PEZA ISSUES SUPPLEMENTAL GUIDELINES ON THE REGISTRATION WITH THE BOI OF EXISTING RBEs IN THE IT-BPM SECTOR
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [NOVEMBER 2-8]
- PEZA ISSUES SUPPLEMENTAL GUIDELINES ON THE REGISTRATION WITH THE BOI OF EXISTING RBEs IN THE IT-BPM SECTOR
- PEZA ISSUES GUIDELINES ON THE REGISTRATION WITH THE BOI OF EXISTING RBES IN THE IT-BPM SECTOR
- SUPREME COURT CASE ON LOCAL BUSINESS TAX ASSESSMENT OF A HOLDING COMPANY
- COURT OF TAX APPEALS CASE ON TAX VERSUS REGULATORY FEES
1. TAX & BUSINESS-RELATED NEWS [NOVEMBER 2-8]
- South Cotabato lawmaker seeks free parking requirement at establishments
- Twitter impersonators will be suspended permanently, Musk says
- IRR signed for marginalized power consumers’ subsidy
- Honda opens new flagship motorcycle dealership in Pampanga
- Razon named 6th most influential person in Asian gaming sector
- Marcos set to sign EO reserving idle state-owned lands for housing projects
- Pilmico building new feedmill facilities in China, Vietnam
- GSIS invests P2.2 B for Ayala coal plant retirement
- Firm tests P 1.2-B Cebu bulk water project
- Government mulls sale of MRT 3
- PPA strengthens ‘no trees planted, no license’ rule
- Ripple Vs SEC Lawsuit Gets The Final Ruling Date
- Eye-popping paper gains: Udenna booked P67 billion profit in 2021 before Dennis Uy put up ‘for sale’ sign on crown jewels
- Indonesia’s ice cream maker builds its biggest plant in PH
- Crypto is about to change bookkeeping rules—and soon the accounting profession
- ERC threatens to push for NGCP franchise revocation
- Twitter employees around the world received blunt termination notices that differed on details, leaving workers ‘in limbo’
- Trademark holder in tax haven: Po bros’ Century Food injects P1.7 billion in British Virgin Islands shell company
- Wells Fargo Faces US Demand for Record Fine Exceeding $1 Billion
- Online sellers, influencers need to pay taxes, says BIR
- Lakbay Norte: Food trip around Nueva Ecija
- Cebuana Lhuillier Bank hauls in 7 M micro savers
- Rotary Club of Manila wracked by power play
- Pac-Man days over: Cash-hungry Dennis Uy eyes sale of Conti’s, Wendy’s restos – report
- Cavite invites challengers on SMC’s P27-b expressway
- Dance like it’s the ‘70s at this New York-inspired club in Makati
South Cotabato lawmaker seeks free parking requirement at establishments [ABS-CBN News, November 8, 2022]
South Cotabato 2nd District Rep. Peter Miguel filed House Bill 5292, publicly released this month, which covers the use of established parking areas in all malls and shopping establishments by legitimate patrons.
Twitter impersonators will be suspended permanently, Musk says [Inquirer Mobile, November 7, 2022]
Elon Musk said on Sunday Twitter users engaging in impersonation without clearly specifying it as a “parody” account would be permanently suspended without a warning.
IRR signed for marginalized power consumers’ subsidy [The Philippine Star, November 8, 2022]
The IRR was signed pursuant to Republic Act 11552, or An Act Extending and Enhancing the Implementation of the Lifeline Rate, Amending for the Purpose Section 73 of RA 9136, or the Electric Power Industry Reform Act (EPIRA) of 2001.
Honda opens new flagship motorcycle dealership in Pampanga [Top Gear Philippines, November 7, 2022]
This is the first Honda Flagship Store in the province and the 15th in PH.
Razon named 6th most influential person in Asian gaming sector [The Philippine Star, November 7, 2022]
Razon, chairman and CEO of casino resort operator Bloomberry Resorts Corp., moved to sixth place from 10th the previous year in the annual list of the top 50 players in the Asia Pacific region, as compiled by Inside Asian aming (IAG).
