Pasaway’: BIR chief says Discaya couple dodges notices
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [OCTOBER 7-14]
- SUPREME COURT DECISION ON THE ENTITLEMENT OF DOMESTIC MARKET ENTERPRISES (DMEs) TO VAT ZERO-RATING ON LOCAL PURCHASES UNDER THE 2021 CREATE LAW
- BIR CLARIFIES THE DOCUMENTARY REQUIREMENTS FOR BUSINESS REGISTRATION BEING SIGNED BY THE ASSISTANT CORPORATE SECRETARY OF CORPORATION
I. TAX & BUSINESS-RELATED NEWS [OCTOBER 7-14]
- BIR chases billions from online sellers
- PEZA teams up with China technology firm
- Analysts see stronger transparency from SEC’s proposed ownership disclosure rules
- DOE: Full RE foreign ownership added 20 GW to Philippine power supply
- Cirtek on the hunt for new investors
- Buildings designed, built properly generally safe in strong earthquakes, says engineer
- ‘Tax holiday won’t fix corruption, public trust issues’
- Lucena, Siquijor ports set for nearly P700M in upgrades
- GOCC pay scheme under GCG review
- PNB Holdings bets on IT-BPM, lifestyle retailers
- ICTSI climbs on long-term Subic terminal deal
- Right-of-way issues still hamper ODA-assisted projects in Philippines
- Palace OKs Creative Industries Development Plan
- Ayala partners with IKEA
- ‘Cash for iris scan’: NPC issues cease and desist vs firm amid alleged data privacy violations
- MVP: Corruption scandal puts Philippine credit rating at risk
- Brian Poe wants ₱60-B PhilHealth subsidy to go directly to patients
- Philippines getting Google Pay, Apple Pay for cross-border payments
- Efforts underway to exempt Philippines from ‘Keep Call Centers in America’ bill
- Banks start cap on large cash withdrawals
- YouTube now reaches more rural Filipinos than traditional TV
- Corruption issues hurting US investor interest in the Philippines — Romualdez
- DOTr secures right-of-way for NSCR sites, eyes 2026 partial completion
- 5 Philippine hotels get Michelin Key distinctions
- Among ‘most corrupt’? Customs bureau defends reforms after US bribery report
- Erwin Tulfo’s tax holiday proposal must be studied, says Marcos economic aide
- Negative list overhaul urged to expand foreign role in infra projects
- BSP wants cap on funds transfers, banks to refuse suspicious withdrawals
- ‘Pasaway’: BIR chief says Discaya couple dodges notices
- VAT accounts for 62.9% of first-half Customs revenue
II. SUPREME COURT DECISION ON THE ENTITLEMENT OF DOMESTIC MARKET ENTERPRISES (DMEs) TO VAT ZERO-RATING ON LOCAL PURCHASES UNDER THE 2021 CREATE LAW
EVEN DOMESTIC MARKET ENTERPRISES (DMEs) ARE ENTITLED TO VAT ZERO-RATING ON LOCAL PURCHASES UNDER THE 2021 CREATE LAW & NOT ONLY REGISTERED EXPORT ENTERPRISES (REEs)
The Petitioners, Subic Bay Freeport Chamber of Commerce (SBFCC) and Benjamin Antonio, filed a Petition for Review on Certiorari, assailing the Order of the Regional Trial Court (RTC) that dismissed their Petition for Declaratory Relief against the Respondents, Department of Finance (DOF), Department of Trade and Industry (DTI), BIR RDO No. 19-SBFZ, and Subic Bay Metropolitan Authority (SBMA), for lack of jurisdiction. The Petitioners argued that Rule 18, Section 5 of the IRR to the CREATE Act, RR No. 21-2021, RMC No. 24-2022, and RMC No. 49-2022 are unconstitutional for restricting the application of VAT zero-rating for local purchases only to Registered Export Enterprises (REEs), thereby excluding Domestic Market Enterprises (DMEs), such as the Petitioner. They contended that the CREATE Act makes no such distinction between DMEs and REEs, and that all registered business enterprises (RBEs) are entitled to the 5% tax on gross income and VAT zero-rating on local purchases. Thus, they maintained that the RTC erroneously dismissed its Petition for Declaratory Relief for lack of jurisdiction. On the other hand, the Respondents counter that the RTC correctly ruled as it does not have jurisdiction to determine the constitutionality or validity of tax laws and rules. In ruling, the Supreme Court held that the CTA has jurisdiction over cases involving the validity of tax laws, rules, regulations and administrative issuances. It further ruled that the CTA may assume jurisdiction, as an exception to the Doctrine of Exhaustion of Administrative Remedies, considering the strong public interest involved. In addition, the Court held that Rule 18, Section 5 of the CREATE IRR, RR No. 