Second-round risks seen from wage hike
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [JULY 1-6]
- BIR DISPENSES THE REQUIREMENT OF OBTAINING A PRIOR CONFIRMATORY RULING ON TRANSFER OF PROPRIETARY CLUB SHARES
- BIR ABOLISHES THE LARGE TAXPAYERS VAT AUDIT UNIT & VAT AUDIT SECTION
- DOJ OPINION ON DAR LAND CLEARANCE
I. TAX & BUSINESS-RELATED NEWS [JULY 1-6]
- BOC exceeds June 2026 collection target by P2.8B
- Ube stakeholders forming own group
- Pilmico, Tesda boost meat industry skills
- Marcos unfazed by loss of grants as world bank reclassifies PH economy
- SEC vows more reforms as PH income status rises
BOC exceeds June 2026 collection target by P2.8B [Philippines News Agency, July 6, 2026]
BOC Commissioner Ariel Nepomuceno said the revenue performance was driven by the collective contributions of its 17 collection districts, supported by strengthened customs enforcement, enhanced trade facilitation, improved compliance measures, and the continued modernization of customs systems and processes.
https://www.pna.gov.ph/articles/1278732
Ube stakeholders forming own group [The Manila Times, July 6, 2026]
UBE (purple yam) stakeholders are forming their own association and having it registered this month, Bureau of Plant Industry (BPI) Director Glenn Panganiban said in a statement.
https://www.manilatimes.net/2026/07/06/business/ube-stakeholders-forming-own-group/2378633
Pilmico, Tesda boost meat industry skills [Inquirer.Net, July 6, 2026]
Pilmico Animal Nutrition Corp., Infinity Vocational Training School Inc. (IVTSI) and the Technical Education and Skills Development Authority (Tesda) have teamed up to provide hands-on training in meat butchery in Tarlac.
https://business.inquirer.net/599137/pilmico-tesda-boost-meat-industry-skills
Marcos unfazed by loss of grants as world bank reclassifies PH economy [The Manila Times, July 4, 2026]
“I do not worry, we were discussing this earlier today, and I don’t think that it will lead to an increase in interest rates for loans, for example, but we do believe the effect will be on the grants that are given,” Marcos said in a joint press conference with Canadian Prime Minister Mark Carney at Vancouver Convention Center.
SEC vows more reforms as PH income status rises [The Manila Times, July 4, 2026]
The SEC said it is now drafting rules on market making and reforms to the public offering framework for debt securities to improve liquidity and align with international standards.
II. BIR DISPENSES THE REQUIREMENT OF OBTAINING A PRIOR CONFIRMATORY RULING ON TRANSFER OF PROPRIETARY CLUB SHARES
Revenue Memorandum Circular (RMC) No. 072-2026, issued on June 30, 2026, clarifies the tax treatment of transfers of proprietary club shares held under nominee or trust arrangements, dispensing with prior confirmatory ruling subject to post-audit verification. This confirms that such transfers are generally not subject to Capital Gains Tax (CGT), Documentary Stamp Tax (DST), or Donor’s Tax, provided beneficial ownership remains with the corporation and proper documentation exists.
Highlights include tax treatment, ruling requirements, compliance for electronic Certificate Authorizing Registration (eCAR) issuance, and pending applications of ruling.
If you wish to get a copy of complete text of CTA cases, please e-mail us at taxseminars@dmdcpa.com.ph.
III. BIR ABOLISHES THE LARGE TAXPAYERS VAT AUDIT UNIT & VAT AUDIT SECTION
Revenue Administrative Order (RAO) No. 004-2026, issued on June 24, 2026, abolishes the Large Taxpayers VAT Audit Unit (LT VAU) under the Large Taxpayers Service and the VAT Audit Section (VATAS) under the Assessment Division of the Revenue Regions. Their functions are transferred to the appropriate divisions and offices within the BIR, while affected personnel will be reassigned. The Order takes effect on June 1, 2026.
IV. DOJ OPINION
DAR LAND CLEARANCE IS NO LONGER REQUIRED FOR THE TRANSFER OF AGRARIAN LAND IN EXCESS OF FIVE (5) HECTARES WITH THE STATUTORY END OF CARP LAW ON JUNE 30, 2014
The Land Registration Authority (LRA) is seeking legal opinion on whether a Department of Agrarian Reform (DAR) Land Transfer Clearance (LTC) remains a requirement for the transfer and registration of agricultural lands after the expiration of the Comprehensive Agrarian Reform Program (CARP). The key legal issue raised is whether the retention limits under Republic Act (R.A.) No. 6657, otherwise known as Comprehensive Agrarian Reform (CARP) Law of 1988, as amended by R.A. No. 9700, or An Act Strengthening the CARP, and the LTC requirement under DAR Administrative Order (A.O.) No. 04, Series of 2021, remain legally enforceable after June 30, 2014, the lapse of the effectivity period for acquisition and distribution of agricultural lands under CARP Law. In reply, while DAR has authority to implement agrarian reform laws, such authority must be exercised within the period authorized by Congress. CARP acquisition and distribution program was subject to a sunset clause that expired on June 30, 2014. Furthermore, the expiration of CARP rendered the retention limits and related obligations under R.A. No. 6657 functus officio or no longer operative. Consequently, any requirement imposed solely for CARP compliance, including the securing of an LTC before transferring private agricultural land, lost its legal basis. Also, landowners are no longer required to obtain DAR LTC for transfers of agricultural land based on CARP retention-limit considerations. Thus, the retention limits under R.A. No. 6657 are no longer relevant or enforceable after CARP’s expiration, dispensing with the LTC requirement under DAR A.O. No. 04, s. 2021. [DEPARTMENT OF JUSTICE LEGAL OPINION NO. 16, SERIES OF 2026, MARCH 9, 2026]
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