BIR FURTHER EXTENDS 2019 ITR FILING PAYMENT DEADLINE TO JUNE 14 + DOF EXTENDS DEADLINE TO PAY LOCAL TAXES FEES + SOCIAL EATING OFFICE CONVERSATION DISCOURAGED WHEN PRIVATE COMPANIES REOPEN
Other Relevant Tax Updates:
- SEC relaxes guidelines on company registration
- SEC approves rules empowering minority investors of listed firms to put items on the agenda for regular/special stockholders meeting pursuant to Revised Corporation Code (RCC)
- Tax and business-related news [May 1-8]
I. SEC RELAXES GUIDELINES ON COMPANY REGISTRATION
SEC MC No. 16 Series of 2020, dated April 29, 2020, provides for the guidelines on Authentication of Article of Incorporation (AOI) in Applications for Registration of New Domestic Corporations. The guidelines are aligned with the mandate of RCC as part of easing of doing business in the Philippines.
Highlights include:
- SEC will accept for registration AOI that are accompanied by a Certificate of Authentication signed by all incorporators in the prescribed form.
- Both the AOI and the Certificate of Authentication will no longer have to be notarized or consularized.
- Incorporators may choose to acknowledge the AOI before a Notary Public. If executed outside the Philippines, the AOI may be notarized or authenticated by a Philippine diplomatic or consular officer.
- In the case of a domestic corporation with more than 40% foreign equity, the application for registration of investments of non-Philippine nationals using SEC Form F-100 must be notarized or authenticated by a Philippine diplomatic or consular officer only if the same is executed outside the country.
- Registration of a corporation, which has procured its certificate of registration through fraud or misrepresentation, shall be revoked.
- Those responsible for the formation of said corporation or who assisted directly or indirectly therein shall be punished with a fine ranging from Php 200,000 to Php 2.0 Million. When the violation is injurious or detrimental to the public, the penalty shall be a fine ranging from Php 400,000 to Php 5 Million.
- Willfully certifying incomplete, inaccurate, false or misleading statements or reports shall likewise be punishable with a fine ranging from Php 20,000 to Php 200,000. When the wrongful certification is injurious or detrimental to the public, the responsible person may be punished with a fine ranging from Php 40,000 to Php 400,000.
- Liability for such offenses shall be separate from any other administrative, civil or criminal liability provided under the RCC and other laws.
II. SEC APPROVES RULES EMPOWERING MINORITY INVESTORS OF LISTED FIRMS TO PUT ITEMS ON THE AGENDA FOR REGULAR/SPECIAL STOCKHOLDERS MEETING PURSUANT TO RCC
SEC Memorandum Circular (MC) No. 14 Series of 2020, dated April 28, 2020, allows minority shareholders of publicly-listed companies to put items on the agenda for regular or special stockholders’ meeting. The rules are aligned with the mandate of RCC to protect the interest of the minority shareholders and as part of the SEC undertaking on easing of doing business in the Philippines.
Highlights include:
- All items added on the agenda after the Definitive Information Statement (DIS) has been filed with SEC shall be filed under “Other Matters.”
- Reporting company shall no longer be required to amend its DIS.
- Administrative sanctions may be imposed under RCC in case any officer or agent of the corporation unjustly refuses to allow a qualified shareholder to exercise his right to put items on the agenda.
- If the refusal is made pursuant to a resolution or order of the Board of Directors, the liability for such action shall be imposed upon the directors who voted for such refusal.
- It shall be a defense to any action that the shareholder exercising any of the rights provided therein was not acting in good faith or for a legitimate purpose.
