Minimum wages in 3 regions increase
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [SEPTEMBER 19-29]
- BIR CIRCULARIZES NEW DAILY MINIMUM WAGE RATES IN CENTRAL VISAYAS EFFECTIVE OCTOBER 1, 2023
- BIR CIRCULARIZES THE NEW MINIMUM WAGE FOR CALABARZON EFFECTIVE SEPTEMBER 24, 2023
- BIR PRESCRIBES THE USE OF E-MAIL & ELECTRONIC SIGNATURE AS ADDITIONAL MODE OF SERVICE OF WARRANT OF GARNISHMENT
- FIRB ISSUES ADVISORY ON THE AVAILABILITY OF THE UPDATED TEMPLATES FOR THE ANNUAL TAX INCENTIVES REPORT & ANNUAL BENEFITS REPORT OF COOPERATIVES
- FIRB CIRCULARIZES DOF GUIDELINES ON THE IMPOSITION OF LOCAL TAXES, FEES & CHARGES ON RBEs AVAILING TAX INCENTIVES
- COURT OF TAX APPEALS CASES
- TAX & BUSINESS-RELATED NEWS [SEPTEMBER 19-29]
- California fast-food workers to earn minimum of $20 an hour under new law
- Marcos to sign tax, PPP bills
- BIR attains perfect score, all consumer complaints resolved
- FLI to shut down two inactive units
- SEC easing rules on capital raising
- Minimum wages in 3 regions increase
- SEC to scrutinize ownership data
- Jollibee opens AI-assisted drive-thru in Singapore
- Chinese firm to expand in Lima Tech Center
- SC: Signing of goods declaration not exclusive to customs brokers
- Internet service refund, bill adjustment measure gets House OK
- Senate OKs bill giving DTI chief power to take down online sellers, e-commerce websites
- DMCI Mining set to open two new mines amid record year
- PNOC sees high success rate in drilling of new wells near Malampaya
- ATTENTION, STUDENTS: Here are the Top 10 highest paying jobs in the Philippines
- Diokno wants POGOs to go: ‘My position is very clear’
- PAL resumes US visa waiver program
- Marcos: Unilever plant in Cavite to boost growth, jobs
- GCash warns users on ‘jailbroken’ and ‘rooted’ phones
- Comelec: BIR registration, payment of registration fee not required in filing COCs
- 2 trillion yen Toshiba takeover bid succeeds, Japan investor group says
- Sen. Tulfo berates SSS, PhilHealth, Pag-IBIG over low coverage on domestic workers
- Bill lowering optional retirement age of gov’t workers to 56 reaches plenary
- DLI targets to open Samal Island condo in 2025
2. BIR CIRCULARIZES NEW DAILY MINIMUM WAGE RATES IN CENTRAL VISAYAS EFFECTIVE OCTOBER 1, 2023
Revenue Memorandum Circular (RMC) No. 96-2023, issued on September 19, 2023, circulates the new daily minimum wage rates in certain sectors/industries under Region VII (Central Visayas), as prescribed in Wage Order No. ROVII-24, which was approved on September 5, 2023 and published at The Freeman Newspaper on September 15, 2023.
3. BIR CIRCULARIZES THE NEW MINIMUM WAGE FOR CALABARZON EFFECTIVE SEPTEMBER 24, 2023
Revenue Memorandum Circular (RMC) No. 95-2023, issued on September 19, 2023, circularizes the New Daily Minimum Wage Rates in certain sectors/industries under Region IV-A (CALABARZON) as prescribed in Wage Order No. IVA-20, which was approved on September 5, 2023 and published at Philippine Daily Inquirer on September 8, 2023.
4. BIR PRESCRIBES THE USE OF E-MAIL & ELECTRONIC SIGNATURE AS ADDITIONAL MODE OF SERVICE OF WARRANT OF GARNISHMENT
Revenue Regulations No. 11-2023, issued on September 14, 2023, prescribes the use of electronic mail (e-mail) and electronic signature as additional mode of service of the Warrant of Garnishment (WG) pursuant to Section 208 in relation to Section 244 of the 1997 Tax Code, as amended.