21-2022, RMC No. 24-2022, and RMC No. 49-2022 are unconstitutional insofar as they limit the VAT zero-rating incentives on sale of goods and services to REEs. The Court clarified that all RBEs, including REEs and DMEs, are entitled to VAT zero-rating on local purchases of goods and services directly and exclusively used in their registered project or activity, consistent with the Cross-Border Doctrine and Destination Principle of the Philippine VAT system. Thus, sales by suppliers from a customs territory to purchasers located within the freeport zone are deemed export sales subject to 0% VAT. Consequently, the Court GRANTED the Petition holding that the assailed issuances, having altered the provisions of the CREATE Act, by removing DMEs from those entitled to VAT zero-rating incentive, are ultra vires. [THE SUBIC BAY FREEPORT CHAMBER OF COMMERCE, INC. & BENJAMIN E. ANTONIO, III VS DEPARTMENT OF FINANCE, DEPARTMENT OF TRADE & INDUSTRY, BUREAU OF INTERNAL REVENUE, REVENUE DISTRICT OFFICE NO. 19 OF SUBIC BAY FREEPORT ZONE & SUBIC BAY METROPOLITAN AUTHORITY, G.R. NO. 266016, FEBRUARY 4, 2025, UPLOADED ON SEPTEMBER 29, 2025]
III. BIR CLARIFIES THE DOCUMENTARY REQUIREMENTS FOR BUSINESS REGISTRATION BEING SIGNED BY THE ASSISTANT CORPORATE SECRETARY OF CORPORATION
Revenue Memorandum Circular (RMC) No. 91-2025, issued on October 8, 2025, clarifies the documentary requirements for business registration, in relation to RMC No. 74-2025.
It may be recalled that RMC No. 74-2025 provides that only the duly appointed Corporate Secretary is authorized to sign Secretary’s Certificates, pursuant to the Revised Corporation Code, and it cannot be substituted by a Secretary’s Certificate signed by an Assistant Secretary. However, RMC No. 91-2025 was issued to further clarify the documentary requirements, stating that the BIR shall accept Board Resolutions and Secretary’s Certificates signed by Assistant Corporate Secretaries to reduce administrative burden and simplify the business registration-related processes.
BIR chases billions from online sellers [The Philippine Star, October 14, 2025]
Lumagui said it is continuously coordinating with online merchant platforms and the Department of Trade and Industry on how to implement the shutdown of websites that fail to pay the required fees.
https://www.philstar.com/business/2025/10/14/2479650/bir-chases-billions-online-sellers
PEZA teams up with China technology firm [The Manila Times, October 14, 2025]
THE Philippine Economic Zone Authority (PEZA) on Monday said that it teamed up with FiberHome Phils. Inc. to enhance telecommunication solutions for ecozones.
Analysts see stronger transparency from SEC’s proposed ownership disclosure rules [BusinessWorld, October 14, 2025]
The proposed guidelines categorize beneficial owners based on various modes of control or ownership. These include direct ownership of at least 20% of shares, contractual control, influence over board elections, dominant influence over corporate policies, nominee arrangements, and senior management control when no natural person is otherwise identifiable.
DOE: Full RE foreign ownership added 20 GW to Philippine power supply [Philippine Daily Inquirer, October 14, 2025]
Department of Energy (DOE) Undersecretary Rowena Cristina Guevara acknowledged the private sector’s role in helping the country hit its target of 35 percent renewable energy share in the electricity generation mix by 2030.
https://business.inquirer.net/552415/doe-full-re-foreign-ownership-added-20-gw-to-ph-power-supply
Cirtek on the hunt for new investors [The Philippine Star, October 14, 2025]
Cirtek Holdings Philippines Corp., a listed integrated technology company chaired by Jerry Liu, is seeking new investors as the company recovers from financial setbacks due to a global slowdown in market demand.
https://www.philstar.com/business/2025/10/14/2479639/cirtek-hunt-new-investors
Buildings designed, built properly generally safe in strong earthquakes, says engineer [GMA News Online, October 13, 2025]
According to a study of the Philippine Institute of Volcanology and Seismology (PHIVOLCS), Metropolitan Manila Development Authority, and Japan International Cooperation Agency, 40% of residential buildings in Metro Manila could collapse or be affected once the “Big One,” or the magnitude 7.2 earthquake, hits.
