The Japanese Business Development (JBD) conducted another successful tax and accounting seminar for Japanese executives together with the Worldtrade Management Services (WMS) last 10 March 2015 at the Learning room in our Makati office.
JBD Manager Naoyuki Takahata (in photo, far left) began the seminar with the topic “Cost accounting as management accounting”. Based on his past experiences in a Japanese manufacturing company, Taka shared his practical knowledge that was useful for the participating companies, especially those applying standard costing.
Since many participants are Philippine Economic Zone Authority (PEZA) locators, PEZA project management tips in terms of common cost allocation were helpful. Aside from management accounting, he introduced important points in “PAS2 Inventory”, which is key standard for financial reporting of those PEZA manufacturers or logistics locators. Valuation of inventory, including treatment of non-moving inventory, is frequently discussed in their actual audit.
WMS Partner Paul Sumner (in photo, third from left) and WMS Senior Manager Alex Saborio (second from left) were the resource speakers on Customs updates. Alex discussed the following:
Paul gave insights on the challenges in determining origin requirements and technical issues encountered within FTAs. After enumerating the “BOC transparency actions for 2015”, Alex and Paul did a Q&A to hear the participants' concerns and clarifications.
JBD Senior Manager Kentaro Tojo (in photo, far right) said that unlike corporate income taxes, the BIR is still not keenly looking into expats' individual income taxes. Actual filing practice differs from company to company. Nevertheless, more and more Japanese companies have been complying with the tax rules in terms of individual income tax, considering the BIR's current situation.
The participants mainly questioned matters in relation to the Japanese expats' individual income taxes. In principle, they shall file a return for all Philippines-sourced income, regardless of the place of payment. Gigie also explained the very high interest rate of 12% under the current tax rule, which is applicable to any type of employee loans for FBT purposes.
The participants, mostly C-suite Japanese executives from roughly 40 companies, expressed their positive feedback to the seminar through face-to-face discussions with them and evaluation forms.
Markets Senior Manager, PwC Philippines
Tel: +63 (2) 8845 2728
Markets Manager, PwC Philippines
Tel: +63 (2) 8845 2728 Ext. 3196