Weekly Tax Updates[February 11-15, 2019]

Feb 16, 2019 | Tax Updates

BIR TO TEST E-RECEIPT SYSTEM TO 100 SELECTED TAXPAYERS AHEAD OF MANDATORY IMPLEMENTATION UNDER TRAIN LAW + BIR ISSUES NEW BIR FORMS AHEAD OF APRIL 15 TAX FILING

Other relevant tax updates for this week:

  • BIR ISSUANCES
  • BIR MEDIA RELEASES
  • TAX & BUSINESS-RELATED NEWS

I. BIR ISSUANCES

  1. Revenue Memorandum Circular (RMC) No. 2-2019, dated January 3, 2019 [with released date on January 10, 2019] published the Join Administrative Order (JAO) No. 2-2018 which established the general guidelines in the implementation of the VAT exemption of the sale of drugs prescribed for Diabetes, High-Cholesterol and Hypertension.
  2. RMC No. 5-2019, dated January 9, 2019 [with released date on January 16, 2019] prescribes the BIR Priority Programs for Calendar Year 2019. Among the highlights of the program includes broadening of the tax bases, Taxpayer Account Management Program (TAMP) Monitoring, Fuel Marking and Field Testing Program, e-Invoicing/ e-Receipting and eSales Reporting, Tax Reform for Acceleration and Inclusion (TRAIN) law  program, sustained Compliance with Data Privacy Act, Data sharing agreements with other government agencies, action on administrative cases against erring revenue officials and employees.
  3. RMC No. 16-2019, dated December 6, 2018 [with released date on January 24, 2019] clarifies that the validity of Certification on Outstanding Tax Liability of Taxpayer and Certification on the Status of Cases Pending Legal or Judicial Resolution is six (6) months from the date of issuance for the specific purpose of satisfying the requirements of claims for VAT refund pursuant to Revenue Memorandum Order (RMO) No. 29-2014, as amended by RMO No. 42-2018.
  4. RMC No. 17-2019, dated January 23, 2019 [with released date on January 24, 2019] prescribes the new BIR Form No. 1701A. The new return shall be used by individuals earning income purely from business/profession who are under the Graduated Income Tax Rates with Optional Standard Deduction as mode of deductions or those who opted to avail of the 8% Flat Income Tax Rate, in filing the Annual Income Tax Return and paying the Income Tax due starting the year 2018, which is due on or before April 15, 2019.
  5. RMC No. 19-2019, dated January 29, 2019 [with released date on January 30, 2019] circularises various Revised BIR Annual Income Tax Return Forms (BIR Forms 1700, 1702-EX, and 1702-RT) and Capital Gains Tax Return (BIR Form 1707).
  6. RMO No. 3-2019, dated November 5, 2018 [with released date on January 15, 2019] creates and drops the Alphanumeric Tax Code (ATC) for Microfinance Non-Government Organization (NGOs) and Documentary Stamp Tax (DST) (BIR Form No. 2000-OT).
  7. RMO No. 5-2019, dated December 19, 2018 [with released date on January 15, 2019] modifies the ATC for Compensation Income and for Withholding Taxes to II010.
  8. RMO No. 6-2019, dated January 15, 2019 provides guidelines, policies and procedures in the Reaccreditation of Printers of Principal/ Supplementary Receipts/ Invoice. Accredited printer shall be valid for five (5) years from the date of issuance of the Certificate of Accreditation. Printed receipts/invoice by printers with expired accreditation are considered as unauthorized receipts/invoice.

II. BIR MEDIA RELEASES

  1. BIR filed criminal complaints against four (4) Cebu-based corporate executives for willful attempt to evade taxes by using fake electronic Certificates Authorizing Registration (eCAR) to transfer title over four (4) real properties.
  2. BIR Pampanga sued a sole proprietor taxpayer for its failure to file and pay Income Tax and VAT returns despite receiving income payments. This stemmed from the third party information and computerized matching conducted by the BIR by comparing the filed returns as against withholding taxes remitted by withholding agents of the taxpayer.
  3. BIR filed a criminal complaint against Spouses Chan for unlawful possession of articles subject to excise tax without payment of tax and for possessing false and counterfeit stamps. As a consequence, they evaded the payment of the correct excise tax amounting to Php 2,575,963,280.00, inclusive of increments.
  4. BIR filed five (5) criminal cases against three (3) taxpayers for willful failure to remit taxes withheld and the two (2) taxpayers were charged with unlawful pursuit of business on the ground of non-registration of business and non-payment of annual registration fee to the BIR.

