BIR CIRCULARIZES INFORMATION MATERIALS IN THE FILING BIR FORMS 1701, 1701A & 1702-RT
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [MARCH 21-31]
- BIR CIRCULARIZES INFORMATION MATERIALS IN THE FILING BIR FORMS 1701, 1701A & 1702-RT
- BIR CIRCULARIZES THE AVAILABILITY OF eBIRForms PACKAGE VERSION 7.9.4
- BIR ISSUES PRIORITY PROGRAMS FOR 2023
- BIR CIRCULARIZES THE AVAILABILITY OF OTHER ONLINE FACILITIES OF ORUS
- BIR PRESCRIBES THE GUIDELINES IN THE FILING OF ANNUAL ITR FILING DUE UNTIL APRIL 17, 2023
- BIR RULING ON THE TAXABILITY OF CONSULTANCY SERVICES RENDERED ABROAD
- CTA CASE ON THE 10-YEAR PERIOD OF THE BIR TO ASSESS
1. TAX & BUSINESS-RELATED NEWS [MARCH 21-31]
- Richest Country in The World [Updated 2023] Top 10 List with Economy
- BPI unit buys auto leasing, rental firm
- Harsh goodbye: MVP dumps Annabelle Chua from Meralco board after 7 years, picks Metro Pacific CFO Chaye Cabal-Revilla as new director
- E-vehicle manufacturer to set up plant in Clark: DOF
- Menstrual leave may lead to layoffs, business closures — Lacson
- Calabarzon workers seeking pay hike
- You can now drive from Caloocan to España via new NLEX Connector segment
- Globe vs Smart Postpaid Plans 2023
- BIR: No penalty for payment of annual income tax return ‘anywhere’ until April 17
- COA: Income of San Jose del Monte City Water District fell after PrimeWater deal
- CTA sets aside MRT operator’s P9.7-B taxes
- BDO to acquire Podium Mall from SG-based Keppel
- Mediation pushed as business dispute resolution mechanism
- NGCP warns of power outages after ERC denies extension of ancillary service deals
- Alsons to expand aquaculture business in Sarangani
- Holcim PH profit down on high fuel, energy costs
- Removal of rooftop solar restrictions expected to reduce PHL dependence on imported fuel
- DBP launches loan program for coco farmers
- SEC flags firm that sells frozen products, solicits investments
- Accenture says to cut 19,000 jobs
- ARTA, SEC deny LYKA request for company registration
- PH exporters urged gov’t to address VAT exemption issue
- Pagcor ‘seriously consider’ selling casinos
- SMC seals JV with Batangas for P48-B Nasugbu-Bauan Expressway
- PSALM says qualified bidders for Casecnan now down to seven
- Pangasinan declares disputed upland village ‘Barangay Summer Capital’
- Shot puno! Lambanog is 10th Best Spirit in the World according to Taste Atlas
- PAGCOR eyes privatization of self-operated casinos
- DENR, First Gen sign agreement for 120 MW hydro project in Nueva Ecija
- BIR to run after erring accountants
Richest Country in The World [Updated 2023] Top 10 List with Economy [NJCM India, March 31, 2023]
Most surveys to determine the Richest countries in the world use the Gross Domestic Product (GDP) to evaluate any nation’s money. A country whose GDP per capita income is high will have high standards. However, this should not be the only factor; many other things are considered, like living standards, ecological diversity, good governance and many more.
BPI unit buys auto leasing, rental firm [The Philippine Star, March 31, 2023]
BPI Century Tokyo Rental Corp. (BPICTR) has signed a memorandum of understanding (MOU) for the acquisition of the Diamond Group that includes Diamond IGB Inc. (DIGB), Diamond Fleet Solutions Inc. (DFSSI) and Buenaflor Car Services Inc.