TAX AND BUSINESS-RELATED NEWS [MAY 1-8]
- Why only ABS-CBN? NTC says ‘nobody’ complained vs other networks
- Temporary tax on oil to boost by P20B PH’s response vs virus
- SEC lists 5 more get-rich-quick scams
- Lockdown exemptions for HMO, health insurance firm workers extended to Visayas, Mindanao
- International tourism to plunge up to 80 percent due to virus: UN
- BOC, heeding Duterte, adds 10 percent tax on oil imports to raise COVID-19 funds
- Dominguez sees P1 trillion deficit as expenses for COVID-19 pile up
- ABS-CBN vows to continue paying debts during shutdown
- Airbnb lays off 25 percent of employees as coronavirus chokes travel
- PNR resumes Bicol commuter train service, but physical distancing mandatory
- ABS-CBN shutdown ruling unanimous, unshakable, says NTC
- ABS-CBN shutdown a ‘blow’ to press freedom: Makati Business Club
- MRT, LRT, PNR on reduced capacity post-lockdown: DOTr
- POGO service providers’ group says members fully tax compliant
- COVID-19 impact: Production in factories down in March
- Dominguez: Only health, tax-compliant POGOs to resume operations
- COVID-19 impact: Gov’t to review Build, Build, Build project list
- House panel to summon NTC for order stopping ABS-CBN broadcast: Albano
- Tourism players appeal for loans, tax breaks to survive
- POGO reopening: Regulator to be ‘very strict’ on unpaid taxes
- Collect unpaid taxes before greenlighting POGOs: House tax-writing panel chair
- DOF: Over 115,000 MSME workers got wage subsidy ahead of schedule
- BIR further extends 2019 ITR-filing, payment deadline to June 14
- DOF extends deadline to pay local taxes, fees
- Ecozone firms extend more than P110M to fight COVID-19
- Co-ops to pay for electricity bills of 3 million customers
- Group of POGO service firms vows to heed gov’t conditions for partial return of operation
- DTI: Over half of MSMEs in PH fully stopped operations due to virus outbreak
- Social eating, office conversation discouraged when private companies reopen
Why only ABS-CBN? NTC says ‘nobody’ complained vs other networks [ABS-CBN News, May 8, 2020]
The National Telecommunications Commission, which shut down ABS-CBN Corp because of an expired franchise, said Friday the broadcaster’s peers who faced the same predicament in the past were allowed to operate for simple lack of opposition.
Temporary tax on oil to boost by P20B PH’s response vs virus [Philippine Daily Inquirer, May 7, 2020]
The government is expected to raise P20 billion and boost the country’s war chest against the pandemic following President Duterte’s order to add a 10-percent duty on crude oil and refined products.
SEC lists 5 more get-rich-quick scams [Philippine Daily Inquirer, May 7, 2020]
The Securities and Exchange Commission (SEC) has exposed a new set of entities enticing people to put hard-earned money into illegal investment schemes with the promise of high returns over a short period of time. In separate advisories issued on May 5, the SEC identified five more groups engaged in investment-solicitation activities without the necessary licenses: CryptoInvestWith.Us (CIW.U), Won Project/ Won Network/ Won Foundation, Captcha Philippines Inc., Fil-Invest, and Xtreme House of Beauty Trading Corp.
Soure: https://business.inquirer.net/296658/sec-lists-5-more-get-rich-quick-scams
Lockdown exemptions for HMO, health insurance firm workers extended to Visayas, Mindanao [Philippine Daily Inquirer, May 7, 2020]
As enhanced community quarantine (ECQ) had been imposed in areas outside Luzon that have high COVID-19 cases, the Insurance Commission (IC) has allowed health insurers and health maintenance organizations (HMOs) in Visayas and Mindanao to apply for lockdown exemptions.
International tourism to plunge up to 80 percent due to virus: UN [ABS-CBN News, May 7, 2020]
The number of international tourist arrivals could plunge by 60 to 80 percent in 2020 owing to the coronavirus, the World Tourism Organization said Thursday, revising its previous forecast sharply lower.
BOC, heeding Duterte, adds 10 percent tax on oil imports to raise COVID-19 funds [Philippine Daily Inquirer, May 6, 2020]
The Bureau of Customs (BOC) will start collecting an additional 10 percent duty on oil imports, an essential product, following President Rodrigo Duterte’s directive to raise more funds for COVID-19 response.