‘Tax holiday won’t fix corruption, public trust issues’ [The Philippine Star, October 13, 2025]
Senate Bill 1446 or the One-Month Tax Holiday of 2025 seeks to provide a one-month income tax exemption to individual taxpayers receiving compensation income.
Lucena, Siquijor ports set for nearly P700M in upgrades [BusinessWorld, October 13, 2025]
The port regulator said it issued bid invitations for the P620-million expansion of Lucena Port in Quezon and the P58-million expansion of Lazi Port in Siquijor.
GOCC pay scheme under GCG review [BusinessWorld, October 13, 2025]
In a statement dated Oct. 9, the regulator said the guidelines for the new Compensation and Position Classification System II (CPCS II) — which raises salaries and adds tiered medical allowances — are now being looked at by the GCG, sitting en banc.
https://www.bworldonline.com/economy/2025/10/13/705000/gocc-pay-scheme-under-gcg-review/
PNB Holdings bets on IT-BPM, lifestyle retailers [Philippine Daily Inquirer, October 13, 2025]
Joselito Consunji, COO of PNB Holdings Corp. (PHC), told the Inquirer in an email interview that their properties currently maintained an occupancy rate of almost 90 percent. These are both at PNB Financial Center in Pasay City and PNB Makati Center.
https://business.inquirer.net/552312/pnb-holdings-bets-on-it-bpm-lifestyle-retailers
ICTSI climbs on long-term Subic terminal deal [BusinessWorld, October 13, 2025]
RAZON-LED International Container Terminal Services, Inc. (ICTSI) shares surged last week after the company secured a 25-year renewal of its Subic New Container Terminals (NCT) 1 and 2 concessions.
Right-of-way issues still hamper ODA-assisted projects in Philippines [BusinessWorld, October 13, 2025]
The acquisition of RoW from landowners for National Government infrastructure projects is mostly hampered by disputes over property valuation.
Palace OKs Creative Industries Development Plan [The Philippine Star, October 13, 2025]
The creative economy at current prices amounted to P1.94 trillion in 2024, higher by 8.7 percent than P 1.78 trillion in 2023, the latest PSA data showed. The sector accounted for 7.3 percent of the gross domestic product and employed 7.51 million people last year.
Ayala partners with IKEA [The Philippine Star, October 13, 2025]
IKEA opened its first store in the country in 2021 at the Mall of Asia Complex in Pasay City.
https://www.philstar.com/business/2025/10/13/2479382/ayala-partners-ikea
Decades-old forfeiture law could curb ill-gotten wealth, lawyer says [The Philippine Star, October 12, 2025]
Known as the Forfeiture Law, it empowers authorities to confiscate assets clearly disproportionate to a public official’s lawful income.
‘Cash for iris scan’: NPC issues cease and desist vs firm amid alleged data privacy violations [ABS-CBN News, October 11, 2025]
“The NPC determined that offering monetary incentives to individuals in exchange for submitting to iris scanning constituted undue influence. This rendered the consent obtained not freely given, and therefore invalid under the DPA and relevant NPC issuances,” the NPC statement read.
MVP: Corruption scandal puts Philippine credit rating at risk [Philippine Daily Inquirer, October 11, 2025]
Speaking before the Financial Executives Institute of the Philippines (Finex) on Friday, Manuel Pangilinan said the current political landscape may affect investor confidence, especially if “institutional responses are regarded as inadequate.”
https://business.inquirer.net/552033/mvp-corruption-scandal-puts-philippine-credit-rating-at-risk
Brian Poe wants ₱60-B PhilHealth subsidy to go directly to patients [Inquirer.Net, October 11, 2025]
He expressed concern that without strict oversight, PhilHealth might divert the funds to operational maintenance, which he noted the agency could already finance from its existing reserves of over ₱464 billion.
Philippines getting Google Pay, Apple Pay for cross-border payments [The Philippine Star, October 11, 2025]
Leading fintech innovator in cross-border and local payments Aqwire has officially become the local company to process transactions via Google Pay and Apple Pay for cross-border payments in the Philippines.