Harsh goodbye: MVP dumps Annabelle Chua from Meralco board after 7 years, picks Metro Pacific CFO Chaye Cabal-Revilla as new director [Bilyonaryo, March 29, 2023]
Chua, PLDT’s CFO, has been forced to go on paid leave since November 2022 or a month before PLDT dropped the P48 billion overspending bombshell which caused a historic fall in prices and triggered a class action lawsuit in the United States against the company’s officers led by Pangilinan.
E-vehicle manufacturer to set up plant in Clark: DOF [ABS-CBN News, March 28, 2023]
The DOF said Finance Secretary Benjamin Diokno and key government officials witnessed on Tuesday the signing of a lease agreement between Envirotech Vehicles (EVT) and Clark-based developer Berthaphil, Inc. for the establishment of an electric vehicle manufacturing plant in Clark.
Menstrual leave may lead to layoffs, business closures — Lacson [Inquirer.Net, March 27, 2023]
Former Senator Panfilo “Ping” Lacson on Sunday insisted that implementing a proposed law allowing on paid menstrual leaves would be counterproductive since employers might not be able to provide an additional 24 days of leave per year and may eventually result in layoffs and business closures.
Calabarzon workers seeking pay hike [The Philippine Star, March 27, 2023]
Labor groups belonging to the Initiative for Wage Increase (IWIN) will file today a petition, asking for a common minimum daily wage of P750 for workers in Calabarzon (Cavite, Laguna, Batangas, Rizal and Quezon).
You can now drive from Caloocan to España via new NLEX Connector segment [TopGear, March 27, 2023]
Section 1 of the NLEX Connector stretches from C3 Road in Caloocan all the way to España Boulevard in Manila City, with on- and off-ramps located on both ends. This 5.15km segment is expected to reduce travel time between the two areas to just five minutes. Motorists will have to pay toll fees for passage here, but operator Metro Pacific Tollways Corporation (MPTC) has yet to announce indicative rates for the tollway.
Globe vs Smart Postpaid Plans 2023 [Yugatech, March 27, 2023]
In this guide, we will compare and contrast the offerings of Globe and Smart postpaid plans in 2023. Specifically, we will be looking at Globe’s GPlan and Smart’s Signature Plans, as well as their respective variations such as plan+device combo, with GCash, and all-data SIM-only plans.
BIR: No penalty for payment of annual income tax return ‘anywhere’ until April 17 [ABS-CBN News, March 27, 2023]
This was made possible with the release of Revenue Memorandum Circular (RMC) No. 32-2-2023, which allowed taxpayers to settle their dues anywhere on or before April 17, 2023, without penalties imposed for wrong venue filing, the tax bureau said in a statement.
COA: Income of San Jose del Monte City Water District fell after PrimeWater deal [Rappler, March 27, 2023]
The San Jose del Monte City Water District’s earnings plunge in the years following its 2018 joint venture agreement with PrimeWater Infrastructure Corporation, even turning negative in 2020.
CTA sets aside MRT operator’s P9.7-B taxes [BusinessWorld, March 27, 2023]
THE Court of Tax Appeals (CTA) has granted Metro Rail Transit Corp.’s (MRTC) refund claim worth P9.69 billion allegedly representing its deficiency taxes for the fiscal year 2012.
BDO to acquire Podium Mall from SG-based Keppel [The Philippine Star, March 27, 2023]
BDO Unibank, Inc. is acquiring full ownership of the Podium Mall and its corporate center in Ortigas after buying out Singapore-based Keppel Corp.’s ownership stake.
Mediation pushed as business dispute resolution mechanism [Inquirer Mobile, March 27, 2023]
Philippine Exporters Confederation Inc. (Philexport) has partnered with the National Center for Mediation (NCM) to promote mediation as an alternative mode of dispute resolution.
NGCP warns of power outages after ERC denies extension of ancillary service deals [ABS-CBN News, March 27, 2023]
Ancillary services support the transmission of power from generators to consumers to maintain reliable operations and are necessary to manage power fluctuations, the NGCP said in a statement.
Alsons to expand aquaculture business in Sarangani [Inquirer Mobile, March 27, 2023]
Alsons Aquaculture Corp. (AAC), a company under the Alcantara Group, is undertaking a P200-million expansion project in the municipality of Alabel in Sarangani province.
