The Philippine Star, July 4, 2022] Several “deficiencies” have been flagged by the Commission on Audit in the implementation of the Department of Labor and Employment’s P16.9-billion Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers or TUPAD program. Veto of Bulacan ecozone a ‘wise decision’ of Marcos: PEZA [ABS-CBN News, July 4, 2022] President Ferdinand Marcos Jr’s veto of the Bulacan ecozone was correct as it should not be exempt from government audit, the Philippine Economic Zone Authority said on Monday. Peza: PH needs more special ecozones [Inquirer Mobile, July 4, 2022] An SEZ, according to Republic Act No. 7916 or the SEZ Act, is a hub that can be developed into an agro-industrial, industrial tourist/recreational, commercial, banking, investment and financial center. Ookla says DITO entry improved mobile internet speeds, challenging PH telco duopoly [ABS-CBN News, July 4, 2022] In a report published June 30, Ookla said that based on its analysis, DITO’s entry, combined with regulatory changes, resulted in more network investment and an overall improvement in 4G coverage and performance across all operators. Mark Zuckerberg issues dire economic warning to Meta employees [MarketWatch, July 3, 2022] Meta’s advertising business has been badly battered by a change in privacy settings to Apple Inc.’s AAPL mobile operating system, limiting the amount of user data that can be collected by Facebook and Instagram. Consequently, Meta has posted two straight quarterly profit declines for the first time in a decade. Meta lost some $230 billion in market value — its worst one-day hit ever — after it posted desultory results in February. How Chinese crypto king Changpeng Zhao lost US$77.5 billion [Business Insider, July 3, 2022] But both the company and Zhao have taken a hit as crypto prices cooled and so-called stable coins like TerraUSD failed, upending swathes of the industry. Ricky Razon’s ICTSI unwinds operations in Davao port [Bilyonaryo, July 3, 2022] ICTSI said it was recently informed that PPA had allowed the new operator, GlobalPort Terminals Inc., to commence with the work and perform the services under the management contract for the Sasa port. | 2. BIR REMOVES THE FIVE-YEAR VALIDITY PERIOD ON RECEIPTS/INVOICES | Revenue Regulations (RR) No. 6-2022, issued on June 30, 2022, remove the five-year validity period on receipts/invoices. The removal is aligned with Republic Act (R.A). No. 11032, otherwise known as “Ease of Doing Business and Efficient Government Service Delivery Act of 2018.” Highlights include the following: 1. The removal shall cover taxpayers who will apply for the following: a. Authority to Print (ATP) Official Receipts (ORs), Sales Invoices (SIs) and Other Commercial Invoices (CIs) b. Registration of Computerized Accounting System (CAS)/Component of CAS c. Permit to Use (PTU) Cash Register Machines (CRMs) and Point-of-Sale (POS) machines based 2. All PTUs to be issued shall be valid unless revoked by the BIR on grounds which shall include, but not limited to, the following: a. Tampering of sales data/integrity of the data and/or software specification/features to alter/avoid the recording of a sale transaction; b. Any major repair, upgrade, integration and modification/alteration without prior notification and approval by the BIR; c. Any violation on the policies and procedures for registration and related issuances. 3. The phrases "THIS INVOICE/RECEIPT SHALL BE VALID FOR 5 YEARS FROM THE DATE OF PERMIT TO USE/ATP" and "Valid Until" as previously required by prior regulations shall be omitted or disregarded. Thus, the validity date on existing and unused receipts/invoices shall be disregarded and such may still be issued until fully exhausted unless revoked by the BIR. 4. Subsequent printing of manual receipts/invoices must not reflect these phrases and shall no longer adopt the five-year validity. | 3. BIR PRESCRIBES THE TEMPLATE FOR SWORN DECLARATION TO BE EXECUTED BY REGISTERED BUSINESS ENTERPRISE | Revenue Memorandum Circular (RMC) No. 84-2022, issued on June 30, 2022, prescribes the template of Sworn Declaration to be executed by the