5. FIRB ISSUES ADVISORY ON THE AVAILABILITY OF THE UPDATED TEMPLATES FOR THE ANNUAL TAX INCENTIVES REPORT & ANNUAL BENEFITS REPORT OF COOPERATIVES
Fiscal Incentives Review Board (FIRB) Advisory 016-2023 dated September 14, 2023, circularizes the availability of updated templates for the Annual Tax Incentives Report (ATIR) and Annual Benefits Report (ABR) of Cooperatives. Registered cooperatives are required to use these updated templates when submitting their ATIR and ABR (Annexes A and B) to the CDA. Additionally, the CDA will use these templates when submitting the consolidated ATIR and ABR and the masterlist of cooperatives (Annexes C, D, and E) for Taxable Year 2023, as per DOF-DTI JAO No. 001-20231 and FIRB Advisory No. 007-2023.
6. FIRB CIRCULARIZES DOF GUIDELINES ON THE IMPOSITION OF LOCAL TAXES, FEES & CHARGES ON RBEs AVAILING TAX INCENTIVES
Fiscal Incentives Review Board (FIRB) Advisory No. 014-2023 dated August 31, 2023, circulates the Department of Finance (DOF) Department Order (DO) No. 033-2023, on the Guidelines regarding the Imposition of Local Taxes, Fees, and Charges on Registered Business Enterprises (RBEs) Availing of Tax Incentives prior to the effectivity of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.
It may be recalled that under Section 311 of the Tax Code, as amended, transitioning RBEs may continue to avail of their respective incentives until the end of the transitory period. Furthermore, it provides rules that shall apply regarding its liability for local taxes, fees, and charges.
7. CTA CASES
IN EXHAUSTION OF ADMINISTRATIVE REMEDIES, THE TAXPAYER CANNOT BE REQUIRED TO AWAIT THE DECISION ON ITS ADMINISTRATIVE CLAIM BEFORE FILING A JUDICIAL CLAIM
Petitioner City Treasurer of Makati filed a Petition for Review praying that the Orders of the Regional Trial Court (RTC) be set aside and that the Court dismiss Respondent Kurimoto (Philippines) Corporation’s claim for a refund. The Petitioner insisted that the proper way for the Respondent to claim a refund is by filing a protest within 60 days from the 2017 Assessment of the tax deficiency for Taxable Year (TY) 2016 pursuant to Section 195 of the Local Government Code (LGC). On the other hand, the Respondent countered that it complied with the requirement to file a protest to claim the refund subject of this case, i.e., the 2018 Assessment. Respondent did not protest the 2017 Assessment because it was superseded by the 2018 Assessment, both covering TY 2016. In ruling, both Sections 195 and 196 of LGC require that the taxpayer should first exhaust the administrative remedies referred to therein before bringing the appropriate action in court, such as a written protest with the Local Treasurer, in case of Section 195, and a written claim for a refund or credit with the same office, in case of Section 196. The Court could not decipher the logic in the Petitioner’s argument considering that the Respondent properly and timely availed the administrative remedies provided under Sections 195 and 196 of the LGC. A perusal of records revealed that the Respondent went through the process of exhausting the administrative remedies available to it by protesting the 2018 Assessment, which covered TY 2016, and filing a claim for refund of the additional assessment paid on January 23, 2017, which is the subject of the refund claim in this case, within the periods provided under Section 195 and 196. The Respondent timely filed its written claim for refund with Petitioner. It could not be made to wait for the latter’s decision on its administrative claim before filing a judicial claim since the Respondent only had two (2) years from payment to do so. Anent Petitioner’s claim that the assessment for TY 2016 had already become final and unappealable under Section 195, the Court reiterated that the 2018 Assessment, which includes TY 2016, had been timely protested, administratively, and judicially. Thus, the Respondent’s timely protest meant that the assessment had not attained finality. Consequently, the Petition was DENIED for lack of merit. [CITY TREASURER OF MAKATI REPRESENTED BY ACTING CITY TREASURER JESUSA E. CUNETA VS. KURIMOTO (PHILIPPINES) CORPORATION, CTA AC NO. 257, AUGUST 31, 2023]