Marcos set to sign EO reserving idle state-owned lands for housing projects [Manila Bulletin, November 7, 2022]
Malacañang said the EO will implement Section 24 of Republic Act No. 11201, which mandates several government agencies to jointly identify idle state lands suitable for housing and rural development.
Pilmico building new feedmill facilities in China, Vietnam [The Philippine Star, November 7, 2022]
The Pilmico International Pte. Ltd., the international food subsidiary of the Aboitiz Group, is putting up new feedmill facilities in China and Vietnam next year to solidify its vision to become one of Asia’s leading integrated regional food and agribusiness companies.
GSIS invests P2.2 B for Ayala coal plant retirement [Manila Bulletin, November 7, 2022]
State-managed Government Service Insurance System (GSIS) has injected P2.2 billion investment for the early retirement of the 246-megawatt South Luzon Thermal Energy Corporation (SLTEC) coal plant via energy transition mechanism (ETM), an innovative market-based approach employed by Ayala-led ACEN Corporation for a funding pool underpinning the transaction.
Firm tests P 1.2-B Cebu bulk water project [Inquirer Mobile, November 7, 2022]
Water management solutions provider JE Hydro and Bio Energy Corp. (Jehbec) will commence partial commercial operations of its P1.2-billion bulk water project that would provide additional supply to Cebu City.
Government mulls sale of MRT 3 [The Philippine Star, November 7, 2022]
The government plans to privatize not only the operations, but also the assets of the Metro Rail Transit Line 3 (MRT-3), as it can no longer afford to spend P9 billion yearly for the maintenance of the railway.
PPA strengthens ‘no trees planted, no license’ rule [Manila Bulletin, November 7, 2022]
The Philippine Ports Authority (PPA) is strengthening enforcement of its tree-planting requirement for all contractors and applicants for permits and licenses, General Manager Jay Daniel Santiago, announced Sunday, Nov. 6.
Ripple Vs SEC Lawsuit Gets The Final Ruling Date [CoinPedia, November 6, 2022]
Former U.S. prosecutor James K. Filan continues to forecast the day Judge Torres will issue a final decision in the Rippleinformation
litigation. Additionally, on or about the end of March next year, Judge Torres will rule on both the petitions for summary judgement and the experts at the same time.
Eye-popping paper gains: Udenna booked P67 billion profit in 2021 before Dennis Uy put up ‘for sale’ sign on crown jewels [Bilyonaryo, November 6, 2022]
Udenna Corp. reported a net income of P67.057 billion in 2021 or a year before its owner, bilyonaryo Dennis Uy, started looking for buyers of businesses and properties he bought during the six-year term of his patron, former President Rodrigo Duterte.
Indonesia’s ice cream maker builds its biggest plant in PH [Manila Bulletin, November 6, 2022]
Indonesia’s ice cream manufacturer Aice Brands is building an ice cream plant in the Philippines within the LIMA Estate in Batangas that will become its fourth outside of Indonesia and its biggest factory in the ASEAN region to date.
Crypto is about to change bookkeeping rules—and soon the accounting profession [Fortune Crypto, November 5, 2022]
Earlier this month, the Financial Accounting Standards Board concluded firms should measure cryptoassets using fair value accounting, with gains and losses recorded in current period comprehensive income. This decision is not final and so it will take time before these standards are reflected in US GAAP and other accounting rules that guide the profession’s day-to-day decisions.
ERC threatens to push for NGCP franchise revocation [Inquirer Mobile, November 5, 2022]
The Energy Regulatory Commission (ERC) has threatened to push for the revocation of the franchise of National Grid Corp. of the Philippines (NGCP) if it fails to comply with the rules prescribed by the Department of Energy (DOE) on securing the power reserves necessary to ensure the uninterrupted delivery of electricity from power plants to end-users.
Twitter employees around the world received blunt termination notices that differed on details, leaving workers ‘in limbo’ [Insider, November 5, 2022]
Twitter is notifying its employees over email if they’ve been laid off. With differing emails going to now-former workers depending on their location.
