BIR STREAMLINES THE FILING OF VAT RETURNS BY REMOVING THE MONTHLY VAT FILING ALIGNED WITH THE PROVISIONS OF TRAIN LAW
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [JANUARY 10-16]
- BIR STREAMLINES THE FILING OF VAT RETURNS BY REMOVING THE MONTHLY VAT FILING ALIGNED WITH THE PROVISIONS OF TRAIN LAW
- BIR PRESCRIBES THE POLICIES & GUIDELINES ON THE ONLINE REGISTRATION OF BOOKS OF ACCOUNTS
- BIR RULINGS
1.TAX & BUSINESS-RELATED NEWS [JANUARY 10-16]
- Illegal ranch obstructs P36-B CALAX – Silang Mayor
- 9 Filipino billionaires wealthier than 55 million Pinoys: Oxfam report
- EU tags Baclaran, Divisoria, Greenhills, Cartimar as counterfeit hubs
- Shopee probes delays in parcel deliveries as complaints mount
- Upson International revives P5.4 billion IPO, sets offer in Feb 2023
- Metro Pacific considers delisting from the bourse
- Bill Gates says we should tax the rich—but maintains he wouldn’t ban anyone from being a billionaire
- Pasig City gov’t shuts chicken restaurant for lack of environmental permit
- More biz groups back PEZA OIC to be its next head
- REITs seen saddled by hybrid work, POGO exit
- Adidas loses N.Y. trial against Thom Browne over three-stripe design
- Alturas Group unveils new blueprint for sustainable development in Southeast Asia in Bohol, Philippines
- SEC shuts down Zambo firm in get-rich-quick scheme
- LTO suspends 12 private emission testing centers over alleged falsified results
- BPOs get more time to retain tax perks
- Marcos appoints GMA ally to Clark body
- Gov’t grants new tax incentives to tourism firms, common tower builders
- Vape traders told to comply with DTI, BIR requirements
Illegal ranch obstructs P36-B CALAX – Silang Mayor [Manila Bulletin, January 16, 2023]
Uneco Land Corporation built an illegal ranch where the Silang (Aguinaldo) Interchange of the P35.7 billion Cavite-Laguna Expressway (CALAX) passes through, Silang Mayor Kevin Anarna alleged.
9 Filipino billionaires wealthier than 55 million Pinoys: Oxfam report [ABS-CBN News, January 16, 2023]
“Inequality experienced in the Philippines is starker with the 9 richest Filipinos having more wealth than the bottom half or 55 million of the population,” said Oxfam Pilipinas Executive Director Erika Geronimo.
EU tags Baclaran, Divisoria, Greenhills, Cartimar as counterfeit hubs [Manila Bulletin, January 16, 2023]
Manila’s popular sprawling mass markets – Baclaran, Divisoria, Greenhils and Cartimar – have been tagged as hubs of counterfeit goods in the country by the European Commission Counterfeit and Piracy Watch List.
Shopee probes delays in parcel deliveries as complaints mount [Inquirer Mobile, January 14, 2023]
“Many sellers are now disgruntled because they are paying for a platform fee, commission fee, packaging and delivery, among many other fees to use the platform but Shopee can’t even get the sorting done right,” Gustilo said.
Upson International revives P5.4 billion IPO, sets offer in Feb 2023 [Inquirer Mobile, January 14, 2023]
The operator of mall-based electronics stores such as Octagon Computer Superstore and Gadget King earlier delayed the IPO that was originally set for October last year.
Metro Pacific considers delisting from the bourse [Inquirer Mobile, January 14, 2023]
The infrastructure conglomerate behind some of country’s biggest utilities such as Manila Electric Co. (Meralco) and Maynilad Water Services Inc. said on Friday it was considering going private amid speculation that sent its share price surging as much as 20 percent since the start of the year.
Bill Gates says we should tax the rich—but maintains he wouldn’t ban anyone from being a billionaire [Yahoo Finance, January 13, 2023]
Bill Gates says right now is the best time to be alive for all of us, but even the billionaire philanthropist seems to believe life may be too good for society’s ultra-wealthy people right now.
Pasig City gov’t shuts chicken restaurant for lack of environmental permit [Inquirer.Net, January 13, 2023]
The city government of Pasig closed down a popular fast food chain branch after it was discovered to be operating without the necessary permit.
More biz groups back PEZA OIC to be its next head [Inquirer Mobile, January 13, 2023]
Two more major business organizations want the current temporary head of the Philippine Economic Zone Authority (Peza) named as the next permanent chief of the investment promotion agency, adding to growing calls from the private sector groups and industry stakeholders for such a move.
REITs seen saddled by hybrid work, POGO exit [BusinessWorld, January 13, 2023]
REAL estate investment trusts (REITs) are expected to benefit from the further reopening of the economy, but their growth could be tempered by flexible work arrangements and the departure of Philippine offshore gaming operators (POGO), analysts said.