duly Registered Business Enterprise (RBE), stating that the goods and/or services being purchased shall be used directly and exclusively in the registered project or activity. The sworn declaration shall be provided to the RBE’s supplier before the sale transaction to avail of the VAT zero-rate incentives. | 4. BIR ISSUES IRR ON ESTATE TAX EXEMPTION OF TRANSFERS MADE BY A VETERAN IN FAVOR OF PHILIPPINE VETERANS BANK | Revenue Regulations (RR) No. 5-2022, issued on June 20, 2022, implements the Estate Tax exemption under Republic Act (RA) No. 11597, otherwise known as “Revised Charter of the Philippine Veterans Bank.” All transfers through succession or donation mortis causa, made by a veteran of his shares of stock with the Philippine Veterans Bank are exempted from Estate Tax, provided that the same was made in favor of the veteran's widow, orphan, or compulsory heir as determined by existing laws. A tax clearance must be secured with the Revenue District Office where the estate of the decedent is registered before any transfer of shares is registered in the books of the Philippine Veteran's Bank. | 5. BIR RULINGS DIGEST ON TAX EXEMPTION OF FOREIGN GOVERNMENTS ON THEIR INVESTMENTS IN PHILIPPINE SECURITIES & EXTENT OF TAX EXEMPTION OF PROJECT CONTRACTOR OF NATIONAL HOUSING AUTHORITY | FOREIGN GOVERNMENT’S INVESTMENTS IN PHILIPPINES LOANS, STOCKS, BONDS, AND OTHER DOMESTC SECURITIES ARE EXEMPT FROM INCOME TAX AND WITHHOLDING TAX R Limited is seeking confirmation that income derived from its current and future investments in the Philippines in loans, stocks, bonds, or other domestic securities, or from interest on its deposits in banks in the Philippines is exempt from Philippine income tax, and consequently, from withholding tax. As represented R Limited is an investment arm of Government of Singapore. In ruling, the Bureau confirmed the position of R Limited citing Section 32 (B)(7)(a) of the 1997 Tax Code, as amended, and Section 2.57.5 (B) of the Revenue Regulations (RR) No. 2-98, as amended, which provides that any income derived from investment in the Philippines in loans, stocks, bonds, or other domestic securities, or from interest on its deposits in bank in the Philippines by financing institutions owned, controlled, or enjoying refinancing from foreign governments are not subject to Philippine income tax and, consequently, to any withholding tax. [BIR RULING NO. 125-2022, APRIL 4, 2022] THE VALUE OF THE PROPERTY OF THE SOCIALIZED HOUSING COMPONENT SHALL BE EXEMPT FROM PROJECT-RELATED INCOME TAX AND VAT PURSUANT TO R.A. NO. 7279 NHA is seeking clarification on the taxability of the conveyance of subject property, owned, and registered in the name of NHA, in favor of the project contractor. In reply, the Bureau opined that pursuant to Republic Act (R.A.) No. 7279, otherwise known as “Urban Development Housing Act of 1992”, project contractor whose services have been engaged by NHA to undertake the development for the benefit of the squatter families dwelling on the site shall be exempt from Income Tax and Value-Added Tax (VAT) on its income directly realized by the project contractor from the aforesaid Project, and in so far as the construction of the socialized housing component (house and lots) is concerned. Furthermore, since the conveyance of the subject property partakes the nature of payment of outstanding liabilities for the project cost, land development, housing construction, and reclamation of the Project, the value of the property corresponding to the payment for the construction of the socialized housing component is not subject to Capital Gains Tax (CGT)/Creditable Withholding Tax (CWT), and Documentary Stamp Tax (DST). [BIR RULING NO. 086-2022, MARCH 01, 2022] | 6. SEC EXTENDS THE DEADLINE OF COMPLIANCE WITH THE TWO (2) PARTNER REQUIREMENT & TRANSITION FROM SOLE PROPRIETORSHIP TO PARTNERSHIP | SEC Memorandum Circular No. 6, Series of 2022, extends the deadline of June 30, 2022, for four (4) more years or until June 30, 2026, without further extension for all SEC accredited external auditors and auditing firms to comply with the Revised Securities