Dominguez sees P1 trillion deficit as expenses for COVID-19 pile up [Philippine Daily Inquirer, May 6, 2020]
As spending for COVID-19 response pile up while revenue collection slows down during the pandemic, Finance Secretary Carlos G. Dominguez III on Wednesday (May 6) said that 2020’s budget deficit could balloon to “around P1 trillion.”
ABS-CBN vows to continue paying debts during shutdown [Philippine Daily Inquirer, May 6, 2020]
Media giant ABS-CBN Corp. promised to continue paying debts to banks even as the Duterte administration dealt a blow to its main business, broadcasting, threatening to wipe out thousands of jobs.
Source:https://business.inquirer.net/296610/abs-cbn-vows-to-continue-paying-debts-during-shutdown
Airbnb lays off 25 percent of employees as coronavirus chokes travel [ABS-CBN News, May 6, 2020]
Airbnb is laying off about 25 percent of its workforce, or about 1,900 employees as the coronavirus pandemic continues to curtail global travel.
PNR resumes Bicol commuter train service, but physical distancing mandatory [ABS-CBN News, May 6, 2020]
The Philippine National Railways has resumed its Bicol commuter service with the lifting of the lockdown over the region, the railway operator said on Wednesday.
ABS-CBN shutdown ruling unanimous, unshakable, says NTC [ABS-CBN News, May 6, 2020]
The National Telecommunications Commission decided unanimously to stop ABS-CBN Corp’s broadcast and a reversal of the ruling is unlikely, one of its 3 members said Wednesday.
Source:https://news.abs-cbn.com/business/05/06/20/abs-cbn-shutdown-ruling-unanimous-unshakable-says-ntc
ABS-CBN shutdown a ‘blow’ to press freedom: Makati Business Club [ABS-CBN News, May 6, 2020]
The shutdown of ABS-CBN is a “blow” to press freedom and a setback as the country grapples with the coronavirus pandemic, the Makati Business Club said Wednesday.
MRT, LRT, PNR on reduced capacity post-lockdown: DOTr [ABS-CBN News, May 6, 2020]
Metro Manila’s train systems will resume on reduced capacity once the lockdown or enhanced community quarantine ends on May 15, the Department of Transportation said Wednesday.
Source:https://news.abs-cbn.com/business/05/06/20/mrt-lrt-pnr-on-reduced-capacity-post-lockdown-dotr
POGO service providers’ group says members fully tax compliant [Philippine Daily Inquirer, May 5, 2020]
The country’s largest organization of online gaming service providers on Tuesday sought to quell criticism that it owes the government taxes, saying its member firms pay all required regulatory fees and corporate and withholding taxes of its workers.
Source:https://business.inquirer.net/296557/pogo-service-providers-group-says-members-fully-tax-compliant
COVID-19 impact: Production in factories down in March [Philippine Daily Inquirer, May 5, 2020]
Factory production declined in March as supposedly nonessential manufacturing ground to a halt at the start of a lockdown meant to stop transmission of SARS Cov2, the virus that causes the disease COVID-19.
Dominguez: Only health, tax-compliant POGOs to resume operations [Philippine Daily Inquirer, May 5, 2020]
President Rodrigo Duterte’s chief economic manager on Tuesday (May 5) reiterated that only registered and tax-complaint Philippine offshore gaming operators (POGOs) can resume operations during quarantine as the government seeks to collect more revenues to be spent on COVID-19 response.
Source:https://business.inquirer.net/296548/dominguez-only-health-tax-compliant-pogos-to-resume-operations
COVID-19 impact: Gov’t to review Build, Build, Build project list [Philippine Daily Inquirer, May 5, 2020]
The Philippines’ ambitious “Build, Build, Build” infrastructure program is again undergoing a review to give priority to projects that would have the biggest impact on reviving an economy reeling from the COVID-19 pandemic.
House panel to summon NTC for order stopping ABS-CBN broadcast: Albano [ABS-CBN News, May 5, 2020]
The National Telecommunications Commission (NTC) will be summoned to the House of Representatives as it “negated” the Constitutional power of Congress in ordering ABS-CBN to stop its broadcast operations after its franchise expired on May 4, a lawmaker said Tuesday.
