Government and the Global CEO: report calls for a new contract between business and the state

In this issue

Government and the Global CEO: report calls for a new contract between business and the state Bureau of Internal Revenue

Bureau of Internal Revenue (BIR)

  • Policies, guidelines and procedures in processing specific requests for information pursuant to the exchange of information provision of Philippine Tax Treaties Revenue (RMO No. 2-2013 dated 18 February 2013)
  • Tax implications and manner of recording of deposits/advances for expenses received by taxpayers who are not GPPs (RMC No. 16-2013 dated 8 February 2013)
  • Taxation of contractors pursuant to an FTAA with the government (RMC No. 17-2013 dated 15 February 2013)
  • Taxation of association dues, membership fees, and other assessments and charges collected by homeowners’ associations (RMC No. 9-2013 dated 29 January 2013)
  • Additional amendments on the excise taxation of ethyl alcohol or ethanol as provided under RMC No. 03-2012 (RMC No. 18-2013 dated 15 February 2013)
  • VAT is an indirect tax which can be shifted by a VATregistered seller to customers, whether registered as VAT or Non-VAT or VAT-exempt taxpayers (BIR ITAD Ruling No. 029-2013 dated 18 February 2013)
  • Royalties paid to a US resident is subject to preferential income tax rate of 10% pursuant to the MFN clause under the RP-US Tax Treaty in relation to the RP-Czech Tax Treaty (BIR ITAD Ruling No. 24-2013 dated 11 February 2013)
  • Appointment of a local manufacturer and a local exclusive distributor considered permanent establishments of the foreign company under the applicable tax treaty (BIR ITAD Ruling No. 013-2013 dated 29 January 2013)

Court decisions

  • Mere acceptance and transfer/assignment of promissory notes are not subject to DST; In case of doubt, tax laws must be construed strictly against the State and liberally
    in favor of the taxpayer (GR No. 169899 dated 06 February 2013)
  • Failure to prove that the requirement of payment under protest has been complied with renders administrative protest under Sec. 226 of the LGC without effect (CTA EB No. 850 dated 29 November 2012)
  • An FNBS may be deemed a final decision denying a disputed or protested assessment which, if not timely elevated to the CIR or the CTA, shall become final, executory and demandable (CTA Case No. 7700 dated 06 December 2012)
  • Option to carry-over excess tax credit under Section 76 of the NIRC is irrevocable and does not admit of any exceptions (CTA EB No. 828 dated 08 February 2013)

Executive issuances

  • Amendments of rules pertaining to the date of submission of the ISAFS of financing and lending companies (SEC Memorandum Circular No. 3, Series of 2013 dated 15 January 2013)
  • PFIs and banks in the BSDLF of the SSS are exempt from the liquidity floor and reserve requirements of the BSP (SSS Circular No. 2013-002 dated 29 January 2013)
  • Preparation of 2012 annual financial statements of insurance and reinsurance companies, mutual benefit associations and pre-need companies (DOF-Insurance Commission Circular Letter No. 1-2013 dated
    28 January 2013)

Meet us

  • Japanese Business Development (JBD) holds seminar on Transfer Pricing, Tax Assessment