Regulation Code (SRC) Rule 68 requirements on the transition from Sole Practitioner to Partnership Structure and two (2) Partner requirement. With the extension, the Office of the General Accountant will continue to accept applications for accreditation of sole practitioners and auditing firms with just one partner until March 31, 2026. This is to give way for the transition to comply with the requirement of the Revised SRC Rule 68 with the applicants' commitment to comply by June 30, 2026. [SEC MC NO. 6-2022, JUNE 9, 2022] | 7. SEC LEGAL OPINION DIGEST ON RESIDENCY REQUIREMENT FOR DIRECTORS | CORPORATIONS MAY ELECT NON-RESIDENTS OF THE PHILIPPINES ON THE BOARD OF DIRECTORS D Co. is seeking an opinion on whether the corporations may now be allowed to elect non-resident directors consistent with the provisions of the Revised Corporation Code even if their bylaws still reflect the old and repealed provision under the Corporation Code. In rendering the opinion, the Commission cited the provisions of Section 23 of the Old Corporation Code, which provides that a majority of the directors or trustees of all corporations must be residents of the Philippines. On the other hand, Section 22 of the Revised Corporation Code (RCC) provides for the qualifications and terms of the board of directors or trustees of a corporation which does not anymore include the residency requirement. However, Section 46 (f) of the RCC allows private corporations to provide in their bylaws the directors' qualifications such as residency requirements. Thus, if a corporation provides in its bylaws the requirement that the majority of its directors must be residents of the Philippines, then, it may do so. Moreover, Amended bylaws shall only be effective upon the issuance by the Commission of a certification that the same is in accordance with the RCC and other relevant laws. [SEC OFFICE OF THE GENERAL COUNSEL LEGAL OPINION NO. 22-07, MAY 26, 2022] | 8. TAX & BUSINESS-RELATED NEWS [JUNE 30-JULY 2] | | Converge told: Satisfy promises, or lose tax perks Fruitas buys Ling Nam restaurants Train system to increase value of property in MOA Shell, Nickel Asia tie up to develop 1 GW of renewable energy Marcos shuts down appointive posts Metro Pacific unit to buy 40% of Jakarta expressway Bongbong Marcos vetoes bill on Bulacan Airport City ecozone BIR starts e-invoicing pilot World Bank cancels loans for Metro Manila BRT project Viber eyes launch of payment feature in PH next year NGCP’s Vis-Min grid linkup nears completion TESDA online courses now available via mobile app Spotify Karaoke Mode with scorecard, now official Salmonella found in world's biggest chocolate plant PLDT Enterprise expects services to benefit more China entities via new partner SSS, UnionBank sign deal to offer 'upgraded' UMID card BOC launches i-Declare system for online baggage and currency declarations
| 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. | Converge told: Satisfy promises, or lose tax perks [Inquirer Mobile, July 2, 2022] A resolution issued last month by the FIRB, chaired by then Finance Secretary Carlos Dominguez III and co-chaired by then Trade Secretary Ramon Lopez, pointed out that Converge secured tax and other incentives from the Board of Investments (BOI) partly due to its pledge to maintain a minimum speed of 100 Mbps at “a price not exceeding the prevailing market rate.” Fruitas buys Ling Nam restaurants [Inquirer Mobile, July 2, 2022] Businessman Lester Yu’s Fruitas Holdings Inc. is taking over the 72-year old Ling Nam restaurant brand, with plans to turn it into a major dining chain in the coming years. Train system to increase value of property in MOA [Philippine Daily Inquirer, July 2, 2022] The SM Group already signed last year a deal with the Department of Transportation (DOTr) to construct this integrated monorail system in Pasay City. This unsolicited proposal will not only further improve the accessibility of this complex, but will more importantly create value for everyone, from businesses and their workers, to the residents, visitors and even tourists. Shell, Nickel Asia tie up to develop 1 