THE RECKONING OF THE 5-YEAR PRESCRIPTIVE PERIOD WOULD DEPEND ON HOW THE CRIME OF TAX EVASION IS COMMITTED
Plaintiff-Appellant People of the Philippines filed an Appeal assailing the RTC’s earlier Resolutions. Plaintiff-appellant argued that the five (5)-year prescriptive period for the offense, i.e., violation of Section 255, in relation to Sections 253(d) and 256 of the 1997 Tax Code, as amended, would only begin to run upon the filing of the criminal complaint against the Accused-Appellees Ski Construction Group, Inc. (SKI), Claudio B. Altura, Albert Altura and Cornelio V. Caedo on 15 February 2018. Thus, the filing of the Information on 15 January 2020 was well within such period. Accused-Appellees countered that the 5-year prescription period should have been counted from the expiration of the period of payment which is on 13 February 2014. In ruling, the Court reiterated the Supreme Court’s discussion that the prescription of tax evasion has varying reckoning dates. In cases involving fraudulent returns, the crime is only discovered after the BIR has been given an opportunity to investigate the taxpayer and certain discrepancies constituting such offense are found. On the other hand, in cases where the date of commission is readily available, prescription shall begin to run from the crime is committed. Here, although it is alleged that Accused-Appellee SKI failed to file a correct or accurate return, the BIR made no finding of fraud. Instead, it pursued an audit of accused-appellee SKI until the former issued a Final Assessment Notice (FAN) on 13 January 2014, which demanded that payment be made within 30 days from the date of the FAN or until 12 February 2014. Applying the principles in Lim case, when the period of payment had lapsed without any payment being made, a perceived offense of tax evasion due to willful failure to pay was apparently committed by accused-appellee SKI and its responsible officers on 13 February 2014. Counting five (5) years from the date of the apparent commission of the said offense, an Information for the same should have been filed with the RTC by 13 February 2019. Therefore, when the Information was filed on 15 January 2020, the offense charged in the Information had already prescribed. [PEOPLE OF THE PHILIPPINES VS. SKI CONSTRUCTION GROUP, INC., CLAUDIO B. ALTURA, ALBERT ALTURA & CORNELIO V. CAEDO, CTA CRIMINAL CASE NO. A-17, JULY 17, 2023]
CTA HAS NO JURISDICTION ON REGULATORY FEES BUT ONLY ON LOCAL TAXES
Petitioner NLEX Corporation filed a Petition for Review seeking reconsideration of the CTA 2nd Division’s earlier Decision and Resolution. The Petitioner argued that CTA has jurisdiction to rule on the validity of the regulatory fees assessed by the Respondent Municipality of Guiguinto, Bulacan against the Petitioner. In ruling, the CTA is a court of special jurisdiction and can only take cognizance of such matters as are clearly within its jurisdiction. The jurisdiction of the CTA regarding Local Tax and Real Property Tax (RPT) cases is provided under Section 7(a)(3) of Republic Act (R.A.) No. 1125, or the Act Creating the CTA, as amended. The Supreme Court already ruled that local tax cases consist of cases arising from Local Business Tax (LBT) and RPT. Here, the subject matter of the assessment being appealed also includes regulatory fees. Hence, not being local taxes, the Court in Division correctly ruled that it has no jurisdiction on regulatory fees assessed by the Respondent. Consequently, the Petition was DENIED. [NLEX CORPORATION (FORMERLY MANILA NORTH TOLLWAYS CORPORATION, AS THE SURVIVING CORPORATION & HAS ABSORBED TOLLWAYS MANAGEMENT CORPORATION) VS. MUNICIPALITY OF GUIGUINTO, BULACAN & HON. GUILLERMA DL. GARRIDO, IN HER CAPACITY AS THE OIC-MUNICIPAL TREASUERER OF GUIGUINTO, BULACAN, CTA EB NO. 2514, JULY 19, 2023]
California fast-food workers to earn minimum of $20 an hour under new law [GMA News Online, September 29, 2023]
The median fast-food worker in the U.S. earned $13.43 an hour in 2022, while those in California made an average of $16.60 an hour, according to the Bureau of Labor Statistics. The new minimum, which takes effect in April, equates to an annual salary of $41,600.
