TAX & BUSINESS-RELATED NEWS [SEPTEMBER 20-28] BIR ANNOUNCES THE AVAILABILITY OF NEW eBIRFORMS PACKAGE VERSION 7.9.3 BIR EXTENDS THE DEADLINE FOR THE FILING OF TAX RETURNS DUE ON SEPTEMBER 26, 2022, FOR AREAS AFFECTED BY TYPHOON “KARDING’ BIR ISSUES IRR FOR THE AVAILMENT OF INCENTIVES UNDER THE "FREE LEGAL ASSISTANCE ACT OF 2010" BIR RULINGS
| 1. TAX & BUSINESS-RELATED NEWS [SEPTEMBER 20-28] | | Hybrid work set-up yields more competitive workforce: Sen. Poe Senate passes mandatory SIM registration bill Philippines to shut 175 offshore gambling firms, deport 40,000 Chinese workers Globe sells another P20 billion worth of telco towers, total sale now at P91 billion Annyeonghaseyo! Ayalas’ mobile wallet GCash can now be used in South Korea ‘POGO ban to trigger real estate crisis’ Pangasinan, NVizcaya land dispute worsens DAR-SEC deal to speed up ARBO registration in Nueva Ecija Bataan-Cavite bridge underway Nine multinational firms setting up garment factories in Philippines – FOBAP PDIC sets auction of residential lots Yes, you should monitor your remote workers – but not because you don’t trust them The world's best airline for 2022 named Facebook whistleblower launches nonprofit to take on big tech Uncle John's will be new name of Ministop US charges Boeing with misleading investors on 737 MAX safety, fined $200 million Hong Kong replaced by Singapore as Asia's top finance center PH’s longest domestic submarine cable reaches Siargao ‘PH is next big thing in Asia’ MTRCB seeks power to regulate streaming services like Netflix, Amazon 10 popular crypto you need to watch out for GCash partners with PSE to let app users invest in stock market Bring back e-sabong for the sake of my ailing father, ex-booth supervisor appeals
| 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. | Hybrid work set-up yields more competitive workforce: Sen. Poe [ABS-CBN News, September 28, 2022] "If they don't have to leave their homes, 75 percent of those surveyed feel they are physically better working from home. And also they like it because they're able to spend more time with their families," Poe told ANC's "Headstart". Senate passes mandatory SIM registration bill [ABS-CBN News, September 27, 2022] Senate Bill (SB) No. 1310 or the proposed “SIM Registration Act”, which is meant to curb cybercrimes committed via mobile phones, was passed with 20 affirmative votes, and no negative votes or abstention from senators, the Senate said. Philippines to shut 175 offshore gambling firms, deport 40,000 Chinese workers [BusinessWorld, September 27, 2022] The POGOs targeted for closure had licenses that either expired or were revoked, for violations like non-payment of government fees, Clavano said, adding the deportation of the Chinese workers would start next month. Globe sells another P20 billion worth of telco towers, total sale now at P91 billion [ABS-CBN News, September 27, 2022] Globe Telecom on Tuesday said it signed a third sale and leaseback deal with Phil-Tower Consortium Inc worth P20 billion which brought its total sold portfolio to 7,059 towers with proceeds of about P91 billion. Annyeonghaseyo! Ayalas’ mobile wallet GCash can now be used in South Korea [Bilyonaryo, September 26, 2022] This comes as Chinese fintech giant Ant Group announced today that it would help GCash, along with three other Asian e-wallets, expand into South Korea with its cross-border payment service Alipay+, Reuters reported. ‘POGO ban to trigger real estate crisis’ [The Philippine Star, September 26, 2022] The complete ban on POGOs is also expected to translate to an additional office space vacancy of 1.05 million square meters – the space currently occupied by the remaining POGOs, according to real estate consultant David Leechiu, CEO of Leechiu Property Consultants (LPC). Pangasinan, NVizcaya land dispute worsens [The Manila Times, September 26, 2022] BAYOMBONG, Nueva Vizcaya: The provincial board here has urged the municipal government of San Nicolas town in Pangasinan to stop building infrastructures in a village in Santa Fe town, which is part of Nueva Vizcaya. DAR-SEC deal to speed up ARBO registration in Nueva Ecija [Philippine News Agency, September 26, 2022] The Department of Agrarian Reform has partnered with the Securities and Exchange Commission (SEC) for the speedy registration of newly organized agrarian reform beneficiary organizations (ARBOs) in Nueva Ecija. Bataan-Cavite bridge underway [The Manila Times, September 25, 2022] A 32-KILOMETER, inter-island bridge that will cut travel time from five hours to just 20 to 30 minutes between the provinces of Bataan in Central Luzon and Cavite in Southern Tagalog will soon be constructed under the "Build Better More" program of the Marcos administration. Nine multinational firms setting up garment factories in Philippines – FOBAP [The Philippine Star, September 25, 2022] Nine multinational companies have expressed interest to establish textile or garment factories in the country as part of their expansion plans, according to the Foreign Buyers Association of the