Trademark holder in tax haven: Po bros’ Century Food injects P1.7 billion in British Virgin Islands shell company [Bilyonaryo, November 5, 2022]
Century Pacific Food (CNPF) has pumped in P1.669 billion in assets into its wholly-owned British Virgin Islands (BVI) subsidiary.
Wells Fargo Faces US Demand for Record Fine Exceeding $1 Billion [Bloomberg, November 5, 2022]
Wells Fargo & Co. is under pressure from the Consumer Financial Protection Bureau to pay more than $1 billion to settle a series of investigations into mistreatment of customers, a deal that would shatter the agency’s previous record — also with Wells Fargo.
Online sellers, influencers need to pay taxes, says BIR [ABS-CBN News, November 4, 2022]
The Bureau of Internal Revenue (BIR) is in talks with e-commerce giants like Lazada and Shopee on the collection of taxes for online sellers.
Lakbay Norte: Food trip around Nueva Ecija [The Philippine Star, November 4, 2022]
Check out below the different stops Philstar.com visited as well as some must-try dishes we highly recommend:
Cebuana Lhuillier Bank hauls in 7 M micro savers [Manila Bulletin, November 4, 2022]
Cebuana Lhuillier Bank, the banking arm of Cebuana Lhuillier, reported that it has accumulated close to seven million micro savings account holders to date since its launch in 2019.
Rotary Club of Manila wracked by power play [The Philippine Star, November 4, 2022]
Two highly placed sources who requested anonymity told The STAR that a “power play” is “brewing” in the exclusive club due to issues surrounding the vetting of members ahead of the term of elected president Rafael Alunan III, who is to replace current RCM president Herminio Esguerra.
Pac-Man days over: Cash-hungry Dennis Uy eyes sale of Conti’s, Wendy’s restos – report [Bilyonaryo, November 2, 2022]
Less than five years after snapping up Wendy’s and Conti’s restaurants, bilyonaryo Dennis Uy now plans to sell them to raise much needed cash to pay off his companies’ debts.
Cavite invites challengers on SMC’s P27-b expressway [Manilastandard.net, November 2, 2022]
Cavite earlier received and approved the unsolicited proposal from San Miguel Holdings Corp., the infrastructure unit of SMC, for the financing, design, construction, operation and maintenance of the 27.06-kilometer Cavite-Batangas Expressway.
Dance like it’s the ‘70s at this New York-inspired club in Makati [Manila Bulletin, November 2, 2022]
Nokal launches its newest place in Makati Cinema Square
2. PEZA ISSUES SUPPLEMENTAL GUIDELINES ON THE REGISTRATION WITH THE BOI OF EXISTING RBEs IN THE IT-BPM SECTOR
PEZA Memorandum Circular 2022-070, issued on October 24, 2022, provides supplementary guidelines for the efficient processing of registration of Registered Business Enterprises (RBE) in the Information Technology-Business Process Management (IT-BPM) with the Board of Investments (BOI). Highlights include the revised forms to accomplish, instructions to follow, the timeline of submission, and reporting requirements.
3. PEZA ISSUES GUIDELINES ON THE REGISTRATION WITH THE BOI OF EXISTING RBES IN THE IT-BPM SECTOR
PEZA Memorandum Circular 2022-067, issued on October 21, 2022, provides the guidelines for the transfer of Registered Business Entities (RBEs) in the Information Technology and Business Process Management (IT-BPM) sector to the Board of Investments (BOI), until December 31, 2022. The guidelines are issued in line with the Department of Trade and Industry (DTI) Memorandum Circular No. 22-19, to adopt up to the 100% work-from-home arrangements without adversely affecting their tax incentives. Highlights include the forms to accomplish, required attachments, as well as PEZA administration of incentives. Further, the transferee RBEs must maintain an office inside PEZA-registered IT Centers/Buildings. Failure to comply will result in the cancellation of its PEZA registration as IT Enterprise and subsequently, its registration with BOI.