Marcos to sign tax, PPP bills [The Manila Times, September 29, 2023]
PRESIDENT Ferdinand Marcos Jr. is due to sign the proposed Ease of Paying Taxes Act and the Public-Private Partnership (PPP) Code of the Philippines, two priority tax measures of his administration.
https://www.manilatimes.net/2023/09/29/news/national/marcos-to-sign-tax-ppp-bills/1912294
BIR attains perfect score, all consumer complaints resolved [The Philippine Star, September 29, 2023]
BIR Commissioner Romeo Lumagui Jr. said the agency has achieved 100 percent resolution and 100 percent compliance rates in complaints handling, based on the report from the Office of the President’s 8888 Citizens’ Complaint Center (8888 CCC).
FLI to shut down two inactive units [The Manila Times, September 29, 2023]
In a disclosure to the stock exchange, FLI said it submitted, to the Securities and Exchange Commission, applications for the dissolution of LeisurePro Inc. and Filinvest Lifemalls Mimosa Inc. by shortening their corporate terms.
SEC easing rules on capital raising [The Philippine Star, September 29, 2023]
SEC chairperson Emilio Aquino said the streamlined procedures are part of the regulator’s efforts to encourage more companies to tap the capital markets for their business expansion needs.
https://www.philstar.com/business/2023/09/29/2299754/sec-easing-rules-capital-raising-
Minimum wages in 3 regions increase [The Manila Times, September 29, 2023]
MINIMUM wage earners in Regions 2 (Cagayan Valley), 3 (Central Luzon) and 12 (Soccsksargen) are the latest to benefit from the series of pay hikes after their respective regional wage boards granted an increase in the minimum wages.
https://www.manilatimes.net/2023/09/29/regions/minimum-wages-in-3-regions-increase/1912279
SEC to scrutinize ownership data [The Philippine Star, September 28, 2023]
he Securities and Exchange Commission (SEC) will scrutinize ownership data in companies to help curb corruption in the government procurement process.
https://www.philstar.com/business/2023/09/28/2299470/sec-scrutinize-ownership-data
Jollibee opens AI-assisted drive-thru in Singapore [Manila Bulletin, September 28, 2023]
Jollibee Foods Corporation reported that it has recently opened its first drive-thru location in Singapore at the Caltex Jurong Spring station.
https://mb.com.ph/2023/9/28/jollibee-opens-ai-assisted-drive-thru-in-singapore
Chinese firm to expand in Lima Tech Center [The Manila Times, September 27, 2023]
Shenzhen Grandsun manufactures wired and bluetooth-pairing headphones, bluetooth speakers, drivers, and other related intelligent devices. It was ranked seventh globally on the Global Smart Headphone Invention Patent Ranking, just behind Apple (5) and Qualcomm (6), and ahead of LG (8) and Huawei (10).
SC: Signing of goods declaration not exclusive to customs brokers [GMA News Online, September 26, 2023]
The Supreme Court has upheld the validity of a section of the Customs Modernization and Tariff Act, which states that the signing of goods declarations is not exclusive to customs brokers.
Internet service refund, bill adjustment measure gets House OK [Philippine Daily Inquirer, September 26, 2023]
The bill mandates public telecommunications entities (PTEs), including internet service providers (ISPs) to “provide a refund credit to a customer, or adjust a customer’s bill, who was adversely affected by an Internet service outage or interruption for an aggregate period of twenty-four (24) hours or more, within a month”.
Senate OKs bill giving DTI chief power to take down online sellers, e-commerce websites [The Philippine Star, September 26, 2023]
The measure seeks to “ensure that all goods and services transacted digitally will be as advertised” and to impose penalties on erring digital platforms and online merchants.