Philippines (FOBAP). PDIC sets auction of residential lots [ABS-CBN News, September 25, 2022] PDIC said the lots are located in Metro Manila, Bataan, Batangas, Camarines Sur, Cotabato, Davao de Oro, Laguna, Leyte, Marinduque, Occidental Mindoro, Pampanga, Pangasinan, Quezon, Rizal and Samar. Yes, you should monitor your remote workers – but not because you don’t trust them [The Guardian, September 25, 2022] So here’s my advice: don’t worry if your employee is working on that project plan or buying shoes on Zappos. Instead, worry that your employee is doing something that’s going to cause a serious security problem at your firm. For this reason and this reason only, you need to monitor them. The world's best airline for 2022 named [CNN, September 24, 2022] This year's winner was no stranger to the podium. The newly crowned Qatar Airways has won the top prize a total of seven times since the awards were introduced in 1999. The Qatari flag-carrier also scooped up eight more gongs on Friday, including Best Business Class, Best Business Class Seat and Best Business Class Lounge Dining. That's going to be a lot to bring back through hand luggage. Facebook whistleblower launches nonprofit to take on big tech [ABS-CBN, News, September 23, 2022] Whistleblower Frances Haugen – a former Facebook engineer who leaked documents suggesting the firm put profits before safety – on Thursday launched an organization devoted to fighting harm caused by social media. Uncle John's will be new name of Ministop [ABS-CBN News, September 23, 2022] Ministop stores in the Philippines will soon be rebranded to Uncle John's, its operator Robinsons Convenience Stores Inc said. US charges Boeing with misleading investors on 737 MAX safety, fined $200 million [ABS-CBN News, September 23, 2022] US securities officials fined Boeing $200 million over the aviation giant's misleading assurances about the safety of the 737 MAX airplane following two deadly crashes, regulators announced. Hong Kong replaced by Singapore as Asia's top finance center [ABS-CBN News, September 23, 2022] Hong Kong has lost its crown as Asia's premier finance center to Singapore in a global ranking list where New York and London maintained their number 1 and 2 spots. PH’s longest domestic submarine cable reaches Siargao [Manila Bulletin, September 22, 2022] The Philippines’ longest domestic submarine fiber cable project has landed on the shores of Siargao, ready to deliver faster and reliable connectivity on the island as it paces through recovery in the wake of Typhoon Odette and the prolonged pandemic. ‘PH is next big thing in Asia’ [Manila Bulletin, September 20, 2022] Businessman Sabin M. Aboitiz, lead convenor of the Private Sector Advisory Council (PSAC) of President Ferdinand Marcos Jr., is selling the Philippines as “the next big thing in Asia” as he whetted the appetite of American firms to funnel their investment-dollars in the country. MTRCB seeks power to regulate streaming services like Netflix, Amazon [ABS-CBN News, September 20, 2022] The board’s authority is limited only to television and movies, based on the Presidential Decree signed into law by former President Ferdinand Marcos Sr, MTRCB Chairperson Diorella Maria Sotto-Antonio said during the deliberation of the agency's 2023 budget 10 popular crypto you need to watch out for [Manila Bulletin, September 20, 2022] With 34 cryptocurrencies available on the PDAX mobile app, you might still be figuring out which tokens you ought to start your trading journey with. To get you a head start, all you need to do is read on for a brief look at 10 of the digital assets (in no particular order) among our newly launched cryptocurrencies for this year. GCash partners with PSE to let app users invest in stock market [ABS-CBN News, September 20, 2022] The new service, named GStocks will be similar to the GInvest service that is already being offered, except that it will allow users to choose any specific stock they want to trade. Bring back e-sabong for the sake of my ailing father, ex-booth supervisor appeals [Manila Bulletin, September 20, 2022] Since Radasa worked in an off-cockpit betting station, her father benefited from the free dialysis and medical assistance given by e-sabong stakeholders, including Pitmaster Foundation. According to reports, Pitmaster Foundation is one of the largest private sector sources of medical and financial assistance to marginalized people. | 2. BIR ANNOUNCES THE AVAILABILITY OF NEW eBIRFORMS PACKAGE VERSION 7.9.3 | Revenue Memorandum Circular (RMC) No. 131-2022, issued on September 28, 2022, announces the availability of new eBIRFORMS Package Version 7.9.3 containing the additional Alphanumeric Tax Codes (ATC) to be used by International Carriers in paying their taxes, revised Terms of Service of Agreement, and required official e-mail address to be provided in the profile page where future BIR notices will be sent. | 3. BIR EXTENDS THE DEADLINE FOR THE FILING OF TAX RETURNS & REPORTORIAL DOCUMENTS DUE ON SEPTEMBER 26, 2022, DUE TO TYPHOON “KARDING’ | Revenue