Holcim PH profit down on high fuel, energy costs [Inquirer Mobile, March 27, 2023]
In a statement, the company said revenues for the year were down 1.3 percent to P26.59 billion, which the company said was lifted by a sales rebound that materialized in the latter part of the year.
Removal of rooftop solar restrictions expected to reduce PHL dependence on imported fuel [BusinessWorld, March 26, 2023]
THE 100-kilowatt (kW) restriction on solar rooftops should be removed to encourage the installation of more such facilities by homes and businesses to reduce the Philippines’ dependence on imported fuel, Senator Sherwin T. Gatchalian said.
DBP launches loan program for coco farmers [Philippine Daily Inquirer, March 26, 2023]
Through this new loan program, dubbed as the Coconut Farmers and Industry Development Credit (CFID) Program, eligible coconut farmer enterprises and coconut farmers’ cooperatives and organizations may borrow funds to finance coconut value chain projects.
SEC flags firm that sells frozen products, solicits investments [Inquirer Mindanao, March 25, 2023]
In its March 21 advisory, the SEC Enforcement and Investor Protection Department (EIPD) stated that the Davao Prime Summit Frozen Products Trading “is not authorized to solicit investment from the public” and that it seemed it was employing a “Ponzi-like scheme.”
Accenture says to cut 19,000 jobs [ABS-CBN News, March 24, 2023]
The company was spun off from the Chicago-based Arthur Andersen Group in 1989 and renamed Accenture in 2001, moving its headquarters to Bermuda. It relocated to Ireland in 2009 as then president Barack Obama targeted overseas profits of corporations with headquarters in tax havens.
ARTA, SEC deny LYKA request for company registration [The Philippine Star, March 23, 2023]
Lyka shot into prominence in 2020, as the platform rode the wave of digital transformation that sped up the adoption of cashless transactions during pandemic lockdowns.
PH exporters urged gov’t to address VAT exemption issue [Inquirer Mobile, March 22, 2023]
A joint statement released by the IT and Business Process Association of the Philippines (IBPAP), Semiconductor and Electronics Industries in the Philippines Foundation Inc. (SEIPI), and the Confederation Wearables Exporters of the Philippines (CONWEP) said that a solution has been promised by the end of the month, which also coincides with the end of the first taxable quarter.
Pagcor ‘seriously consider’ selling casinos [Manila Bulletin, March 22, 2023]
Alejandro Tengco, Pagcor chair and CEO says they plan to focus solely on regulatory function once the privatization is completed.
SMC seals JV with Batangas for P48-B Nasugbu-Bauan Expressway [Philippine Daily Inquirer, March 22, 2023]
The project has four sections: Section 1 is a 10.78-kilometer segment that stretches from Brgy. Kaylaway to Brgy. Banilad in Nasugbu town; Section 2 is a 13.03-km segment from Brgy. Banilad to Balayan town; Section 3 is a 16.3-km segment from Balayan to Lemery, and Section 4 is a 20.79-km segment from Lemery to Bauan.
PSALM says qualified bidders for Casecnan now down to seven [BusinessWorld, March 22, 2023]
Casecnan, which is a hydro plant with irrigation and power generation components, was turned over to the government in 2021 after the build-operate-transfer contract with the previous operator, Casecnan Water and Energy Co., Inc. expired on Dec. 11, 2021.
Pangasinan declares disputed upland village ‘Barangay Summer Capital’ [Inquirer Northern Luzon, March 22, 2023]
The Pangasinan provincial board declared the upland village of Malico in San Nicolas town as the “Barangay Summer Capital of Pangasinan.”
Shot puno! Lambanog is 10th Best Spirit in the World according to Taste Atlas [Rappler, March 21, 2023]
With a rating of 4.3 stars out of 5, Quezon Province’s lambanog scored high among 49 other international contenders, besting popular spirits like tequila, Scotch whisky, mezcal, whisky, Japanese whisky, bourbon, Plymouth gin, soju, XO cognac, vodka, schnapps, and white rum. It is the only Filipino spirit to make it to 2023’s list.