Tourism players appeal for loans, tax breaks to survive [ABS-CBN News, May 4, 2020]
Jojo Clemente, president of the Tourism Congress of the Philippines, said travel and leisure companies want to continue running their business, but need help from the government and private sector to be able to do this.
Source:https://news.abs-cbn.com/business/05/04/20/tourism-players-appeal-for-loans-tax-breaks-to-survive
POGO reopening: Regulator to be ‘very strict’ on unpaid taxes [ABS-CBN News, May 4, 2020]
Philippine Offshore Gaming Operators should present certificates of registration from the Bureau of Internal Revenue and proof of payment of taxes and other liabilities said PAGCOR senior offshore gaming officer Diane Erica Jogno.
Collect unpaid taxes before greenlighting POGOs: House tax-writing panel chair [ABS-CBN News, May 3, 2020]
The Philippine government must collect the unpaid taxes of Chinese offshore gaming firms before allowing them to resume operations amid the coronavirus lockdown, the chair of the House of Representatives’ tax-writing panel said on Sunday.
DOF: Over 115,000 MSME workers got wage subsidy ahead of schedule [Philippine Daily Inquirer, May 2, 2020]
The government has released ahead of schedule the wage subsidies of over 115,000 workers employed by micro, small and medium enterprises (MSMEs) that temporarily closed during the lockdown imposed in Luzon and other parts of the country to contain COVID-19’s spread.
Source:https://business.inquirer.net/296309/dof-over-115000-msme-workers-got-wage-subsidy-ahead-of-schedule
BIR further extends 2019 ITR-filing, payment deadline to June 14 [Philippine Daily Inquirer, May 2, 2020]
With the community quarantine again extended in some areas until May 15, the Bureau of Internal Revenue (BIR) has further pushed back tax-filing and payment deadlines even as it enjoined taxpayers to no longer wait for the cut-off dates if they can.
DOF extends deadline to pay local taxes, fees [Philippine Daily Inquirer, May 2, 2020]
All local government units (LGUs)—provinces, cities, municipalities and barangays—have been ordered to extend until June 25 the payment deadlines of all taxes, fees and charges that fell due during the COVID-19 lockdown.
Source: https://business.inquirer.net/296294/dof-extends-deadline-to-pay-local-taxes-fees#ixzz6LojsFJ1k
Ecozone firms extend more than P110M to fight COVID-19 [Philippine Daily Inquirer, May 2, 2020]
Companies registered with the Philippine Economic Zone Authority (Peza) have made more than P110 million worth of donations, the investment promotion agency said in a statement.
Source:https://business.inquirer.net/296286/ecozone-firms-extend-more-than-p110m-to-fight-covid-19
Co-ops to pay for electricity bills of 3 million customers [Philippine Daily Inquirer, May 2, 2020]
All 121 electric cooperatives supervised by the National Electrification Administration will shell out an initial P365 million to cover the electricity bills of three million customers incurred during the enhanced community quarantine.
Group of Pogo service firms vows to heed gov’t conditions for partial return of operations [Philippine Daily Inquirer, May 1, 2020]
The country’s largest licensed online gaming service providers said on Friday (May 1) that its members will follow the strict guidelines issued by the government as a precondition for the resumption of partial operations of so-called Philippine Offshore Gaming Operations (POGO).
DTI: Over half of MSMEs in PH fully stopped operations due to virus outbreak [Philippine Daily Inquirer, May 1, 2020]
More than half of the country’s micro, small and medium enterprises (MSMEs) in the country had to stop their operations due to the COVID-19 pandemic, the Department of Trade and Industry (DTI) reported Friday.
Social eating, office conversation discouraged when private companies reopen [ABS-CBN News, May 1, 2020]
The Department of Labor and Employment (DOLE) and Department of Trade and Industry (DTI) on Friday released guidelines for private companies, which are allowed to operate during the enhanced community quarantine and general community quarantine.
If you wish to get a copy of the complete texts of the above issuances, send us an email thru taxseminars@dmdcpa.com.ph.
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