III. TAX & BUSINESS-RELATED NEWS

  1. BOI investment approvals off to a good start, up 91% in Jan 2019
  2. BIR to test e-receipt system
  3. 20M workers at risk as security of tenure bill nears own ‘endo’
  4. Hybrid producers ask gov’t to exempt rice seeds from tariff
  5. Business groups support gov’t investment liberalization bills
  6. Inflation news tagged as PSEi touches 8,200
  7. The Philippines eyes more agricultural product exports to Russia
  8. Tariff Commission starts probe on cement import duty
  9. SSS expands partnership with UnionBank

BOI investment approvals off to a good start, up 91% in Jan 2019 [Board of Investment, February 11, 2019]

Fresh from a record-breaking Php915 billion in investment approvals last year, the Philippine Board of Investments (BOI), the country’s lead industry development and investment promotion agency, is off to a positive start in the first month of the new year with Php97.9 billion in investment approvals, up a robust 91 percent from Php51.3 billion recorded in January 2018.

Source: http://boi.gov.ph/boi-investment-approvals-off-to-a-good-start-up-91-in-jan-2019/

BIR to test e-receipt system [Philippine Daily Inquirer, February 09, 2019]
The issuance of e-receipts will be piloted next year among 100 taxpayers selected by the Bureau of Internal Revenue (BIR) ahead of its mandatory implementation, an official of the Department of Finance (DOF) said.

Source: https://business.inquirer.net/264781/bir-to-test-e-receipt-system#ixzz5fCac8iXA

20M workers at risk as security of tenure bill nears own ‘endo’ [The Philippine Star, February 08, 2019]

Labor alliance Trade Union Congress of the Philippines is appealing to President Rodrigo Duterte to “lead from the front” for and on behalf of around 20 million contractual workers waiting for passage of the Security of Tenure law.
Source: https://www.philstar.com/business/2019/02/08/1891999/20m-workers-risk-security-tenure-bill-nears-own-endo#dJTAAHIpFrMYUrH2.99

Hybrid producers ask gov’t to exempt rice seeds from tariff [Manila Bulletin, February 07, 2019]

Domestic hybrid rice producers like SL Agritech Corporation (SLAC) asked the government not to impose tariff on imported rice seeds as part of the liberalization of rice importation in the country.

Source: https://business.mb.com.ph/2019/02/07/hybrid-producers-ask-govt-to-exempt-rice-seeds-from-tariff/

Business groups support gov’t investment liberalization bills [Manila Bulletin, February 07, 2019]

Business groups have joined the economic managers’ call for the Congress to swiftly approve three legislative measures aiming to either lift or ease restrictions on the entry of foreign investments into the country, the Department of Finance (DOF) said yesterday.

Source: https://business.mb.com.ph/2019/02/07/business-groups-support-govt-investment-liberalization-bills/

Inflation news tagged as PSEi touches 8,200 [Manila Times, February 07, 2019]

THE stock market touched a 10-month high on Wednesday but last-minute profit-taking dragged it down as the day ended.

Source: https://www.manilatimes.net/inflation-news-tagged-as-psei-touches-8200/507964

The Philippines eyes more agricultural product exports to Russia [The Philippine Star, February 07, 2019]

The Philippines continues to explore export opportunities for various agricultural products, this time targeting to tap a greater chunk of the Russian market.

Source: https://www.philstar.com/business/2019/02/09/1892036/philippines-eyes-more-agricultural-product-exports-russia

Tariff Commission starts probe on cement import duty [The Philippine Star, February 07, 2019]

The Tariff Commission has started its formal investigation on whether there is a need to impose definitive safeguard duty on imported cement to protect the local industry.
Source: https://www.philstar.com/business/2019/02/06/1891097/tariff-commission-starts-probe-cement-import-duty

SSS expands partnership with UnionBank [The Philippine Star, February 07, 2019]

State-run Social Security System (SSS) has expanded the implementation of a program which allows the release of salary loans via Union Bank of the Philippines’ (UBP) Quick Cards to increase its members’ access to this electronic disbursement system.
Source:https://www.philstar.com/business/2019/02/10/1892305/sss-expands-partnership-unionbank