GW of renewable energy [Inquirer Mobile, July 2, 2022] The renewable energy unit of listed mining company Nickel Asia Corp. (NAC) sealed a deal with an entity under the Shell Group to develop 1 gigawatt (GW) of renewable energy (RE) projects in the Philippines by 2028. Marcos shuts down appointive posts [The Manila Times, July 2, 2022] PRESIDENT Ferdinand “Bongbong” Marcos Jr. has declared vacant all positions in government with presidential appointments “to ensure the continuous and effective delivery of government services.” Metro Pacific unit to buy 40% of Jakarta expressway [Inquirer Mobile, July 2, 2022] In a stock exchange filing on Friday, Metro Pacific said one of its overseas units is nearing a deal to acquire 40 percent of the concession holder of the 38-kilometer Jakarta-Cikampeke elevated expressway for P16.2 billion. Bongbong Marcos vetoes bill on Bulacan Airport City ecozone [Philippine Daily Inquirer, July 2, 2022] President Ferdinand “Bongbong” Marcos Jr. has vetoed a bill proposing the creation of a special economic zone and freeport in conglomerate San Miguel Corp.’s $15 billion airport city in Bulacan over “substantial fiscal risks to the country.” BIR starts e-invoicing pilot [Philippine Daily Inquirer, July 1, 2022] The Bureau of Internal Revenue (BIR) on Friday piloted electronic invoicing and issuance of e-receipts among a select group of 100 big corporations, e-commerce firms, as well as exporters. World Bank cancels loans for Metro Manila BRT project [Yahoo Philippines, July 1, 2022] Three years after agreeing to disburse the monies, the World Bank has cancelled a $64 million (P3.5 billion) loan for the Metro Manila Bus Rapid Transit (BRT) Line 1 project. Viber eyes launch of payment feature in PH next year [Inquirer Mobile, July 1, 2022] Filipinos will be able to pay their online purchases next year via messaging platform Viber, which is positioning itself as a utility super app amid the growing use of digital channels to accomplish tasks. NGCP’s Vis-Min grid linkup nears completion [Inquirer Mobile, July 1, 2022] The P52-billion Mindanao-Visayas Interconnection Project (MVIP) is “on track” for completion before the year ends after the project’s integral components were put in place, the National Grid Corp. of the Philippines (NGCP) said. TESDA online courses now available via mobile app [Philippine News Agency, June 30, 2022] Users simply need to type “TESDA Online Program” on Google Play or App Store. This is different from the TESDA app launched in 2019, as the latter contains general information about TESDA; training programs available; addresses of registered training centers; regional and provincial offices directory; among others. Spotify Karaoke Mode with scorecard, now official [Yugatech, June 30, 2022] Spotify is rolling out now a new feature called Karaoke mode that lets users sing along and the user will even get a score at the end of the song. Salmonella found in world’s biggest chocolate plant [The Manila Times, June 30, 2022] Swiss group Barry Callebaut supplies cocoa and chocolate products to many companies in the food industry, including industry giants such as Hershey, Mondelez, Nestle or Unilever. PLDT Enterprise expects services to benefit more China entities via new partner [BusinessWorld, June 30, 2022] The partnership, according to PLDT Enterprise, will help BaishanCloud, an independent edge cloud service provider rooted in China, provide services to its users globally. SSS, UnionBank sign deal to offer ‘upgraded’ UMID card [ABS-CBN News, June 30, 2022] The new card will give members new benefits such as having a government ID and a UnionBank debit card in one, it added. BOC launches i-Declare system for online baggage and currency declarations [Philippine Daily Inquirer, June 30, 2022] Travelers now have the option to complete their baggage and currency declarations online after the Bureau of Customs (BOC) launched the “i-Declare system” to modernize the agency. | DOWNLOAD OUR PAST EDITIONS & FULL TEXT OF REFERENCES https://weeklytaxupdates.getresponsesite.com/ | |
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