Memorandum Circular (RMC) No. 130-2022, issued on September 26, 2022, extends the filing of returns, and submission of reportorial requirements due on September 26, 2022, in connection with the Memorandum Circular No. 06 issued by the Office of the President, which suspends work in government offices in the National Capital Region (NCR), Regions I, II, III, IV-A (CALABARZON), IV-B (MIMAROPA), V, and Cordillera Region. The e-filing/filing and payment of returns (BIR Forms 2550M, 2550Q, and 2551Q), as well as submission of reportorial documents that fell on September 26, 2022, is extended the following day, September 27, 2022. | 4. BIR ISSUES IRR FOR THE AVAILMENT OF INCENTIVES UNDER THE "FREE LEGAL ASSISTANCE ACT OF 2010" | Revenue Regulations (RR) No. 12-2022 issued on September 13, 2022, prescribes the policies and guidelines for the availment of incentives under Republic Act No. 9999 (Free Legal Assistance Act of 2010). Lawyers or professional partnerships rendering actual free Legal Services shall be entitled to an allowable deduction from the gross income equivalent to the lower of the amount that could have been collected for the actual free Legal Services rendered or 10% of the gross income derived from the actual performance of the legal profession. The regulations provide for the mechanics as well as the documentary requirements for the availment of incentives. DOWNLOAD FULL TEXT | 5. BIR RULINGS DIGEST ON TAX DEDUCTIBLE LOSS OF USEFUL VALUE OF ASSET, VAT-EXEMPT PURCHASES OF REGISTERED EXPORT ENTERPRISE & QUALIFICATION OF FOREIGN-CURRENCY INWARD REMITTANCE FOR VAT ZERO-RATING | TAX DEDUCTIBLE LOSS OF USEFUL VALUE OF ASSET S Co., a corporation engaged in telecommunications, is seeking confirmation on whether the loss in useful value is a deductible expense, for income tax purposes. In reply, Section 34 (D) (1) of the 1997 Tax Code, as amended, as implemented by Section 98 of Revenue Regulations (RR) No. 2, provides that in order for a loss to be deductible, the following requisites must be met: (1) the loss must be of the taxpayer; (2) the loss must be actually sustained and charged off within the taxable year; (3) the loss must have been incurred in trade, business, or profession; (4) the loss must be evidenced by a closed and completed transaction; and (5) the loss must not have been compensated for by insurance or other forms of indemnity. Given that such requisites are met, S Co.’s loss in useful value of decommissioned data network platform, hardware, and technology equipment in 2017 and in the first two quarters of 2018, is, therefore, deemed as deductible expenses, for income tax purposes. [BIR RULING NO. 335-2022, JUNE 30, 2022] VAT EXEMPT PURCHASES OF GOODS AND SERVICES DIRECTLY & EXCLUSIVELY USED FOR REGISTERED ACTIVITY OF EXPORT ENTERPRISES F Co., a registered export enterprise, is seeking confirmation on whether its purchase of a parcel of land located within the Philippine Economic Zone Authority (PEZA) is exempt from Value-Added Tax (VAT). In reply, Section 5, Rule 2 of the Implementing Rules and Regulations (“IRR”) of the CREATE Law provides that registered export enterprises are granted a VAT zero-rating incentive on their local purchases of goods and services that are directly and exclusively used in its registered project or activity. Moreover, Revenue Memorandum Circular (RMC) No. 24-2022 provides that purchases of goods and services include the provision of basic infrastructure and other expenditures that is/will be directly and exclusively used in or attributable to the registered project or activity. Considering that F Co.’s office and warehouse building for the manufacture of optical lenses will be constructed on the Property, it can be concluded that the Property is/will be directly and exclusively used in the registered project or activity of F Co. Consequently, the sale of the Property by S Co. to F Co., a registered export enterprise, shall be exempt from VAT. [BIR RULING NO. 306-2022, JUNE 23, 2022] REQUIREMENTS FOR FOREIGN-CURRENCY INWARD REMITTANCE TO QUALIFY FOR VAT ZERO-RATING G ROHQ is seeking confirmation that services provided to its customers abroad are subject to zero-rated Value-Added Tax (VAT). In ruling, Section 108 (B) (1) and (2) of the 1997 Tax Code, as amended, as implemented by Section 4.108-5 (6) (1) and (2) of Revenue Regulations (RR) No. 16-2005, as amended, provides that payments received for services rendered to a non-resident person who is outside the Philippines when such service is performed, and the consideration for which is paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP), shall be subject to zero percent (0%) VAT. Since the transactions of G Co. with the customers do not fully comply with requisites set forth in Section 108 (1) and (2) of the 1997 Tax Code, as amended, the same will not qualify for zero-rated VAT. [BIR RULING 104-2022, MARCH 20, 2022] | DOWNLOAD OUR PAST EDITIONS & FULL TEXT OF REFERENCES https://weeklytaxupdates.getresponsesite.com/ | |
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