4. SC CASE ON LOCAL BUSINESS TAX ASSESSMENT OF A HOLDING COMPANY
HOLDING COMPANY IS NOT DEEMED A “NON-BANK FINANCIAL INTERMEDIARY” FOR THE IMPOSITION OF LOCAL BUSINESS TAX ON DIVIDENDS & INTEREST RECEIVED
Petitioners, City of Davao and its City Treasurer, filed a Petition for Review on Certiorari assailing the Court of Tax Appeals (CTA)’s earlier Decision and Resolution canceling and setting aside the assessment of the Respondent ARC Investors, Inc. Earlier, the Petitioner imposed Local Business Taxes (LBT) on the Respondent’s dividend income from San Miguel Corporation preferred shares of stock. The issue at hand is whether the Respondent is a Non-Bank Financial Intermediary (NBFI) and should be subject to LBT pursuant to Section 143(f) in relation to Section 151 of the Local Government Code (LGC). In ruling, the Court held that the Respondent is a holding company and cannot be deemed as an NBFI since there is no indication that the Respondent was authorized by the Bangko Sentral ng Pilipinas (BSP) to perform quasi-banking activities as an NBFI and has not actually engaged principally in NBFI activities on a regular and recurring basis as stated in its AOI. Further, the Court cited the earlier Supreme Court En Banc case of COCOFED vs. Republic of the Philippines, in which the Court declared that the Respondent is one of the 14 holding companies established to own and hold SMC shares of stock, which were formed or organized solely for the benefit of the coconut farmers and for the development of the coconut industry. Hence, business tax cannot be imposed on the same. Since the shares were acquired using coconut levy funds, which have been established to be public in character, these shall be treated as government assets and are exempt from taxes. Thus, the Petition for Review was DENIED. [CITY OF DAVAO & THE CITY TREASURER OF DAVAO CITY VS. ARC INVESTORS INC., G.R NO. 249668, JULY 13, 2022, UPLOADED SEPTEMBER 1, 2022]
5. CTA CASE ON TAX VERSUS REGULATORY FEES
[IF GENERATION OF REVENUE IS THE PRIMARY PURPOSE, THE IMPOSITION IS A TAX BUT, IF REGULATION IS THE PRIMARY PURPOSE, THE IMPOSITION IS PROPERLY CATEGORIZED AS A REGULATORY FEE] [SLAUGHTER FEES ARE NOT TAX, THUS, CTA HAS NO JURISDICTION]
Petitioner San Miguel Foods, Inc. filed a Petition for Review praying for the reversal of the Regional Trial Court (RTC)’s Joint Decision and Order, and for the cancellation of the Orders of Payment issued by Respondent Davao City Treasurer assessing it a Permit Fee on its slaughter activity. The Petitioner claimed that RTC recklessly misapplied the Animal Welfare Act of 1998 in concluding that there is no double taxation, because the purpose of the Permit Fee to slaughter is to ensure that inhuman acts in the slaughter of the birds are prevented, and the purpose for the ante-mortem and post-mortem fees is to ensure that the birds slaughtered are safe for public consumption. On the other hand, the Respondent countered that the imposition of Permit Fee to slaughter or the ante-mortem and post-mortem fees are not taxes but are impositions in relation to the regulation of the operation of slaughterhouses. In ruling, the Court explained that the purpose of an imposition will determine its nature as either a tax or a fee. If the purpose is primarily revenue, or if revenue is at least one of the real and substantial purposes, then the exaction is properly classified as an exercise of the power to tax. On the other hand, if the purpose is primarily to regulate, then it is deemed an exercise of police power in the form of a fee, even though revenue is incidentally generated. Here, the Court finds that the permit fees to slaughter as well as the ante-mortem and post-mortem fees imposed by Respondent are not local taxes. Consequently, the Tax Court is without jurisdiction to entertain the appeal. Hence, the Petition was DISMISSED. [SAN MIGUEL FOODS, INC. VS. OFFICE OF THE CITY TREASURER, CITY OF DAVAO, REPRESENTED BY BELLA LINDA N. TANJILI, CITY TREASURER, CTA AC NO. 249, OCTOBER 12, 2022]