PAGCOR eyes privatization of self-operated casinos [GMA News Online, March 21, 2023]
Philippine Amusement and Gaming Corp. (PAGCOR) Chairman and Chief Executive Officer Alejandro Tengco on Tuesday unveiled plans to privatize the agency’s self-operated casinos and instead focus on a purely regulatory role.
DENR, First Gen sign agreement for 120 MW hydro project in Nueva Ecija [Power Philippines, March 21, 2023]
First Gen Corporation, through its subsidiary First Gen Hydro Power Corporation (FGHPC), has signed an agreement with the Department of Environment and Natural Resources (DENR) allowing the company to pursue the development of a 120 megawatt (MW) pumped storage hydroelectric facility in Pantabangan, Nueva Ecija.
BIR to run after erring accountants [Manila Bulletin, March 21, 2023]
BIR Comm. Romeo Lumagui Jr. says the bureau sought for the revocation of the professional license of a Certified Public Accountant who profited from “ghost” or fake receipts.
2. BIR CIRCULARIZES INFORMATION MATERIALS IN THE FILING BIR FORMS 1701, 1701A & 1702-RT
Revenue Memorandum Circular (RMC) No. 41-2023, issued on March 29, 2023, announces the availability of information materials in relation to filing and payment of tax returns and step-by-step guide in filing BIR Forms 1701, 1701A, and 1702-RT.
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3. BIR CIRCULARIZES THE AVAILABILITY OF eBIRForms PACKAGE VERSION 7.9.4
Revenue Memorandum Circular (RMC) No. 40-2023, issued on March 29, 2023, announces the availability of the Offline electronic Bureau of Internal Revenue Forms (eBIRForms) Package Version7.9.4
4. BIR ISSUES PRIORITY PROGRAMS FOR 2023
Revenue Memorandum Circular (RMC) No. 38-2023 issued on March 23, 2023, prescribes the 2023 BIR Priority Programs and Projects.
5. BIR CIRCULARIZES THE AVAILABILITY OF OTHER ONLINE FACILITIES OF ORUS
Revenue Memorandum Circular (RMC) No. 36-2023, issued on March 20, 2023, announces the availability of other registration-related online transactions, functions, and features in the BIR Online Registration and Update System (ORUS). These include e-payment of Annual Registration Fee, application for cancellation of Permit-to-Use Loose-Leaf and Acknowledgment Certificate of Computerized Accounting System, and Online Verification of Tax Identification Number (TIN).
6. BIR PRESCRIBES THE GUIDELINES IN THE FILING OF ANNUAL ITR FILING DUE UNTIL APRIL 17, 2023
Revenue Memorandum Circular (RMC) No. 32-2023, issued on March 16, 2023, prescribes the guidelines in the filing of Annual Income Tax Returns (AITR) for Calendar Year (CY) 2022 as well as the payment of corresponding taxes due thereon until April 17, 2023.
- Filing anywhere notwithstanding the Revenue District Office (RDO) jurisdiction, without the imposition of penalties for wrong venue filing.
- Instances where eBIRForms can be used by taxpayers mandated to use eFPS.
- Payment channels for electronically filed returns through the eBIRForms.
- Guidelines for taxpayers who will manually file and pay their AITR and those with “No Payment AITRs.”
- Guidelines for electronically filed AITRs without any attachments.