Adidas loses N.Y. trial against Thom Browne over three-stripe design [Inquirer Mobile, January 13, 2023]
A Manhattan jury on Thursday said Adidas AG had failed to show luxury brand Thom Browne Inc’s use of stripes on its clothing infringed the sportswear giant’s signature three-stripe trademark.
Alturas Group unveils new blueprint for sustainable development in Southeast Asia in Bohol, Philippines [Travel Daily News Asia, January 13, 2023]
Conceived by Panglao Bay Premiere Parks & Resorts Corp. (PBPPRC), a subsidiary of Alturas Group of Companies (AGC), the project is located on the southern coast of Panglao, just off the coast of Bohol, and is a flagship project under the Tourism Infrastructure & Enterprise Zone Authority (TIEZA), which are designed to deliver outstanding economic and social benefits to their destinations.
SEC shuts down Zambo firm in get-rich-quick scheme [Inquirer Mobile, January 13, 2023]
The Securities and Exchange Commission (SEC) has shuttered Silverlion Livestock Trading Corp. for allegedly operating a get-rich-quick scam.
LTO suspends 12 private emission testing centers over alleged falsified results [ABS-CBN News, January 13, 2023]
LTO Chief Assistant Secretary Jose Arturo Tugade said it was dangerous to let vehicles pass the emission test despite non-appearance during the inspection.
BPOs get more time to retain tax perks [Inquirer Mobile, January 13, 2023]
Business process outsourcing (BPO) firms that are registered with the Philippine Economic Zone Authority (Peza) which have not yet transferred their registration to the Board of Investments (BOI) have until Jan. 31 to do so, according to the Fiscal Incentives Review Board (FIRB).
Marcos appoints GMA ally to Clark body [Inquirer.Net, January 13, 2023]
President Ferdinand Marcos Jr. has appointed lawyer Edgardo Dizon Pamintuan as acting chair and member of the board of directors of the state-owned Clark Development Corp. (CDC).
Gov’t grants new tax incentives to tourism firms, common tower builders [The Philippine Star, January 12, 2023]
The Fiscal Incentives Review Board (FIRB) approved tax incentives for enterprises engaged in tourist accommodation and the construction of telco towers.
Vape traders told to comply with DTI, BIR requirements [Manila Bulletin, January 10, 2023]
Distributors and sellers of Vaporized Nicotine and Non-Nicotine Products, Novel Tobacco Products and their devices, all referred to as Vape Products, must comply fully with the business registration requirements and other tax obligations specified in BIR Revenue Regulations (RR) No. 14-2022 and DTI Department Administrative Order (DAO) No. 22-16.
2.BIR STREAMLINES THE FILING OF VAT RETURNS BY REMOVING THE MONTHLY VAT FILING ALIGNED WITH THE PROVISIONS OF TRAIN LAW
Revenue Memorandum Circular (RMC) No. 5-2023, issued on January 13, 2023, circularizes the transitory provisions for the implementation of the Quarterly Filing of Value-Added Tax (VAT) Returns, pursuant to Section 114(A) of the 1997 Tax Code, as amended by Republic Act (R.A.) No. 10963, otherwise known as the “Tax Reform for Acceleration or Inclusion” or the “TRAIN Law.” Specifically, it provides for the transitory provisions for taxpayers under the fiscal period of accounting to avoid confusion during the initial implementation.
It may be recalled that under TRAIN Law, starting January 1, 2023, VAT-registered taxpayers are no longer required to file the Monthly VAT Declaration (BIR Form 2550M) but instead file the corresponding Quarterly VAT Return (BIR Form 2550Q) within twenty-five (25) days following the close each taxable quarter.
3.BIR PRESCRIBES THE POLICIES & GUIDELINES ON THE ONLINE REGISTRATION OF BOOKS OF ACCOUNTS
Revenue Memorandum Circular (RMC) No. 3-2023, issued on January 10, 2023, amends Section 2 of RMC No. 29-2019 in relation to the registration of books of accounts using the Online Registration and Update System (ORUS). As prescribed, all books of accounts shall be registered online with ORUS instead of manually stamping books of accounts. A Quick Response (QR) Code shall be generated, which can be validated online. The circular provides the manner of online registration and maintenance of books of accounts for new business registrants, existing business taxpayers, and subsequent registration, as well as the QR stamping details.
