Global mining industry posts record $133bn in profits in 2011 while share prices plunge

In this issue

Global mining industry posts record $133bn in profits in 2011 while share prices plunge

Bureau of Internal Revenue

Revenue Regulation (RR)

  • Amendment to the rule on de minimis benefits exempt from tax under RR Nos. 5-2008 and 5-2011 (RR No. 8-2012 dated 11 May 2012)
  • Schedule of payment/remittance of taxes on non redemption of properties sold during involuntary sales (RR No. 9-2012 dated 31 May 2012)
  • Guidelines on the non-taxable status of JV or consortium formed for the purpose of undertaking construction projects (RR No. 10-2012 dated 1 June 2012)

Revenue Memorandum Circular (RMC)

  • Additional guidelines in filing, receiving and processing of 2011 ITR and the required attachments as prescribed under RR No. 19-2011(RMC No. 15-2012 dated 3 April 2012)
  • Clarification on the implementation of RR No. 5-2012 (RMC No. 22-2012 dated 7 May 2012)
  • Withholding tax responsibilities of government officials and employees (RMC No. 23-2012 dated 8 May 2012)
  • Maintenance and submission of Official Register Books on Tax-Paid Petroleum Products stored on formerly bonded storage facilities (RMC No. 24-2012 dated 21 May 2012)
  • Circularizing the En Banc SC Decision concerning the liability of PAGCOR to corporate income tax and revocation of pertinent provisions of RR No. 16-2005 relative to the imposition of 10% VAT on PAGCOR (RMC No. 24-2012 dated 21 May 2012)
  • Implementing guidelines of the MOA between the BIR and the MGB (RMC No. 28-2012 dated 21 June 2012)
  • Revision of the form to be used for Waiver of the Defense of Prescription (RMC No. 29-2012 dated 29 June 2012 )

Revenue Memorandum Order (RMO)

  • Simplified guidelines and procedures in processing LN (RMO 13-2012 dated 16 May 2012)
  • Electronic sales reporting of taxpayers using CRMs, POS machines and other invoice/receipt generating machines using the Electronic Sales Reporting (eSales) System (RMO 12-2012 dated 16 May 2012)
  • Meaning of “same or connected project” under the tax treaty (BIR ITAD Ruling No. 148-12 dated 3 April 2012)
  • Publication of electronic copies of books and other instructional materials not exempt from VAT (BIR Ruling No. 244-2012 dated 10 April 2012)
  • Sale of fixed assets related to registered activity shall be subject to the 30% regular corporate income tax (BIR Ruling No. 291-2012 dated 25 April 2012)
  • Grant of right-of-way is not subject to CGT and registration with the Register of Deeds does not require a CAR (BIR Ruling No. 248-2012 dated 13 April 2012)

BIR rulings

  • ATP receipts not required for printing of raffle tickets; but income from the sale of said raffle tickets shall be subject to income tax (BIR Ruling No. 163-2012 dated 7 March 2012)
  • Special leave benefits given to women under RA No. 9710 not excluded from gross income (BIR Ruling No. 187-2012 dated 15 March 2012)

Other issuances

Court decisions

Court of Tax Appeals (CTA)
  • 15% BPRT applies only if there was remittance of profit to the head office. Availment of tax treaty relief requires filing of the application for tax treaty relief within the deadline
    prescribed under RMO No. 1-2000 (CTA EB No. 72, CTA Case No. 7667 dated 16 May 2012)
  • In a claim for refund/tax credit certificate of input VAT on zero-rated sales, supporting document must be a documentary substantiation of input VAT paid and not for the zero-rated export sales (CTA Case No. 6128 dated 25 May 2012)
  • Royalties paid to a US resident not entitled to lower tax rate per PH-Czech Tax Treaty (CTA EB No. 734 dated 24 May 2012)
Office of the President
  • Extension of zero duty rate on capital importations of BOI-registered entities (EO No. 70 dated 29 March 2012 and DTI-BOI Administrative Order No.
    12-01 Series of 2012)
  • Approval of the 2012 Investment Priorities Plan (Memorandum Order No. 40 dated 13 June 2012)
Securities and Exchange Commission (SEC)
  • Guidelines to ensure the effective assessment and of the performance of audit committees of listed companies (SEC Memorandum Circular No. 4 dated 31 May 2012)
  • VAT TCC monetization guidelines (DOF-DBM-BIR-BOC Joint Circular Nos. 2 and 3 dated 31 May 2012)

Meet us

  • Isla Lipana & Co. admits two new tax partners