DMCI Mining set to open two new mines amid record year [GMA News Online, September 25, 2023]
Reyes said the company is currently in the process of securing a permit for an area inside Zambales Diversified Metals Corp. (ZDMC), which it targets before the end of the year. The area was already drilled prior to the firm’s acquisition.
PNOC sees high success rate in drilling of new wells near Malampaya [The Philippine Star, September 25, 2023]
PNOC-EC president Franz Alvarez said the consortium, which is led by operator Prime Energy Resources Development B.V., will drill two new wells in 2025, with preparations for actual drilling ongoing.
ATTENTION, STUDENTS: Here are the Top 10 highest paying jobs in the Philippines [Manila Bulletin, September 25, 2023]
The PSA disclosed that this survey covered “16,057 formal establishments employing at least 20 workers nationwide, of which wage rates of monitored occupations across selected industries were collected.”
Diokno wants POGOs to go: ‘My position is very clear’ [GMA News Online, September 25, 2023]
Balisacan and Diokno’s comments came on the heels of the Senate committee on ways and means’ recommendation for the immediate expulsion of POGOs from the country.
PAL resumes US visa waiver program [The Manila Times, September 23, 2023]
“We have received confirmation from US Customs and Border Protection that we may resume accepting nonimmigrant visitors to the United States who are traveling under the US Visa Waiver Program,” PAL spokesman Cielo Villaluna said.
Marcos: Unilever plant in Cavite to boost growth, jobs [ABS-CBN News, September 23, 2023]
President Ferdinand Marcos Jr on Friday led the inauguration of Unilever’s newest manufacturing facility in General Trias, Cavite, which he said was one of the fruits of his foreign travels.
https://news.abs-cbn.com/business/09/22/23/marcos-unilever-plant-in-cavite-to-boost-growth-jobs
GCash warns users on ‘jailbroken’ and ‘rooted’ phones [Cebu Daily News, September 22, 2023]
The practice of altering the normal settings of a mobile device’s operating system by the manufacturer or operator is referred to as ‘jailbreaking’ for iOS and ‘rooting’ for Android.
https://cebudailynews.inquirer.net/529071/gcash-warns-users-on-jailbroken-and-rooted-phones
Comelec: BIR registration, payment of registration fee not required in filing COCs [GMA News Online, September 21, 2023]
“Time and again, the Supreme Court has pronounced that no property or financial requirement shall be imposed as qualifications for candidates,” the Comelec said in an advisory.
2 trillion yen Toshiba takeover bid succeeds, Japan investor group says [ABS-CBN News, September 21, 2023]
A 2 trillion yen ($13.5 billion) takeover bid for Toshiba Corp. by a consortium led by Japan Industrial Partners Inc. has succeeded, the Tokyo-based fund group said Thursday, paving the way for the troubled conglomerate to end its 74-year history as a listed company and rebuild itself as a private firm.
https://news.abs-cbn.com/business/09/21/23/2-trillion-yen-toshiba-takeover-bid-succeeds-investor
Sen. Tulfo berates SSS, PhilHealth, Pag-IBIG over low coverage on domestic workers [The Manila Times, September 21, 2023]
Based on a 2019 joint survey conducted by the Philippine Statistics Authority (PSA) and Department of Labor and Employment (DoLE), there are 1.4 million registered domestic workers with the Social Security System (SSS), the Philippine Health Insurance Corporation (PhilHealth) and the Home Development Mutual Fund or Pag-IBIG.
Bill lowering optional retirement age of gov’t workers to 56 reaches plenary [GMA News Online, September 20, 2023]
Senator Ramon ‘Bong’ Revilla Jr. on Wednesday sponsored Senate Bill No. 2444 under Committee Report No. 134 to lower the optional retirement age for state employees from 60 to 56 years old.
DLI targets to open Samal Island condo in 2025 [Philippine Daily Inquirer, September 19, 2023]
Davao-based property developer Damosa Land Inc. (DLI) is on track to welcome guests to its condominium project on Samal Island by 2025.
https://business.inquirer.net/421820/dli-targets-to-open-samal-island-condo-in-2025
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