TRANSFER OF LEGAL TITLE OVER PROPRIETARY SHARE FROM THE CURRENT TRUSTEE TO THE NEW TRUSTEE IS NOT SUBJECT TO CGT & DST
A Co. is requesting a confirmatory ruling on whether the transfer of legal title over its proprietary share in Manila Polo Club (MPC) from its current trustee to its new trustee, is not subject to Capital Gains Tax (CGT) and Documentary Stamp Tax (DST). As represented, A Co. is the beneficial owner of a proprietary share in MPC. While a proprietary share in MPC may be owned by a corporate entity, A Co. assigned its proprietary share to its current President for the sole purpose of enjoyment of the facilities and amenities of MPC while employed by the company. However, the beneficial ownership over the MPC Share remains with the company. In reply, the transfer of the legal title of MPC Share from the former trustee to the new trustee is not subject to CGT considering that the transfer involves neither monetary consideration nor changes in beneficial ownership citing Section 24 (C) of the 1997 Tax Code, as amended. [BIR RULING NO. 445-2022, DECEMBER 29, 2022]
ASSIGNMENT OF RIGHTS TO CONSTRUCT THE NAVOTAS PROJECT, WHICH IS PART OF BULACAN AIRPORT, STILL ENJOYS AN EXEMPTION
S Co. and A Co. are seeking confirmation that: (1) S Co. may validly sell, transfer, or assign its rights and privileges set forth in the Republic Act (R.A.) No. 11506, otherwise known as “San Miguel Aerocity Franchise” in favor of A Co. (S Co.’s affiliate) relative to the construction, acquisition, ownership, leasing, operation, development, or management of the Airport City, without the need for prior approval of Congress; and (2) A Co’s importation of vessel and other subsequent importations relative to the construction of the Airport City is exempt from applicable taxes under the 1997 Tax Code, as amended. In reply, Section 16 of RA No. 11506 provides that S Co., its successors, and assignees, during the 10-year construction period, shall be exempt from all direct and indirect taxes and fees of any kind relating to the construction, development, establishment, and operation of the Project, including customs duties and tariffs on its importations, if any. Moreover, S Co. has been granted the right to sell, transfer, or assign its rights and privileges under the Franchise, including the tax exemptions, in favor of its affiliate, without the need for prior approval of Congress. Considering that A Co. and S Co. are affiliates since they are both under the control of an ultimate parent company, S Co. may validly sell, transfer, or assign to A Co. all its rights and privileges relative to the land development components for the Airport City including the tax and duty exemptions without need for prior approval of the Congress. Hence, the importation by A Co. of the vessel that will be used for the Project is exempt from Philippine taxes, customs duties and tariffs, and other fees that may be levied by any city, municipal, provisional, or national authority. [BIR RULING NO. 443-2022, DECEMBER 28, 2022]
SALE OF ELECTRICITY & FEED-IN-TARIFF RATE ADJUSTMENTS OF A GENERATION COMPANY IS EXEMPT FROM INCOME TAX & WITHHOLDING TAX
E Co. is seeking confirmation on whether the income derived from its registered activity (sale of electricity) during its Income Tax Holiday (ITH) entitlement period and all Feed-in-Tariff (FIT) rate adjustment billings pertaining to said ITH Period (FIT Billings), which were received after the expiration of the ITH Period, are not subject to Income Tax and Expanded Withholding Tax (EWT). In reply, Revenue Regulations (RR) No. 2-98, as amended, provides that income payments made to corporations that are enjoying exemption from payment of income taxes pursuant to the provisions of any law, whether general or special, shall be exempt from withholding tax. Here, documents show that E Co. is registered with the Department of Energy and Board of Investments as a Renewable Energy (RE) Developer of the Burgos Wind Project and was granted an incentive of ITH for seven (7) years, or from November 11, 2014, to November 10, 2021. Hence, all income payments received or to be received by E Co. relating to transactions occurred during the ITH Period in connection with the Burgos Wind Project are exempt from income tax, and consequently, from withholding tax. However, said exemption covers income directly attributable to the revenues generated from the sale of electricity. With regard to the FIT Billings, the same is considered income on the part of participating RE developers that is directly attributable to the revenues generated from sale of electricity, considering the nature of FIT rate adjustments. [BIR RULING NO. 441-2022, DECEMBER 14, 2022]
TRANSFER OF ASSET PURSUANT TO “COCO LEVY FUND LAW” IS EXEMPT FROM TRANSFER TAXES
The Bureau of Treasury is seeking confirmation that the transfer of Coconut Levy Assets, specifically all the shares of stock in the Coconut Industry Investment Fund (CIIF) Oil Mills Group, to the Republic of the Philippines, are not subject to transfer taxes. In reply, the 15% Capital Gains Tax (CGT) is not applicable since the transfer of shares does not involve the sale, barter, or exchange of shares contemplated under the Tax Code. Moreover, the transfer of the subject shares of the CIIF Companies is made pursuant to the directive under Section 6 of the Republic Act (R.A.) No. 11524, or the “Coconut Farmers and Industry Trust Fund Act” and Supreme Court decisions. Accordingly, the transfer of the subject shares in favor of the government, without any monetary consideration is not subject to CGT. As to the Donor’s Tax, there is no intention to donate on the part of the CIIF Companies as the transfer was made in compliance with the law. The transfer of the legal title to the government is only a confirmation of its ownership over the said shares, and there is no donative intent or act of liberality involved on the part of the CIIF Companies. Thus, the transfer is likewise not subject to Donor’s Tax [BIR RULING NO. 422-2022, NOVEMBER 4, 2022]