BIR ISSUES IRR ON TAX AMNESTY + HOUSE OKS TRAVEL TAX EXEMPTION FOR SENIORS, PWDS + PAG-IBIG TO INCREASE MEMBERS’ CONTRIBUTIONS]

Other Relevant Tax Updates:

  • BIR ISSUES IMPLEMENTING RULES & REGULATIONS OF TAX AMNESTY ACT OF 2019 & NEW BIR FORM 1702-MX
  • TAX & BUSINESS-RELATED NEWS [MARCH 28-APRIL 10]

I. BIR ISSUANCES

  1. Revenue Regulations (RR) No. 4-2019, dated April 5, 2019 with released date on April 8, and publicized in Business Insights of Malaya, yesterday, April 9, Tuesday, implements the Tax Amnesty Act of 2019 by providing for the guidelines on the processing of Tax Amnesty Application on Tax Delinquencies.

It may be recalled that last February 14, 2019, the President has signed the Tax Amnesty Act of 2019, with vetoed provisions included therein. Among the vetoed provisions are:

  • lifting of bank secrecy laws
  • setting the legal framework for the automatic exchange of information mechanisms
  • application of estate time amnesty at every stage of the transfer instead of one-time settlement of estates
  • presumption of correctness of estate tax amnesty returns

 

Vetoed provisions on Nos. 1 and 2 involve compliance with international standards on exchange of information, and other safeguards against those who abuse by declaring untruthful assets or net worth.

Vetoed provision on No. 3 involves one-time settlement of estate amnesty for every stage of transfer without penalties as against the original coverage of multiple unsettled estates.

On the presumption of correctness of estate tax amnesty returns, the vetoed provisions would enable the government to verify tax declarations.

In effect, the signed law is left with the following features:

  • Amnesty on Estate Tax
  • Tax Amnesty on Delinquencies

The highlights of IRR include the following:

  • Definition of delinquent accounts
  • Coverage of those who are entitled to avail
  • Tax amnesty rates
  • Manner of availment which includes documentary requirements, place of filing, procedures, and period of availment
  • Guidelines on the issuance of Authority to Cancel Assessment (ATCA) and lifting of validity of collection enforcement notices such as writs of garnishment, levy, and distraint, after the availment of tax amnesty
  • Immunities and privileges

If you wish to get a copy of the complete text including the form to be filled-up, please e-mail us at taxseminars@dmdcpa.com.ph.

  1. Revenue Memorandum Circular (RMC) No. 41-2019, dated March 28, 2019 with released date on April 2, 2019 circularizes the availability of newly revised BIR Form No. 1702-MX which shall be used by non-individual taxpayers with mixed income subject to multiple income tax rates or with income subject to special or preferential rate in filing the Annual Income Tax Return (ITR) due on April 15, 2019.

If you wish to get a copy of the complete text including the new forms and attachments, please e-mail us at taxseminars@dmdcpa.com.ph.

II. TAX & BUSINESS-RELATED NEWS

  1. Pag-IBIG to increase members’ contributions
  2. BSP remits P4B to state coffers
  3. New peso bills with Benjamin Diokno signature out soon
  4. DOF pegs Philippine offshore gaming operators income tax losses at P32 billion
  5. Foreign workers should pay correct taxes – DOF
  6. BSP’s priority is inclusive growth and price stability
  7. BOI investment pledges jump 60% in Q1
  8. Residential property prices up slightly in Q4
  9. Business watches as Duterte orders review of gov’t contracts
  10. BIR taps other agencies in drive vs illicit cigarettes
  11. Business, consumer sentiment up in Q1
  12. House OKs travel tax exemption for seniors, PWDs

Pag-IBIG to increase members’ contributions [Manila Times, April 4, 2019]

STATE-run Home Development Mutual Fund or Pag-IBIG is firming up a plan to increase its members’ monthly contribution rate two years from now.