Efforts underway to exempt Philippines from ‘Keep Call Centers in America’ bill [The Philippine Star, October 10, 2025]
The Philippine ambassador to the United States is pressing US lawmakers to exempt the country from a new bill that would punish American companies for using overseas call centers.
DFA releases statement after Gretchen Ho’s relative denied currency exchange in Norway [GMA Lifestyle, October 10, 2025]
According to the DFA, the incident occurred because the forex stall at Oslo Gardermoen Airport is following an outdated list of Financial Action Task Force (FATF) grey list, which “identifies countries that have deficiencies in their anti-money laundering and counter-terrorism financing regimes.”
Banks start cap on large cash withdrawals [The Philippine Star, October 10, 2025]
In a customer advisory, BDO Unibank Inc. said that starting Oct. 7, cash withdrawals of over P500,000 per banking day, or its equivalent in foreign currency equivalent, would require additional documents in compliance with BSP Circular 1218.
https://www.philstar.com/business/2025/10/10/2478711/banks-start-cap-large-cash-withdrawals
YouTube now reaches more rural Filipinos than traditional TV [Technobaboy, October 10, 2025]
The shift reflects how mobile access and creator-driven content are changing viewing habits outside Metro Manila. According to the report, 9 out of 10 Filipinos say they trust YouTube creators more than influencers on Facebook, Instagram, or TikTok.
https://www.technobaboy.com/2025/10/10/youtube-now-reaches-more-rural-filipinos-than-traditional-tv/
Corruption issues hurting US investor interest in the Philippines — Romualdez [BusinessWorld, October 10, 2025]
In a Super Radyo DZBB interview on Thursday, Mr. Romualdez estimated that around $100 billion to $150 billion in potential investments — including those linked to President Ferdinand R. Marcos, Jr.’s US engagements — may be at risk unless the corruption scandals are resolved.
DOTr secures right-of-way for NSCR sites, eyes 2026 partial completion [Inquirer.Net, October 9, 2025]
The Department of Transportation (DOTr) acquired on Thursday the right-of-way in six areas from Bulacan to Pampanga to complete the North-South Commuter Railway (NSCR) Project.
5 Philippine hotels get Michelin Key distinctions [The Philippine Star, October 9, 2025]
Three of the five Philippine hotels with a Michelin Key are located outside Metro Manila, all three on island havens.
Among ‘most corrupt’? Customs bureau defends reforms after US bribery report [The Philippine Star, October 9, 2025]
The bureau said it “acknowledges the concerns” raised in the U.S. State Department’s 2025 Investment Climate Statements report, which cited complaints from American companies about bribes, inconsistent fees, and intrusive customs inspections in the Philippines.
Erwin Tulfo’s tax holiday proposal must be studied, says Marcos economic aide [GMA News Online, October 9, 2025]
Under the proposed measure, the one-time, one-month income tax holiday will be applicable to individual taxpayers receiving compensation income, which will be on the first payroll month immediately following the approval of the bill.
Negative list overhaul urged to expand foreign role in infra projects [BusinessWorld, October 9, 2025]
In a report, “Addressing Legal and Regulatory Barriers to Quality Infrastructure Investment in India, Indonesia and the Philippines,” the OECD recommended that the Philippine government revisit its Foreign Investment Negative List (FINL), which outlines the industries where foreign investment is restricted due to national security, public safety, and public health concerns.
BSP wants cap on funds transfers, banks to refuse suspicious withdrawals [GMA News Online, October 9, 2025]
According to BSP Governor Eli Remolona Jr., the central bank is studying more measures that would deter the use of funds for illicit activities, after it earlier set a P500,000 maximum for daily cash withdrawals.
‘Pasaway’: BIR chief says Discaya couple dodges notices [The Philippine Star, October 9, 2025]
Lumagui said this when asked why the tax evasion case against the contractor couple was filed only this year, despite the bureau having audited them since last year, saying that the couple sometimes refused to accept the bureau’s documents.
VAT accounts for 62.9% of first-half Customs revenue [BusinessWorld, October 7, 2025]
“Such a rise is primarily driven by the 10.2% or P21.0 billion uptick in VAT collections for non-oil imports, but this was notably offset by the 10.2% decline in VAT collections from oil,” the DBCC said.
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