7. BIR RULING ON THE TAXABILITY OF CONSULTANCY SERVICES RENDERED ABROAD
CONSULTANCY SERVICES RENDERED IN THE PHILIPPINES BY DOMESTIC CORPORATION IN FAVOR OF FOREIGN CORPORATION IS SUBJECT TO VAT ZERO-RATING
E Co., a domestic corporation, is requesting confirmation that (1) consultancy services rendered in the Philippines in favor of B Co., a foreign corporation, ARE subject to Value-Added Tax (VAT); and (2) E Co. is entitled to apply for the refund of any excess or unutilized input VAT due or paid attributable to its zero-rated sale of services to B Co. As represented, the Government of the Republic of the Philippines and the Government of the United States of America (USA) entered into an Agreement Concerning Cooperation in Countering the Proliferation of Weapons of Mass Destruction, Strengthening Maritime Security, and other purposes (CTRA). Further, the Defense Threat Reduction Agency (DTRA) is the implementing agency of the USA’s Department of Defense tasked to execute the Cooperative Threat Reduction Integrating Contract (CTRIC) under the CTRA. In the execution of the CTRA, B Co., as the prime contractor to implement the CTRIC in the Philippines, entered into a Basic Ordering Agreement with E Co. to perform consultancy services which shall be paid in foreign currency. In reply, Section 108 (B) (2) of the 1997 Tax Code, as implemented by Section 4.108-5 (b) (2) of Revenue Regulations (RR) No. 16-2005, as amended by RR No. 4-2007 provides that services rendered to a person engaged in business conducted outside the Philippines or to a non-resident person not engaged in business who is outside the Philippines when the services are performed and the consideration for which is paid for in acceptable foreign currency shall be subject to VAT zero-rating. Likewise, E Co. is entitled to apply for the refund of any excess or unutilized input VAT due or paid attributable to its zero-rated sale of services to B Co. pursuant to Section 1-12 (A) of the 1997 Tax Code, as implemented by Section 19 of RR No. 4-2007. [BIR RULING NO. 003-2023, JANUARY 19, 2023]
8. CTA CASE ON THE 10-YEAR PERIOD OF THE BIR TO ASSESS
[ANY ASSESSMENT OF INTERNAL REVENUE TAXES AGAINST ANY TAXPAYER SHALL ONLY BE DONE WITHIN THE 3-YEAR PRESCRIPTIVE PERIOD UNLESS THE PAYMENT OF SAID TAXES WAS ATTENDED WITH FRAUD] [TAXPAYER IS ONLY MANDATED TO SECURE ITS BOOKS OF ACCOUNTS AND ACCOUNTING RECORDS FOR A PERIOD OF THREE (3) YEARS ABSENT ANY EXTRAORDINARY CIRCUMSTANCES]
Petitioner Hydro (PH) Inc. filed a Petition for Certiorari praying that the Subpoena Duces Tecum (SDT) and the Letter of Authority (LOA) issued by the Respondent Commissioner of Internal Revenue (CIR) be declared void. The Petitioner argued that the Respondent committed grave abuse of discretion amounting to excess or lack of jurisdiction in issuing the SDT and LOA on the ground that the right of the Respondent to assess the Petition has already prescribed. In ruling, the Court held that it has jurisdiction over the Petition for Certiorari and that all the requisites for the issuance of a Writ of Certiorari are present. First, the Respondent exercises quasi-judicial power. Second, the Respondent acted with grave abuse of discretion amounting to lack or excess of jurisdiction. Here, the right of the Respondent to assess the Petitioner’s internal revenue taxes for taxable years 2008 to 2012 had already prescribed when the LOA was issued in 2021. There was no indication in either the subject SDT or LOA that the tax examination that would be conducted by the Respondent was a result of any findings of fraud against the Petitioner. The 3-year period should be applied. Thus, the issuance of the subject SDT has no legal basis. Also, the holding period on the Petitioner’s books of accounts had already lapsed. Lastly, the Petitioner has no plain, speedy, and adequate remedy after the issuance of the SDT. The denial of the Petition for Certiorari will result in the failure of justice as the Petitioner will be required to take the less speedy remedy of going through the tedious and protracted rigors of protesting an assessment to have it cancelled on the ground that it is intrinsically invalid for having been issued pursuant to a void LOA and beyond the 3-year prescriptive period to assess. Hence, the Petition was GRANTED, and the SDT and the LOA were both CANCELLED. [PHILIPPINE HYDRO (PH) INC. VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 10618, MARCH 6, 2023]