Source: https://www.manilatimes.net/pag-ibig-to-increase-members-contributions/535084/

BSP remits P4B to state coffers [Manila Times, April 4, 2019]

The Bangko Sentral ng Pilipinas (BSP) has remitted P4 billion to state coffers as mandated under its newly amended charter, the Finance department said on Wednesday

Source: https://www.manilatimes.net/bsp-remits-p4b-to-state-coffers/535087/

New peso bills with Benjamin Diokno signature out soon [Philippine Star, April 3, 2019]

The Bangko Sentral ng Pilipinas (BSP) is set to release soon new bank notes bearing the signature of newly appointed central bank Governor Benjamin Diokno.
Source: https://www.philstar.com/business/2019/04/03/1906733/new-peso-bills-benjamin-diokno-signature-out-soon#FFJOtd1KT7OtlQ4P.99

DOF pegs Philippine offshore gaming operators income tax losses at P32 billion [Philippine Star, April 2, 2019]

The government may be losing an estimated P32 billion in uncollected income taxes a year from some 138,000 foreign workers in Philippine offshore gaming operators (POGOs), according to the latest estimates from the Department of Finance (DOF).
Source: https://www.philstar.com/business/2019/04/02/1906443/dof-pegs-philippine-offshore-gaming-operators-income-tax-losses-p32-billion#zu3Y2RrxmMSTvCmV.99

Foreign workers should pay correct taxes – DOF [Manila Bulletin, April 1, 2019]

Foreign nationals working in the Philippines should pay all taxes imposed by the Bureau of Internal Revenue (BIR) on Filipino citizens, the Department of Finance (DOF) said.

Source: https://business.mb.com.ph/2019/03/31/foreign-workers-should-pay-correct-taxes-dof/

BSP’s priority is inclusive growth and price stability [Manila Bulletin, April 1, 2019]

The Bangko Sentral ng Pilipinas (BSP) has to do more for inclusive growth while maintaining price stability, and it will do this by both conventional and unconventional means, said its new governor.

Source: https://business.mb.com.ph/2019/04/01/bsps-priority-is-inclusive-growth-and-price-stability/

BOI investment pledges jump 60% in Q1 [Manila Bulletin, April 1, 2019]

Total investment pledges approved by the Board of Investments (BOI) jumped 60 percent in the first quarter of 2019, reaching P243 billion from P152.1 billion posted for the same period last year.

Source: https://business.mb.com.ph/2019/03/31/boi-investment-pledges-jump-60-in-q1/

Residential property prices up slightly in Q4 [Manila Bulletin, April 1, 2019]

Residential real estate prices inched up by 0.5 percent year-on-year in the fourth quarter of 2018 with townhouses and condominiums still leading market demand, the central bank said.

Source: https://business.mb.com.ph/2019/04/01/residential-property-prices-up-slightly-in-q4/

Business watches as Duterte orders review of gov’t contracts [Philippine Star, April 1, 2019]

President Rodrigo Duterte on Monday night ordered a review of all government contracts with companies and other countries — a development that business leaders said they would closely watch amid uncertainty over the directive’s effect on investor confidence.
Source: https://www.philstar.com/business/2019/04/03/1906987/business-watches-duterte-orders-review-govt-contracts#Kh0rbm26hRdsZwIB.99

BIR taps other agencies in drive vs illicit cigarettes [Philippine Star, March 31, 2019]

The Bureau of Internal Revenue (BIR) has reaffirmed its commitment to cooperate with other state agencies to further strengthen the government’s campaign against illicit tobacco trading in the country.
Read more at https://www.philstar.com/business/2019/03/31/1905886/bir-taps-other-agencies-drive-vs-illicit-cigarettes#XoWPWylq1Lkfhi0w.99

Source: https://www.philstar.com/business/2019/03/31/1905886/bir-taps-other-agencies-drive-vs-illicit-cigarette

Business, consumer sentiment up in Q1 [Manila Times, March 29, 2019]

BUSINESS and consumer sentiment both improved in the first quarter, the Bangko Sentral ng Pilipinas (BSP) reported on Thursday, with easing inflation and other positive developments said to have been the primary drivers.

Source: https://www.manilatimes.net/business-consumer-sentiment-up-in-q1/532564/

House OKs travel tax exemption for seniors, PWDs [Philippine Star, March 29, 2019]

A committee of the House of Representatives has approved a measure that grants tax exemption for the travel of senior citizens and persons with disabilities.
Source: https://www.philstar.com/business/2019/03/29/1905360/house-oks-travel-tax-exemption-seniors-pwds#8elmQd0yv3VOGUTe.99